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Pro Forma and Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Dec. 31, 2011
Assets      
Real estate securities, available-for-sale $ 1,861,200 [1],[2],[3] $ 289,756  
Investments in excess mortgage servicing rights at fair value 307,568 [1] 245,036 43,971
Investments in excess mortgage servicing rights, equity method investees, at fair value 358,032 [1]    
Investment in consumer loans, equity method investees 192,498 [1]    
Residential mortgage loans, held-for-investment 33,060 [1]    
Cash and cash equivalents 172,203 [1]    
Other assets 7,283 [1] 84  
[Assets] 2,931,844 [1] 534,876 43,971
Liabilities      
Repurchase agreements 1,467,934 [1] 150,922  
Trades Payable 149,181 [1]    
Due to affiliate 7,109 [1] 5,136 158
Dividends Payable 44,308 [1]    
Accrued expenses and other liabilities 2,276 [1] 462 755
Purchase price payable on investments in excess mortgage servicing rights     3,250
[Liabilities] 1,670,808 [1] 156,520 4,163
Commitments and contingencies    [1]      
Equity      
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 253,186,279 issued and outstanding at September 30, 2013 2,532 [1]    
Additional paid-in capital 1,157,040 [1] 362,830  
Retained earnings 85,776 [1]    
Newcastle's Equity     39,808
Accumulated other comprehensive income 15,688 [1] 15,526  
Total New Residential stockholders' equity 1,261,036 [1] 378,356 39,808
Minority interest in equity of consolidated subsidiaries       
Total equity 1,261,036 378,356 39,808
[LiabilitiesAndStockholdersEquity] 2,931,844 [1] 534,876 43,971
Closed Transaction Adjustments
      
Assets      
Real estate securities, available-for-sale 135,470 [4]    
Investments in excess mortgage servicing rights at fair value 36,100 [5]    
Investments in excess mortgage servicing rights, equity method investees, at fair value 5,900 [6]    
Servicer advance investments 3,149,252 [7]    
Cash and cash equivalents (76,555) [8]    
Restricted Cash 35,159 [9]    
Derivative Assets 41,033 [10]    
[Assets] 3,326,359    
Liabilities      
Repurchase agreements 360,677 [11]    
Trades Payable (149,181) [12]    
Notes Payable 2,908,616 [13]    
[Liabilities] 3,120,112    
Commitments and contingencies       
Equity      
Minority interest in equity of consolidated subsidiaries 206,247 [14]    
Total equity 206,247    
[LiabilitiesAndStockholdersEquity] 3,326,359    
Pending Transaction Adjustments
      
Assets      
Investments in excess mortgage servicing rights at fair value 33,200 [5]    
Servicer advance investments 125,123    
Restricted Cash 1,251 [9]    
[Assets] 159,574    
Liabilities      
Notes Payable 111,985 [13]    
Payable related to pending transactions 39,646 [15]    
[Liabilities] 151,631    
Commitments and contingencies       
Equity      
Minority interest in equity of consolidated subsidiaries 7,943 [14]    
Total equity 7,943    
[LiabilitiesAndStockholdersEquity] 159,574    
Pro Forma
      
Assets      
Real estate securities, available-for-sale 1,996,670    
Investments in excess mortgage servicing rights at fair value 376,868    
Investments in excess mortgage servicing rights, equity method investees, at fair value 363,932    
Servicer advance investments 3,274,375    
Investment in consumer loans, equity method investees 192,498    
Residential mortgage loans, held-for-investment 33,060    
Cash and cash equivalents 95,648    
Restricted Cash 36,410    
Derivative Assets 41,033    
Other assets 7,283    
[Assets] 6,417,777    
Liabilities      
Repurchase agreements 1,828,611    
Trades Payable       
Notes Payable 3,020,601    
Payable related to pending transactions 39,646    
Due to affiliate 7,109    
Dividends Payable 44,308    
Accrued expenses and other liabilities 2,276    
[Liabilities] 4,942,551    
Commitments and contingencies       
Equity      
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 253,186,279 issued and outstanding at September 30, 2013 2,532    
Additional paid-in capital 1,157,040    
Retained earnings 85,776    
Accumulated other comprehensive income 15,688    
Total New Residential stockholders' equity 1,261,036    
Minority interest in equity of consolidated subsidiaries 214,190    
Total equity 1,475,226    
[LiabilitiesAndStockholdersEquity] $ 6,417,777    
[1] Represents our historical consolidated balance sheet at September 30, 2013.
[2] Fair value, which is equal to carrying value for all securities. See Note 9 regarding the estimation of fair value.
[3] The total outstanding face amount was $16.4 million for fixed rate securities and $2.0 billion for floating rate securities.
[4] Represents the investments in Non-Agency RMBS and Agency ARM RMBS subsequent to September 30, 2013.
[5] Represents the commitment to invest $69.3 million in Excess MSRs on portfolios of residential mortgage loans with an aggregate UPB of approximately $31.0 billion. As of January 22, 2014, we have closed on $36.1 million of these investments. The commitment amount is based on the UPB at September 30, 2013. The actual amount invested will be based on the UPB at time of close.
[6] Represents the additional $5.9 million investment related to Pool 10.
[7] Represents the investments in Purchased Servicer Advances and the Purchased Basic Fee. The commitment amount is based on the UPB at December 31, 2013. The actual amount invested will be based on the UPB at the time of close. The pending transactions are based on current estimates of the balances at the time of close. The actual amount invested may be different based on the servicer advances balance at the time of close.
[8] Represents adjustments to the cash and cash equivalents balance. The adjustment to the cash and cash equivalents balance includes cash inflows from (i) the net increase in repurchase agreements related to Agency ARM RMBS and Non-Agency RMBS ($210.7 million); (ii) the repurchase agreement related to the Consumer Loan Companies ($150.0 million); (iii) the notes payable related to the secured corporate loan ($75.0 million) and (iv) the note payable related to the residential mortgage loans ($22.8 million). The adjustment to the cash and cash equivalents balance includes cash outflows from (i) the servicer advances transaction ($167.4 million); (ii) the trades payable balance at September 30, 2013 ($149.2 million); (iii) the net purchase of Agency ARM RMBS and Non-Agency RMBS (#135.5 million); (iv) the Excess MSR transactions ($42.0 million); and (v) the acquisition of non-performing loans, which are treated as derivative assets ($41.0 million).
[9] Represents restricted cash related to the financing of the Purchased Servicer Advances.
[10] Represents the derivative assets, which represent the $41.0 million net investment in non-performing loans.
[11] Represents the net increase in repurchase agreements related to Agency ARM RMBS, Non-Agency RMBS and the Consumer Loan Companies. The net increase related to Agency ARM RMBS was approximately $136.0 million. The net increase related to Non-Agency RMBS was approximately $74.7 million and related to (i) the termination of an existing master repurchase agreement and entering into a new master repurchase agreement subsequent to September 30, 2013 ($71.4 million), (ii) repurchase agreements entered into subsequent to September 30, 2013 related to Non-Agency RMBS purchased or previously held on an unlevered basis ($330.1 million) and (iii) the repayment of repurchase agreements related to Non-Agency RMBS sold subsequent to September 30, 2013 ($326.7 million). The increase related to the Consumer Loan Companies was $150.0 million.
[12] Represents the settlement of trades payable related to Agency ARM RMBS and Non-Agency RMBS which had not settled on September 30, 2013.
[13] Represents the notes payable related to the secured corporate loan ($75.0 million), the Purchased Servicer Advances ($2.9 billion) and residential mortgage loans ($22.8 million).
[14] Represents the non-controlling interest of the third party co-investors in the Purchased Servicer Advances. The amounts were calculated by multiplying the total estimated net assets related to the Purchased Servicer Advances by the current estimated non-controlling interest percentage of 55.2%. This percentage is based on the assumption that New Residential will fund 100% of the pending Purchased Servicer Advances. The actual Purchased Servicer Advances balance and non-controlling interest percentage may differ.
[15] Represents the payable related to pending transactions including Excess MSRs and the Purchased Servicer Advances. The amounts payable on these pending transactions will be funded with cash, potentially including proceeds from this offering.