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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Financial Information by Segment
The following tables present financial information by segment for the years ended December 31, 2019, 2018, and 2017.
Table 24.1 – Business Segment Financial Information
 
 
Year Ended December 31, 2019
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
 Total
Interest income
 
$
268,559

 
$
54,372

 
$
161,692

 
$
120,009

 
$
17,649

 
$
622,281

Interest expense
 
(192,359
)
 
(35,663
)
 
(151,980
)
 
(85,388
)
 
(14,418
)
 
(479,808
)
Net interest income
 
76,200


18,709

 
9,712

 
34,621


3,231

 
142,473

Non-interest income
 
 
 
 
 
 
 
 
 
 
 

Mortgage banking activities, net
 
47,743

 
39,523

 
—

 
—

 
—

 
87,266

Investment fair value changes, net
 
(27,920
)
 
(6,722
)
 
27,097

 
44,662

     
(1,617
)
 
35,500

Other income
 
9,210

 
5,852

 
1,484

 
—

 
2,711

 
19,257

Realized gains, net
 
8,292

 
—

 
134

 
15,395

 
—

 
23,821

Total non-interest income, net
 
37,325


38,653

 
28,715

 
60,057


1,094

 
165,844

General and administrative expenses
 
(30,671
)
 
(30,655
)
 
(1,498
)
 
(2,843
)
 
(53,005
)
 
(118,672
)
Other expenses
 
—

 
(8,521
)
 
—

 
(1,106
)
 
(3,395
)
 
(13,022
)
Provision for income taxes
 
(4,074
)
 
(947
)
 
(11
)
 
(2,408
)
 
—

 
(7,440
)
Segment Contribution
 
$
78,780


$
17,239

 
$
36,918

 
$
88,321


$
(52,075
)


Net Income
 
 
 
 
 
 
 
 
 
 
 
$
169,183

Non-cash amortization income (expense), net
 
$
3,669

 
$
(9,173
)
 
$
(1
)
 
$
6,957

 
$
(4,813
)
 
$
(3,361
)
 
 
Year Ended December 31, 2018
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
 Total
Interest income
 
$
245,124

 
$
4,588

 
$
40,050

 
$
68,919

 
$
20,036

 
$
378,717

Interest expense
 
(158,498
)
 
(2,252
)
 
(34,324
)
 
(27,446
)
 
(16,519
)
 
(239,039
)
Net interest income
 
86,626


2,336

 
5,726

 
41,473


3,517

 
139,678

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
59,623

 
(57
)
 
—

 
—

 
—

 
59,566

Investment fair value changes, net
 
(21,686
)
     
(29
)
 
3,979

 
(6,957
)
     
(996
)
 
(25,689
)
Other income
 
12,452

 
—

 
—

 
—

 
618

 
13,070

Realized gains, net
 
7,709

 
—

 
—

 
19,332

 
—

 
27,041

Total non-interest income (loss), net
 
58,098


(86
)
 
3,979

 
12,375


(378
)
 
73,988

General and administrative expenses
 
(32,139
)
 
(2,597
)
 
(869
)
 
(2,855
)
 
(44,322
)
 
(82,782
)
Other expenses
 
—

 
—

 
—

 
(18
)
 
(178
)
 
(196
)
Provision for income taxes
 
(8,033
)
 
—

 
(16
)
 
(3,039
)
 
—

 
(11,088
)
Segment Contribution
 
$
104,552


$
(347
)
 
$
8,820

 
$
47,936


$
(41,361
)
 
 
Net Income
 
 
 
 
 
 
 
 
 
 
 
$
119,600

Non-cash amortization income (expense), net
 
$
4,486

 
$
(290
)
 
$
(1
)
 
$
12,295

 
$
(4,111
)
 
$
12,379

 
 
Year Ended December 31, 2017
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
 Total
Interest income
 
$
158,819

 
$
—

 
$
9,170

 
$
60,661

 
$
19,407

 
$
248,057

Interest expense
 
(66,364
)
 
—

 
(6,107
)
 
(21,512
)
 
(14,833
)
 
(108,816
)
Net interest income
 
92,455


—

 
3,063

 
39,149


4,574

 
139,241

Non-interest income
 
 
 
 
 
 
 
 
 
 
 

Mortgage banking activities, net
 
53,908

 
—

 
—

 
—

 
—

 
53,908

Investment fair value changes, net
 
(25,466
)
 
—

 
16,196

 
27,684

 
(8,040
)
 
10,374

Other income
 
12,436

 
—

 
—

 
—

 
—

 
12,436

Realized gains, net
 
3,907

 
—

 
—

 
10,200

 
(752
)
 
13,355

Total non-interest income (loss), net
 
44,785


—

 
16,196

 
37,884


(8,792
)
 
90,073

General and administrative expenses
 
(28,622
)
 
—

 
(425
)
 
(2,028
)
 
(46,081
)
 
(77,156
)
Provision for income taxes
 
(6,641
)
 
—

 
(238
)
 
(4,873
)
 
—

 
(11,752
)
Segment Contribution
 
$
101,977


$
—

 
$
18,596

 
$
70,132


$
(50,299
)
 

Net Income
 
 
 
 
 
 
 
 
 
 
 
$
140,406

Non-cash amortization income (expense), net
 
$
4,946

 
$
—

 
$
(1
)
 
$
15,927

 
$
(3,410
)
 
$
17,462
Schedule Of Corporate And Other
The following table presents the components of Corporate/Other for the years ended December 31, 2019, 2018, and 2017.
Table 24.2 – Components of Corporate/Other
 
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
(In Thousands)
 
Legacy Consolidated VIEs (1)
 
Other
 
Total
 
Legacy Consolidated VIEs (1)
 
Other
 
 Total
 
Legacy Consolidated VIEs (1)
 
Other
 
 Total
Interest income
 
$
17,649

 
$
—

 
$
17,649

 
$
20,036

 
$
—

 
$
20,036

 
$
19,407

 
$
—

 
$
19,407

Interest expense
 
(14,418
)
 
—

 
(14,418
)
 
(16,519
)
 
—

 
(16,519
)
 
(14,789
)
 
(44
)
 
(14,833
)
Net interest income (loss)
 
3,231

 
—

 
3,231

 
3,517

 
—

 
3,517

 
4,618

 
(44
)
 
4,574

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment fair value changes, net
 
(1,545
)
     
(72
)
 
(1,617
)
 
(1,016
)
 
20

 
(996
)
 
(8,027
)
 
(13
)
 
(8,040
)
Other income
 
—

 
2,711

 
2,711

 
—

 
618

 
618

 
—

 
—

 
—

Realized gains, net
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(752
)
 
(752
)
Total non-interest (loss) income, net
 
(1,545
)
 
2,639

 
1,094

 
(1,016
)
 
638

 
(378
)
 
(8,027
)
 
(765
)
 
(8,792
)
General and administrative expenses
 
—

 
(53,005
)
 
(53,005
)
 
—

 
(44,322
)
 
(44,322
)
 
—

 
(46,081
)
 
(46,081
)
Other expenses
 
—

 
(3,395
)
 
(3,395
)
 
—

 
(178
)
 
(178
)
 
—

 
—

 
—

Total
 
$
1,686

 
$
(53,761
)
 
$
(52,075
)
 
$
2,501

 
$
(43,862
)
 
$
(41,361
)
 
$
(3,409
)
 
$
(46,890
)
 
$
(50,299
)
(1)
Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Supplemental Balance Sheet
The following table presents supplemental information by segment at December 31, 2019 and December 31, 2018.
Table 24.3 – Supplemental Segment Information
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
4,939,745

 
$
—

 
$
—

 
$
2,367,215

 
$
407,890

 
$
7,714,850

Business purpose residential loans
 
—

 
3,506,743

 
—

 
—

 
—

 
3,506,743

Multifamily loans
 
—

 
—

 
4,408,524

 
—

 
—

 
4,408,524

Real estate securities
 
229,074

 
—

 
404,128

 
466,672

 
—

 
1,099,874

Other investments
 
42,224

 
21,002

 
61,018

 
233,886

 
—

 
358,130

Goodwill and intangible assets
 
—

 
161,464

 
—

 
—

 
—

 
161,464

Total assets
 
5,410,540

 
3,786,641

 
4,889,330

 
3,139,616

 
769,313

 
17,995,440

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
5,512,116

 
$
—

 
$
—

 
$
1,222,668

 
$
519,958

 
$
7,254,742

Business purpose residential loans
 
—

 
141,258

 
—

 
—

 
—

 
141,258

Multifamily loans
 
—

 
—

 
2,144,598

 
—

 
—

 
2,144,598

Real estate securities
 
364,308

 
—

 
429,079

 
659,107

 
—

 
1,452,494

Other investments
 
99,984

 
10,754

 
15,092

 
312,688

 
—

 
438,518

Total assets
 
6,186,889

 
160,950

 
2,600,150

 
2,232,276

 
757,141

 
11,937,406