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Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Business Segment Financial Information

The following tables present financial information by segment for the three and nine months ended September 30, 2023 and 2022.

Table 24.1 – Business Segment Financial Information

						Three Months Ended September 30, 2023
(In Thousands)						Residential Mortgage Banking						Business Purpose Mortgage Banking						Investment Portfolio						Corporate/ Other						Total
Interest income						$	6,063					$	4,618					$	162,251					$	4,142					$	177,074
Interest expense						(4,826)						(3,888)						(131,303)						(16,706)						(156,723)
Net interest income (expense)						1,237						730						30,948						(12,564)						20,351
Non-interest income (loss)
Mortgage banking activities, net						8,964						10,476						—						—						19,440
Investment fair value changes, net						—						—						(31,315)						(115)						(31,430)
Other income, net						—						1,278						2,622						(1,554)						2,346
Realized gains, net						—						—						26						24						50
Total non-interest income (loss), net						8,964						11,754						(28,667)						(1,645)						(9,594)
General and administrative expenses						(4,521)						(9,402)						(1,340)						(14,434)						(29,697)
Portfolio management costs						—						—						(3,636)						(25)						(3,661)
Loan acquisition costs						(395)						(1,485)						—						—						(1,880)
Other expenses						—						(3,108)						(1,525)						—						(4,633)
(Provision for) Benefit from income taxes						(813)						318						(1,457)						256						(1,696)
Segment Contribution						$	4,472					$	(1,193)					$	(5,677)					$	(28,412)
Net (Loss)																														$	(30,810)
Non-cash amortization (expense), net						$	(266)					$	(3,294)					$	(1,687)					$	(2,099)					$	(7,346)

						Nine Months Ended September 30, 2023
(In Thousands)						Residential Mortgage Banking						Business Purpose Mortgage Banking						Investment Portfolio						Corporate/ Other						Total
Interest income						$	14,007					$	13,509					$	492,514					$	14,541					$	534,571
Interest expense						(13,392)						(11,599)						(384,610)						(52,086)						(461,687)
Net interest income (expense)						615						1,910						107,904						(37,545)						72,884
Non-interest income (loss)
Mortgage banking activities, net						19,390						33,273						—						—						52,663
Investment fair value changes, net						1,076						—						(34,166)						(3,063)						(36,153)
Other income, net						—						4,762						8,803						(2,505)						11,060
Realized gains, net						—						—						858						246						1,104
Total non-interest income (loss), net						20,466						38,035						(24,505)						(5,322)						28,674
General and administrative expenses						(13,065)						(34,718)						(3,990)						(44,284)						(96,057)
Portfolio management costs						—						—						(10,233)						(38)						(10,271)
Loan acquisition costs						(719)						(3,894)						—						—						(4,613)
Other expenses						—						(9,323)						(3,969)						—						(13,292)
(Provision for) Benefit from income taxes						(887)						2,427						(3,135)						953						(642)
Segment Contribution						$	6,410					$	(5,563)					$	62,072					$	(86,236)
Net (Loss)																														$	(23,317)
Non-cash amortization (expense), net						$	(813)					$	(10,291)					$	(6,167)					$	(6,292)					$	(23,563)

						Three Months Ended September 30, 2022
(In Thousands)						Residential Mortgage Banking						Business Purpose Mortgage Banking						Investment Portfolio						Corporate/ Other						Total
Interest income						$	9,882					$	9,082					$	156,882					$	1,816					$	177,662
Interest expense						(8,083)						(5,971)						(111,876)						(16,797)						(142,727)
Net interest income (expense)						1,799						3,111						45,006						(14,981)						34,935
Non-interest income (loss)
Mortgage banking activities, net						2,158						14,377						—						—						16,535
Investment fair value changes, net						—						—						(61,780)						4,083						(57,697)
Other income, net						—						399						3,906						(278)						4,027
Realized gains, net						—						—						—						—						—
Total non-interest income (loss), net						2,158						14,776						(57,874)						3,805						(37,135)
General and administrative expenses						(5,735)						(18,535)						(1,639)						(12,335)						(38,244)
Portfolio management costs						—						—						(1,863)						—						(1,863)
Loan acquisition costs						(550)						(1,876)						—						—						(2,426)
Other expenses						—						(3,891)						(370)						—						(4,261)
Benefit from income taxes						1,688						2,559						(5,664)						—						(1,417)
Segment Contribution						$	(640)					$	(3,856)					$	(22,404)					$	(23,511)
Net (Loss)																														$	(50,411)
Non-cash amortization (expense), net						$	(185)					$	(3,609)					$	(3,658)					$	(2,843)					$	(10,295)

						Nine Months Ended September 30, 2022
(In Thousands)						Residential Mortgage Banking						Business Purpose Mortgage Banking						Investment Portfolio						Corporate/ Other						Total
Interest income						$	36,048					$	22,509					$	471,932					$	4,028					$	534,517
Interest expense						(23,316)						(12,797)						(331,047)						(38,832)						(405,992)
Net interest income (expense)						12,732						9,712						140,885						(34,804)						128,525
Non-interest income (loss)
Mortgage banking activities, net						(7,694)						10,527						—						—						2,833
Investment fair value changes, net						—						—						(165,297)						13,508						(151,789)
Other income, net						—						2,028						15,423						(435)						17,016
Realized gains, net						—						—						2,581						—						2,581
Total non-interest income (loss), net						(7,694)						12,555						(147,293)						13,073						(129,359)
General and administrative expenses						(17,918)						(40,076)						(4,468)						(39,257)						(101,719)
Portfolio management costs						—						—						(5,208)						—						(5,208)
Loan acquisition costs						(2,848)						(7,523)						—						—						(10,371)
Other expenses						74						(10,731)						(1,157)						—						(11,814)
Benefit from (provision for) income taxes						8,283						9,009						(6,808)						—						10,484
Segment Contribution						$	(7,371)					$	(27,054)					$	(24,049)					$	(60,988)
Net (Loss)																														$	(119,462)
Non-cash amortization (expense), net						$	(699)					$	(11,563)					$	4,385					$	(6,428)					$	(14,305)

Schedule of Components of Corporate and Other

The following table presents the components of Corporate/Other for the three and nine months ended September 30, 2023 and 2022.

Table 24.2 – Components of Corporate/Other

						Three Months Ended September 30,
						2023																		2022
(In Thousands)						Legacy Consolidated VIEs (1)						Other						Total						Legacy Consolidated VIEs (1)						Other						Total
Interest income						$	2,596					$	1,546					$	4,142					$	1,473					$	343					$	1,816
Interest expense						(2,487)						(14,219)						(16,706)						(1,486)						(15,311)						(16,797)
Net interest income (expense)						109						(12,673)						(12,564)						(13)						(14,968)						(14,981)
Non-interest income (loss)
Investment fair value changes, net						(215)						100						(115)						(329)						4,412						4,083
Other income, net						—						(1,554)						(1,554)						—						(278)						(278)
Realized gains, net						—						24						24						—						—						—
Total non-interest income (loss), net						(215)						(1,430)						(1,645)						(329)						4,134						3,805
General and administrative expenses						—						(14,434)						(14,434)						—						(12,335)						(12,335)
Portfolio management costs						—						(25)						(25)						—						—						—
Benefit from income taxes						—						256						256						—						—						—
Total						$	(106)					$	(28,306)					$	(28,412)					$	(342)					$	(23,169)					$	(23,511)

						Nine Months Ended September 30,
						2023																		2022
(In Thousands)						Legacy Consolidated VIEs(1)						Other						Total						Legacy Consolidated VIEs(1)						Other						Total
Interest income						$	7,879					$	6,662					$	14,541					$	3,593					$	435					$	4,028
Interest expense						(7,650)						(44,436)						(52,086)						(3,154)						(35,678)						(38,832)
Net interest income (expense)						229						(37,774)						(37,545)						439						(35,243)						(34,804)
Non-interest income (loss)
Investment fair value changes, net						(319)						(2,744)						(3,063)						(1,379)						14,887						13,508
Other income, net						—						(2,505)						(2,505)						—						(435)						(435)
Realized gains, net						—						246						246						—						—						—
Total non-interest income, net						(319)						(5,003)						(5,322)						(1,379)						14,452						13,073
General and administrative expenses						—						(44,284)						(44,284)						—						(39,257)						(39,257)
Portfolio management costs						—						(38)						(38)						—						—						—
Benefit from income taxes						—						953						953						—						—						—
Total						$	(90)					$	(86,146)					$	(86,236)					$	(940)					$	(60,048)					$	(60,988)

(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 September 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
September 30, 2023
Residential loans						$	610,946					$	—											$	5,086,239					$	150,152					$	5,847,337
Business purpose loans						—						102,777												5,146,553						—						5,249,330
Consolidated Agency multifamily loans						—						—												420,554						—						420,554
Real estate securities						9,054						—												120,391						—						129,445
Home equity investments						—						—												431,159						113						431,272
Other investments						—						—												284,507						55,854						340,361
Goodwill						—						23,373												—						—						23,373
Intangible assets						—						31,570												—						—						31,570
Total assets						659,520						197,974												11,701,939						461,705						13,021,138
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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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.

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-Name Accounting Standards Codification
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