Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Reporting

On October 3, 2022, the Company completed the acquisition of a controlling interest in 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. The Longbridge segment may also include certain reverse mortgage loans and Reverse MSRs that are owned by subsidiaries of the Company other than Longbridge, along with their related assets, liabilities, and hedging instruments.

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 Unsecured borrowings, at fair value 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.

The following tables present the Company's results of operations by reportable segment for the three-month periods ended March 31, 2024, and 2023, and various reconciling items to the Company's results of operations overall.

	Three-Month Period Ended March 31, 2024
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Interest income	$	91,403	$	8,240	$	1,877	$	101,520
Interest expense	(57,310)		(8,557)		(4,597)		(70,464)
Total other income (loss)	10,024		38,170		(3,709)		44,485
Total expenses	(3,143)		(29,099)		(11,413)		(43,655)
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities	40,974		8,754		(17,842)		31,886
Income tax expense (benefit)	—		—		61		61
Earnings (losses) from investments in unconsolidated entities	2,226		—		—		2,226
Net Income (Loss)	43,200		8,754		(17,903)		34,051
Net income (loss) attributable to non-controlling interests	185		38		259		482
Dividends on preferred stock	—		—		6,654		6,654
Net Income (Loss) Attributable to Common Stockholders	$	43,015	$	8,716	$	(24,816)	$	26,915
Non-cash items:
Amortization and depreciation expense	$	—	$	270	$	—	$	270

	Three-Month 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

The following tables present our balance sheet by reportable segment as of March 31, 2024 and December 31, 2023 which reconciles to the Company's financial position overall.

	March 31, 2024
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Total Assets	$	5,620,097	$	9,338,455	$	174,048	$	15,132,600
Total Liabilities	4,097,762		9,115,860		365,822		13,579,444
Total Equity	1,522,335		222,595		(191,774)		1,553,156

	December 31, 2023
(In thousands)	Investment Portfolio Segment		Longbridge Segment		Corporate/ Other		Total
Total Assets	$	5,978,988	$	9,092,840	$	244,102	$	15,315,930
Total Liabilities	4,555,212		8,872,153		352,953		13,780,318
Total Equity	1,423,776		220,687		(108,851)		1,535,612