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Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Schedule of Business Segment Financial Information | The following tables present financial information by segment for the three and six months ended June 30, 2023 and 2022. Table 24.1 – Business Segment Financial Information
|  | Three Months Ended June 30, 2023
(In Thousands) |  | Residential Mortgage Banking |  | Business Purpose Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 2,434 |  |  | $ | 4,397 |  |  | $ | 166,603 |  |  | $ | 5,547 |  |  | $ | 178,981 |
Interest expense |  | (1,700) |  |  | (3,673) |  |  | (129,855) |  |  | (17,657) |  |  | (152,885) |
Net interest income (expense) |  | 734 |  |  | 724 |  |  | 36,748 |  |  | (12,110) |  |  | 26,096 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 7,061 |  |  | 9,491 |  |  | — |  |  | — |  |  | 16,552 |
Investment fair value changes, net |  | — |  |  | — |  |  | (1,837) |  |  | (2,759) |  |  | (4,596) |
Other income, net |  | — |  |  | 1,076 |  |  | 4,013 |  |  | (931) |  |  | 4,158 |
Realized gains, net |  | — |  |  | — |  |  | 949 |  |  | 107 |  |  | 1,056 |
Total non-interest income (loss), net |  | 7,061 |  |  | 10,567 |  |  | 3,125 |  |  | (3,583) |  |  | 17,170 |
General and administrative expenses |  | (3,738) |  |  | (11,638) |  |  | (1,241) |  |  | (14,188) |  |  | (30,805) |
Portfolio management costs |  | — |  |  | — |  |  | (3,087) |  |  | (13) |  |  | (3,100) |
Loan acquisition costs |  | (149) |  |  | (1,295) |  |  | — |  |  | — |  |  | (1,444) |
Other expenses |  | — |  |  | (3,107) |  |  | (1,868) |  |  | — |  |  | (4,975) |
(Provision for) Benefit from income taxes |  | (707) |  |  | 1,406 |  |  | (1,465) |  |  | 697 |  |  | (69) |
Segment Contribution |  | $ | 3,201 |  |  | $ | (3,343) |  |  | $ | 32,212 |  |  | $ | (29,197) |  |  |
Net income |  |  |  |  |  |  |  |  |  | $ | 2,873 |
Non-cash amortization (expense), net |  | $ | (292) |  |  | $ | (3,333) |  |  | $ | (1,857) |  |  | $ | (2,086) |  |  | $ | (7,568) |
|  | Six Months Ended June 30, 2023
(In Thousands) |  | Residential Mortgage Banking |  | Business Purpose Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 7,944 |  |  | $ | 8,891 |  |  | $ | 330,263 |  |  | $ | 10,399 |  |  | $ | 357,497 |
Interest expense |  | (8,566) |  |  | (7,711) |  |  | (253,307) |  |  | (35,380) |  |  | (304,964) |
Net interest income (expense) |  | (622) |  |  | 1,180 |  |  | 76,956 |  |  | (24,981) |  |  | 52,533 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 10,426 |  |  | 22,797 |  |  | — |  |  | — |  |  | 33,223 |
Investment fair value changes, net |  | 1,076 |  |  | — |  |  | (2,851) |  |  | (2,948) |  |  | (4,723) |
Other income, net |  | — |  |  | 3,484 |  |  | 6,181 |  |  | (951) |  |  | 8,714 |
Realized gains, net |  | — |  |  | — |  |  | 832 |  |  | 222 |  |  | 1,054 |
Total non-interest income (loss), net |  | 11,502 |  |  | 26,281 |  |  | 4,162 |  |  | (3,677) |  |  | 38,268 |
General and administrative expenses |  | (8,544) |  |  | (25,316) |  |  | (2,650) |  |  | (29,850) |  |  | (66,360) |
Portfolio management costs |  | — |  |  | — |  |  | (6,597) |  |  | (13) |  |  | (6,610) |
Loan acquisition costs |  | (324) |  |  | (2,409) |  |  | — |  |  | — |  |  | (2,733) |
Other expenses |  | — |  |  | (6,215) |  |  | (2,444) |  |  | — |  |  | (8,659) |
(Provision for) Benefit from income taxes |  | (74) |  |  | 2,109 |  |  | (1,678) |  |  | 697 |  |  | 1,054 |
Segment Contribution |  | $ | 1,938 |  |  | $ | (4,370) |  |  | $ | 67,749 |  |  | $ | (57,824) |  |  |
Net Income |  |  |  |  |  |  |  |  |  | $ | 7,493 |
Non-cash amortization (expense), net |  | $ | (547) |  |  | $ | (7,035) |  |  | $ | (4,690) |  |  | $ | (4,193) |  |  | $ | (16,465) |
|  | Three Months Ended June 30, 2022
(In Thousands) |  | Residential Mortgage Banking |  | Business Purpose Mortgage Banking |  | Investment Portfolio |  | Corporate/ Other |  | Total
Interest income |  | $ | 13,199 |  |  | $ | 8,586 |  |  | $ | 144,478 |  |  | $ | 1,192 |  |  | $ | 167,455 |
Interest expense |  | (8,297) |  |  | (4,258) |  |  | (102,589) |  |  | (11,823) |  |  | (126,967) |
Net interest income (expense) |  | 4,902 |  |  | 4,328 |  |  | 41,889 |  |  | (10,631) |  |  | 40,488 |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | (17,787) |  |  | (12,230) |  |  | — |  |  | — |  |  | (30,017) |
Investment fair value changes, net |  | — |  |  | — |  |  | (98,111) |  |  | 10,139 |  |  | (87,972) |
Other income, net |  | — |  |  | 1,054 |  |  | 6,235 |  |  | (283) |  |  | 7,006 |
Realized gains, net |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non-interest income (loss), net |  | (17,787) |  |  | (11,176) |  |  | (91,876) |  |  | 9,856 |  |  | (110,983) |
General and administrative expenses |  | (6,082) |  |  | (11,069) |  |  | (1,274) |  |  | (11,774) |  |  | (30,199) |
Portfolio management costs |  | — |  |  | — |  |  | (1,767) |  |  | — |  |  | (1,767) |
Loan acquisition costs |  | (881) |  |  | (2,599) |  |  | — |  |  | — |  |  | (3,480) |
Other expenses |  | 74 |  |  | (3,306) |  |  | (236) |  |  | — |  |  | (3,468) |
Benefit from income taxes |  | 5,588 |  |  | 3,169 |  |  | 686 |  |  | — |  |  | 9,443 |
Segment Contribution |  | $ | (14,186) |  |  | $ | (20,653) |  |  | $ | (52,578) |  |  | $ | (12,549) |  |  |
Net (Loss) |  |  |  |  |  |  |  |  |  | $ | (99,966) |
Non-cash amortization (expense), net |  | $ | (760) |  |  | $ | (3,480) |  |  | $ | (1,450) |  |  | $ | (2,137) |  |  | $ | (7,827) |
Schedule of Components of Corporate and Other | The following table presents the components of Corporate/Other for the three and six months ended June 30, 2023 and 2022. Table 24.2 – Components of Corporate/Other
|  | Three Months Ended June 30,
|  | 2023 |  | 2022
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 2,740 |  |  | $ | 2,807 |  |  | $ | 5,547 |  |  | $ | 1,108 |  |  | $ | 84 |  |  | $ | 1,192 |
Interest expense |  | (2,659) |  |  | (14,998) |  |  | (17,657) |  |  | (967) |  |  | (10,856) |  |  | (11,823) |
Net interest income (expense) |  | 81 |  |  | (12,191) |  |  | (12,110) |  |  | 141 |  |  | (10,772) |  |  | (10,631) |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (10) |  |  | (2,749) |  |  | (2,759) |  |  | (336) |  |  | 10,475 |  |  | 10,139 |
Other income, net |  | — |  |  | (931) |  |  | (931) |  |  | — |  |  | (283) |  |  | (283) |
Realized gains, net |  | — |  |  | 107 |  |  | 107 |  |  | — |  |  | — |  |  | — |
Total non-interest income (loss), net |  | (10) |  |  | (3,573) |  |  | (3,583) |  |  | (336) |  |  | 10,192 |  |  | 9,856 |
General and administrative expenses |  | — |  |  | (14,188) |  |  | (14,188) |  |  | — |  |  | (11,774) |  |  | (11,774) |
Portfolio management costs |  | — |  |  | (13) |  |  | (13) |  |  | — |  |  | — |  |  | — |
Benefit from income taxes |  | — |  |  | 697 |  |  | 697 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 71 |  |  | $ | (29,268) |  |  | $ | (29,197) |  |  | $ | (195) |  |  | $ | (12,354) |  |  | $ | (12,549) |
|  | Six Months Ended June 30,
|  | 2023 |  | 2022
(In Thousands) |  | Legacy Consolidated VIEs(1) |  | Other |  | Total |  | Legacy Consolidated VIEs(1) |  | Other |  | Total
Interest income |  | $ | 5,283 |  |  | $ | 5,116 |  |  | $ | 10,399 |  |  | $ | 2,120 |  |  | $ | 92 |  |  | $ | 2,212 |
Interest expense |  | (5,163) |  |  | (30,217) |  |  | (35,380) |  |  | (1,668) |  |  | (20,367) |  |  | (22,035) |
Net interest income (expense) |  | 120 |  |  | (25,101) |  |  | (24,981) |  |  | 452 |  |  | (20,275) |  |  | (19,823) |
Non-interest income (loss) |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (104) |  |  | (2,844) |  |  | (2,948) |  |  | (1,050) |  |  | 10,475 |  |  | 9,425 |
Other income, net |  | — |  |  | (951) |  |  | (951) |  |  | — |  |  | (157) |  |  | (157) |
Realized gains, net |  | — |  |  | 222 |  |  | 222 |  |  | — |  |  | — |  |  | — |
Total non-interest income, net |  | (104) |  |  | (3,573) |  |  | (3,677) |  |  | (1,050) |  |  | 10,318 |  |  | 9,268 |
General and administrative expenses |  | — |  |  | (29,850) |  |  | (29,850) |  |  | — |  |  | (26,922) |  |  | (26,922) |
Portfolio management costs |  | — |  |  | (13) |  |  | (13) |  |  | — |  |  | — |  |  | — |
Benefit from income taxes |  | — |  |  | 697 |  |  | 697 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 16 |  |  | $ | (57,840) |  |  | $ | (57,824) |  |  | $ | (598) |  |  | $ | (36,879) |  |  | $ | (37,477) |
(1) Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Schedule of Supplemental Information by Segment | The following table presents supplemental information by segment at June 30, 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
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 196,737 |  |  | $ | — |  |  |  |  | $ | 5,095,940 |  |  | $ | 163,222 |  |  | $ | 5,455,899 |
Business purpose loans |  | — |  |  | 282,836 |  |  |  |  | 4,943,887 |  |  | — |  |  | 5,226,723 |
Consolidated Agency multifamily loans |  | — |  |  | — |  |  |  |  | 420,096 |  |  | — |  |  | 420,096 |
Real estate securities |  | 9,752 |  |  | — |  |  |  |  | 157,067 |  |  | — |  |  | 166,819 |
Home equity investments |  | — |  |  | — |  |  |  |  | 427,307 |  |  | — |  |  | 427,307 |
Other investments |  | — |  |  | — |  |  |  |  | 300,670 |  |  | 54,867 |  |  | 355,537 |
Goodwill |  | — |  |  | 23,373 |  |  |  |  | — |  |  | — |  |  | 23,373 |
Intangible assets |  | — |  |  | 34,677 |  |  |  |  | — |  |  | — |  |  | 34,677 |
Total assets |  | 221,282 |  |  | 380,404 |  |  |  |  | 11,559,826 |  |  | 635,222 |  |  | 12,796,734 |
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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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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