Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v2.4.0.8
SEGMENT REPORTING
3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
SEGMENT REPORTING
3. SEGMENT REPORTING

 

New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in servicer advances, (iii) investments in real estate securities, (iv) investments in real estate loans, (v) investments in consumer loans, and (vi) corporate. The corporate segment consists primarily of (i) general and administrative expenses, (ii) the allocation of management fees by Newcastle until the spin-off on May 15, 2013, (iii) the management fees and incentive compensation owed to the Manager by New Residential following the spin-off, (iv) corporate cash and related interest income, and (v) the secured corporate loan and related interest expense.

 

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     Servicer Advances     Real Estate Securities     Real Estate Loans     Consumer Loans     Corporate     Total  
Three Months Ended March 31, 2014                                          
Interest income   $ 13,816     $ 45,716     $ 11,238     $ 720     $ —     $ —     $ 71,490  
Interest expense     1,291       31,956       4,069       198       1,483       —       38,997  
Net interest income     12,525       13,760       7,169       522       (1,483 )     —       32,493  
Impairment     —       —       328       164       —       —       492  
Other income     12,976       —       5,042       671       16,360       1       35,050  
Operating expenses     65       250       60       90       23       9,411       9,899  
Income (Loss) Before Income Taxes     25,436       13,510       11,823       939       14,854       (9,410 )     57,152  
                                                         
Income tax expense     —       287       —       —       —       —       287  
Net Income (Loss)   $ 25,436     $ 13,223     $ 11,823     $ 939     $ 14,854     $ (9,410 )   $ 56,865  
Noncontrolling interests in income (loss) of consolidated subsidiaries   $ —     $ 8,093     $ —     $ —     $ —     $ —     $ 8,093  
Net income (loss) attributable to common stockholders   $ 25,436     $ 5,130     $ 11,823     $ 939     $ 14,854     $ (9,410 )   $ 48,772  

 

 

    Servicing Related Assets     Residential Securities and Loans                    
    Excess MSRs     Servicer Advances     Real Estate Securities     Real Estate Loans     Consumer Loans     Corporate     Total  
March 31, 2014                                          
Investments   $ 680,011     $ 3,457,385     $ 2,345,221     $ 34,045     $ 231,422     $ —     $ 6,748,084  
Cash and cash equivalents     3,704       75,408       10,425       127       —       50,831       140,495  
Restricted cash     —       34,607       —       —       —       —       34,607  
Derivative assets     —       —       769       44,271       —       —       45,040  
Other assets     —       7,108       21,853       618       87       942       30,608  
Total assets   $ 683,715     $ 3,574,508     $ 2,378,268     $ 79,061     $ 231,509     $ 51,773     $ 6,998,834  
Debt   $ —     $ 3,142,292     $ 2,000,594     $ 23,458     $ 142,500     $ 69,055     $ 5,377,899  
Other liabilities     110       4,667       1,338       293       244       53,634       60,286  
Total liabilities     110       3,146,959       2,001,932       23,751       142,744       122,689       5,438,185  
Total equity     683,605       427,549       376,336       55,310       88,765       (70,916 )     1,560,649  
Noncontrolling interests in equity of consolidated subsidiaries     —       284,335       —       —       —       —       284,335  
Total New Residential stockholders’ equity   $ 683,605     $ 143,214     $ 376,336     $ 55,310     $ 88,765     $ (70,916 )   $ 1,276,314  
                                                         
Investments in equity method investees   $ 338,307     $ —     $ —     $ —     $ 231,422     $ —     $ 569,729  

 

 

    Servicing Related Assets     Residential Securities and Loans                    
    Excess MSRs     Servicer Advances     Real Estate Securities     Real Estate Loans     Consumer Loans     Corporate     Total  
Three Months Ended March 31, 2013                                          
Interest income   $ 10,035     $ —     $ 6,156     $ —     $ —     $ —     $ 16,191  
Interest expense     —       —       899       —       —       —       899  
Net interest income     10,035       —       5,257       —       —       —       15,292  
Impairment     —       —       —       —       —       —       —  
Other income     2,827       —       —       —       —       —       2,827  
Operating expenses     62       —       —       —       1,951       3,031       5,044  
Income (Loss) Before Income Taxes     12,800       —       5,257       —       (1,951     (3,031 )     13,075  
Income tax expense     —       —       —       —       —       —       —  
Net Income (Loss)   $ 12,800     $ —     $ 5,257     $ —     $ (1,951   $ (3,031 )   $ 13,075  
Noncontrolling interests in income (loss) of consolidated subsidiaries   $ —     $ —     $ —     $ —     $ —     $ —     $ —  
Net income (loss) attributable to common stockholders   $ 12,800     $ —     $ 5,257     $ —     $ (1,951   $ (3,031 )   $ 13,075