Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

The following tables present financial information by segment for the three months ended March 31, 2023 and 2022.

Table 24.1 – Business Segment Financial Information


	Three Months Ended March 31, 2023
(In Thousands)	Residential Mortgage Banking		Business Purpose Mortgage Banking		Investment Portfolio		Corporate/ Other		Total
Interest income	$	5,510	$	4,494	$	163,660	$	4,852	$	178,516
Interest expense	(6,866)		(4,038)		(123,452)		(17,723)		(152,079)
Net interest income (loss)	(1,356)		456		40,208		(12,871)		26,437
Non-interest income (loss)
Mortgage banking activities, net	3,365		13,306		—		—		16,671
Investment fair value changes, net	1,076		—		(1,014)		(189)		(127)
Other income, net	—		2,408		2,168		(20)		4,556
Realized gains, net	—		—		(117)		115		(2)
Total non-interest income (loss), net	4,441		15,714		1,037		(94)		21,098
General and administrative expenses	(4,806)		(13,678)		(1,409)		(15,662)		(35,555)
Portfolio management costs	—		—		(3,510)		—		(3,510)
Loan acquisition costs	(175)		(1,114)		—		—		(1,289)
Other expenses	—		(3,108)		(576)		—		(3,684)
Benefit from (provision for) income taxes	633		703		(213)		—		1,123
Segment Contribution	$	(1,263)	$	(1,027)	$	35,537	$	(28,627)
Net income									$	4,620
Non-cash amortization (expense) income, net	$	(255)	$	(3,701)	$	(2,833)	$	(2,106)	$	(8,895)


	Three Months Ended March 31, 2022
(In Thousands)	Residential Mortgage Banking		Business Purpose Mortgage Banking		Investment Portfolio		Corporate/ Other		Total
Interest income	$	12,967	$	4,841	$	170,572	$	1,020	$	189,400
Interest expense	(6,936)		(2,568)		(116,581)		(10,213)		(136,298)
Net interest income (loss)	6,031		2,273		53,991		(9,193)		53,102
Non-interest income (loss)
Mortgage banking activities, net	7,935		8,380		—		—		16,315
Investment fair value changes, net	—		—		(5,406)		(714)		(6,120)
Other income, net	—		575		5,282		126		5,983
Realized gains, net	—		—		2,581		—		2,581
Total non-interest income (loss), net	7,935		8,955		2,457		(588)		18,759
General and administrative expenses	(6,101)		(10,472)		(1,555)		(15,148)		(33,276)
Portfolio management costs	—		—		(1,578)		—		(1,578)
Loan acquisition costs	(1,417)		(3,048)		—		—		(4,465)
Other expenses	—		(3,534)		(551)		—		(4,085)
Benefit from (provision for) income taxes	1,007		3,281		(1,830)		—		2,458
Segment Contribution	$	7,455	$	(2,545)	$	50,934	$	(24,929)
Net Income									$	30,915
Non-cash amortization income (expense), net	$	104	$	(3,890)	$	7,300	$	(2,033)	$	1,481

Components of Corporate and Other

The following table presents the components of Corporate/Other for the three months ended March 31, 2023 and 2022.

Table 24.2 – Components of Corporate/Other


	Three Months Ended March 31,
	2023						2022
(In Thousands)	Legacy Consolidated VIEs (1)		Other		Total		Legacy Consolidated VIEs (1)		Other		Total
Interest income	$	2,543	$	2,309	$	4,852	$	1,012	$	8	$	1,020
Interest expense	(2,504)		(15,219)		(17,723)		(701)		(9,512)		(10,213)
Net interest income (loss)	39		(12,910)		(12,871)		311		(9,504)		(9,193)
Non-interest income (loss)

Investment fair value changes, net	(94)		(95)		(189)		(714)		—		(714)
Other income	—		(20)		(20)		—		126		126
Realized gains, net	—		115		115		—		—		—
Total non-interest income (loss), net	(94)		—		(94)		(714)		126		(588)
General and administrative expenses	—		(15,662)		(15,662)		—		(15,148)		(15,148)





Total	$	(55)	$	(28,572)	$	(28,627)	$	(403)	$	(24,526)	$	(24,929)

(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 Information by Segment

The following table presents supplemental information by segment at March 31, 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
March 31, 2023
Residential loans	$	26,975	$	—	$	5,295,883	$	170,000	$	5,492,858
Business purpose loans	—		371,385		4,993,264		—		5,364,649
Consolidated Agency multifamily loans	—		—		426,599		—		426,599
Real estate securities	1,700		—		241,646		—		243,346
Home equity investments	—		—		416,783		—		416,783
Other investments	—		—		324,293		57,397		381,690
Goodwill	—		23,373		—		—		23,373
Intangible assets	—		37,784		—		—		37,784
Total assets	43,095		469,959		11,898,454		709,778		13,121,286

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