Segment reporting (Tables)

6 Months Ended

Jun. 30, 2024

Segment reporting

Schedule of segment reporting information

	Three Months Ended June 30, 2024
			Small
	LMM Commercial		Business		Corporate-
(in thousands)	Real Estate		Lending		Other		Consolidated
Interest income	$	202,047	$	32,072	$	—	$	234,119
Interest expense		(158,344)		(24,823)		—		(183,167)
Net interest income before recovery of loan losses	$	43,703	$	7,249	$	—	$	50,952
Recovery of loan losses		14,414		4,457		—		18,871
Net interest income after recovery of loan losses	$	58,117	$	11,706	$	—	$	69,823
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned		(10,089)		17,339		—		7,250
Net unrealized gain (loss) on financial instruments		(1,497)		140		—		(1,357)
Valuation allowance, loans held for sale		(80,987)		—		—		(80,987)
Servicing income, net		1,255		2,016		—		3,271
Loss on bargain purchase		—		—		(18,306)		(18,306)
Income on unconsolidated joint ventures		1,139		—		—		1,139
Other income		4,796		376		1,425		6,597
Total non-interest income (loss)	$	(85,383)	$	19,871	$	(16,881)	$	(82,393)
Non-interest expense
Employee compensation and benefits		(7,142)		(8,328)		(2,329)		(17,799)
Allocated employee compensation and benefits from related party		(300)		—		(2,700)		(3,000)
Professional fees		(874)		(2,930)		(2,229)		(6,033)
Management fees – related party		—		—		(6,198)		(6,198)
Loan servicing expense		(10,896)		(116)		—		(11,012)
Transaction related expenses		—		—		(1,592)		(1,592)
Other operating expenses		(12,054)		(5,918)		(3,830)		(21,802)
Total non-interest expense	$	(31,266)	$	(17,292)	$	(18,878)	$	(67,436)
Income (loss) before provision for income taxes	$	(58,532)	$	14,285	$	(35,759)	$	(80,006)
Total assets	$	9,527,088	$	1,367,463	$	455,888	$	11,350,439

	Six Months Ended June 30, 2024
			Small
	LMM Commercial		Business		Corporate-
(in thousands)	Real Estate		Lending		Other		Consolidated
Interest income	$	402,810	$	63,663	$	—	$	466,473
Interest expense		(317,229)		(49,743)		—		(366,972)
Net interest income before recovery of loan losses	$	85,581	$	13,920	$	—	$	99,501
Recovery of loan losses		45,169		246				45,415
Net interest income after recovery of loan losses	$	130,750	$	14,166	$	—	$	144,916
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned		(4,334)		30,452		—		26,118
Net unrealized gain (loss) on financial instruments		1,489		1,786		—		3,275
Valuation allowance, loans held for sale		(227,167)		—		—		(227,167)
Servicing income, net		2,553		4,476		—		7,029
Loss on bargain purchase		—		—		(18,306)		(18,306)
Income on unconsolidated joint ventures		1,607		—		—		1,607
Other income		17,523		3,475		1,425		22,423
Total non-interest income (loss)	$	(208,329)	$	40,189	$	(16,881)	$	(185,021)
Non-interest expense
Employee compensation and benefits		(14,618)		(17,620)		(3,975)		(36,213)
Allocated employee compensation and benefits from related party		(550)		—		(4,950)		(5,500)
Professional fees		(2,515)		(6,145)		(4,438)		(13,098)
Management fees – related party		—		—		(12,846)		(12,846)
Loan servicing expense		(23,443)		(363)		—		(23,806)
Transaction related expenses		—		—		(2,242)		(2,242)
Other operating expenses		(33,588)		(11,271)		(7,130)		(51,989)
Total non-interest expense	$	(74,714)	$	(35,399)	$	(35,581)	$	(145,694)
Income (loss) before provision for income taxes	$	(152,293)	$	18,956	$	(52,462)	$	(185,799)
Total assets	$	9,527,088	$	1,367,463	$	455,888	$	11,350,439

	Three Months Ended June 30, 2023
			Small
	LMM Commercial		Business		Corporate-
(in thousands)	Real Estate		Lending		Other		Consolidated
Interest income	$	212,233	$	18,771	$	—	$	231,004
Interest expense		(160,503)		(9,718)		—		(170,221)
Net interest income before provision for loan losses	$	51,730	$	9,053	$	—	$	60,783
Provision for loan losses		(17,415)		(2,012)		—		(19,427)
Net interest income after provision for loan losses	$	34,315	$	7,041	$	—	$	41,356
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned		15,356		8,522		—		23,878
Net unrealized gain (loss) on financial instruments		(677)		(734)		—		(1,411)
Servicing income, net		1,890		3,149		—		5,039
Gain on bargain purchase		—		—		229,894		229,894
Income on unconsolidated joint ventures		33		—		—		33
Other income		8,167		10,185		280		18,632
Total non-interest income	$	24,769	$	21,122	$	230,174	$	276,065
Non-interest expense
Employee compensation and benefits		(8,724)		(11,614)		(2,076)		(22,414)
Allocated employee compensation and benefits from related party		(250)		—		(2,250)		(2,500)
Professional fees		(1,135)		(2,782)		(1,616)		(5,533)
Management fees – related party		—		—		(5,760)		(5,760)
Incentive fees – related party		—		—		(71)		(71)
Loan servicing expense		(10,746)		(148)		—		(10,894)
Transaction related expenses		—		—		(13,966)		(13,966)
Other operating expenses		(3,598)		(4,687)		(1,272)		(9,557)
Total non-interest expense	$	(24,453)	$	(19,231)	$	(27,011)	$	(70,695)
Income before provision for income taxes	$	34,631	$	8,932	$	203,163	$	246,726
Total assets	$	10,969,193	$	739,391	$	220,484	$	11,929,068

	Six Months Ended June 30, 2023
			Small
	LMM Commercial		Business		Corporate-
(in thousands)	Real Estate		Lending		Other		Consolidated
Interest income	$	410,272	$	36,700	$	—	$	446,972
Interest expense		(309,997)		(19,092)		—		(329,089)
Net interest income before provision for loan losses	$	100,275	$	17,608	$	—	$	117,883
Provision for loan losses		(9,286)		(3,407)		—		(12,693)
Net interest income after provision for loan losses	$	90,989	$	14,201	$	—	$	105,190
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned		20,181		15,272		—		35,453
Net unrealized gain (loss) on financial instruments		(6,788)		(258)		—		(7,046)
Servicing income, net		2,983		6,698		—		9,681
Gain on bargain purchase		—		—		229,894		229,894
Income on unconsolidated joint ventures		689		—		—		689
Other income		17,260		21,153		611		39,024
Total non-interest income	$	34,325	$	42,865	$	230,505	$	307,695
Non-interest expense
Employee compensation and benefits		(14,930)		(22,889)		(4,322)		(42,141)
Allocated employee compensation and benefits from related party		(482)		—		(4,344)		(4,826)
Professional fees		(2,116)		(4,407)		(4,553)		(11,076)
Management fees – related party		—		—		(10,841)		(10,841)
Incentive fees – related party		—		—		(1,791)		(1,791)
Loan servicing expense		(18,804)		(245)		—		(19,049)
Transaction related expenses		—		—		(14,859)		(14,859)
Other operating expenses		(10,331)		(8,781)		(3,054)		(22,166)
Total non-interest expense	$	(46,663)	$	(36,322)	$	(43,764)	$	(126,749)
Income before provision for income taxes	$	78,651	$	20,744	$	186,741	$	286,136
Total assets	$	10,969,193	$	739,391	$	220,484	$	11,929,068