Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.7.0.1
SEGMENT REPORTING
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in MSRs, (iii) investments in Servicer Advances, (iv) investments in real estate securities, (v) investments in residential mortgage loans, (vi) investments in consumer loans, and (vii) corporate. The corporate segment consists primarily of (i) general and administrative expenses, (ii) the management fees and incentive compensation related to the Management Agreement and (iii) corporate cash and related interest income. Securities owned by New Residential (Note 7) that are collateralized by Servicer Advances are included in the Servicer Advances segment. Secured corporate loans effectively collateralized by Excess MSRs are included in the Excess MSRs segment.
 
Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:
 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
18,128

 
$
2,535

 
$
244,308

 
$
113,475

 
$
25,638

 
$
67,698

 
$
170

 
$
471,952

Interest expense
9,005

 
10,600

 
40,720

 
29,571

 
11,628

 
13,633

 

 
115,157

Net interest income (expense)
9,123

 
(8,065
)
 
203,588

 
83,904

 
14,010

 
54,065

 
170

 
356,795

Impairment

 

 

 
5,115

 
5,261

 
15,510

 

 
25,886

Servicing revenue, net

 
170,851

 

 

 

 

 

 
170,851

Other income (loss)
(14,219
)
 
5,596

 
54,774

 
(15,374
)
 
21,174

 
5,896

 

 
57,847

Operating expenses
112

 
59,318

 
605

 
297

 
8,406

 
11,544

 
59,078

 
139,360

Income (Loss) Before Income Taxes
(5,208
)
 
109,064

 
257,757

 
63,118

 
21,517

 
32,907

 
(58,908
)
 
420,247

Income tax expense (benefit)

 
(10,666
)
 
88,547

 

 
4,793

 
170

 

 
82,844

Net Income (Loss)
$
(5,208
)
 
$
119,730

 
$
169,210

 
$
63,118

 
$
16,724

 
$
32,737

 
$
(58,908
)
 
$
337,403

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$

 
$
3,328

 
$

 
$

 
$
12,343

 
$

 
$
15,671

Net income (loss) attributable to common stockholders
$
(5,208
)
 
$
119,730

 
$
165,882

 
$
63,118

 
$
16,724

 
$
20,394

 
$
(58,908
)
 
$
321,732


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
49,546

 
$
2,560

 
$
321,012

 
$
207,283

 
$
43,631

 
$
140,104

 
$
354

 
$
764,490

Interest expense
19,077

 
11,587

 
84,596

 
50,452

 
19,168

 
28,506

 

 
213,386

Net interest income (expense)
30,469

 
(9,027
)
 
236,416

 
156,831

 
24,463

 
111,598

 
354

 
551,104

Impairment

 

 

 
7,227

 
3,243

 
35,438

 

 
45,908

Servicing revenue, net

 
211,453

 

 

 

 

 

 
211,453

Other income (loss)
(13,015
)
 
5,809

 
56,575

 
(20,970
)
 
19,838

 
5,916

 

 
54,153

Operating expenses
198

 
79,041

 
1,429

 
628

 
14,259

 
22,982

 
89,264

 
207,801

Income (Loss) Before Income Taxes
17,256

 
129,194

 
291,562

 
128,006

 
26,799

 
59,094

 
(88,910
)
 
563,001

Income tax expense (benefit)

 
(11,945
)
 
97,739

 

 
2,476

 
170

 

 
88,440

Net Income (Loss)
$
17,256

 
$
141,139

 
$
193,823

 
$
128,006

 
$
24,323

 
$
58,924

 
$
(88,910
)
 
$
474,561

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$

 
$
9,148

 
$

 
$

 
$
22,303

 
$

 
$
31,451

Net income (loss) attributable to common stockholders
$
17,256

 
$
141,139

 
$
184,675

 
$
128,006

 
$
24,323

 
$
36,621

 
$
(88,910
)
 
$
443,110


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
1,486,276

 
$
1,867,826

 
$
4,936,226

 
$
7,323,801

 
$
1,854,385

 
$
1,614,424

 
$

 
$
19,082,938

Cash and cash equivalents
888

 
443,792

 
76,969

 
6,016

 
2,521

 
25,902

 
3,928

 
560,016

Restricted cash
24,719

 
10,476

 
67,254

 

 

 
54,895

 

 
157,344

Other assets
2,424

 
192,065

 
83,715

 
2,759,043

 
108,829

 
40,313

 
13,328

 
3,199,717

Total assets
$
1,514,307

 
$
2,514,159

 
$
5,164,164

 
$
10,088,860

 
$
1,965,735

 
$
1,735,534

 
$
17,256

 
$
23,000,015

Debt
$
764,601

 
$
1,008,104

 
$
4,594,409

 
$
6,697,202

 
$
1,461,034

 
$
1,523,830

 
$

 
$
16,049,180

Other liabilities
2,177

 
208,230

 
20,706

 
1,830,355

 
40,252

 
6,943

 
223,214

 
2,331,877

Total liabilities
766,778

 
1,216,334

 
4,615,115

 
8,527,557

 
1,501,286

 
1,530,773

 
223,214

 
18,381,057

Total equity
747,529

 
1,297,825

 
549,049

 
1,561,303

 
464,449

 
204,761

 
(205,958
)
 
4,618,958

Noncontrolling interests in equity of consolidated subsidiaries

 

 
159,167

 

 

 
34,987

 

 
194,154

Total New Residential stockholders’ equity
$
747,529

 
$
1,297,825

 
$
389,882

 
$
1,561,303

 
$
464,449

 
$
169,774

 
$
(205,958
)
 
$
4,424,804

Investments in equity method investees
$
181,610

 
$

 
$

 
$

 
$

 
$
45,036

 
$

 
$
226,646

 

Servicing Related Assets

Residential Securities and Loans







Excess MSRs

Servicer Advances

Real Estate Securities

Residential Mortgage Loans

Consumer Loans

Corporate

Total
Three Months Ended June 30, 2016













Interest income
$
33,263


$
82,793


$
68,214


$
14,272


$
78,309


$
626


$
277,477

Interest expense
5,181


58,795


10,933


6,904


18,872




100,685

Net interest income (expense)
28,082


23,998


57,281


7,368


59,437


626


176,792

Impairment




2,819


855


15,970




19,644

Servicing revenue, net

 

 

 

 

 

 

Other income (loss)
(15,875
)

15,064


(24,403
)

5,491






(19,723
)
Operating expenses
298


944


477


2,718


12,614


19,229


36,280

Income (Loss) Before Income Taxes
11,909

 
38,118

 
29,582

 
9,286

 
30,853

 
(18,603
)

101,145

Income tax expense (benefit)

 
7,397

 

 
42

 
75

 
4


7,518

Net Income (Loss)
$
11,909

 
$
30,721

 
$
29,582

 
$
9,244

 
$
30,778

 
$
(18,607
)

$
93,627

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$
10,345

 
$

 
$

 
$
14,630

 
$


$
24,975

Net income (loss) attributable to common stockholders
$
11,909

 
$
20,376

 
$
29,582

 
$
9,244

 
$
16,148

 
$
(18,607
)

$
68,652



 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
76,231

 
$
163,760

 
$
114,127

 
$
33,765

 
$
78,310

 
$
1,320

 
$
467,513

Interest expense
8,115

 
121,870

 
18,417

 
14,294

 
19,217

 

 
181,913

Net interest income (expense)
68,116

 
41,890

 
95,710

 
19,471

 
59,093

 
1,320

 
285,600

Impairment

 

 
6,073

 
7,600

 
15,970

 

 
29,643

Servicing revenue, net

 

 

 

 

 

 

Other income (loss)
(4,182
)
 
(12,327
)
 
(60,864
)
 
8,364

 
81,193

 
15

 
12,199

Operating expenses
530

 
2,047

 
938

 
6,943

 
14,218

 
36,620

 
61,296

Income (Loss) Before Income Taxes
63,404

 
27,516

 
27,835

 
13,292

 
110,098

 
(35,285
)
 
206,860

Income tax expense (benefit)

 
(2,605
)
 

 
(179
)
 
75

 
4

 
(2,705
)
Net Income (Loss)
$
63,404

 
$
30,121

 
$
27,835

 
$
13,471

 
$
110,023

 
$
(35,289
)
 
$
209,565

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$
14,547

 
$

 
$

 
$
14,630

 
$

 
$
29,177

Net income (loss) attributable to common stockholders
$
63,404

 
$
15,574

 
$
27,835

 
$
13,471

 
$
95,393

 
$
(35,289
)
 
$
180,388