Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.19.1
SEGMENT REPORTING
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
 
New Residential conducts its business through the following segments: (i) Servicing and Originations, (ii) Residential Securities and Loans, (iii) Consumer Loans and (iv) 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 and consumer loans are included in the Servicing and Originations and Consumer Loans segments, respectively. Secured corporate loans effectively collateralized by Excess MSRs are included in the Servicing and Originations segment.

During the third quarter of 2018, New Residential changed the composition of its reportable segments primarily to reflect the (i) aggregation of the similar MSR, Excess MSR and Servicer Advance segments as the new Servicing and Originations segment and (ii) incorporation of the Shellpoint Acquisition. Segment information for prior periods has been restated to reflect this change.

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:
 
 
 
Residential Securities and Loans
 
 
 
 
 
 
 
 
Servicing and Originations
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
131,800

 
$
204,473

 
$
58,189

 
$
44,405

 
$

 
$
438,867

Interest expense
 
66,486

 
101,300

 
35,851

 
9,195

 

 
212,832

Net interest income (expense)
 
65,314

 
103,173

 
22,338

 
35,210

 

 
226,035

Impairment
 

 
7,516

 
(5,804
)
 
11,084

 

 
12,796

Servicing revenue, net
 
165,853

 

 

 

 

 
165,853

Gain on sale of originated mortgage loans, net
 
43,984

 

 

 

 

 
43,984

Other income (loss)
 
(13,464
)
 
(46,958
)
 
12,399

 
4,531

 
2,712

 
(40,780
)
Operating expenses
 
126,842

 
1,189

 
9,320

 
7,427

 
35,609

 
180,387

Income (Loss) Before Income Taxes
 
134,845

 
47,510

 
31,221

 
21,230

 
(32,897
)
 
201,909

Income tax expense (benefit)
 
39,374

 

 
6,544

 
79

 

 
45,997

Net Income (Loss)
 
$
95,471

 
$
47,510

 
$
24,677

 
$
21,151

 
$
(32,897
)
 
$
155,912

Noncontrolling interests in income (loss) of consolidated subsidiaries
 
$
2,858

 
$

 
$

 
$
7,460

 
$

 
$
10,318

Net income (loss) attributable to common stockholders
 
$
92,613

 
$
47,510

 
$
24,677

 
$
13,691

 
$
(32,897
)
 
$
145,594


 
 
 
Residential Securities and Loans
 
 
 
 
 
 
 
 
Servicing and Originations
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
$
7,073,330

 
$
9,747,450

 
$
4,062,085

 
$
1,057,188

 
$

 
$
21,940,053

Cash and cash equivalents
 
256,617

 
6,771

 
3,879

 
14,344

 
59,300

 
340,911

Restricted cash
 
128,302

 

 

 
39,826

 

 
168,128

Other assets
 
3,330,929

 
7,236,001

 
153,418

 
62,916

 
152,567

 
10,935,831

Goodwill
 
24,645

 

 

 

 

 
24,645

Total assets
 
$
10,813,823

 
$
16,990,222

 
$
4,219,382

 
$
1,174,274

 
$
211,867

 
$
33,409,568

Debt
 
$
6,512,087

 
$
14,535,826

 
$
3,376,964

 
$
969,031

 
$

 
$
25,393,908

Other liabilities
 
470,905

 
317,701

 
58,237

 
16,573

 
240,035

 
1,103,451

Total liabilities
 
6,982,992

 
14,853,527

 
3,435,201

 
985,604

 
240,035

 
26,497,359

Total equity
 
3,830,831

 
2,136,695

 
784,181

 
188,670

 
(28,168
)
 
6,912,209

Noncontrolling interests in equity of consolidated subsidiaries
 
60,531

 

 

 
29,397

 

 
89,928

Total New Residential stockholders’ equity
 
$
3,770,300

 
$
2,136,695

 
$
784,181

 
$
159,273

 
$
(28,168
)
 
$
6,822,281

Investments in equity method investees
 
$
143,200

 
$

 
$

 
$
51,528

 
$

 
$
194,728

 

 

Residential Securities and Loans







 
Servicing and Originations

Real Estate Securities

Residential Mortgage Loans

Consumer Loans

Corporate

Total
Three Months Ended March 31, 2018
 











Interest income
 
$
194,768


$
101,133


$
34,392


$
52,648


$
632


$
383,573

Interest expense
 
55,030


41,530


16,311


11,516




124,387

Net interest income (expense)
 
139,738


59,603


18,081


41,132


632


259,186

Impairment
 


6,670


5,183


13,824




25,677

Servicing revenue, net
 
217,236

 

 

 

 

 
217,236

Gain on sale of originated mortgage loans, net
 

 

 

 

 

 

Other income (loss)
 
263,311


10,569


(20,217
)

5,090


5,771


264,524

Operating expenses
 
52,483


297


8,947


9,437


36,653


107,817

Income (Loss) Before Income Taxes
 
567,802

 
63,205

 
(16,266
)
 
22,961

 
(30,250
)

607,452

Income tax expense (benefit)
 
(7,156
)
 

 

 
244

 


(6,912
)
Net Income (Loss)
 
$
574,958

 
$
63,205

 
$
(16,266
)
 
$
22,717

 
$
(30,250
)

$
614,364

Noncontrolling interests in income (loss) of consolidated subsidiaries
 
$
1,383

 
$

 
$

 
$
8,728

 
$


$
10,111

Net income (loss) attributable to common stockholders
 
$
573,575

 
$
63,205

 
$
(16,266
)
 
$
13,989

 
$
(30,250
)

$
604,253