Segment Reporting

3 Months Ended

Mar. 31, 2023

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 three-month periods ended March 31, 2023 and 2022, and various reconciling items to the Company's results of operations overall.

	Three-Moth Period Ended March 31, 2023
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Interest income	$	82,369	$	2,893	$	1,912	$	87,174
Interest expense	(52,136)		(4,346)		(3,135)		(59,617)
Total other income (loss)	10,929		33,398		7,348		51,675
Total expenses	3,505		25,447		8,950		37,902
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities	37,657		6,498		(2,825)		41,330
Income tax expense (benefit)	—		—		21		21
Earnings (losses) from investments in unconsolidated entities	3,444		—		—		3,444
Net Income (Loss)	41,101		6,498		(2,846)		44,753
Net income (loss) attributable to non-controlling interests	238		2		480		720
Dividends on preferred stock	—		—		5,117		5,117
Net Income (Loss) Attributable to Common Stockholders	$	40,863	$	6,496	$	(8,443)	$	38,916
Non-cash items
Amortization and depreciation expense	$	—	$	358	$	—	$	358

	Three-Month Period Ended March 31, 2022
(In thousands)	Investment Portfolio Segment		Corporate/ Other		Total
Interest income	$	51,054	$	20	$	51,074
Interest expense	(12,698)		(1,319)		(14,017)
Total other income (loss)	(21,771)		(3,671)		(25,442)
Total expenses	7,752		11,815		19,567
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities	8,833		(16,785)		(7,952)
Income tax expense (benefit)	—		(6,960)		(6,960)
Earnings (losses) from investments in unconsolidated entities	(5,506)		—		(5,506)
Net Income (Loss)	3,327		(9,825)		(6,498)
Net income (loss) attributable to non-controlling interests	(298)		(122)		(420)
Dividends on preferred stock	—		3,824		3,824
Net Income (Loss) Attributable to Common Stockholders	$	3,625	$	(13,527)	$	(9,902)

The following tables present our balance sheet by reportable segment as of March 31, 2023 and December 31, 2022, which reconciles to the Company's financial position overall.

	March 31, 2023
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Total Assets	$	5,386,586	$	8,557,559	$	167,380	$	14,111,525
Total Liabilities	4,082,404		8,390,816		263,542		12,736,762
Total Equity	1,304,182		166,743		(96,162)		1,374,763

	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