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v3.23.1

Segment Information (Tables) | 3 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Business Segment Financial Information | The following tables present financial information by segment for the three months ended March 31, 2023 and 2022. Table 24.1 – Business Segment Financial Information
|  | Three Months Ended March 31, 2023
(In Thousands) |  | Residential Mortgage Banking |  | Business Purpose Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 5,510 |  |  | $ | 4,494 |  |  | $ | 163,660 |  |  | $ | 4,852 |  |  | $ | 178,516 |
Interest expense |  | (6,866) |  |  | (4,038) |  |  | (123,452) |  |  | (17,723) |  |  | (152,079) |
Net interest income (loss) |  | (1,356) |  |  | 456 |  |  | 40,208 |  |  | (12,871) |  |  | 26,437 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 3,365 |  |  | 13,306 |  |  | — |  |  | — |  |  | 16,671 |
Investment fair value changes, net |  | 1,076 |  |  | — |  |  | (1,014) |  |  | (189) |  |  | (127) |
Other income, net |  | — |  |  | 2,408 |  |  | 2,168 |  |  | (20) |  |  | 4,556 |
Realized gains, net |  | — |  |  | — |  |  | (117) |  |  | 115 |  |  | (2) |
Total non-interest income (loss), net |  | 4,441 |  |  | 15,714 |  |  | 1,037 |  |  | (94) |  |  | 21,098 |
General and administrative expenses |  | (4,806) |  |  | (13,678) |  |  | (1,409) |  |  | (15,662) |  |  | (35,555) |
Portfolio management costs |  | — |  |  | — |  |  | (3,510) |  |  | — |  |  | (3,510) |
Loan acquisition costs |  | (175) |  |  | (1,114) |  |  | — |  |  | — |  |  | (1,289) |
Other expenses |  | — |  |  | (3,108) |  |  | (576) |  |  | — |  |  | (3,684) |
Benefit from (provision for) income taxes |  | 633 |  |  | 703 |  |  | (213) |  |  | — |  |  | 1,123 |
Segment Contribution |  | $ | (1,263) |  |  | $ | (1,027) |  |  | $ | 35,537 |  |  | $ | (28,627) |  |  |
Net income |  |  |  |  |  |  |  |  |  | $ | 4,620 |
Non-cash amortization (expense) income, net |  | $ | (255) |  |  | $ | (3,701) |  |  | $ | (2,833) |  |  | $ | (2,106) |  |  | $ | (8,895) |
|  | Three Months Ended March 31, 2022
(In Thousands) |  | Residential Mortgage Banking |  | Business Purpose Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 12,967 |  |  | $ | 4,841 |  |  | $ | 170,572 |  |  | $ | 1,020 |  |  | $ | 189,400 |
Interest expense |  | (6,936) |  |  | (2,568) |  |  | (116,581) |  |  | (10,213) |  |  | (136,298) |
Net interest income (loss) |  | 6,031 |  |  | 2,273 |  |  | 53,991 |  |  | (9,193) |  |  | 53,102 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 7,935 |  |  | 8,380 |  |  | — |  |  | — |  |  | 16,315 |
Investment fair value changes, net |  | — |  |  | — |  |  | (5,406) |  |  | (714) |  |  | (6,120) |
Other income, net |  | — |  |  | 575 |  |  | 5,282 |  |  | 126 |  |  | 5,983 |
Realized gains, net |  | — |  |  | — |  |  | 2,581 |  |  | — |  |  | 2,581 |
Total non-interest income (loss), net |  | 7,935 |  |  | 8,955 |  |  | 2,457 |  |  | (588) |  |  | 18,759 |
General and administrative expenses |  | (6,101) |  |  | (10,472) |  |  | (1,555) |  |  | (15,148) |  |  | (33,276) |
Portfolio management costs |  | — |  |  | — |  |  | (1,578) |  |  | — |  |  | (1,578) |
Loan acquisition costs |  | (1,417) |  |  | (3,048) |  |  | — |  |  | — |  |  | (4,465) |
Other expenses |  | — |  |  | (3,534) |  |  | (551) |  |  | — |  |  | (4,085) |
Benefit from (provision for) income taxes |  | 1,007 |  |  | 3,281 |  |  | (1,830) |  |  | — |  |  | 2,458 |
Segment Contribution |  | $ | 7,455 |  |  | $ | (2,545) |  |  | $ | 50,934 |  |  | $ | (24,929) |  |  |
Net Income |  |  |  |  |  |  |  |  |  | $ | 30,915 |
Non-cash amortization income (expense), net |  | $ | 104 |  |  | $ | (3,890) |  |  | $ | 7,300 |  |  | $ | (2,033) |  |  | $ | 1,481 |
Components of Corporate and Other | The following table presents the components of Corporate/Other for the three months ended March 31, 2023 and 2022. Table 24.2 – Components of Corporate/Other
|  | Three Months Ended March 31,
|  | 2023 |  | 2022
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 2,543 |  |  | $ | 2,309 |  |  | $ | 4,852 |  |  | $ | 1,012 |  |  | $ | 8 |  |  | $ | 1,020 |
Interest expense |  | (2,504) |  |  | (15,219) |  |  | (17,723) |  |  | (701) |  |  | (9,512) |  |  | (10,213) |
Net interest income (loss) |  | 39 |  |  | (12,910) |  |  | (12,871) |  |  | 311 |  |  | (9,504) |  |  | (9,193) |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (94) |  |  | (95) |  |  | (189) |  |  | (714) |  |  | — |  |  | (714) |
Other income |  | — |  |  | (20) |  |  | (20) |  |  | — |  |  | 126 |  |  | 126 |
Realized gains, net |  | — |  |  | 115 |  |  | 115 |  |  | — |  |  | — |  |  | — |
Total non-interest income (loss), net |  | (94) |  |  | — |  |  | (94) |  |  | (714) |  |  | 126 |  |  | (588) |
General and administrative expenses |  | — |  |  | (15,662) |  |  | (15,662) |  |  | — |  |  | (15,148) |  |  | (15,148) |
Total |  | $ | (55) |  |  | $ | (28,572) |  |  | $ | (28,627) |  |  | $ | (403) |  |  | $ | (24,526) |  |  | $ | (24,929) |
(1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Supplemental Information by Segment | The following table presents supplemental information by segment at March 31, 2023 and December 31, 2022. Table 24.3 – Supplemental Segment Information
(In Thousands) |  | Residential Mortgage Banking |  | Business Purpose Mortgage Banking |  |  |  | Investment Portfolio |  | Corporate/ Other |  | Total
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 26,975 |  |  | $ | — |  |  |  |  | $ | 5,295,883 |  |  | $ | 170,000 |  |  | $ | 5,492,858 |
Business purpose loans |  | — |  |  | 371,385 |  |  |  |  | 4,993,264 |  |  | — |  |  | 5,364,649 |
Consolidated Agency multifamily loans |  | — |  |  | — |  |  |  |  | 426,599 |  |  | — |  |  | 426,599 |
Real estate securities |  | 1,700 |  |  | — |  |  |  |  | 241,646 |  |  | — |  |  | 243,346 |
Home equity investments |  | — |  |  | — |  |  |  |  | 416,783 |  |  | — |  |  | 416,783 |
Other investments |  | — |  |  | — |  |  |  |  | 324,293 |  |  | 57,397 |  |  | 381,690 |
Goodwill |  | — |  |  | 23,373 |  |  |  |  | — |  |  | — |  |  | 23,373 |
Intangible assets |  | — |  |  | 37,784 |  |  |  |  | — |  |  | — |  |  | 37,784 |
Total assets |  | 43,095 |  |  | 469,959 |  |  |  |  | 11,898,454 |  |  | 709,778 |  |  | 13,121,286 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 628,160 |  |  | $ | — |  |  |  |  | $ | 4,800,096 |  |  | $ | 184,932 |  |  | $ | 5,613,188 |
Business purpose loans |  | — |  |  | 364,073 |  |  |  |  | 4,968,513 |  |  | — |  |  | 5,332,586 |
Consolidated Agency multifamily loans |  | — |  |  | — |  |  |  |  | 424,551 |  |  | — |  |  | 424,551 |
Real estate securities |  | — |  |  | — |  |  |  |  | 240,475 |  |  | — |  |  | 240,475 |
Home equity investments |  | — |  |  | — |  |  |  |  | 403,462 |  |  | — |  |  | 403,462 |
Other investments |  | — |  |  | — |  |  |  |  | 334,420 |  |  | 56,518 |  |  | 390,938 |
Goodwill |  | — |  |  | 23,373 |  |  |  |  | — |  |  | — |  |  | 23,373 |
Intangible assets |  | — |  |  | 40,892 |  |  |  |  | — |  |  | — |  |  | 40,892 |
Total assets |  | 660,916 |  |  | 487,159 |  |  |  |  | 11,303,991 |  |  | 578,833 |  |  | 13,030,899 |

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