Segment Reporting

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

Note 3 — Segment Reporting

The Company conducts its business through the following segments: (i) investments in RMBS; (ii) investments in Servicing Related Assets; and (iii) “All Other” which consists primarily of general and administrative expenses, including fees paid to the Company’s directors and management fees paid to the Manager pursuant to the Management Agreement (See Note 7). For segment reporting purposes, the Company does not allocate interest income on short-term investments or general and administrative expenses.

Summary financial data on the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole (dollars in thousands):

	Servicing Related Assets			RMBS			All Other			Total
Three Months Ended March 31, 2017
Interest income	$	523		$	5,555		$	-		$	6,078
Interest expense		114			2,317			-			2,431
Net interest income		409			3,238			-			3,647
Servicing fee income		4,574			-			-			4,574
Servicing costs		1,227			-			-			1,227
Net servicing income		3,347			-			-			3,347
Other income		18,990			(191	)		-			18,799
Other operating expenses		-			-			1,867			1,867
Provision for corporate business taxes		1,339			-			-			1,339
Net income (loss)	$	21,407		$	3,047		$	(1,867	)	$	22,587
Three Months Ended March 31, 2016
Interest income	$	1,444		$	3,744		$	-		$	5,188
Interest expense		340			1,317			-			1,657
Net interest income		1,104			2,427			-			3,531
Servicing fee income		1,495			-			-			1,495
Servicing costs		402			-			-			402
Net servicing income		1,093			-			-			1,093
Other income		(4,539	)		(6,339	)		-			(10,878	)
Other operating expenses		-			-			1,498			1,498
Provision for corporate business taxes		(590	)		-			-			(590	)
Net income (loss)	$	(1,752	)	$	(3,912	)	$	(1,498	)	$	(7,162	)

Balance Sheet
March 31, 2017
Investments	$	76,698	$	1,139,056	$	-	$	1,215,754
Other assets		6,446		22,517		73,062		102,025
Total assets		83,144		1,161,573		73,062		1,317,779
Debt		16,000		773,317		-		789,317
Other liabilities		3,506		259,460		7,956		270,922
Total liabilities		19,506		1,032,777		7,956		1,060,239
GAAP book value	$	63,638	$	128,796	$	65,106	$	257,540

December 31, 2016
Investments	$	61,263	$	671,904	$	-	$	733,167
Other assets		8,826		32,495		18,390		59,711
Total assets		70,089		704,399		18,390		792,878
Debt		22,886		594,615		-		617,501
Other liabilities		2,481		9,490		7,397		19,368
Total liabilities		25,367		604,105		7,397		636,869
GAAP book value	$	44,722	$	100,294	$	10,993	$	156,009