Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Reporting

On October 3, 2022, the Company completed the acquisition of Longbridge, a reverse mortgage loan originator and servicer. As a result of the Longbridge Transaction, the Company determined that it has two reportable segments, the Investment Portfolio Segment and the Longbridge Segment, for each of which the chief operating decision maker receives and reviews separate financial information. As discussed in Note 1, the Investment Portfolio Segment includes a diverse array of the Company's financial assets, as well as associated financing, hedging, and various allocable expenses. The Longbridge Segment consists of the stand-alone origination and servicing business of Longbridge, including associated financial assets, financing, hedging and allocated expenses.

Income and expense items that are not directly allocated to either segment are included in Corporate/Other as reconciling items to our consolidated financial statements. These unallocated items include: (i) all income and expense items related to the Company's Senior Notes and preferred stock outstanding, including any hedges related thereto; (ii) management and incentive fees; (iii) income tax expense (benefit); (iv) certain compensation and benefits expenses, professional fees, administrative and custody fees, non-cash equity compensation; and (v) interest income (expense) on cash margin.

Prior to the consolidation of Longbridge, the Company had one reportable segment; the Company has conformed prior periods to present items of income and expense shown in Corporate/Other.

The following tables present the Company's results of operations by reportable segment for the years ended December 31, 2022, 2021, and 2020, and various reconciling items to the Company's results of operations overall.

	Year Ended December 31, 2022
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Interest income	$	277,141	$	2,859	$	2,218	$	282,218
Interest expense	(124,308)		(4,628)		(12,841)		(141,777)
Total other income (loss)	(118,797)		39,935		(1,585)		(80,447)
Total expenses	(29,532)		(23,674)		(31,759)		(84,965)
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities	4,504		14,492		(43,967)		(24,971)
Income tax expense (benefit)	—		—		(17,716)		(17,716)
Earnings (losses) from investments in unconsolidated entities	(63,614)		—		—		(63,614)
Net Income (Loss)	(59,110)		14,492		(26,251)		(70,869)
Net income (loss) attributable to non-controlling interests	212		32		(1,066)		(822)
Dividends on preferred stock	—		—		15,292		15,292
Net Income (Loss) Attributable to Common Stockholders	$	(59,322)	$	14,460	$	(40,477)	$	(85,339)
Non-cash items
Amortization and depreciation expense	$	—	$	330	$	—	$	330

	Year Ended December 31, 2021
(In thousands)	Investment Portfolio Segment		Corporate/ Other		Total
Interest income	$	175,419	$	86	$	175,505
Interest expense	(38,990)		(5,040)		(44,030)
Total other income (loss)	21,393		(1,831)		19,562
Total expenses	(21,638)		(43,803)		(65,441)
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities	136,184		(50,588)		85,596
Income tax expense (benefit)	—		3,144		3,144
Earnings (losses) from investments in unconsolidated entities	58,104		—		58,104
Net Income (Loss)	194,288		(53,732)		140,556
Net income (loss) attributable to non-controlling interests	5,294		1,799		7,093
Dividends on preferred stock	—		8,117		8,117
Net Income (Loss) Attributable to Common Stockholders	$	188,994	$	(63,648)	$	125,346

	Year Ended December 31, 2020
(In thousands)	Investment Portfolio Segment		Corporate/ Other		Total
Interest income	$	173,081	$	450	$	173,531
Interest expense	(56,625)		(5,040)		(61,665)
Total other income (loss)	116,456		(4,590)		(65,207)
Total expenses	(19,668)		(25,170)		(44,838)
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities	24,115		(22,294)		1,821
Income tax expense (benefit)	—		11,377		11,377
Earnings (losses) from investments in unconsolidated entities	37,933		—		37,933
Net Income (Loss)	62,048		(33,671)		28,377
Net income (loss) attributable to non-controlling interests	3,357		12		3,369
Dividends on preferred stock	—		7,763		7,763
Net Income (Loss) Attributable to Common Stockholders	$	58,691	$	(41,446)	$	17,245

The following table presents our balance sheet by reportable segment as of December 31, 2022, which reconciles to the Company's financial position overall.

	December 31, 2022
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Total Assets	$	5,635,657	$	8,227,509	$	222,720	$	14,085,886
Total Liabilities	4,499,669		8,092,313		273,018		12,865,000
Total Equity	1,135,988		135,196		(50,298)		1,220,886

	December 31, 2021
(In thousands)	Investment Portfolio Segment		Corporate/ Other		Total
Total Assets	$	4,989,777	$	187,642	$	5,177,419
Total Liabilities	3,726,394		127,469		3,853,863
Total Equity	1,263,383		60,173		1,323,556