| Maryland (State or other jurisdiction of incorporation or organization) | | | 6199 (Primary Standard Industrial Classification Code Number) | | | 87-1135422 (I.R.S. Employer Identification No.) | |
| Copies to: | | |||
| Jay L. Bernstein, Esq. Jake A. Farquharson, Esq. Jason W. Parsont, Esq. Clifford Chance US LLP 31 West 52nd Street New York, New York 10019 Tel (212) 878-8000 Fax (212) 878-8375 | | | Richard D. Truesdell, Jr., Esq. Pedro J. Bermeo, Esq. Davis Polk & Wardwell LLP 450 Lexington Avenue New York, New York 10017 Tel (212) 450-4000 Fax (212) 701-5800 | |
| Large accelerated filer ☐ | | | Emerging growth company ☒ | | | Accelerated filer ☐ | | | Non-accelerated filer ☒ | | | Smaller reporting company ☐ | |
| Title of Securities to be registered | | Proposed maximum aggregate offering price(1)(2) | | Amount of registration fee(1) | | | | |||||||||||||||
| Class A Common Stock, $0.01 par value per share | | $242,105,268 | | $26,413.69 | | |||||||||||||||||
Title of Securities to be registered | | | | Proposed maximum aggregate offering price(1)(2) | | | | Amount of registration fee(1)(3) | | ||||||||||||||
Class A Common Stock, $0.01 par value per share | | | | | $ | 242,105,268 | | | | | | $ | 26,413.69 | | |
| | | Per share | | | Total | | ||||||
Initial public offering price | | | | $ | | | | | $ | | | ||
Underwriting discount | | | | $ | | | | | | $ | | | |
Proceeds, before expenses(1), to us | | | | $ | | | | | | $ | | | |
| UBS Investment Bank | | | Piper Sandler | |
| | | Page | | |||
| | | | 1 | | | |
| | | | 22 | | | |
| | | | 28 | | | |
| | | | 59 | | | |
| | | | 61 | | | |
CAPITALIZATION | | | | | 62 | | |
DILUTION | | | | | 64 | | |
| | | | 66 | | | |
| | | | 67 | | | |
| | | | | | ||
| | | | | | ||
| | | | | | ||
BUSINESS | | | | | | | |
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
UNDERWRITING | | | | | | | |
| | | | | | ||
EXPERTS | | | | | | | |
| | | | | | ||
| | | | F-1 | | |
Category of Net Realized Gains | | | Year ended December 31, 2016 | | | Year ended December 31, 2017 | | | Year ended December 31, 2018 | | | Year ended December 31, 2019 | | | Year ended December 31, 2020 | | |||||||||||||||
| | | $ in millions | | |||||||||||||||||||||||||||
Gain on sales of direct originations | | | | $ | 1.0 | | | | | $ | 5.7 | | | | | $ | 17.5 | | | | | $ | 33.8 | | | | | $ | 20.9 | | |
Gain on sales of special opportunities | | | | $ | 12.6 | | | | | $ | 14.1 | | | | | $ | 19.4 | | | | | $ | 7.7 | | | | | $ | 5.5 | | |
Gains on redemptions, trading and other | | | | $ | 3.5 | | | | | $ | 5.2 | | | | | $ | 2.9 | | | | | $ | 3.7 | | | | | $ | 2.4 | | |
Total | | | | $ | 17.1 | | | | | $ | 25.0 | | | | | $ | 39.8 | | | | | $ | 45.2 | | | | | $ | 28.8 | | |
|
Sector | | | Market Value (in $) | | | (%) | | | Weighted Average Coupon(1) | | |||||||||
Economic Development | | | | | 479,402,583 | | | | | | 24.7% | | | | | | 6.77% | | |
Infrastructure | | | | | 436,138,110 | | | | | | 22.5% | | | | | | 6.28% | | |
Acute Healthcare | | | | | 306,537,782 | | | | | | 15.8% | | | | | | 5.77% | | |
Public-Private Partnership | | | | | 253,215,996 | | | | | | 13.1% | | | | | | 7.77% | | |
Higher Education | | | | | 247,627,345 | | | | | | 12.8% | | | | | | 6.35% | | |
Senior Living | | | | | 70,761,443 | | | | | | 3.7% | | | | | | 4.96% | | |
Governmental Entities | | | | | 71,247,892 | | | | | | 3.7% | | | | | | 7.11% | | |
Student Housing | | | | | 41,320,561 | | | | | | 2.1% | | | | | | 7.11% | | |
Primary K-12 Education | | | | | 32,171,793 | | | | | | 1.7% | | | | | | 6.87% | | |
Total/Weighted Average | | | | | 1,938,423,505 | | | | | | 100% | | | | | | 6.51% | | |
State | | | Market Value (in $) | | | (%) | | | Weighted Average Coupon(1) | | |||||||||
Texas | | | | | 376,635,595 | | | | | | 19.4% | | | | | | 7.44% | | |
Florida | | | | | 275,274,116 | | | | | | 14.2% | | | | | | 5.52% | | |
California | | | | | 182,921,142 | | | | | | 9.4% | | | | | | 6.40% | | |
New York | | | | | 177,211,517 | | | | | | 9.1% | | | | | | 5.75% | | |
Ohio | | | | | 155,064,616 | | | | | | 8.0% | | | | | | 6.23% | | |
District of Columbia | | | | | 112,001,202 | | | | | | 5.8% | | | | | | 6.37% | | |
Georgia | | | | | 98,186,545 | | | | | | 5.1% | | | | | | 6.61% | | |
Illinois | | | | | 95,610,485 | | | | | | 4.9% | | | | | | 6.05% | | |
New Jersey | | | | | 81,925,668 | | | | | | 4.2% | | | | | | 6.25% | | |
Other (15) | | | | | 383,592,619 | | | | | | 19.8% | | | | | | 7.00% | | |
Total/Weighted Average | | | | | 1,938,423,505 | | | | | | 100% | | | | | | 6.51% | | |
| | | Historical | | |||||||||||||||||||||
| | | Three Months Ended March 31, | | | Year Ended December 31, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income(1) | | | | $ | 28,414,040 | | | | | $ | 29,294,788 | | | | | $ | 120,361,186 | | | | | $ | 124,826,531 | | |
Interest expense | | | | | (4,485,661) | | | | | | (4,816,505) | | | | | | (19,249,121) | | | | | | (23,212,275) | | |
Net interest income | | | | | 23,928,379 | | | | | | 24,478,283 | | | | | | 101,112,065 | | | | | | 101,614,256 | | |
Net realized gains(2) | | | | | 9,133,809 | | | | | | 1,627,458 | | | | | | 28,824,780 | | | | | | 45,229,877 | | |
Other revenue(3) | | | | | 8,228,618 | | | | | | (13,562,889) | | | | | | (8,500,106) | | | | | | (6,419,646) | | |
Total revenues | | | | | 41,290,806 | | | | | | 12,542,852 | | | | | | 121,436,739 | | | | | | 140,424,487 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Security other-than-temporary impairment expense | | | | | — | | | | | | — | | | | | | 10,000,000 | | | | | | — | | |
Administrative and other operating(4) | | | | | 8,749,099 | | | | | | 4,083,163 | | | | | | 23,018,807 | | | | | | 26,361,651 | | |
Total expenses | | | | | 8,749,099 | | | | | | 4,083,163 | | | | | | 33,018,807 | | | | | | 26,361,651 | | |
Net Income | | | | | 32,541,707 | | | | | | 8,459,689 | | | | | | 88,417,932 | | | | | | 114,062,836 | | |
Net Income attributable to Stockholder’s/Member’s capital | | | | $ | 32,541,707 | | | | | $ | 8,459,689 | | | | | $ | 87,703,265 | | | | | $ | 114,062,836 | | |
| | | Historical | | ||||||||||||||||||
| | | As of March 31, 2021 | | | As of December 31, | | | ||||||||||||||
| | | 2020 | | | 2019 | | | ||||||||||||||
Total investment portfolio(1) | | | | $ | 1,938,423,505 | | | | | $ | 1,933,958,418 | | | | | $ | 1,790,636,024 | | | | ||
Total assets | | | | | 2,057,957,232 | | | | | | 2,068,552,664 | | | | | | 2,047,189,932 | | | | ||
Total debt(2) | | | | | 510,499,789 | | | | | | 493,781,352 | | | | | | 490,361,954 | | | | ||
Total liabilities | | | | | 542,975,056 | | | | | | 507,508,474 | | | | | | 510,632,588 | | | | ||
Accumulated other comprehensive income (“OCI”) | | | | | 143,341,759 | | | | | | 115,330,528 | | | | | | 87,362,823 | | | | ||
Total equity | | | | | 1,514,982,176 | | | | | | 1,561,044,190 | | | | | | 1,536,557,344 | | | |
| | | Historical | | |||||||||||||||
| | | For the three months ended March 31, | | | For the year ended December 31, | | ||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
Interest yield on investment portfolio(1) | | | | | 5.9% | | | | | | 6.4% | | | | | | 6.7% | | |
Net Interest Margin(2) | | | | | 4.6% | | | | | | 4.9% | | | | | | 5.1% | | |
Return on average assets (“ROAA”)(3) | | | | | 6.5% | | | | | | 4.3% | | | | | | 6.0% | | |
Return on average equity (“ROAE”)(4) | | | | | 8.5% | | | | | | 6.0% | | | | | | 8.6% | | |
Operating expenses as percentage of total assets (“OPAA”)(5) | | | | | 1.7% | | | | | | 1.1% | | | | | | 1.3% | | |
Impairments as % of investment portfolio | | | | | 0.0% | | | | | | 0.5% | | | | | | 0.0% | | |
Debt / equity(6) | | | | | 0.34x | | | | | | 0.32x | | | | | | 0.32x | | |
Non-GAAP Financial Measures(7) | | | | | | | | | | ||||||||||
Adjusted interest yield on investment portfolio (8) | | | | | 6.3% | | | | | | 6.6% | | | | | | 6.9% | | |
Adjusted net interest margin(9) | | | | | 4.9% | | | | | | 5.0% | | | | | | 5.3% | | |
Adjusted return on average assets (“Adjusted ROAA”)(10). | | | | | 6.9% | | | | | | 4.5% | | | | | | 6.2% | | |
Adjusted return on average equity (“Adjusted ROAE”)(11) | | | | | 9.5% | | | | | | 6.4% | | | | | | 9.5% | | |
Adjusted operating expenses as percentage of total assets (“Adjusted OPAA”)(12) | | | | | 1.2% | | | | | | 1.0% | | | | | | 1.1% | | |
| | | Historical | | |||||||||||||||||||||
| | | For the Three Months Ended March 31,(1) | | | For the year ended December 31,(2) | | | For the cumulative years ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | | 2016-2020(2) | | ||||||||||||
Net income before taxes | | | | $ | 32,541,707 | | | | | $ | 88,417,932 | | | | | $ | 114,062,836 | | | | | $ | 435,154,474 | | |
Non-recurring litigation expenses. | | | | | 1,002,097 | | | | | | 2,069,622 | | | | | | 5,365,296 | | | | | | 7,491,687 | | |
Net income (excluding non-recurring litigation expenses) | | | | $ | 33,543,804 | | | | | $ | 90,487,554 | | | | | $ | 119,428,132 | | | | | $ | 442,646,161 | | |
Interest income | | | | | 28,414,040 | | | | | | 120,361,186 | | | | | | 124,826,531 | | | | | | — | | |
Net interest income | | | | | 23,928,379 | | | | | | 101,112,065 | | | | | | 101,614,256 | | | | | | — | | |
Average equity | | | | $ | 1,538,013,183 | | | | | $ | 1,469,950,981 | | | | | $ | 1,324,331,330 | | | | | $ | 1,005,385,178 | | |
Average OCI | | | | | 129,336,144 | | | | | | 59,817,187 | | | | | | 62,135,623 | | | | | | 32,102,920 | | |
Average equity (excluding OCI) | | | | $ | 1,408,677,040 | | | | | $ | 1,410,133,794 | | | | | $ | 1,262,195,708 | | | | | $ | 973,282,258 | | |
ROAE | | | | | 8.5% | | | | | | 6.0% | | | | | | 8.6% | | | | | | 8.7% | | |
Adjusted ROAE | | | | | 9.5% | | | | | | 6.4% | | | | | | 9.5% | | | | | | 9.1% | | |
Average assets | | | | $ | 2,063,254,948 | | | | | $ | 2,082,060,533 | | | | | $ | 1,992,372,488 | | | | | | | | |
Average OCI | | | | | 129,336,144 | | | | | | 59,817,187 | | | | | | 62,135,623 | | | | | | | | |
Average assets (excluding OCI) | | | | $ | 1,933,918,804 | | | | | $ | 2,022,243,346 | | | | | $ | 1,930,236,865 | | | | | | | | |
Average investment portfolio balance | | | | | 1,936,190,962 | | | | | | 1,891,190,920 | | | | | | 1,860,203,546 | | | | |||||
Average investment portfolio balance (excluding OCI) | | | | | 1,806,854,818 | | | | | | 1,831,373,733 | | | | | | 1,798,067,923 | | | | |||||
ROAA | | | | | 6.5% | | | | | | 4.3% | | | | | | 6.0% | | | | | | | | |
Adjusted ROAA | | | | | 6.9% | | | | | | 4.5% | | | | | | 6.2% | | | | | | | | |
Adjusted interest yield on investment portfolio | | | | | 6.3% | | | | | | 6.6% | | | | | | 6.9% | | | | | | | | |
Adjusted net interest margin | | | | | 4.9% | | | | | | 5.0% | | | | | | 5.3% | | | | | | | | |
| | | Historical | | |||||||||||||||
| | | For the Three Months Ended March 31,(1) | | | For the Year Ended December 31,(2) | | ||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
Compensation and administrative and other expenses | | | | $ | 8,749,099 | | | | | $ | 23,018,806 | | | | | $ | 26,361,651 | | |
Non-recurring litigation expenses | | | | | 1,002,097 | | | | | | 2,069,622 | | | | | | 5,365,296 | | |
REO operating expenses | | | | | 1,714,491 | | | | | | 0 | | | | | | 0 | | |
OPAA | | | | | 1.7% | | | | | | 1.1% | | | | | | 1.3% | | |
Adjusted compensation and administrative and other expenses | | | | $ | 6,032,511 | | | | | $ | 20,949,184 | | | | | $ | 20,996,355 | | |
Adjusted OPAA | | | | | 1.2% | | | | | | 1.0% | | | | | | 1.1% | | |
| | | March 31, 2021 | | | | March 31, 2021 | | ||||||||||||||||||||||||||||||
| | | Actual | | As adjusted(1) | | As adjusted further(1) | | | | Actual | | As adjusted(1) | | As adjusted further(1) | | ||||||||||||||||||||||
Cash and cash equivalents | | | | $ | 72,374,692 | | | | $ | 72,374,692 | | | | $ | 256,374,692 | | | | | | $ | 72,374,692 | | | | $ | (10,907,514) | | | | $ | 173,092,486 | | | ||||
Debt financing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Secured Borrowings | | | $ | 162,975,439 | | | | $ | 162,975,439 | | | | $ | 162,975,439 | | | | | $ | 162,975,439 | | | | $ | 162,975,439 | | | | $ | 162,975,439 | | | ||||||
Mandatorily redeemable noncontrolling interest in consolidated entities | | | $ | 347,524,350 | | | | | 347,524,350 | | | | | 347,524,350 | | | | | $ | 347,524,350 | | | | | 347,524,350 | | | | | 347,524,350 | | | ||||||
Total debt financing | | | $ | 510,499,789 | | | | | 510,499,789 | | | | | 510,499,789 | | | | | $ | 510,499,789 | | | | | 510,499,789 | | | | | 510,499,789 | | | ||||||
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Preferred stock, $0.01 par value per share, no shares authorized, no shares issued and outstanding, on a historical basis; 200,000,000 shares authorized, no shares issued and outstanding, as adjusted; 200,000,000 shares authorized, no shares issued and outstanding, as adjusted further basis | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | — | | | ||||
Class A common stock, $0.01 par value per share, no shares authorized, no shares issued and outstanding, on a historical basis; 500,000,000 shares authorized, 50 shares issued and outstanding, as adjusted; 500,000,000 shares authorized, 10,526,366 shares issued and outstanding, as adjusted further basis | | | | | — | | | | | 1 | | | | | 105,264 | | | | | | | — | | | | | 1 | | | | | 105,264 | | | ||||
Class B common stock, $0.01 par value per share, no shares authorized, no shares issued and outstanding, on a historical basis; 500,000,000 shares authorized, 106,346,799 shares issued and outstanding, as adjusted; 500,000,000 shares authorized, 106,346,799 shares issued and outstanding, as adjusted further basis | | | | — | | | | | 1,063,468 | | | | | 1,063,468 | | | | | | — | | | | | 1,063,468 | | | | | 1,063,468 | | | ||||||
Contributed capital | | | $ | 887,520,606 | | | | | — | | | | | — | | | | | $ | 887,520,606 | | | | | — | | | | | — | | | ||||||
Retained earnings | | | $ | 482,805,144 | | | | | — | | | | | — | | | | | $ | 482,805,144 | | | | | — | | | | | — | | | ||||||
Additional paid-in capital | | | | | | | | | 25,855,702 | | | | | 209,750,439 | | | | | | | | | | | 24,222,717 | | | | | 208,117,454 | | | ||||||
Accumulated other comprehensive income | | | $ | 143,341,759 | | | | | 2,810,688 | | | | | 15,241,555 | | | | | $ | 143,341,759 | | | | | 2,810,688 | | | | | 15,241,555 | | | ||||||
Total Members’/Stockholders’ equity | | | | $ | 1,513,667,509 | | | | $ | 29,729,858 | | | | $ | 226,160,726 | | | | | | $ | 1,513,667,509 | | | | $ | 28,096,873 | | | | $ | 224,527,741 | | | ||||
Non-controlling interest in consolidated entities | | | | $ | 1,314,667 | | | | $ | 1,486,464,082 | | | | $ | 1,474,033,214 | | | | | | $ | 1,314,667 | | | | $ | 1,404,814,861 | | | | $ | 1,392,383,993 | | | ||||
Total equity | | | | $ | 1,514,982,176 | | | | $ | 1,516,193,940 | | | | $ | 1,700,193,940 | | | | | | $ | 1,514,982,176 | | | | $ | 1,432,911,734 | | | | $ | 1,616,911,734 | | | ||||
Total capitalization | | | | $ | 2,025,481,965 | | | | $ | 2,026,693,729 | | | | $ | 2,210,693,729 | | | | | | $ | 2,025,481,965 | | | | $ | 1,943,411,523 | | | | $ | 2,127,411,523 | | | |
| Assumed initial public offering price per share of Class A common stock | | | | | | | | $ | 19.00 | | | Assumed initial public offering price per share of Class A common stock | | | | | | | | $ | 19.00 | | | ||||
| Pro Forma net tangible book value per share as of March 31, 2021 | | | $ | 13.98 | | | | | | | | Pro Forma net tangible book value per share as of March 31, 2021 | | | $ | 13.21 | | | | | | | | ||||
| Increase in pro forma net tangible book value per share attributable to new investors(1) | | | | $ | 0.31 | | | | | | | | | Increase in pro forma net tangible book value per share attributable to new investors(1) | | | | $ | 0.38 | | | | | | | | |
| Adjusted pro forma net tangible book value per share after the offering(2) | | | | | | | | | $ | 14.29 | | | Adjusted pro forma net tangible book value per share after the offering(2) | | | | | | | | | $ | 13.59 | | | ||
| Dilution per share to new investors(3) | | | | | | | | | $ | 4.71 | | | Dilution per share to new investors(3) | | | | | | | | | $ | 5.41 | | | |
| | | Shares purchased | | Total consideration | | | | | | | | | | Shares purchased | | Total consideration | | | | | | | | ||||||||||||||||||||||||||||||||||||||
| | | Number | | Percent | | Net Tangible Book Value Amount | | Percent | | Average Price per share | | | | Number | | Percent | | Net Tangible Book Value Amount | | Percent | | Average Price per share | | ||||||||||||||||||||||||||||||||||||||
| | | (dollars in thousands, except per share data) | | | | (dollars in thousands, except per share data) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Existing owners (Class A common stock outstanding and that may be issued upon (i) the exchange of OP units and (ii) the conversion of shares of Class B common stock with which such OP units are paired) | | | | 108,473,785 | | | | | 91.2% | | | | $ | 1,516,194 | | | | | 89.2% | | | | $ | 13.98 | | | | | | 108,473,785 | | | | | 91.2% | | | | $ | 1,432,912 | | | | | 88.6% | | | | $ | 13.21 | | | ||||||||||
Investors in this offering | | | | 10,526,316 | | | | | 8.8% | | | | $ | 184,000 | | | | | 10.8% | | | | $ | 19.00 | | | | | | 10,526,316 | | | | | 8.8% | | | | $ | 184,000 | | | | | 11.4% | | | | $ | 19.00 | | | ||||||||||
Total | | | | | 119,000,101 | | | | | 100% | | | | $ | 1,700,194 | | | | | 100% | | | | $ | 14.29 | | | | | | | 119,000,101 | | | | | 100% | | | | $ | 1,616,912 | | | | | 100% | | | | $ | 13.59 | | | |
| | | Preston Hollow, LLC Historical | | Transaction Adjustments | | Preston Hollow Community Capital, Inc. Pro Forma | | | | Preston Hollow, LLC Historical | | Transaction Adjustments | | Preston Hollow Community Capital, Inc. Pro Forma | | ||||||||||||||||||||||
Cash and cash equivalents and restricted cash | | | $ | 72,374,692 | | | | | 184,000,000(1) | | | | $ | 256,374,692 | | | | | $ | 72,374,692 | | | | | 101,717,794(1) | | | | $ | 173,092,486 | | | ||||||
Investments in marketable securities, at fair value | | | | 817,644,815 | | | | | — | | | | | 817,644,815 | | | | | | 817,644,815 | | | | | — | | | | | 817,644,815 | | | ||||||
Investments in marketable securities held in trust, at fair value | | | | 974,570,223 | | | | | — | | | | | 974,570,223 | | | | | | 974,570,223 | | | | | — | | | | | 974,570,223 | | | ||||||
Investments in finance receivables, net of allowance for possible losses | | | | 71,790,904 | | | | | — | | | | | 71,790,904 | | | | | | 71,790,904 | | | | | — | | | | | 71,790,904 | | | ||||||
Investment in private fund | | | | 1,597,549 | | | | | — | | | | | 1,597,549 | | | | | | 1,597,549 | | | | | — | | | | | 1,597,549 | | | ||||||
Real estate owned | | | | 70,397,718 | | | | | — | | | | | 70,397,718 | | | | | | 70,397,718 | | | | | — | | | | | 70,397,718 | | | ||||||
Interest receivable | | | | 36,551,394 | | | | | — | | | | | 36,551,394 | | | | | | 36,551,394 | | | | | — | | | | | 36,551,394 | | | ||||||
Reverse repurchase receivable, net | | | | 2,643,483 | | | | | — | | | | | 2,643,483 | | | | | | 2,643,483 | | | | | — | | | | | 2,643,483 | | | ||||||
Other assets | | | | | 10,386,454 | | | | | — | | | | | 10,386,454 | | | | | | | 10,386,454 | | | | | — | | | | | 10,386,454 | | | ||||
Total assets | | | | | 2,057,957,232 | | | | | 184,000,000 | | | | | 2,241,957,232 | | | | | | | 2,057,957,232 | | | | | 101,717,794 | | | | | 2,158,675,026 | | | ||||
Accounts payable and other liabilities | | | $ | 32,475,267 | | | | | (1,211,764) | | | | $ | 31,263,503 | | | | | $ | 32,475,267 | | | | | (1,211,764) | | | | $ | 31,263,503 | | | ||||||
Secured borrowings | | | | 162,975,439 | | ��� | | | | — | | | | | 162,975,439 | | | | | | 162,975,439 | | | | | — | | | | | 162,975,439 | | | |||||
Manditorily redeemable noncontrolling interest in consolidated entities | | | | | 347,524,350 | | | | | — | | | | | 347,524,350 | | | | | | | 347,524,350 | | | | | — | | | | | 347,524,350 | | | ||||
Total liabilities | | | | 542,975,056 | | | | | (1,211,764) | | | | | 541,763,292 | | | | | | 542,975,056 | | | | | (1,211,764) | | | | | 541,763,292 | | | ||||||
Preferred stock | | | | — | | | | | — | | | | | | | | | | | — | | | | | — | | | | | | | | ||||||
Class A common stock | | | | — | | | | | 105,264(2) | | | | | 105,264 | | | | | | — | | | | | 105,264(2) | | | | | 105,264 | | | ||||||
Class B common stock | | | | — | | | | | 1,063,468(3) | | | | | 1,063,468 | | | | | | — | | | | | 1,063,468(3) | | | | | 1,063,468 | | | ||||||
Additional paid-in capital | | | | — | | | | | 209,750,439 | | | | | 209,750,439 | | | | | | — | | | | | 208,117,454(4) | | | | | 208,117,454 | | | ||||||
Contributed capital | | | | 887,520,606 | | | | | (887,520,606)(4) | | | | | — | | | | | | 887,520,606 | | | | | (887,520,606)(5) | | | | | — | | | ||||||
Retained earnings | | | | 482,805,144 | | | | | (482,805,144)(4) | | | | | — | | | | | | 482,805,144 | | | | | (482,805,144)(5) | | | | | — | | | ||||||
Accumulated other comprehensive income | | | | | 143,341,759 | | | | | (128,100,204)(4)(5) | | | | | 15,241,555 | | | | | | | 143,341,759 | | | | | (128,100,204)(5)(6) | | | | | 15,241,555 | | | ||||
Total Members’/stockholders’ equity | | | | 1,513,667,509 | | | | | (1,287,506,783) | | | | | 226,160,726 | | | | | | 1,513,667,509 | | | | | (1,289,139,768) | | | | | 224,527,741 | | | ||||||
Noncontrolling interest in consolidated entities | | | | 1,314,667 | | | | | 1,472,718,547(4)(5) | | | | | 1,474,033,214 | | | | | | 1,314,667 | | | | | 1,391,069,326(7) | | | | | 1,392,383,993 | | | ||||||
Total equity | | | | | 1,514,982,176 | | | | | 185,211,764 | | | | | 1,700,193,940 | | | | | | | 1,514,982,176 | | | | | 101,929,558 | | | | | 1,616,911,734 | | | ||||
Total liabilities and equity | | | | $ | 2,057,957,232 | | | | | 184,000,000 | | | | $ | 2,241,957,232 | | | | | | $ | 2,057,957,232 | | | | | 100,717,794 | | | | $ | 2,158,675,026 | | | |
| | | Preston Hollow, LLC Historical | | Transaction Adjustments | | Preston Hollow Community Capital, Inc. Pro Forma | | | | Preston Hollow, LLC Historical | | Transaction Adjustments | | Preston Hollow Community Capital, Inc. Pro Forma | | ||||||||||||||||||||||
Marketable securities interest income | | | $ | 110,832,800 | | | | | — | | | | $ | 110,832,800 | | | | | $ | 110,832,800 | | | | | — | | | | $ | 110,832,800 | | | ||||||
Finance receivables interest income | | | | 9,528,386 | | | | | — | | | | | 9,528,386 | | | | | | 9,528,386 | | | | | — | | | | | 9,528,386 | | | ||||||
Interest expense | | | | | (19,249,121) | | | | | — | | | | | (19,249,121) | | | | | | | (19,249,121) | | | | | — | | | | | (19,249,121) | | | ||||
Net interest income | | | | 101,112,065 | | | | | — | | | | | 101,112,065 | | | | | | 101,112,065 | | | | | — | | | | | 101,112,065 | | | ||||||
Net gain on sales of marketable securities and finance receivables | | | | 12,894,541 | | | | | — | | | | | 12,894,541 | | | | | | 12,894,541 | | | | | — | | | | | 12,894,541 | | | ||||||
Net gain on sale of real estate projects and land held for sale | | | | 15,930,239 | | | | | — | | | | | 15,930,239 | | | | | | 15,930,239 | | | | | — | | | | | 15,930,239 | | | ||||||
Unrealized net gain on trading marketable securities and investment in private fund | | | | 152,774 | | | | | — | | | | | 152,774 | | | | | | 152,774 | | | | | — | | | | | 152,774 | | | ||||||
Net loss on derivative securities | | | | (9,005,027) | | | | | — | | | | | (9,005,027) | | | | | | (9,005,027) | | | | | — | | | | | (9,005,027) | | | ||||||
Other | | | | | 352,147 | | | | | — | | | | | 352,147 | | | | | | | 352,147 | | | | | — | | | | | 352,147 | | | ||||
Total revenues | | | | 121,436,739 | | | | | — | | | | | 121,436,739 | | | | | | 121,436,739 | | | | | — | | | | | 121,436,739 | | | ||||||
Security other-than-temporary impairment expense | | | | 10,000,000 | | | | | — | | | | | 10,000,000 | | | | | | 10,000,000 | | | | | — | | | | | 10,000,000 | | | ||||||
Provision for finance receivable credit losses | | | | 3,291 | | | | | — | | | | | 3,291 | | | | | | 3,291 | | | | | — | | | | | 3,291 | | | ||||||
Compensation | | | | 15,228,236 | | | | | 610,000 | | | | | 15,838,236 | | | | | | 15,228,236 | | | | | 610,000 | | | | | 15,838,236 | | | ||||||
Administrative and other operating | | | | | 7,787,280 | | | | | (2,069,622)(6) | | | | | 5,717,658 | | | | | | | 7,787,280 | | | | | (2,069,622)(8) | | | | | 5,717,658 | | | ||||
Total expenses | | | | | 33,018,807 | | | | | (1,459,622) | | | | | 31,559,185 | | | | | | | 33,018,807 | | | | | (1,459,622) | | | | | 31,559,185 | | | ||||
Net income before taxes | | | | 88,417,932 | | | | | 1,459,622 | | | | | 89,877,554 | | | | | | 88,417,932 | | | | | 1,459,622 | | | | | 89,877,554 | | | ||||||
Tax expense | | | | | — | | | | | (7) | | | | | | | | | | | | — | | | | | (9) | | | | | | | | ||||
Net income after taxes | | | | 88,417,932 | | | | | 1,459,622 | | | | | 89,877,554 | | | | | | 88,417,932 | | | | | 1,459,622 | | | | | 89,877,554 | | | ||||||
Net income attributable to noncontrolling interests | | | | | 714,667 | | | | | 79,682,181 | | | | | 80,396,848 | | | | | | | 714,667 | | | | | 79,682,181(10) | | | | | 80,396,848 | | | ||||
Net income attributable to controlling capital | | | | $ | 87,703,265 | | | | | (78,222,559) | | | | $ | 9,480,706 | | | | | | $ | 87,703,265 | | | | | (78,222,559) | | | | $ | 9,480,706 | | | ||||
Net income per share of Class A common stock: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Basic | | | | 0.81 | | | | | | | | | | 0.75(8) | | | | | | 0.81 | | | | | | | | | | 0.75(11) | | | ||||||
Diluted | | | | 0.81 | | | | | | | | | | 0.75(9) | | | | | | 0.81 | | | | | | | | | | 0.75(12) | | | ||||||
Weighted average shares of Class A common stock outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Basic | | | | 50 | | | | | | | | | | 10,526,366(8) | | | | | | 50 | | | | | | | | | | 10,526,366(11) | | | ||||||
Diluted | | | | 108,473,785 | | | | | | | | | | 119,000,101(9) | | | | | | 108,473,785 | | | | | | | | | | 119,000,101(12) | | |
| | | Preston Hollow, LLC Historical | | Transaction Adjustments | | Preston Hollow Community Capital, Inc. Pro Forma | | | | Preston Hollow, LLC Historical | | Transaction Adjustments | | Preston Hollow Community Capital, Inc. Pro Forma | | ||||||||||||||||||||||
Marketable securities interest income | | | $ | 26,605,051 | | | | | — | | | | $ | 26,605,051 | | | | | $ | 26,605,051 | | | | | — | | | | $ | 26,605,051 | | | ||||||
Finance receivables interest income | | | | 1,808,989 | | | | | — | | | | | 1,808,989 | | | | | | 1,808,989 | | | | | — | | | | | 1,808,989 | | | ||||||
Interest expense | | | | | (4,485,661) | | | | | — | | | | | (4,485,661) | | | | | | | (4,485,661) | | | | | — | | | | | (4,485,661) | | | ||||
Net interest income | | | | 23,928,379 | | | | | — | | | | | 23,928,379 | | | | | | 23,928,379 | | | | | — | | | | | 23,928,379 | | | ||||||
Net gain on sales of marketable securities and finance receivables | | | | 9,133,809 | | | | | — | | | | | 9,133,809 | | | | | | 9,133,809 | | | | | — | | | | | 9,133,809 | | | ||||||
Unrealized net loss on trading marketable securities and investment in private fund | | | | (1,527,566) | | | | | — | | | | | (1,527,566) | | | | | | (1,527,566) | | | | | — | | | | | (1,527,566) | | | ||||||
Net gain on derivative securities | | | | 8,299,357 | | | | | — | | | | | 8,299,357 | | | | | | 8,299,357 | | | | | — | | | | | 8,299,357 | | | ||||||
REO operating income | | | | 1,396,166 | | | | | — | | | | | 1,396,166 | | | | | | 1,396,166 | | | | | — | | | | | 1,396,166 | | | ||||||
Other | | | | | 60,661 | | | | | — | | | | | 60,661 | | | | | | | 60,661 | | | | | — | | | | | 60,661 | | | ||||
Total revenues | | | | 41,290,806 | | | | | — | | | | | 41,290,806 | | | | | | 41,290,806 | | | | | — | | | | | 41,290,806 | | | ||||||
Provision for (recovery of) finance receivable credit losses | | | | (6,803) | | | | | — | | | | | (6,803) | | | | | | (6,803) | | | | | — | | | | | (6,803) | | | ||||||
REO operating expense | | | | 1,714,491 | | | | | — | | | | | 1,714,491 | | | | | | 1,714,491 | | | | | — | | | | | 1,714,491 | | | ||||||
Compensation | | | | 4,444,098 | | | | | 152,500 | | | | | 4,596,598 | | | | | | 4,444,098 | | | | | 152,500 | | | | | 4,596,598 | | | ||||||
Administrative and other operating | | | | | 2,597,313 | | | | | (1,002,097)(6) | | | | | 1,595,216 | | | | | | | 2,597,313 | | | | | (1,002,097)(8) | | | | | 1,595,216 | | | ||||
Total expenses | | | | | 8,749,099 | | | | | (849,597) | | | | | 7,899,502 | | | | | | | 8,749,099 | | | | | (849,597) | | | | | 7,899,502 | | | ||||
Net income before taxes | | | | 32,541,707 | | | | | 849,597 | | | | | 33,391,304 | | | | | | 32,541,707 | | | | | 849,597 | | | | | 33,391,304 | | | ||||||
Tax expense | | | | | — | | | | | (51,992)(7) | | | | | (51,992) | | | | | | | — | | | | | (51,992)(9) | | | | | (51,992) | | | ||||
Net income after taxes | | | | 32,541,707 | | | | | 797,605 | | | | | 33,339,312 | | | | | | 32,541,707 | | | | | 797,605 | | | | | 33,339,312 | | | ||||||
Net income attributable to noncontrolling interests | | | | | — | | | | | 29,840,801 | | | | | 29,840,801 | | | | | | | — | | | | | 29,840,801(10) | | | | | 29,840,801 | | | ||||
Net income attributable to controlling capital | | | | $ | 32,541,707 | | | | | (29,043,196) | | | | $ | 3,498,511 | | | | | | $ | 32,541,707 | | | | | (29,043,196) | | | | $ | 3,498,511 | | | ||||
Net income per share of Class A common stock: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Basic | | | | 0.30 | | | | | | | | | | 0.28(8) | | | | | | 0.30 | | | | | | | | | | 0.28(11) | | | ||||||
Diluted | | | | 0.30 | | | | | | | | | | 0.28(9) | | | | | | 0.30 | | | | | | | | | | 0.28(12) | | | ||||||
Weighted average shares of Class A common stock outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Basic | | | | 50 | | | | | | | | | | 10,526,366(8) | | | | | | 50 | | | | | | | | | | 10,526,366(11) | | | ||||||
Diluted | | | | 108,473,785 | | | | | | | | | | 119,000,101(9) | | | | | | 108,473,785 | | | | | | | | | | 119,000,101(12) | | |
| | | Pro forma | | | Historical | | ||||||||||||||||||||||||||||||
| | | Three months ended March 31, 2021 | | | Year ended December 31, 2020 | | | Three months ended March 31, | | | Year ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketable securities interest income | | | | $ | 26,605,051 | | | | | $ | 110,832,800 | | | | | $ | 26,605,051 | | | | | | 26,063,681 | | | | | $ | 110,832,800 | | | | | $ | 110,859,143 | | |
Finance receivables interest income | | | | | 1,808,989 | | | | | | 9,528,386 | | | | | | 1,808,989 | | | | | | 3,231,107 | | | | | | 9,528,386 | | | | | | 13,967,388 | | |
Interest expense | | | | | (4,485,661) | | | | | | (19,249,121) | | | | | | (4,485,661) | | | | | | (4,816,505) | | | | | | (19,249,121) | | | | | | (23,212,275) | | |
Net interest income | | | | | 23,928,379 | | | | | | 101,112,065 | | | | | | 23,928,379 | | | | | | 24,478,283 | | | | | | 101,112,065 | | | | | | 101,614,256 | | |
Net gain on sales of marketable securities and finance receivables | | | | | 9,133,809 | | | | | | 12,894,541 | | | | | | 9,133,809 | | | | | | 1,627,458 | | | | | | 12,894,541 | | | | | | 45,229,877 | | |
Net gain on sale of real estate projects and land held for sale | | | | | — | | | | | | 15,930,239 | | | | | | — | | | | | | — | | | | | | 15,930,239 | | | | | | — | | |
Unrealized net gain (loss) on trading marketable securities and investment in private fund | | | | | (1,527,566) | | | | | | 152,774 | | | | | | (1,527,566) | | | | | | (1,210,431) | | | | | | 152,774 | | | | | | 3,419,555 | | |
| | | Pro forma | | | Historical | | ||||||||||||||||||||||||||||||
| | | Three months ended March 31, 2021 | | | Year ended December 31, 2020 | | | Three months ended March 31, | | | Year ended December 31, | | ||||||||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||||||||||||||
Net gain (loss) on derivative securities | | | | | 8,299,357 | | | | | | (9,005,027) | | | | | | 8,299,357 | | | | | | (12,523,329) | | | | | | (9,005,027) | | | | | | (10,418,157) | | |
REO operating income | | | | | 1,396,166 | | | | | | | | | | | | 1,396,166 | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | 60,661 | | | | | | 352,147 | | | | | | 60,661 | | | | | | 170,871 | | | | | | 352,147 | | | | | | 578,956 | | |
Total revenues | | | | | 41,290,806 | | | | | | 121,436,739 | | | | | | 41,290,806 | | | | | | 12,542,852 | | | | | | 121,436,739 | | | | | | 140,424,487 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Security impairment expense | | | | | — | | | | | | 10,000,000 | | | | | | — | | | | | | — | | | | | | 10,000,000 | | | | | | — | | |
Provision for (recovery of) finance receivable credit losses | | | | | (6,803) | | | | | | 3,291 | | | | | | (6,803) | | | | | | 38,653 | | | | | | 3,291 | | | | | | 76,663 | | |
REO operating expense | | | | | 1,714,491 | | | | | | — | | | | | | 1,714,491 | | | | | | — | | | | | | — | | | | | | — | | |
Compensation | | | | | 4,596,598 | | | | | | 15,838,236 | | | | | | 4,444,098 | | | | | | 2,757,154 | | | | | | 15,228,236 | | | | | | 15,963,708 | | |
Administrative and other operating(1) | | | | | 1,595,216 | | | | | | 5,717,658 | | | | | | 2,597,313 | | | | | | 1,287,356 | | | | | | 7,787,280 | | | | | | 10,321,280 | | |
Total expenses | | | | | 7,899,502 | | | | | | 31,559,185 | | | | | | 8,749,099 | | | | | | 4,083,163 | | | | | | 33,018,807 | | | | | | 26,361,651 | | |
Net income before taxes | | | | | 33,391,304 | | | | | | 89,877,554 | | | | | | 32,541,707 | | | | | | 8,459,689 | | | | | | 88,417,932 | | | | | | 114,062,836 | | |
Tax expense | | | | | (51,992) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income (after taxes) | | | | | 33,339,312 | | | | | | 89,877,554 | | | | | | 32,541,707 | | | | | | 8,459,689 | | | | | | 88,417,932 | | | | | | 114,062,836 | | |
Net income attributable to noncontrolling interests | | | | | 29,840,801 | | | | | | 80,396,848 | | | | | | — | | | | | | — | | | | | | 714,667 | | | | | | — | | |
Net income attributable to Members’ capital | | | | $ | 3,498,511 | | | | | $ | 9,480,706 | | | | | $ | 32,541,707 | | | | | $ | 8,459,689 | | | | | $ | 87,703,265 | | | | | $ | 114,062,836 | | |
|
| | | Pro forma | | Historical | | | | Pro forma | | Historical | | ||||||||||||||||||||||||||||||||||||||
| | | As of March 31, 2021 | | As of March 31, 2021 | | | As of December 31, | | | | As of March 31, 2021 | | As of March 31, 2021 | | | As of December 31, | | ||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||||||||
| | | As of March 31, 2021 | | As of March 31, 2021 | | | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
Cash and cash equivalents and restricted cash | | | $ | 256,374,692 | | | | $ | 72,374,692 | | | | $ | 88,220,755 | | | | $ | 212,507,292 | | | | | $ | 173,092,486 | | | | $ | 72,374,692 | | | | $ | 88,220,755 | | | | $ | 212,507,292 | | | ||||||||
Investments in marketable securities, at fair value | | | | 817,644,815 | | | | | 817,644,815 | | | | | 765,962,052 | | | | | 904,033,721 | | | | | | 817,644,815 | | | | | 817,644,815 | | | | | 765,962,052 | | | | | 904,033,721 | | | ||||||||
Investments in marketable securities held in trust, at fair value | | | | 974,570,223 | | | | | 974,570,223 | | | | | 1,040,986,810 | | | | | 764,677,079 | | | | | | 974,570,223 | | | | | 974,570,223 | | | | | 1,040,986,810 | | | | | 764,677,079 | | | ||||||||
Investments in finance receivables, net of allowance for possible losses | | | | 71,790,904 | | | | | 71,790,904 | | | | | 76,523,447 | | | | | 111,248,693 | | | | | | 71,790,904 | | | | | 71,790,904 | | | | | 76,523,447 | | | | | 111,248,693 | | | ||||||||
Investment in private fund | | | | 1,597,549 | | | | | 1,597,549 | | | | | 1,418,472 | | | | | 1,219,627 | | | | | | 1,597,549 | | | | | 1,597,549 | | | | | 1,418,472 | | | | | 1,219,627 | | | ||||||||
Interest receivable | | | | 36,551,394 | | | | | 36,551,394 | | | | | 33,677,772 | | | | | 30,807,516 | | | | | | 36,551,394 | | | | | 36,551,394 | | | | | 33,677,772 | | | | | 30,807,516 | | | ||||||||
Reverse repurchase receivable, net | | | | 2,643,483 | | | | | 2,643,483 | | | | | 3,810,800 | | | | | 4,817,248 | | | | | | 2,643,483 | | | | | 2,643,483 | | | | | 3,810,800 | | | | | 4,817,248 | | | ||||||||
Real estate owned | | | | 70,397,718 | | | | | 70,397,718 | | | | | 47,374,503 | | | | | — | | | | | | 70,397,718 | | | | | 70,397,718 | | | | | 47,374,503 | | | | | — | | | ||||||||
Other assets | | | | | 10,386,454 | | | | | 10,386,454 | | | | | 10,578,053 | | | | | 17,878,756 | | | | | | | 10,386,454 | | | | | 10,386,454 | | | | | 10,578,053 | | | | | 17,878,756 | | | ||||||
Total assets | | | | $ | 2,241,957,232 | | | | $ | 2,057,957,232 | | | | $ | 2,068,552,664 | | | | $ | 2,047,189,932 | | | | | | $ | 2,158,675,026 | | | | $ | 2,057,957,232 | | | | $ | 2,068,552,664 | | | | $ | 2,047,189,932 | | | ||||||
Liabilities and Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Accounts payable and other liabilities | | | $ | 31,263,503 | | | | $ | 32,475,267 | | | | $ | 13,727,122 | | | | $ | 20,270,634 | | | | | $ | 31,263,503 | | | | $ | 32,475,267 | | | | $ | 13,727,122 | | | | $ | 20,270,634 | | | ||||||||
Secured borrowings | | | | 162,975,439 | | | | | 162,975,439 | | | | | 162,964,352 | | | | | 157,136,554 | | | | | | 162,975,439 | | | | | 162,975,439 | | | | | 162,964,352 | | | | | 157,136,554 | | | ||||||||
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 347,524,350 | | | | | 347,524,350 | | | | | 330,817,000 | | | | | 333,225,400 | | | | | | | 347,524,350 | | | | | 347,524,350 | | | | | 330,817,000 | | | | | 333,225,400 | | | ||||||
Total liabilities | | | | $ | 541,763,292 | | | | $ | 542,975,056 | | | | $ | 507,508,474 | | | | $ | 510,632,588 | | | | | | $ | 541,763,292 | | | | $ | 542,975,056 | | | | $ | 507,508,474 | | | | $ | 510,632,588 | | | ||||||
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Class A common stock | | | | 105,264 | | | | | — | | | | | — | | | | | — | | | | | | 105,264 | | | | | — | | | | | — | | | | | — | | | ||||||||
Class B common stock | | | | 1,063,468 | | | | | — | | | | | — | | | | | — | | | | | | 1,063,468 | | | | | — | | | | | — | | | | | — | | | ||||||||
Additional paid-in capital | | | | 209,750,439 | | | | | — | | | | | — | | | | | — | | | | | | 208,117,454 | | | | | — | | | | | — | | | | | — | | | ||||||||
Members’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Contributed capital | | | $ | — | | | | $ | 887,520,606 | | | | $ | 994,135,558 | | | | $ | 1,086,034,349 | | | | | $ | — | | | | $ | 887,520,606 | | | | $ | 994,135,558 | | | | $ | 1,086,034,349 | | | ||||||||
Retained earnings | | | | — | | | | | 482,805,144 | | | | | 450,263,437 | | | | | 362,560,172 | | | | | | — | | | | | 482,805,144 | | | | | 450,263,437 | | | | | 362,560,172 | | | ||||||||
Accumulated other comprehensive income | | | | | 15,241,555 | | | | | 143,341,759 | | | | | 115,330,528 | | | | | 87,362,823 | | | | | | | 15,241,555 | | | | | 143,341,759 | | | | | 115,330,528 | | | | | 87,362,823 | | | ||||||
Total Members/Stockholders’ equity | | | | 226,160,726 | | | | | 1,513,667,509 | | | | | 1,559,729,523 | | | | | 1,535,957,344 | | | | | | 224,527,741 | | | | | 1,513,667,509 | | | | | 1,559,729,523 | | | | | 1,535,957,344 | | | ||||||||
Noncontrolling interest in consolidated entities | | | | | 1,474,033,214 | | | | | 1,314,667 | | | | | 1,314,667 | | | | | 600,000 | | | | | | | 1,392,383,993 | | | | | 1,314,667 | | | | | 1,314,667 | | | | | 600,000 | | | ||||||
Total equity | | | | | 1,700,193,940 | | | | | 1,514,982,176 | | | | | 1,561,044,190 | | | | | 1,536,557,344 | | | | | | | 1,616,911,734 | | | | | 1,514,982,176 | | | | | 1,561,044,190 | | | | | 1,536,557,344 | | | ||||||
Total liabilities and equity | | | | $ | 2,241,957,232 | | | | $ | 2,057,957,232 | | | | $ | 2,068,552,664 | | | | $ | 2,047,189,932 | | | | | | $ | 2,158,675,026 | | | | $ | 2,057,957,232 | | | | $ | 2,068,552,664 | | | | $ | 2,047,189,932 | | | |
| | | Historical | | |||||||||||||||
| | | For the three months ended March 31, | | | For the year ended December 31, | | ||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
Interest yield on investment portfolio(1) | | | | | 5.9% | | | | | | 6.4% | | | | | | 6.7% | | |
Net Interest Margin(2) | | | | | 4.6% | | | | | | 4.9% | | | | | | 5.1% | | |
ROAA(3) | | | | | 6.5% | | | | | | 4.3% | | | | | | 6.0% | | |
ROAE(4) | | | | | 8.5% | | | | | | 6.0% | | | | | | 8.6% | | |
OPAA(5) | | | | | 1.7% | | | | | | 1.1% | | | | | | 1.3% | | |
Impairments as % of investment portfolio | | | | | 0.0% | | | | | | 0.5% | | | | | | 0.0% | | |
Debt / equity(6) | | | | | 0.34x | | | | | | 0.32x | | | | | | 0.32x | | |
Non-GAAP Financial Measures(7) | | | | | | | | | | ||||||||||
Adjusted interest yield on investment portfolio(8) | | | | | 6.3% | | | | | | 6.6% | | | | | | 6.9% | | |
Adjusted net interest margin(9) | | | | | 4.9% | | | | | | 5.0% | | | | | | 5.3% | | |
Adjusted ROAA(10). | | | | | 6.9% | | | | | | 4.5% | | | | | | 6.2% | | |
Adjusted ROAE(11) | | | | | 9.5% | | | | | | 6.4% | | | | | | 9.5% | | |
Adjusted OPAA(12) | | | | | 1.2% | | | | | | 1.0% | | | | | | 1.1% | | |
| | | Historical | | |||||||||||||||||||||
| | | For the Three Months Ended March 31,(1) | | | For the year ended December 31, (2) | | | For the cumulative years ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | | 2016-2020(2) | | ||||||||||||
Net income | | | | $ | 32,541,707 | | | | | $ | 88,417,932 | | | | | $ | 114,062,836 | | | | | $ | 435,154,474 | | |
Non-recurring litigation expenses | | | | | 1,002,097 | | | | | | 2,069,622 | | | | | | 5,365,296 | | | | | | 7,491,687 | | |
Net income (excluding non-recurring litigation expenses) | | | | $ | 33,543,804 | | | | | $ | 90,487,554 | | | | | $ | 119,428,132 | | | | | $ | 442,646,161 | | |
Interest income | | | | | 28,414,040 | | | | | | 120,361,186 | | | | | | 124,826,531 | | | | | | — | | |
Net interest income | | | | | 23,928,379 | | | | | | 101,112,065 | | | | | | 101,614,256 | | | | | | — | | |
Average equity | | | | $ | 1,538,013,183 | | | | | $ | 1,469,950,981 | | | | | $ | 1,324,331,330 | | | | | $ | 1,005,385,178 | | |
Average OCI | | | | | 129,336,144 | | | | | | 59,817,187 | | | | | | 62,135,623 | | | | | | 32,102,920 | | |
Average equity (excluding OCI) | | | | $ | 1,408,677,040 | | | | | $ | 1,410,133,794 | | | | | $ | 1,262,195,708 | | | | | $ | 973,282,258 | | |
Average investment portfolio balance | | | | | 1,936,190,962 | | | | | | 1,891,190,920 | | | | | | 1,860,203,546 | | | | |||||
Average investment portfolio balance (excluding OCI) | | | | | 1,806,854,818 | | | | | | 1,831,373,733 | | | | | | 1,798,067,923 | | | | |||||
ROAE | | | | | 8.5% | | | | | | 6.0% | | | | | | 8.6% | | | | | | 8.7% | | |
Adjusted ROAE | | | | | 9.5% | | | | | | 6.4% | | | | | | 9.5% | | | | | | 9.1% | | |
Average assets | | | | $ | 2,063,254,948 | | | | | $ | 2,082,060,533 | | | | | $ | 1,992,372,488 | | | | | | | | |
Average OCI | | | | | 129,336,144 | | | | | | 59,817,187 | | | | | | 62,135,623 | | | | | | | | |
Average assets (excluding OCI) | | | | $ | 1,933,918,804 | | | | | $ | 2,022,243,346 | | | | | $ | 1,930,236,865 | | | | | | | | |
ROAA | | | | | 6.5% | | | | | | 4.3% | | | | | | 6.0% | | | | | | | | |
Adjusted ROAA | | | | | 6.9% | | | | | | 4.5% | | | | | | 6.2% | | | | | | | | |
Adjusted interest yield on investment portfolio | | | | | 6.3% | | | | | | 6.6% | | | | | | 6.9% | | | | | | | | |
Adjusted net interest margin | | | | | 4.9% | | | | | | 5.0% | | | | | | 5.3% | | | | | | | | |
| | Historical | | | Historical | | ||||||||||||||||||||||||||||||||
| For the three months ended March 31,(1) | | | For the year ended December 31,(2) | | |||||||||||||||||||||||||||||||||
| | For the three months ended March 31,(1) | | | For the year ended December 31,(2) | | ||||||||||||||||||||||||||||||||
| | 2021 | | | 2020 | | | 2019 | | | 2021 | | | 2020 | | | 2019 | | ||||||||||||||||||||
Compensation and administrative and other expenses | | | $ | 8,749,099 | | | | $ | 23,018,806 | | | | $ | 26,361,651 | | | | | $ | 8,749,099 | | | | $ | 23,018,806 | | | | $ | 26,361,651 | | | ||||||
Non-recurring litigation expenses | | | | 1,002,097 | | | | | 2,069,622 | | | | | 5,365,296 | | | | | | 1,002,097 | | | | | 2,069,622 | | | | | 5,365,296 | | | ||||||
REO operating expenses | | | | 1,714,491 | | | | | 0 | | | | | 0 | | | | | | 1,714,491 | | | | | 0 | | | | | 0 | | | ||||||
OPAA | | | | 1.7% | | | | | 1.1% | | | | | 1.3% | | | | | | 1.7% | | | | | 1.1% | | | | | 1.3% | | | ||||||
Adjusted compensation and administrative and other expenses | | | $ | 6,032,511 | | | | $ | 20,949,184 | | | | $ | 20,996,355 | | | | | $ | 6,032,511 | | | | $ | 20,949,184 | | | | $ | 20,996,355 | | | ||||||
Adjusted OPAA | | | | 1.2% | | | | | 1.0% | | | | | 1.1% | | | | | | 1.2% | | | | | 1.0% | | | | | 1.1% | | |
| | | Historical | | |||||||||||||||||||||
| | | Three Months Ended March 31, | | | | | | | | | | | | | | |||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketable securities interest income | | | | $ | 26,605,051 | | | | | | 26,063,681 | | | | | | 541,370 | | | | | | 2.1 | | |
Finance receivables interest income | | | | | 1,808,989 | | | | | | 3,231,107 | | | | | | (1,422,118) | | | | | | (44.0) | | |
Interest expense | | | | | (4,485,661) | | | | | | (4,816,505) | | | | | | 330,844 | | | | | | (6.9) | | |
Net interest income | | | | | 23,928,379 | | | | | | 24,478,283 | | | | | | (549,904) | | | | | | (2.2) | | |
Net gain on sales of marketable securities and finance receivables | | | | | 9,133,809 | | | | | | 1,627,458 | | | | | | 7,506,351 | | | | | | 461.2 | | |
Unrealized net loss on trading marketable securities and investment in private fund | | | | | (1,527,566) | | | | | | (1,210,431) | | | | | | (317,135) | | | | | | 26.2 | | |
Net gain (loss) on derivative securities | | | | | 8,299,357 | | | | | | (12,523,329) | | | | | | 20,822,686 | | | | | | 166.2 | | |
REO operating income | | | | | 1,396,166 | | | | | | — | | | | | | 1,396,166 | | | | | | — | | |
Other | | | | | 60,661 | | | | | | 170,871 | | | | | | (110,210) | | | | | | (64.5) | | |
Total revenues | | | | | 41,290,806 | | | | | | 12,542,852 | | | | | | 28,747,954 | | | | | | 229.2 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for (recovery of) finance receivable credit losses | | | | | (6,803) | | | | | | 38,653 | | | | | | (45,456) | | | | | | (117.6) | | |
REO operating expense | | | | | 1,714,491 | | | | | | — | | | | | | 1,714,491 | | | | | | — | | |
Compensation | | | | | 4,444,098 | | | | | | 2,757,154 | | | | | | 1,686,944 | | | | | | 61.2 | | |
Administrative and other operating | | | | | 2,597,313 | | | | | | 1,287,356 | | | | | | 1,309,957 | | | | | | 101.8 | | |
Total expenses | | | | | 8,749,099 | | | | | | 4,083,163 | | | | | | 4,665,936 | | | | | | 114.3 | | |
Net income | | | | | 32,541,707 | | | | | | 8,459,689 | | | | | | 24,082,018 | | | | | | 284.7 | | |
Net income attributable to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income attributable to Members’ capital | | | | $ | 32,541,707 | | | | | | 8,459,689 | | | | | | 24,082,018 | | | | | | 284.7 | | |
Expense Type | | | Three Months ended March 31,2021 | | | Three Months ended March 31,2020 | | | $ change | | |||||||||
Non-recurring litigation expense | | | | $ | 1,002,096 | | | | | $ | 348 | | | | | $ | 1,001,748 | | |
Transaction expense | | | | $ | 501,944 | | | | | $ | 227,729 | | | | | $ | 274,215 | | |
Other administrative expense | | | | $ | 1,093,273 | | | | | $ | 1,059,279 | | | | | $ | 33,994 | | |
Total Administrative and other operating expenses | | | | $ | 2,597,313 | | | | | $ | 1,287,356 | | | | | $ | 1,309,957 | | |
| | | Historical | | |||||||||||||||||||||
| | | Year Ended December 31, | | | | | | | | | | | | | | |||||||||
| | | 2020 | | | 2019 | | | $ Change | | | % Change | | ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketable securities interest income | | | | $ | 110,832,800 | | | | | $ | 110,859,143 | | | | | $ | (26,343) | | | | | | (0.02) | | |
Finance receivables interest income | | | | | 9,528,386 | | | | | | 13,967,388 | | | | | | (4,439,002) | | | | | | (31.78) | | |
Interest expense | | | | | (19,249,121) | | | | | | (23,212,275) | | | | | | 3,963,153 | | | | | | (17.14) | | |
Net interest income | | | | | 101,112,065 | | | | | | 101,614,256 | | | | | | (502,191) | | | | | | (0.49) | | |
Net gain on sales of marketable securities and finance receivables | | | | | 12,894,541 | | | | | | 45,229,877 | | | | | | (32,335,336) | | | | | | (71.49) | | |
Net gain on sale of real estate projects and land held for sale | | | | | 15,930,239 | | | | | | — | | | | | | 15,930,239 | | | | | | — | | |
Unrealized net gain on trading marketable securities and investment in private fund | | | | | 152,774 | | | | | | 3,419,555 | | | | | | (3,266,781) | | | | | | (95.53) | | |
Net loss on derivative securities | | | | | (9,005,027) | | | | | | (10,418,157) | | | | | | 1,413,130 | | | | | | 13.56 | | |
Other | | | | | 352,147 | | | | | | 578,956 | | | | | | (226,809) | | | | | | (39.17) | | |
Total revenues | | | | | 121,436,739 | | | | | | 140,424,487 | | | | | | (18,987,748) | | | | | | (13.52) | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Security other-than-temporary impairment expense | | | | | 10,000,000 | | | | | | — | | | | | | 10,000,000 | | | | | | — | | |
Provision for finance receivable credit losses | | | | | 3,291 | | | | | | 76,663 | | | | | | (73,372) | | | | | | (95.7) | | |
Compensation | | | | | 15,228,236 | | | | | | 15,963,708 | | | | | | (735,472) | | | | | | (4.6) | | |
Administrative and other operating | | | | | 7,787,280 | | | | | | 10,321,280 | | | | | | (2,534,000) | | | | | | (24.55) | | |
Total expenses | | | | | 33,018,807 | | | | | | 26,361,651 | | | | | | 6,657,156 | | | | | | 25.25 | | |
Net income | | | | | 88,417,932 | | | | | | 114,062,836 | | | | | | (25,644,904) | | | | | | (22.48) | | |
Net income attributable to noncontrolling interests | | | | | 714,667 | | | | | | — | | | | | | 714,667 | | | | | | — | | |
Net income attributable to Members’ capital | | | | | 87,703,265 | | | | | | 114,062,836 | | | | | | (26,359,571) | | | | | | (23.10) | | |
|
Expense Type | | | Year Ended December 31, 2020 | | | Year Ended December 31, 2019 | | | $ Change | | |||||||||
Non-recurring litigation expense | | | | $ | 2,069,621 | | | | | $ | 5,365,297 | | | | | $ | (3,295,676) | | |
Transaction expense | | | | $ | 1,910,052 | | | | | $ | 1,086,720 | | | | | $ | 823,332 | | |
Other administrative expense | | | | $ | 3,807,607 | | | | | $ | 3,869,263 | | | | | $ | (61,656) | | |
Total Administrative and other operating expenses | | | | $ | 7,787,280 | | | | | $ | 10,321,280 | | | | | $ | (2,534,000) | | |
Facility (as of 3/31/21) | | | Facility Size | | | Outstanding Balance as of March 31, 2021 | | | Current Interest Rate | | | Maturity Date | | ||||||||||||
TMT 2018-1 | | | | | n/a | | | | | $ | 95,127,700 | | | | | | (1) | | | | | | (2) | | |
TMT 2019-2 | | | | | n/a | | | | | | 78,441,150 | | | | | | (1) | | | | | | (2) | | |
TMT 2019-3 | | | | | n/a | | | | | | 54,307,500 | | | | | | (1) | | | | | | (2) | | |
TMT 2019-5 | | | | | n/a | | | | | | 49,748,000 | | | | | | (1) | | | | | | (2) | | |
TMT 2021-2 | | | | | n/a | | | | | | 50,000,000 | | | | | | (1) | | | | | | (2) | | |
TMT 2021-3 | | | | | n/a | | | | | | 19,900,000 | | | | | | (1) | | | | | | (2) | | |
Taxable Term A/B Facility | | | | $ | 400,000,000 | | | | | | 149,885,439 | | | | | | 2.64% | | | | 10/1/2023 | | |||
Senior Secured Facility | | | | $ | 150,000,000 | | | | | | 0 | | | | | | n/a | | | | 7/1/2022 | | |||
Total Return Swap | | | | | n/a | | | | | | 13,090,000 | | | | | | 1.71% | | | | 11/1/2021 | | |||
Total / Average | | | | | | | | | | $ | 510,499,789 | | | | | | 3.21%(3) | | | | 20.48 years | |
| | | Historical | | |||||||||
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Net income | | | | $ | 32,541,707 | | | | | | 8,459,689 | | |
Net cash provided by operating activities | | | | | 12,168,913 | | | | | | 1,854,616 | | |
Net cash provided by (used in) investment activities | | | | | 61,881,540 | | | | | | (74,731,014) | | |
Net cash (used in) provided by financing activities | | | | | (89,896,516) | | | | | | 237,851,286 | | |
Net (decrease) increase in cash and cash equivalents and restricted cash | | | | | (15,846,063) | | | | | | 164,974,888 | | |
Cash and cash equivalents and restricted cash at beginning of period | | | | | 88,220,755 | | | | | | 212,507,292 | | |
Cash and cash equivalents and restricted cash at end of period | | | | $ | 72,374,692 | | | | | | 377,482,180 | | |
| | | Historical | | |||||||||
| | | Year Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Net income | | | | $ | 88,417,932 | | | | | $ | 114,062,836 | | |
Net cash provided by operating activities | | | | | 38,854,378 | | | | | | 104,804,385 | | |
Net cash (used in) provided by investment activities | | | | | (74,466,108) | | | | | | 1,481,102 | | |
Net cash (used in) provided by financing activities | | | | | (88,674,807) | | | | | | 81,962,363 | | |
Net (decrease) increase in cash and cash equivalents and restricted cash | | | | | (124,286,537) | | | | | | 188,247,850 | | |
Cash and cash equivalents and restricted cash at beginning of year | | | | | 212,507,292 | | | | | | 24,259,442 | | |
Cash and cash equivalents and restricted cash at end of year | | | | $ | 88,220,755 | | | | | $ | 212,507,292 | | |
| | | Total | | | Less than 1 Year | | | 1−3 Years | | | More than 3 Years | | | ||||||||||||||
Operating Lease Liabilities | | | | $ | 303,714 | | | | | $ | 303,714 | | | | | | - | | | | | | - | | | | ||
Secured borrowings | | | | $ | 162,964,352 | | | | | $ | 13,090,000 | | | | | $ | 149,874,352 | | | | | | - | | | | ||
Total Contractual Obligations | | | | $ | 163,268,066 | | | | | $ | 13,393,714 | | | | | $ | 149,874,352 | | | | | | - | | | | | |
Category of Net Realized Gains | | | Year ended December 31, 2016 | | | Year ended December 31, 2017 | | | Year ended December 31, 2018 | | | Year ended December 31, 2019 | | | Year ended December 31, 2020 | | |||||||||||||||
| | | $ in millions | | |||||||||||||||||||||||||||
Gain on sales of direct originations | | | | $ | 1.0 | | | | | $ | 5.7 | | | | | $ | 17.5 | | | | | $ | 33.8 | | | | | $ | 20.9 | | |
Gain on sales of special opportunities | | | | $ | 12.6 | | | | | $ | 14.1 | | | | | $ | 19.4 | | | | | $ | 7.7 | | | | | $ | 5.5 | | |
Gains on redemptions, trading and other | | | | $ | 3.5 | | | | | $ | 5.2 | | | | | $ | 2.9 | | | | | $ | 3.7 | | | | | $ | 2.4 | | |
Total | | | | $ | 17.1 | | | | | $ | 25.0 | | | | | $ | 39.8 | | | | | $ | 45.2 | | | | | $ | 28.8 | | |
Sector | | | Market Value (in $) | | | (%) | | | Weighted Average Coupon(1) | | |||||||||
Economic Development | | | | | 479,402,583 | | | | | | 24.7% | | | | | | 6.77% | | |
Infrastructure | | | | | 436,138,110 | | | | | | 22.5% | | | | | | 6.28% | | |
Acute Healthcare | | | | | 306,537,782 | | | | | | 15.8% | | | | | | 5.77% | | |
Public-Private Partnership | | | | | 253,215,996 | | | | | | 13.1% | | | | | | 7.77% | | |
Higher Education | | | | | 247,627,345 | | | | | | 12.8% | | | | | | 6.35% | | |
Senior Living | | | | | 70,761,443 | | | | | | 3.7% | | | | | | 4.96% | | |
Governmental Entities | | | | | 71,247,892 | | | | | | 3.7% | | | | | | 7.11% | | |
Student Housing | | | | | 41,320,561 | | | | | | 2.1% | | | | | | 7.11% | | |
Primary K-12 Education | | | | | 32,171,793 | | | | | | 1.7% | | | | | | 6.87% | | |
Total/Weighted Average | | | | | 1,938,423,505 | | | | | | 100% | | | | | | 6.51% | | |
State | | | Market Value (in $) | | | (%) | | | Weighted Average Coupon(1) | | |||||||||
Texas | | | | | 376,635,595 | | | | | | 19.4% | | | | | | 7.44% | | |
Florida | | | | | 275,274,116 | | | | | | 14.2% | | | | | | 5.52% | | |
California | | | | | 182,921,142 | | | | | | 9.4% | | | | | | 6.40% | | |
New York | | | | | 177,211,517 | | | | | | 9.1% | | | | | | 5.75% | | |
Ohio | | | | | 155,064,616 | | | | | | 8.0% | | | | | | 6.23% | | |
District of Columbia | | | | | 112,001,202 | | | | | | 5.8% | | | | | | 6.37% | | |
Georgia | | | | | 98,186,545 | | | | | | 5.1% | | | | | | 6.61% | | |
Illinois | | | | | 95,610,485 | | | | | | 4.9% | | | | | | 6.05% | | |
New Jersey | | | | | 81,925,668 | | | | | | 4.2% | | | | | | 6.25% | | |
Other (15) | | | | | 383,592,619 | | | | | | 19.8% | | | | | | 7.00% | | |
Total/Weighted Average | | | | | 1,938,423,505 | | | | | | 100% | | | | | | 6.51% | | |
Sector | | | Principal Amount | | |||
Healthcare | | | | | 27.6% | | |
Public-Private Partnership | | | | | 20.3% | | |
Infrastructure | | | | | 10.8% | | |
Housing | | | | | 10.7% | | |
Primary K-12 Education | | | | | 8.5% | | |
Higher Education | | | | | 8.0% | | |
Economic Development | | | | | 6.5% | | |
Senior Living | | | | | 5.8% | | |
Not-for-Profit | | | | | 1.8% | | |
| | | | | 100% | | |
Facility (as of 3/31/21) | | | Facility Size | | | Outstanding Balance as of March 31, 2021 | | | Current Interest Rate | | | Maturity Date | | ||||||||||||
TMT 2018-1 | | | | | n/a | | | | | $ | 95,127,700 | | | | | | (1) | | | | | | (2) | | |
TMT 2019-2 | | | | | n/a | | | | | | 78,441,150 | | | | | | (1) | | | | | | (2) | | |
TMT 2019-3 | | | | | n/a | | | | | | 54,307,500 | | | | | | (1) | | | | | | (2) | | |
TMT 2019-5 | | | | | n/a | | | | | | 49,748,000 | | | | | | (1) | | | | | | (2) | | |
TMT 2021-2 | | | | | n/a | | | | | | 50,000,000 | | | | | | (1) | | | | | | (2) | | |
TMT 2021-3 | | | | | n/a | | | | | | 19,900,000 | | | | | | (1) | | | | | | (2) | | |
Taxable Term A/B Facility | | | | $ | 400,000,000 | | | | | | 149,885,439 | | | | | | 2.64% | | | | | | 10/1/2023 | | |
Senior Secured Facility | | | | $ | 150,000,000 | | | | | | 0 | | | | | | n/a | | | | | | 7/1/2022 | | |
Total Return Swap | | | | | n/a | | | | | | 13,090,000 | | | | | | 1.71% | | | | | | 11/1/2021 | | |
Total / Average | | | | | | | | | | $ | 510,499,789 | | | | | | 3.21%(3) | | | | 20.48 years | |
Name | | | Age | | | Position | |
Jim Thompson | | | 66 | | | Chairman nominee and Chief Executive Officer | |
Cliff Weiner | | | 62 | | | Head of Fixed Income | |
Paige Deskin | | | 47 | | | Chief Financial Officer | |
Ramiro Albarran | | | 55 | | | Co-Head of Originations | |
Charlie Visconsi | | | 50 | | | Co-Head of Originations | |
Christopher Doody | | | 48 | | | Director nominee | |
Alex Rogers | | | 47 | | | Director nominee | |
Mindy Hegi | | | 45 | | | Director nominee | |
J. Brendan Herron | | | 60 | | | Director nominee | |
| | | Summary Compensation Table | | ||||||||||||||||||
| | | 2021 Annualized Compensation | | | Share/Option Awards(2) | | | Non-Equity Incentive Plan Compensation | | | Change in Pension Value and Non- Qualified Deferred Compensation Earnings | | | All Other Compensation ($)(3) | | | Total ($) | | |||
Name and Principal Position | | | Salary/ Bonus ($)(1) | | ||||||||||||||||||
Jim Thompson Chief Executive Officer and Chairman Nominee of our Board of Directors | | | | | 350,000 | | | | | | | | | | | | | | | | | |
Cliff Weiner Head of Fixed Income | | | | | 400,000 | | | | | | | | | | | | | | | | | |
Paige Deskin Chief Financial Officer | | | | | 400,000 | | | | | | | | | | | | | | | | | |
Ramiro Albarran Co-Head of Originations | | | | | 400,000 | | | | | | | | | | | | | | | | | |
Charlie Visconsi Co-Head of Originations | | | | | 400,000 | | | | | | | | | | | | | | | | | |
Named Executive Officer | | | Base Salary | | |||
Jim Thompson | | | | $ | 350,000 | | |
Cliff Weiner | | | | $ | 400,000 | | |
Paige Deskin | | | | $ | 400,000 | | |
Ramiro Albarran | | | | $ | 400,000 | | |
Charlie Visconsi | | | | $ | 400,000 | | |
| | | Shares of Class A Common Stock | | |||||||||||||||||||||
| | | Immediately Prior to Offering | | | Immediately After Offering | | ||||||||||||||||||
Name of Beneficial Owner | | | Number(1)(2) | | | Percentage(3) | | | Number(1)(2) | | | Percentage(3) | | ||||||||||||
Principal Stockholders Preston Hollow Capital, LLC(2) | | | | | 108,473,785 | | | | | | 100% | | | | | | 108,473,785 | | | | | | 91.2% | | |
HarbourVest Partners, LLC(4) | | | | | 34,562,125 | | | | | | 31.9% | | | | | | 34,562,125 | | | | | | 29.0% | | |
Trident PHC Holdings LLC(5) | | | | | 26,580,322 | | | | | | 24.5% | | | | | | 26,580,322 | | | | | | 22.3% | | |
Directors, Director Nominees and Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | |
Jim Thompson(6) | | | | | 11,520,728 | | | | | | 10.6% | | | | | | 11,520,728 | | | | | | 9.7% | | |
Cliff Weiner | | | | | 1,434,072 | | | | | | 1.3% | | | | | | 1,434,072 | | | | | | 1.2% | | |
Paige Deskin | | | | | 156,309 | | | | | | * | | | | | | 156,309 | | | | | | * | | |
Ramiro Albarran | | | | | 521,031 | | | | | | * | | | | | | 521,031 | | | | | | * | | |
Charlie Visconsi | | | | | 436,429 | | | | | | * | | | | | | 436,429 | | | | | | * | | |
Alex Rogers(7) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Christopher Doody(8) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Mindy Hegi (9) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
J. Brendan Herron (10) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All directors, director nominees and executive officers as a group (11 persons) | | | | | 14,068,569 | | | | | | 13.0% | | | | | | 14,068,569 | | | | | | 11.8% | | |
Name | | | Number of shares | | |||
J.P. Morgan Securities LLC | | | | | | | |
Barclays Capital Inc. | | | | | | | |
UBS Securities LLC | | | | | | | |
Piper Sandler & Co. | | | | | | | |
Deutsche Bank Securities Inc. | | | | | | | |
Loop Capital Markets LLC | | | | | | | |
Total | | | | | 10,526,316 | | |
| | | Without option to purchase additional shares exercise | | | With full option to purchase additional shares exercise | | ||||||
Per Share | | | | $ | | | | | $ | | | ||
Total | | | | $ | | | | | $ | | | |
| Preston Hollow Community Capital, Inc. historical financial statement | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| PHC LLC historical consolidated financial statements | | | | | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-9 | | | |
| | | | | F-10 | | | |
| | | | | F-11 | | | |
| | | | | F-12 | | | |
| PHC LLC historical unaudited interim consolidated financial statements | | | | | | | |
| | | | | F-38 | | | |
| | | | | F-39 | | | |
| | | | | F-40 | | | |
| | | | | F-41 | | | |
| | | | | F-42 | | | |
| | | | | F-43 | | |
| | | As of June 30, 2021 | | |||
Assets | | | | | | | |
Cash | | | | $ | 500 | | |
Total assets | | | | $ | 500 | | |
Commitments and Contingencies | | | | | | | |
Stockholder’s equity: | | | | | | | |
Class A Common stock, par value $0.01 per share, 500 shares authorized, 50 shares issued and outstanding | | | | $ | 500 | | |
Class B Common stock, par value $0.01 per share, 500 shares authorized, none issued and outstanding | | | | | — | | |
Total Stockholder’s equity | | | | $ | 500 | | |
|
| | | 2020 | | | 2019 | | ||||||
Assets | | | | ||||||||||
Cash and cash equivalents | | | | $ | 66,543,580 | | | | | | 203,599,336 | | |
Restricted cash | | | | | 21,677,175 | | | | | | 8,907,956 | | |
Investments in marketable securities, at fair value (cost $726,613,174 and $861,054,192) | | | | | 765,962,052 | | | | | | 904,033,721 | | |
Investments in marketable securities held in trust, at fair value (cost $961,275,276 and $716,343,383) | | | | | 1,040,986,810 | | | | | | 764,677,079 | | |
Investments in finance receivables, net of allowance for possible losses of $469,493 and $466,202, respectively | | | | | 76,523,447 | | | | | | 111,248,693 | | |
Investment in private fund | | | | | 1,418,472 | | | | | | 1,219,627 | | |
Interest receivable | | | | | 33,677,772 | | | | | | 30,807,516 | | |
Reverse repurchase receivable, net | | | | | 3,810,800 | | | | | | 4,817,248 | | |
Real estate owned | | | | | 47,374,503 | | | | | | — | | |
Other assets | | | | | 10,578,053 | | | | | | 17,878,756 | | |
Total assets | | | | $ | 2,068,552,664 | | | | | | 2,047,189,932 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Accounts payable and other liabilities | | | | $ | 13,727,122 | | | | | | 20,270,634 | | |
Secured borrowings | | | | | 162,964,352 | | | | | | 157,136,554 | | |
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 330,817,000 | | | | | | 333,225,400 | | |
Total liabilities | | | | | 507,508,474 | | | | | | 510,632,588 | | |
Members’ equity: | | | | | | | | | | | | | |
Contributed capital | | | | | 994,135,558 | | | | | | 1,086,034,349 | | |
Retained earnings | | | | | 450,263,437 | | | | | | 362,560,172 | | |
Accumulated other comprehensive income | | | | | 115,330,528 | | | | | | 87,362,823 | | |
Total Members’ equity | | | | | 1,559,729,523 | | | | | | 1,535,957,344 | | |
Noncontrolling interest in consolidated entities | | | | | 1,314,667 | | | | | | 600,000 | | |
Total equity | | | | | 1,561,044,190 | | | | | | 1,536,557,344 | | |
Total liabilities and equity | | | | $ | 2,068,552,664 | | | | | | 2,047,189,932 | | |
|
| | | 2020 | | | 2019 | | ||||||
Revenues: | | | | | | | | | | | | | |
Marketable securities interest income | | | | $ | 110,832,800 | | | | | | 110,859,143 | | |
Finance receivables interest income | | | | | 9,528,386 | | | | | | 13,967,388 | | |
Interest expense | | | | | (19,249,121) | | | | | | (23,212,275) | | |
Net interest income | | | | | 101,112,065 | | | | | | 101,614,256 | | |
Net gain on sales of marketable securities and finance receivables | | | | | 12,894,541 | | | | | | 45,229,877 | | |
Net gain on sale of real estate projects and land held for sale | | | | | 15,930,239 | | | | | | — | | |
Unrealized net gain on trading marketable securities and investment in private fund | | | | | 152,774 | | | | | | 3,419,555 | | |
Net loss on derivative securities | | | | | (9,005,027) | | | | | | (10,418,157) | | |
Other | | | | | 352,147 | | | | | | 578,956 | | |
Total revenues | | | | | 121,436,739 | | | | | | 140,424,487 | | |
Expenses: | | | | | | | | | | | | | |
Security other-than-temporary impairment expense | | | | | 10,000,000 | | | | | | — | | |
Provision for finance receivable credit losses | | | | | 3,291 | | | | | | 76,663 | | |
Compensation | | | | | 15,228,236 | | | | | | 15,963,708 | | |
Administrative and other operating | | | | | 7,787,280 | | | | | | 10,321,280 | | |
Total expenses | | | | | 33,018,807 | | | | | | 26,361,651 | | |
Net income | | | | | 88,417,932 | | | | | | 114,062,836 | | |
Net income attributable to noncontrolling interests | | | | | 714,667 | | | | | | — | | |
Net income attributable to Members’ capital | | | | $ | 87,703,265 | | | | | | 114,062,836 | | |
|
| | | 2020 | | | 2019 | | ||||||
Net income | | | | $ | 88,417,932 | | | | | | 114,062,836 | | |
Other comprehensive income : | | | | | | | | | | | | | |
Unrealized gains on investment in available-for-sale securities: | | | | | | | | | | | | | |
Unrealized holding net gains arising during period | | | | | 36,609,177 | | | | | | 109,845,462 | | |
Less reclassification adjustment for gain included in net income | | | | | (8,641,472) | | | | | | (35,202,895) | | |
Changes in fair value of available-for-sale securities | | | | | 27,967,705 | | | | | | 74,642,567 | | |
Comprehensive income | | | | | 116,385,637 | | | | | | 188,705,403 | | |
Less comprehensive income attributable to noncontrolling interest | | | | | (714,667) | | | | | | — | | |
Net comprehensive income attributable to Members’ capital | | | | $ | 115,670,970 | | | | | | 188,705,403 | | |
|
| | | Members’ contributed capital | | | Retained earnings | | | Accumulated other comprehensive income | | | Noncontrolling interest in consolidated entities | | | Total equity | | |||||||||||||||
Balances at December 31, 2018 | | | | $ | 924,810,807 | | | | | | 248,497,336 | | | | | | 12,720,256 | | | | | | 600,000 | | | | | | 1,186,628,399 | | |
Issuance of Members’ capital | | | | | 226,591,209 | | | | | | — | | | | | | — | | | | | | — | | | | | | 226,591,209 | | |
Member distributions | | | | | (65,367,667) | | | | | | — | | | | | | — | | | | | | — | | | | | | (65,367,667) | | |
Net income | | | | | — | | | | | | 114,062,836 | | | | | | — | | | | | | — | | | | | | 114,062,836 | | |
Other comprehensive gain | | | | | — | | | | | | — | | | | | | 74,642,567 | | | | | | — | | | | | | 74,642,567 | | |
Balances at December 31, 2019 | | | | | 1,086,034,349 | | | | | | 362,560,172 | | | | | | 87,362,823 | | | | | | 600,000 | | | | | | 1,536,557,344 | | |
Member distributions | | | | | (91,898,791) | | | | | | — | | | | | | — | | | | | | — | | | | | | (91,898,791) | | |
Net income | | | | | — | | | | | | 87,703,265 | | | | | | — | | | | | | 714,667 | | | | | | 88,417,932 | | |
Other comprehensive gain | | | | | — | | | | | | — | | | | | | 27,967,705 | | | | | | — | | | | | | 27,967,705 | | |
Balances at December 31, 2020 | | | | $ | 994,135,558 | | | | | | 450,263,437 | | | | | | 115,330,528 | | | | | | 1,314,667 | | | | | | 1,561,044,190 | | |
|
| | | 2020 | | | 2019 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 88,417,932 | | | | | | 114,062,836 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Realized gain on sale of real estate projects and land held for sale | | | | | (15,930,239) | | | | | | — | | |
Realized gain on sale of available-for-sale securities | | | | | (8,641,472) | | | | | | (35,202,895) | | |
Realized gain on sale of trading securities | | | | | (3,232) | | | | | | (2,063,743) | | |
Realized gain on sale of finance receivables | | | | | (4,249,837) | | | | | | (7,963,239) | | |
Realized loss on derivative securities | | | | | 7,963,585 | | | | | | 9,352,878 | | |
Unrealized (gain) loss on trading securities | | | | | 46,071 | | | | | | (3,261,007) | | |
Unrealized gain on investment in private fund | | | | | (198,845) | | | | | | (158,548) | | |
Security other-than-temporary impairment expense | | | | | 10,000,000 | | | | | | — | | |
Discount amortization and fee accretion on finance receivable and marketable securities | | | | | (15,850,272) | | | | | | (19,574,760) | | |
Cash collected in excess of income recognized | | | | | 3,187,995 | | | | | | 4,095,828 | | |
Provision for finance receivable credit losses | | | | | 3,291 | | | | | | 76,663 | | |
Furniture, fixtures and equipment depreciation and amortization | | | | | 257,578 | | | | | | 291,331 | | |
Proceeds from sale of trading securities | | | | | 296,058,744 | | | | | | 93,990,424 | | |
Purchase of trading securities | | | | | (309,409,538) | | | | | | (38,297,256) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Interest receivable | | | | | (2,870,256) | | | | | | (4,845,602) | | |
Other assets | | | | | (6,143,673) | | | | | | (12,406,112) | | |
Accounts payable and other liabilities | | | | | (3,783,454) | | | | | | 6,707,587 | | |
Net cash provided by operating activities | | | | | 38,854,378 | | | | | | 104,804,385 | | |
Cash flows from investment activities: | | | | | | | | | | | | | |
Purchase of available-for-sale securities | | | | | (371,056,851) | | | | | | (442,935,030) | | |
Proceeds from sale and redemption of available-for-sale securities | | | | | 249,048,388 | | | | | | 420,439,934 | | |
Investments in finance receivables | | | | | (25,000,418) | | | | | | (59,708,315) | | |
Proceeds from sale and repayments of finance receivables | | | | | 46,367,018 | | | | | | 89,587,975 | | |
Investment in real estate projects and real estate owned | | | | | (12,254,788) | | | | | | (5,838,441) | | |
Proceeds from sale of real estate projects and real estate owned | | | | | 35,920,766 | | | | | | — | | |
Investment in land held for sale | | | | | (9,500) | | | | | | (38,817) | | |
Proceeds from sale of land held for sale | | | | | 2,550,525 | | | | | | — | | |
Furniture, fixtures and equipment purchases | | | | | (31,248) | | | | | | (26,204) | | |
Net cash (used in) provided by investment activities | | | | | (74,466,108) | | | | | | 1,481,102 | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net proceeds from Members’ capital contributions | | | | | — | | | | | | 225,316,209 | | |
Net issuance of beneficial interests to third parties | | | | | 8,469,750 | | | | | | 242,010,000 | | |
Distributions to beneficial interests held by third parties | | | | | (10,878,150) | | | | | | (10,153,367) | | |
Net proceeds from (repayments of) borrowings | | | | | 5,827,798 | | | | | | (309,837,076) | | |
Net repayments of finance lease liability | | | | | (195,414) | | | | | | (5,736) | | |
Distributions to Members | | | | | (91,898,791) | | | | | | (65,367,667) | | |
Net cash (used in) provided by financing activities | | | | | (88,674,807) | | | | | | 81,962,363 | | |
Net (decrease) increase in cash and cash equivalents and restricted cash | | | | | (124,286,537) | | | | | | 188,247,850 | | |
Cash and cash equivalents and restricted cash at beginning of year | | | | | 212,507,292 | | | | | | 24,259,442 | | |
Cash and cash equivalents and restricted cash at end of year | | | | $ | 88,220,755 | | | | | | 212,507,292 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for: | | | | | | | | | | | | | |
Interest | | | | $ | 22,335,695 | | | | | | 21,657,068 | | |
| | | 2020 | | | 2019 | | ||||||
Loans: | | | | | | | | | | | | | |
Mortgage Loans | | | | $ | 32,312,282 | | | | | | 37,301,529 | | |
General Obligation | | | | | — | | | | | | 9,350,966 | | |
Single Family Assessments | | | | | 8,178,682 | | | | | | 8,330,101 | | |
| | | | | 40,490,964 | | | | | | 54,982,596 | | |
Other Finance Receivables: | | | | | | | | | | | | | |
Reimbursement Receivables | | | | | 36,501,976 | | | | | | 56,732,299 | | |
Total Carrying Value | | | | $ | 76,992,940 | | | | | | 111,714,895 | | |
Years ending December 31: | | | | | | | |
2021 | | | | $ | 34,383,947 | | |
2022 | | | | | 10,717,051 | | |
2023 | | | | | 2,133,416 | | |
2024 | | | | | 2,449,048 | | |
Thereafter | | | | | 27,309,478 | | |
| | | | $ | 76,992,940 | | |
| | | 2020 | | | 2019 | | ||||||||||||||||||
| | | Loans | | | Other Finance Receivables | | | Loans | | | Other Finance Receivables | | ||||||||||||
Purchases | | | | $ | — | | | | | | — | | | | | | — | | | | | | 1,744,399 | | |
Sales | | | | | — | | | | | | — | | | | | | — | | | | | | (20,209,000) | | |
Transfers to HFS | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | Loans | | | Other Finance Receivables | | | 2020 | | | Loans | | | Other Finance Receivables | | | 2019 | | ||||||||||||||||||
Balance, beginning of year | | | | $ | 466,202 | | | | | | — | | | | | | 466,202 | | | | | | 389,539 | | | | | | — | | | | | | 389,539 | | |
Provision | | | | | 3,291 | | | | | | — | | | | | | 3,291 | | | | | | 76,663 | | | | | | — | | | | | | 76,663 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Balance, end of year | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 466,202 | | | | | | — | | | | | | 466,202 | | |
| | | Allowance for Credit Losses | | | Invesment in Finance Receivables | | | ||||||||||||||||||||||||||||||||
| | | Loans | | | Other Finance Receivables | | | Total | | | Loans | | | Other Finance Receivables | | | Total | | | | | ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Collectively evaluated(1) | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | | | ||
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Total | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | | | ||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Collectively evaluated(1) | | | | $ | 466,202 | | | | | | — | | | | | | 466,202 | | | | | | 54,982,596 | | | | | | 56,732,299 | | | | | | 111,714,895 | | | | ||
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Total | | | | $ | 466,202 | | | | | | — | | | | | | 466,202 | | | | | | 54,982,596 | | | | | | 56,732,299 | | | | | | 111,714,895 | | | |
| | | December 31 | | |||||||||
| | | 2020 | | | 2019 | | ||||||
By LTV: | | | | | | | | | | | | | |
0-60% | | | | $ | 24,174,107 | | | | | | 24,806,072 | | |
60.01-80% | | | | | — | | | | | | 20,825,558 | | |
80.01-100% | | | | | 16,316,857 | | | | | | — | | |
General Obligation | | | | | — | | | | | | 9,350,966 | | |
Total Loans | | | | $ | 40,490,964 | | | | | | 54,982,596 | | |
| | | December 31 | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Residential development performance status: | | | | | | | | | | | | | |
Outperforming | | | | $ | 361,839 | | | | | | 9,827,429 | | |
Performing | | | | | 36,140,137 | | | | | | 46,904,870 | | |
Underperforming | | | | | — | | | | | | — | | |
Total Other Finance Receivables | | | | $ | 36,501,976 | | | | | | 56,732,299 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 43,491,535 | | | | | | 3,818,994 | | | | | | (45,682) | | | | | | 47,264,847 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 52,737,334 | | | | | | 3,818,994 | | | | | | (197,954) | | | | | | 56,358,374 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,491,657,605 | | | | | | 108,440,423 | | | | | | (1,622,365) | | | | | | 1,598,475,663 | | |
Municipal non-senior debt securities | | | | | 143,493,511 | | | | | | 8,621,314 | | | | | | — | | | | | | 152,114,825 | | |
Total available-for-sale | | | | | 1,635,151,116 | | | | | | 117,061,737 | | | | | | (1,622,365) | | | | | | 1,750,590,488 | | |
| | | | $ | 1,687,888,450 | | | | | | 120,880,731 | | | | | | (1,820,319) | | | | | | 1,806,948,862 | | |
| | | December 31, 2019 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 30,372,486 | | | | | | 3,959,402 | | | | | | (22,997) | | | | | | 34,308,891 | | |
Municipal non-senior debt securities | | | | | 8,701,106 | | | | | | 40,422 | | | | | | — | | | | | | 8,741,528 | | |
Total trading | | | | | 39,073,592 | | | | | | 3,999,824 | | | | | | (22,997) | | | | | | 43,050,419 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,404,172,299 | | | | | | 80,851,803 | | | | | | (714,557) | | | | | | 1,484,309,545 | | |
Municipal non-senior debt securities | | | | | 134,151,654 | | | | | | 7,279,854 | | | | | | (80,672) | | | | | | 141,350,836 | | |
Total available-for-sale | | | | | 1,538,323,953 | | | | | | 88,131,657 | | | | | | (795,229) | | | | | | 1,625,660,381 | | |
Total securities | | | | $ | 1,577,397,545 | | | | | | 92,131,481 | | | | | | (818,226) | | | | | | 1,668,710,800 | | |
| Due within one year | | | | $ | 21,174,586 | | |
| Due after one year to five years | | | | | 41,620,690 | | |
| Due after five years to ten years | | | | | 95,451,859 | | |
| Due after ten years | | | | | 1,592,343,353 | | |
| | | | | $ | 1,750,590,488 | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 29,331,471 | | | | | | (287,452) | | | | | | 24,394,176 | | | | | | (427,105) | | | | | | 53,725,647 | | | | | | (714,557) | | |
Municipal non-senior debt securities | | | | | 6,814,329 | | | | | | (80,672) | | | | | | — | | | | | | — | | | | | | 6,814,329 | | | | | | (80,672) | | |
| | | | $ | 36,145,800 | | | | | | (368,124) | | | | | | 24,394,176 | | | | | | (427,105) | | | | | | 60,539,976 | | | | | | (795,229) | | |
| | | 2020 | | | 2019 | | ||||||
Land finance lease right of use asset | | | | $ | — | | | | | | 2,997,905 | | |
Lease payments allocated to building under construction | | | | | — | | | | | | 1,639,273 | | |
Capitalized preacquisition and project costs | | | | | 390,753 | | | | | | 2,294,124 | | |
Real estate project costs | | | | $ | 390,753 | | | | | | 6,931,302 | | |
| | | Carrying value—asset (liability) | | |||||||||||||||||||||
December 31, 2020 | | | Total VIE assets | | | Finance receivables | | | Available-for-sale debt securities | | | Net assets | | ||||||||||||
Finance Receivable | | | | $ | 19,723,000 | | | | | | 1,063,246 | | | | | | — | | | | | | 1,063,246 | | |
Purchased Rights to Tax Revenues | | | | | 81,154,000 | | | | | | — | | | | | | 45,007,240 | | | | | | 45,007,240 | | |
| | | | $ | 100,877,000 | | | | | | 1,063,246 | | | | | | 45,007,240 | | | | | | 46,070,486 | | |
| | | Carrying value—asset (liability) | | |||||||||||||||||||||
December 31, 2019 | | | Total VIE assets | | | Finance receivables | | | Available-for-sale debt securities | | | Net assets | | ||||||||||||
Purchased Rights to Tax Revenues | | | | $ | 82,598,000 | | | | | | — | | | | | | 42,689,382 | | | | | | 42,689,382 | | |
| | | | $ | 82,598,000 | | | | | | — | | | | | | 42,689,382 | | | | | | 42,689,382 | | |
| | | 2020 | | | 2019 | | ||||||
Cash | | | | $ | 19,678,175 | | | | | | 8,340,922 | | |
Accrued interest receivable | | | | | 8,237,462 | | | | | | 8,599,961 | | |
Investment in marketable securities held in trust | | | | | 488,644,137 | | | | | | 504,163,521 | | |
Total net assets | | | | $ | 516,559,774 | | | | | | 521,104,404 | | |
| | | 2020 | | | 2019 | | ||||||
Short-term TOB Trust financing | | | | | — | | | | | | 118,518,569 | | |
Total return swap | | | | | 13,090,000 | | | | | | — | | |
Term Taxable AB Trust financing | | | | | 149,874,352 | | | | | | — | | |
Term TOB Trust financing | | | | | — | | | | | | 38,617,985 | | |
Total secured borrowings | | | | $ | 162,964,352 | | | | | | 157,136,554 | | |
Asset (liability) | | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Fair value | | |||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | $ | 56,358,374 | | | | | | — | | | | | | 47,264,847 | | | | | | 9,093,527 | | | | | | 56,358,374 | | |
| | | | | 56,358,374 | | | | | | — | | | | | | 47,264,847 | | | | | | 9,093,527 | | | | | | 56,358,374 | | |
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | | 1,750,590,488 | | | | | | — | | | | | | 1,415,552,416 | | | | | | 335,038,072 | | | | | | 1,750,590,488 | | |
Total marketable securities | | | | | 1,806,948,862 | | | | | | — | | | | | | 1,462,817,263 | | | | | | 344,131,599 | | | | | | 1,806,948,862 | | |
Reverse repurchase agreement, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement | | | | | 65,041,913 | | | | | | — | | | | | | 65,041,913 | | | | | | — | | | | | | 65,041,913 | | |
Repurchase agreement | | | | | (61,231,113) | | | | | | — | | | | | | (61,231,113) | | | | | | — | | | | | | (61,231,113) | | |
Treasuries sold short | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Reverse repurchase agreement, net | | | | | 3,810,800 | | | | | | — | | | | | | 3,810,800 | | | | | | — | | | | | | 3,810,800 | | |
| | | | $ | 1,810,759,662 | | | | | | — | | | | | | 1,466,628,063 | | | | | | 344,131,599 | | | | | | 1,810,759,662 | | |
Asset (liability) | | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Fair value | | |||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading | | | | | : | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | $ | 43,050,419 | | | | | | — | | | | | | 34,308,892 | | | | | | 8,741,527 | | | | | | 43,050,419 | | |
| | | | | 43,050,419 | | | | | | — | | | | | | 34,308,892 | | | | | | 8,741,527 | | | | | | 43,050,419 | | |
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | | 1,625,660,381 | | | | | | — | | | | | | 1,373,079,214 | | | | | | 252,581,167 | | | | | | 1,625,660,381 | | |
Total marketable securities | | | | | 1,668,710,800 | | | | | | — | | | | | | 1,407,388,106 | | | | | | 261,322,694 | | | | | | 1,668,710,800 | | |
Reverse repurchase agreement, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement | | | | | 58,097,809 | | | | | | — | | | | | | 58,097,809 | | | | | | — | | | | | | 58,097,809 | | |
Treasuries sold short | | | | | (53,280,561) | | | | | | — | | | | | | (53,280,561) | | | | | | — | | | | | | (53,280,561) | | |
Reverse repurchase agreement, net | | | | | 4,817,248 | | | | | | — | | | | | | 4,817,248 | | | | | | — | | | | | | 4,817,248 | | |
| | | | $ | 1,673,528,048 | | | | | | — | | | | | | 1,412,205,354 | | | | | | 261,322,694 | | | | | | 1,673,528,048 | | |
| | | Fair value at December 31, 2020 | | | Valuation technique | | | Unobservable inputs | | | Range of (weighted inputs average) | | |||
Investments in marketable securities: | | | | | | | | | | | | | | | | |
Trading: | | | | | | | | | | | | | | | | |
Municipal debt investments | | | | $ | 9,093,527 | | | | Discounted Cash Flow | | | WAL | | | 18.7 years | |
| | | | | | | | | | | | Yield | | | 9.0% | |
Available-for-sale: | | | | | | | | | | | | | | | | |
Municipal debt investments | | | | | 74,819,300 | | | | Market pricing based on recent transactions | | | Price | | | $45.00-$100.00 $(71.99) | |
| | | | | | | | | | | | | | | 0.5-41.4 years | |
| | | | | 260,218,772 | | | | Discounted Cash Flow | | | WAL | | | (18.5 years) | |
| | | | | | | | | | | | Yield | | | 6% – 11% (10)% | |
| | | | | 335,038,072 | | | | | | | | | | | |
Total | | | | $ | 344,131,599 | | | | | | | | | | | |
| | | Fair value at December 31, 2019 | | | Valuation technique | | | Unobservable inputs | | | Range of (weighted inputs average) | | |||
Investments in marketable securities: | | | | | | | | | | | | | | | | |
Trading: | | | | | | | | | | | | | | | | |
Municipal debt | | | | | | | | | | | | | | | | |
investments | | | | $ | 8,741,527 | | | | Discounted Cash Flow | | | WAL | | | 21.2 years | |
| | | | | | | | | | | | Yield | | | 9.0% | |
Available-for-sale: | | | | | | | | | | | | | | | | |
Municipal debt | | | | | | | | | | | | | | | | |
investments | | | | | 111,077,098 | | | | Market pricing based on recent transactions Price | | | $(97.82) | | | $95.00 – $104.00 | |
| | | | | | | | | | | | | | | | |
| | | | | 141,504,069 | | | | Discounted Cash Flow | | | WAL | | | 0.2 – 29.0 years (13.2 years) | |
| | | | | | | | | | | | Yield | | | 6% – 12% (10)% | |
| | | | | 252,581,167 | | | | | | | | | | | |
Total | | | | $ | 261,322,694 | | | | | | | | | | | |
| | | Beginning balance January 1, 2020 | | | Unrealized gain(loss) | | | Purchases | | | Realized gain (loss) | | | Impairment expense | | | Discount amortization (premium accretion) | | | Sales/ redemptions | | | Transfers out of out of Level 3 | | | Transfers into Level 3 | | | Ending balance December 31, 2020 | | | Change in unrealized gains for the year for investments still held at December 31, 2020 | | |||||||||||||||||||||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading | | | | $ | 8,741,527 | | | | | | (192,693) | | | | | | 544,693 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,093,527 | | | | | | (192,693) | | |
Available-for-sale | | | | | 252,581,167 | | | | | | 5,121,857 | | | | | | 7,593,185 | | | | | | — | | | | | | (10,000,000) | | | | | | 8,609,806 | | | | | | (16,066,572) | | | | | | (19,391,884) | | | | | | 106,590,513 | | | | | | 335,038,072 | | | | | | 2,777,685 | | |
| | | | $ | 261,322,694 | | | | | | 4,929,164 | | | | | | 8,137,878 | | | | | | — | | | | | | (10,000,000) | | | | | | 8,609,806 | | | | | | (16,066,572) | | | | | | (19,391,884) | | | | | | 106,590,513 | | | | | | 344,131,599 | | | | | | 2,584,992 | | |
| | | Beginning balance January 1, 2019 | | | Unrealized gain(loss) | | | Purchases | | | Realized gain (loss) | | | Discount Amortization (Premium Accretion) | | | Sales/ Redemptions | | | Transfers out of out of Level 3 | | | Transfers into Level 3 | | | Ending balance December 31, 2019 | | | Change in unrealized gains for the year for Investments still held at December 31, 2019 | | ||||||||||||||||||||||||||||||
Investments in | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading | | | | $ | 32,201,824 | | | | | | (143,302) | | | | | | — | | | | | | 639,099 | | | | | | 503,118 | | | | | | (24,459,212) | | | | | | — | | | | | | — | | | | | | 8,741,527 | | | | | | (32,075) | | |
Available-for-sale | | | | | 203,272,323 | | | | | | (657,975) | | | | | | 7,642,640 | | | | | | 4,827,690 | | | | | | 6,579,507 | | | | | | (61,407,864) | | | | | | (16,619,696) | | | | | | 108,944,542 | | | | | | 252,581,167 | | | | | | 1,796,068 | | |
| | | | $ | 235,474,147 | | | | | | (801,277) | | | | | | 7,642,640 | | | | | | 5,466,789 | | | | | | 7,082,625 | | | | | | (85,867,076) | | | | | | (16,619,696) | | | | | | 108,944,542 | | | | | | 261,322,694 | | | | | | 1,763,993 | | |
| | | Estimated fair value | | |||||||||||||||||||||||||||
| | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents and restricted cash | | | | $ | 88,220,755 | | | | | | 88,220,755 | | | | | | — | | | | | | — | | | | | | 88,220,755 | | |
Investments in finance receivables | | | | | 76,523,447 | | | | | | — | | | | | | — | | | | | | 78,503,682 | | | | | | 78,503,682 | | |
Investment in private fund | | | | | 1,418,472 | | | | | | — | | | | | | 1,418,472 | | | | | | — | | | | | | 1,418,472 | | |
Total financial assets | | | | $ | 166,162,674 | | | | | | 88,220,755 | | | | | | 1,418,472 | | | | | | 78,503,682 | | | | | | 168,142,909 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured borrowings | | | | $ | 162,964,352 | | | | | | — | | | | | | 162,964,352 | | | | | | — | | | | | | 162,964,352 | | |
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 330,817,000 | | | | | | — | | | | | | — | | | | | | 333,762,530 | | | | | | 333,762,530 | | |
Total financial liabilities | | | | $ | 493,781,352 | | | | | | — | | | | | | 162,964,352 | | | | | | 333,762,530 | | | | | | 496,726,882 | | |
| | | Estimated fair value | | |||||||||||||||||||||||||||
| | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |||||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents and restricted cash | | | | $ | 212,507,292 | | | | | | 212,507,292 | | | | | | — | | | | | | — | | | | | | 212,507,292 | | |
Investments in finance receivables | | | | | 111,248,693 | | | | | | — | | | | | | — | | | | | | 117,390,475 | | | | | | 117,390,475 | | |
Investment in private fund | | | | | 1,219,627 | | | | | | — | | | | | | 1,219,627 | | | | | | — | | | | | | 1,219,627 | | |
Total financial assets | | | | $ | 324,975,612 | | | | | | 212,507,292 | | | | | | 1,219,627 | | | | | | 117,390,475 | | | | | | 331,117,394 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured borrowings | | | | $ | 157,136,554 | | | | | | — | | | | | | 157,136,554 | | | | | | — | | | | | | 157,136,554 | | |
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 333,225,400 | | | | | | — | | | | | | — | | | | | | 338,140,850 | | | | | | 338,140,850 | | |
Total financial liabilities | | | | $ | 490,361,954 | | | | | | — | | | | | | 157,136,554 | | | | | | 338,140,850 | | | | | | 495,277,404 | | |
| | | Gross amounts of recognized assets (liabilities) | | | Gross amounts offset in the consolidated balance sheet | | | Net amounts of assets (liabilities) presented in the consolidated balance sheet | | | Amounts not offset in the consolidated balance sheet | | ||||||||||||||||||||||||||||||
| Financial instruments (policy election)(1) | | | Financial instruments (accounting criteria not met)(2) | | | Financial collateral assets pledged(3) | | | Net amount | | ||||||||||||||||||||||||||||||||
Description: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement asset | | | | $ | 65,041,913 | | | | | | (61,231,113) | | | | | | 3,810,800 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,810,800 | | |
Secured Borrowings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOB Trust debt financing | | | | | (149,874,352) | | | | | | — | | | | | | (149,874,352) | | | | | | — | | | | | | — | | | | | | 149,874,352 | | | | | | — | | |
Total Return Swap | | | | | (13,090,000) | | | | | | — | | | | | | (13,090,000) | | | | | | — | | | | | | — | | | | | | 13,090,000 | | | | | | — | | |
Total | | | | $ | (97,922,439) | | | | | | (61,231,113) | | | | | | (159,153,552) | | | | | | — | | | | | | — | | | | | | 162,964,352 | | | | | | 3,810,800 | | |
| | | Gross amounts of recognized assets (liabilities) | | | Gross amounts offset in the consolidated balance sheet | | | Net amounts of assets (liabilities) presented in the consolidated balance sheet | | | Amounts not offset in the consolidated balance sheet | | ||||||||||||||||||||||||||||||
| Financial instruments (policy election)(1) | | | Financial instruments (accounting criteria not met)(2) | | | Financial collateral assets pledged(3) | | | Net amount | | ||||||||||||||||||||||||||||||||
Description: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement asset | | | | $ | 58,097,809 | | | | | | (53,280,561) | | | | | | 4,817,248 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,817,248 | | |
Secured Borrowings : | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOB Trust debt financing | | | | | (157,136,554) | | | | | | — | | | | | | (157,136,554) | | | | | | — | | | | | | — | | | | | | 157,136,554 | | | | | | — | | |
Total | | | | $ | (99,038,745) | | | | | | (53,280,561) | | | | | | (152,319,306) | | | | | | — | | | | | | — | | | | | | 157,136,554 | | | | | | 4,817,248 | | |
| | | 2020 | | | 2019 | | ||||||
Accrued incentive expense | | | | $ | 7,700,000 | | | | | | 8,975,460 | | |
Accounts payable and accrued expenses | | | | | 4,569,380 | | | | | | 3,923,020 | | |
Accrued interest expense | | | | | 1,152,515 | | | | | | 3,777,797 | | |
Finance lease liability | | | | | — | | | | | | 1,095,141 | | |
Operating lease liability | | | | | 303,714 | | | | | | 996,362 | | |
Marketable securities purchased not yet settled | | | | | 1,513 | | | | | | 1,502,854 | | |
Total accounts payable and other liabilities | | | | $ | 13,727,122 | | | | | | 20,270,634 | | |
Lease payments allocable to office operating lease | | | | | | | |
2021 | | | | $ | 247,982 | | |
2022 | | | | | 63,964 | | |
| | | | $ | 311,946 | | |
Present value of operating lease liability | | | | $ | 303,714 | | |
| | | March 31, 2021 (Unaudited) | | | December 31, 2020 | | ||||||
Assets | | | | ||||||||||
Cash and cash equivalents | | | | $ | 67,132,433 | | | | | | 66,543,580 | | |
Restricted cash | | | | | 5,242,259 | | | | | | 21,677,175 | | |
Investments in marketable securities, at fair value (cost $763,164,092 and $726,613,174) | | | | | 817,644,815 | | | | | | 765,962,052 | | |
Investments in marketable securities held in trust, at fair value (cost $883,932,821 and $961,275,276) | | | | | 974,570,223 | | | | | | 1,040,986,810 | | |
Investments in finance receivables, net of allowance for possible losses of $462,690 and $469,493, respectively | | | | | 71,790,904 | | | | | | 76,523,447 | | |
Investment in private fund | | | | | 1,597,549 | | | | | | 1,418,472 | | |
Interest receivable | | | | | 36,551,394 | | | | | | 33,677,772 | | |
Reverse repurchase receivable, net | | | | | 2,643,483 | | | | | | 3,810,800 | | |
Real estate owned | | | | | 70,397,718 | | | | | | 47,374,503 | | |
Other assets | | | | | 10,386,454 | | | | | | 10,578,053 | | |
Total assets | | | | $ | 2,057,957,232 | | | | | | 2,068,552,664 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Accounts payable and other liabilities | | | | $ | 32,475,267 | | | | | | 13,727,122 | | |
Secured borrowings | | | | | 162,975,439 | | | | | | 162,964,352 | | |
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 347,524,350 | | | | | | 330,817,000 | | |
Total liabilities | | | | | 542,975,056 | | | | | | 507,508,474 | | |
Members’ equity: | | | | | | | | | | | | | |
Contributed capital | | | | | 887,520,606 | | | | | | 994,135,558 | | |
Retained earnings | | | | | 482,805,144 | | | | | | 450,263,437 | | |
Accumulated other comprehensive income | | | | | 143,341,759 | | | | | | 115,330,528 | | |
Total Members’ equity | | | | | 1,513,667,509 | | | | | | 1,559,729,523 | | |
Noncontrolling interest in consolidated entities | | | | | 1,314,667 | | | | | | 1,314,667 | | |
Total equity | | | | | 1,514,982,176 | | | | | | 1,561,044,190 | | |
Total liabilities and equity | | | | $ | 2,057,957,232 | | | | | | 2,068,552,664 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
Revenues: | | | | | | | | | | | | | |
Marketable securities interest income | | | | $ | 26,605,051 | | | | | | 26,063,681 | | |
Finance receivables interest income | | | | | 1,808,989 | | | | | | 3,231,107 | | |
Interest expense | | | | | (4,485,661) | | | | | | (4,816,505) | | |
Net interest income | | | | | 23,928,379 | | | | | | 24,478,283 | | |
Net gain on sales of marketable securities and finance receivables | | | | | 9,133,809 | | | | | | 1,627,458 | | |
Unrealized net loss on trading marketable securities and investment in private fund | | | | | (1,527,566) | | | | | | (1,210,431) | | |
Net gain (loss) on derivative securities | | | | | 8,299,357 | | | | | | (12,523,329) | | |
REO operating income | | | | | 1,396,166 | | | | | | — | | |
Other | | | | | 60,661 | | | | | | 170,871 | | |
Total revenues | | | | | 41,290,806 | | | | | | 12,542,852 | | |
Expenses: | | | | | | | | | | | | | |
Provision for (recovery of) finance receivable credit losses | | | | | (6,803) | | | | | | 38,653 | | |
REO operating expense | | | | | 1,714,491 | | | | | | — | | |
Compensation | | | | | 4,444,098 | | | | | | 2,757,154 | | |
Administrative and other operating | | | | | 2,597,313 | | | | | | 1,287,356 | | |
Total expenses | | | | | 8,749,099 | | | | | | 4,083,163 | | |
Net income | | | | | 32,541,707 | | | | | | 8,459,689 | | |
Net income attributable to noncontrolling interests | | | | | — | | | | | | — | | |
Net income attributable to Members’ capital | | | | $ | 32,541,707 | | | | | | 8,459,689 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
Net income | | | | $ | 32,541,707 | | | | | | 8,459,689 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized gains (losses) on investment in available-for-sale securities: | | | | | | | | | | | | | |
Unrealized holding net gains (losses) arising during period | | | | | 36,943,567 | | | | | | (83,015,515) | | |
Less reclassification adjustment for gain included in net income | | | | | (8,932,336) | | | | | | (1,323,747) | | |
Changes in fair value of available-for-sale securities | | | | | 28,011,231 | | | | | | (84,339,262) | | |
Comprehensive income (loss) | | | | | 60,552,938 | | | | | | (75,879,573) | | |
Less comprehensive income (loss) attributable to noncontrolling interest | | | | | — | | | | | | — | | |
Net comprehensive income (loss) attributable to Members’ capital | | | | $ | 60,552,938 | | | | | | (75,879,573) | | |
| | | Members’ contributed capital | | | Retained earnings | | | Accumulated other comprehensive income | | | Noncontrolling interest in consolidated entities | | | Total equity | | |||||||||||||||
Balances at December 31, 2019 | | | | $ | 1,086,034,349 | | | | | | 362,560,172 | | | | | | 87,362,823 | | | | | | 600,000 | | | | | | 1,536,557,344 | | |
Member distributions | | | | | (90,938,263) | | | | | | — | | | | | | — | | | | | | — | | | | | | (90,938,263) | | |
Net income | | | | | — | | | | | | 8,459,689 | | | | | | — | | | | | | — | | | | | | 8,459,689 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | (84,339,262) | | | | | | — | | | | | | (84,339,262) | | |
Balances at March 31, 2020 | | | | | 995,096,086 | | | | | | 371,019,861 | | | | | | 3,023,561 | | | | | | 600,000 | | | | | | 1,369,739,508 | | |
Balances at December 31, 2020 | | | | | 994,135,558 | | | | | | 450,263,437 | | | | | | 115,330,528 | | | | | | 1,314,667 | | | | | | 1,561,044,190 | | |
Member distributions | | | | | (106,614,952) | | | | | | — | | | | | | — | | | | | | — | | | | | | (106,614,952) | | |
Net income | | | | | — | | | | | | 32,541,707 | | | | | | — | | | | | | — | | | | | | 32,541,707 | | |
Other comprehensive gain | | | | | — | | | | | | — | | | | | | 28,011,231 | | | | | | — | | | | | | 28,011,231 | | |
Balances at March 31, 2021 | | | | $ | 887,520,606 | | | | | | 482,805,144 | | | | | | 143,341,759 | | | | | | 1,314,667 | | | | | | 1,514,982,176 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 32,541,707 | | | | | | 8,459,689 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Realized gain on sale of available-for-sale securities | | | | | (8,932,336) | | | | | | (1,323,747) | | |
Realized gain on sale of trading securities | | | | | (201,473) | | | | | | (303,711) | | |
Realized gain on derivative securities | | | | | — | | | | | | (59,997) | | |
Unrealized (gain) loss on derivative securities | | | | | (8,606,250) | | | | | | 12,551,848 | | |
Unrealized loss on trading securities and investment in private fund | | | | | 1,527,566 | | | | | | 1,210,431 | | |
Discount amortization and fee accretion on finance receivable and marketable securities | | | | | (4,274,899) | | | | | | (4,303,720) | | |
Cash collected in excess of income recognized | | | | | 1,165,535 | | | | | | 1,577,966 | | |
Provision for (release of) finance receivable credit losses | | | | | (6,803) | | | | | | 38,653 | | |
Proceeds from sale of trading securities | | | | | 13,416,193 | | | | | | 16,397,790 | | |
Purchase of trading securities | | | | | (14,945,045) | | | | | | (23,584,270) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Interest receivable | | | | | (4,457,209) | | | | | | 2,369,045 | | |
Other assets | | | | | 9,536,361 | | | | | | (2,707,560) | | |
Accounts payable and other liabilities | | | | | (4,594,434) | | | | | | (8,467,801) | | |
Net cash provided by operating activities | | | | | 12,168,913 | | | | | | 1,854,616 | | |
Cash flows from investment activities: | | | | | | | | | | | | | |
Purchase of available-for-sale securities | | | | | (6,372,065) | | | | | | (78,164,847) | | |
Proceeds from sale and redemption of available-for-sale securities | | | | | 65,116,475 | | | | | | 22,630,906 | | |
Investments in finance receivables | | | | | (766,042) | | | | | | (23,004,075) | | |
Proceeds from sale and repayments of finance receivables | | | | | 6,548,335 | | | | | | 6,949,780 | | |
Investment in real estate projects and real estate owned | | | | | (2,193,163) | | | | | | (3,142,778) | | |
Investment in land held for sale | | | | | (452,000) | | | | | | — | | |
Net cash provided by (used in) investment activities | | | | | 61,881,540 | | | | | | (74,731,014) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Net issuance of beneficial interests to third parties | | | | | 69,900,000 | | | | | | — | | |
Distributions to beneficial interests held by third parties | | | | | (53,192,650) | | | | | | (6,109,950) | | |
Net proceeds from borrowings | | | | | 11,086 | | | | | | 334,905,974 | | |
Net repayments of finance lease liability | | | | | — | | | | | | (6,475) | | |
Distributions to Members | | | | | (106,614,952) | | | | | �� | (90,938,263) | | |
Net cash (used in) provided by financing activities | | | | | (89,896,516) | | | | | | 237,851,286 | | |
Net (decrease) increase in cash and cash equivalents and restricted cash | | | | | (15,846,063) | | | | | | 164,974,888 | | |
Cash and cash equivalents and restricted cash at beginning of period | | | | | 88,220,755 | | | | | | 212,507,292 | | |
Cash and cash equivalents and restricted cash at end of period | | | | $ | 72,374,692 | | | | | | 377,482,180 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid during the period for: | | | | | | | | | | | | | |
Interest | | | | $ | 4,901,630 | | | | | | 5,635,146 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Loans: | | | | | | | | | | | | | |
Mortgage Loans | | | | $ | 32,740,531 | | | | | | 32,312,282 | | |
Single Family Assessments | | | | | 5,443,145 | | | | | | 8,178,682 | | |
| | | | | 38,183,676 | | | | | | 40,490,964 | | |
Other Finance Receivables: | | | | | | | | | | | | | |
Reimbursement Receivables | | | | | 34,069,918 | | | | | | 36,501,976 | | |
Total Carrying Value | | | | $ | 72,253,594 | | | | | | 76,992,940 | | |
| 2021 | | | | $ | 32,667,555 | | |
| 2022 | | | | | 10,807,111 | | |
| 2023 | | | | | 2,133,416 | | |
| 2024 | | | | | 2,449,048 | | |
| 2025 | | | | | 2,788,185 | | |
| Thereafter | | | | | 21,408,279 | | |
| | | | | $ | 72,253,594 | | |
| | | Loans | | | Other finance receivables | | | March 31, 2021 | | | Loans | | | Other finance receivables | | | March 31, 2020 | | ||||||||||||||||||
Balance, beginning of period | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 466,202 | | | | | | — | | | | | | 466,202 | | |
Provision (recovery) | | | | | (6,803) | | | | | | — | | | | | | (6,803) | | | | | | 38,653 | | | | | | — | | | | | | 38,653 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | |
Balance, end of period | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 504,855 | | | | | | — | | | | | | 504,855 | | |
| | | Allowance for credit losses | | | Invesment in finance receivables | | ||||||||||||||||||||||||||||||
| | | Loans | | | Other finance receivables | | | Total | | | Loans | | | Other finance receivables | | | Total | | ||||||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated(1) | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 38,183,676 | | | | | | 34,069,918 | | | | | | 72,253,594 | | |
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 38,183,676 | | | | | | 34,069,918 | | | | | | 72,253,594 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated(1) | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | |
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
By LTV: | | | | | | | | | | | | | |
0 – 60% | | | | $ | 21,492,255 | | | | | | 24,174,107 | | |
60.01 – 80% | | | | | — | | | | | | — | | |
80.01 – 100% | | | | | 16,691,421 | | | | | | 16,316,857 | | |
Total Loans | | | | $ | 38,183,676 | | | | | | 40,490,964 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Residential development performance status: | | | | | | | | | | | | | |
Outperforming | | | | $ | 372,803 | | | | | | 361,839 | | |
Performing | | | | | 33,697,115 | | | | | | 36,140,137 | | |
Underperforming | | | | | — | | | | | | — | | |
Total Other Finance Receivables | | | | $ | 34,069,918 | | | | | | 36,501,976 | | |
| | | March 31, 2021 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 68,811,325 | | | | | | 2,022,721 | | | | | | (202,940) | | | | | | 70,631,106 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 78,057,124 | | | | | | 2,022,721 | | | | | | (355,212) | | | | | | 79,724,633 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,423,071,307 | | | | | | 132,806,971 | | | | | | (1,166,785) | | | | | | 1,554,711,493 | | |
Municipal non-senior debt securities | | | | | 145,968,482 | | | | | | 11,810,430 | | | | | | — | | | | | | 157,778,912 | | |
Total available-for-sale | | | | | 1,569,039,789 | | | | | | 144,617,401 | | | | | | (1,166,785) | | | | | | 1,712,490,405 | | |
Total securities | | | | $ | 1,647,096,913 | | | | | | 146,640,122 | | | | | | (1,521,997) | | | | | | 1,792,215,038 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 43,491,535 | | | | | | 3,818,994 | | | | | | (45,682) | | | | | | 47,264,847 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 52,737,334 | �� | | | | | 3,818,994 | | | | | | (197,954) | | | | | | 56,358,374 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,491,657,605 | | | | | | 108,440,423 | | | | | | (1,622,365) | | | | | | 1,598,475,663 | | |
Municipal non-senior debt securities | | | | | 143,493,511 | | | | | | 8,621,314 | | | | | | — | | | | | | 152,114,825 | | |
Total available-for-sale | | | | | 1,635,151,116 | | | | | | 117,061,737 | | | | | | (1,622,365) | | | | | | 1,750,590,488 | | |
Total securities | | | | $ | 1,687,888,450 | | | | | | 120,880,731 | | | | | | (1,820,319) | | | | | | 1,806,948,862 | | |
| Due within one year | | | | $ | 21,171,504 | | |
| Due after one year to five years | | | | | 34,950,330 | | |
| Due after five years to ten years | | | | | 99,129,749 | | |
| Due after ten years | | | | | 1,557,238,822 | | |
| | | | | $ | 1,712,490,405 | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 6,819,570 | | | | | | (13,079) | | | | | | 19,582,438 | | | | | | (1,153,706) | | | | | | 26,402,008 | | | | | | (1,166,785) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 6,819,570 | | | | | | (13,079) | | | | | | 19,582,438 | | | | | | (1,153,706) | | | | | | 26,402,008 | | | | | | (1,166,785) | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
| | | | | | | | | Carrying Value — asset (liability) | | |||||||||||||||
March 31, 2021 | | | Total VIE assets | | | Finance receivables | | | Available-for-sale debt securities | | | Net assets | | ||||||||||||
Finance Receivable | | | | $ | 19,723,000 | | | | | | 1,088,698 | | | | | | — | | | | | | 1,088,698 | | |
Purchased Rights to Tax Revenues | | | | | 76,475,947 | | | | | | — | | | | | | 45,480,545 | | | | | | 45,480,545 | | |
| | | | $ | 96,198,947 | | | | | | 1,088,698 | | | | | | 45,480,545 | | | | | | 46,569,243 | | |
| | | | | | | | | Carrying Value — asset (liability) | | |||||||||||||||
December 31, 2020 | | | Total VIE assets | | | Finance receivables | | | Available-for-sale debt securities | | | Net assets | | ||||||||||||
Finance Receivable | | | | $ | 19,723,000 | | | | | | 1,063,246 | | | | | | — | | | | | | 1,063,246 | | |
Purchased Rights to Tax Revenues | | | | | 81,154,000 | | | | | | — | | | | | | 45,007,240 | | | | | | 45,007,240 | | |
| | | | $ | 100,877,000 | | | | | | 1,063,246 | | | | | | 45,007,240 | | | | | | 46,070,486 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Cash | | | | $ | 2,111,258 | | | | | | 19,678,175 | | |
Accrued interest receivable | | | | | 9,007,409 | | | | | | 8,237,462 | | |
Investment in marketable securities held in trust | | | | | 534,377,606 | | | | | | 488,644,137 | | |
Total net assets | | | | $ | 545,496,273 | | | | | | 516,559,774 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Total return swap | | | | | 13,090,000 | | | | | | 13,090,000 | | |
Term Taxable AB Trust financing | | | | | 149,885,439 | | | | | | 149,874,352 | | |
Total secured borrowings | | | | $ | 162,975,439 | | | | | | 162,964,352 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Loans: | | | | | | | | | | | | | |
Mortgage Loans | | | | $ | 32,740,531 | | | | | | 32,312,282 | | |
Single Family Assessments | | | | | 5,443,145 | | | | | | 8,178,682 | | |
| | | | | 38,183,676 | | | | | | 40,490,964 | | |
Other Finance Receivables: | | | | | | | | | | | | | |
Reimbursement Receivables | | | | | 34,069,918 | | | | | | 36,501,976 | | |
Total Carrying Value | | | | $ | 72,253,594 | | | | | | 76,992,940 | | |
| 2021 | | | | $ | 32,667,555 | | |
| 2022 | | | | | 10,807,111 | | |
| 2023 | | | | | 2,133,416 | | |
| 2024 | | | | | 2,449,048 | | |
| 2025 | | | | | 2,788,185 | | |
| Thereafter | | | | | 21,408,279 | | |
| | | | | $ | 72,253,594 | | |
| | | Loans | | | Other finance receivables | | | March 31, 2021 | | | Loans | | | Other finance receivables | | | March 31, 2020 | | ||||||||||||||||||
Balance, beginning of period | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 466,202 | | | | | | — | | | | | | 466,202 | | |
Provision (recovery) | | | | | (6,803) | | | | | | — | | | | | | (6,803) | | | | | | 38,653 | | | | | | — | | | | | | 38,653 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | |
Balance, end of period | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 504,855 | | | | | | — | | | | | | 504,855 | | |
| | | Allowance for credit losses | | | Invesment in finance receivables | | ||||||||||||||||||||||||||||||
| | | Loans | | | Other finance receivables | | | Total | | | Loans | | | Other finance receivables | | | Total | | ||||||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated(1) | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 38,183,676 | | | | | | 34,069,918 | | | | | | 72,253,594 | | |
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 38,183,676 | | | | | | 34,069,918 | | | | | | 72,253,594 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated(1) | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | |
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
By LTV: | | | | | | | | | | | | | |
0 – 60% | | | | $ | 21,492,255 | | | | | | 24,174,107 | | |
60.01 – 80% | | | | | — | | | | | | — | | |
80.01 – 100% | | | | | 16,691,421 | | | | | | 16,316,857 | | |
Total Loans | | | | $ | 38,183,676 | | | | | | 40,490,964 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Residential development performance status: | | | | | | | | | | | | | |
Outperforming | | | | $ | 372,803 | | | | | | 361,839 | | |
Performing | | | | | 33,697,115 | | | | | | 36,140,137 | | |
Underperforming | | | | | — | | | | | | — | | |
Total Other Finance Receivables | | | | $ | 34,069,918 | | | | | | 36,501,976 | | |
| | | March 31, 2021 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 68,811,325 | | | | | | 2,022,721 | | | | | | (202,940) | | | | | | 70,631,106 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 78,057,124 | | | | | | 2,022,721 | | | | | | (355,212) | | | | | | 79,724,633 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,423,071,307 | | | | | | 132,806,971 | | | | | | (1,166,785) | | | | | | 1,554,711,493 | | |
Municipal non-senior debt securities | | | | | 145,968,482 | | | | | | 11,810,430 | | | | | | — | | | | | | 157,778,912 | | |
Total available-for-sale | | | | | 1,569,039,789 | | | | | | 144,617,401 | | | | | | (1,166,785) | | | | | | 1,712,490,405 | | |
Total securities | | | | $ | 1,647,096,913 | | | | | | 146,640,122 | | | | | | (1,521,997) | | | | | | 1,792,215,038 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 43,491,535 | | | | | | 3,818,994 | | | | | | (45,682) | | | | | | 47,264,847 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 52,737,334 | �� | | | | | 3,818,994 | | | | | | (197,954) | | | | | | 56,358,374 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,491,657,605 | | | | | | 108,440,423 | | | | | | (1,622,365) | | | | | | 1,598,475,663 | | |
Municipal non-senior debt securities | | | | | 143,493,511 | | | | | | 8,621,314 | | | | | | — | | | | | | 152,114,825 | | |
Total available-for-sale | | | | | 1,635,151,116 | | | | | | 117,061,737 | | | | | | (1,622,365) | | | | | | 1,750,590,488 | | |
Total securities | | | | $ | 1,687,888,450 | | | | | | 120,880,731 | | | | | | (1,820,319) | | | | | | 1,806,948,862 | | |
| Due within one year | | | | $ | 21,171,504 | | |
| Due after one year to five years | | | | | 34,950,330 | | |
| Due after five years to ten years | | | | | 99,129,749 | | |
| Due after ten years | | | | | 1,557,238,822 | | |
| | | | | $ | 1,712,490,405 | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 6,819,570 | | | | | | (13,079) | | | | | | 19,582,438 | | | | | | (1,153,706) | | | | | | 26,402,008 | | | | | | (1,166,785) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 6,819,570 | | | | | | (13,079) | | | | | | 19,582,438 | | | | | | (1,153,706) | | | | | | 26,402,008 | | | | | | (1,166,785) | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Loans: | | | | | | | | | | | | | |
Mortgage Loans | | | | $ | 32,740,531 | | | | | | 32,312,282 | | |
Single Family Assessments | | | | | 5,443,145 | | | | | | 8,178,682 | | |
| | | | | 38,183,676 | | | | | | 40,490,964 | | |
Other Finance Receivables: | | | | | | | | | | | | | |
Reimbursement Receivables | | | | | 34,069,918 | | | | | | 36,501,976 | | |
Total Carrying Value | | | | $ | 72,253,594 | | | | | | 76,992,940 | | |
| 2021 | | | | $ | 32,667,555 | | |
| 2022 | | | | | 10,807,111 | | |
| 2023 | | | | | 2,133,416 | | |
| 2024 | | | | | 2,449,048 | | |
| 2025 | | | | | 2,788,185 | | |
| Thereafter | | | | | 21,408,279 | | |
| | | | | $ | 72,253,594 | | |
| | | Loans | | | Other finance receivables | | | March 31, 2021 | | | Loans | | | Other finance receivables | | | March 31, 2020 | | ||||||||||||||||||
Balance, beginning of period | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 466,202 | | | | | | — | | | | | | 466,202 | | |
Provision (recovery) | | | | | (6,803) | | | | | | — | | | | | | (6,803) | | | | | | 38,653 | | | | | | — | | | | | | 38,653 | | |
Charge-offs | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | |
Recoveries | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | |
Balance, end of period | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 504,855 | | | | | | — | | | | | | 504,855 | | |
| | | Allowance for credit losses | | | Invesment in finance receivables | | ||||||||||||||||||||||||||||||
| | | Loans | | | Other finance receivables | | | Total | | | Loans | | | Other finance receivables | | | Total | | ||||||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated(1) | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 38,183,676 | | | | | | 34,069,918 | | | | | | 72,253,594 | | |
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 462,690 | | | | | | — | | | | | | 462,690 | | | | | | 38,183,676 | | | | | | 34,069,918 | | | | | | 72,253,594 | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated(1) | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | |
Individually evaluated(2) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 469,493 | | | | | | — | | | | | | 469,493 | | | | | | 40,490,964 | | | | | | 36,501,976 | | | | | | 76,992,940 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
By LTV: | | | | | | | | | | | | | |
0 – 60% | | | | $ | 21,492,255 | | | | | | 24,174,107 | | |
60.01 – 80% | | | | | — | | | | | | — | | |
80.01 – 100% | | | | | 16,691,421 | | | | | | 16,316,857 | | |
Total Loans | | | | $ | 38,183,676 | | | | | | 40,490,964 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Residential development performance status: | | | | | | | | | | | | | |
Outperforming | | | | $ | 372,803 | | | | | | 361,839 | | |
Performing | | | | | 33,697,115 | | | | | | 36,140,137 | | |
Underperforming | | | | | — | | | | | | — | | |
Total Other Finance Receivables | | | | $ | 34,069,918 | | | | | | 36,501,976 | | |
| | | March 31, 2021 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 68,811,325 | | | | | | 2,022,721 | | | | | | (202,940) | | | | | | 70,631,106 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 78,057,124 | | | | | | 2,022,721 | | | | | | (355,212) | | | | | | 79,724,633 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,423,071,307 | | | | | | 132,806,971 | | | | | | (1,166,785) | | | | | | 1,554,711,493 | | |
Municipal non-senior debt securities | | | | | 145,968,482 | | | | | | 11,810,430 | | | | | | — | | | | | | 157,778,912 | | |
Total available-for-sale | | | | | 1,569,039,789 | | | | | | 144,617,401 | | | | | | (1,166,785) | | | | | | 1,712,490,405 | | |
Total securities | | | | $ | 1,647,096,913 | | | | | | 146,640,122 | | | | | | (1,521,997) | | | | | | 1,792,215,038 | | |
| | | December 31, 2020 | | |||||||||||||||||||||
| | | Amortized cost | | | Gross unrealized gains | | | Gross unrealized losses | | | Estimated fair value | | ||||||||||||
Trading securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 43,491,535 | | | | | | 3,818,994 | | | | | | (45,682) | | | | | | 47,264,847 | | |
Municipal non-senior debt securities | | | | | 9,245,799 | | | | | | — | | | | | | (152,272) | | | | | | 9,093,527 | | |
Total trading | | | | | 52,737,334 | �� | | | | | 3,818,994 | | | | | | (197,954) | | | | | | 56,358,374 | | |
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | | 1,491,657,605 | | | | | | 108,440,423 | | | | | | (1,622,365) | | | | | | 1,598,475,663 | | |
Municipal non-senior debt securities | | | | | 143,493,511 | | | | | | 8,621,314 | | | | | | — | | | | | | 152,114,825 | | |
Total available-for-sale | | | | | 1,635,151,116 | | | | | | 117,061,737 | | | | | | (1,622,365) | | | | | | 1,750,590,488 | | |
Total securities | | | | $ | 1,687,888,450 | | | | | | 120,880,731 | | | | | | (1,820,319) | | | | | | 1,806,948,862 | | |
| Due within one year | | | | $ | 21,171,504 | | |
| Due after one year to five years | | | | | 34,950,330 | | |
| Due after five years to ten years | | | | | 99,129,749 | | |
| Due after ten years | | | | | 1,557,238,822 | | |
| | | | | $ | 1,712,490,405 | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 6,819,570 | | | | | | (13,079) | | | | | | 19,582,438 | | | | | | (1,153,706) | | | | | | 26,402,008 | | | | | | (1,166,785) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 6,819,570 | | | | | | (13,079) | | | | | | 19,582,438 | | | | | | (1,153,706) | | | | | | 26,402,008 | | | | | | (1,166,785) | | |
| | | Less than 12 months | | | More than 12 months | | | Total | | |||||||||||||||||||||||||||
| | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | | Fair value | | | Gross unrealized losses | | ||||||||||||||||||
Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal senior debt securities | | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
Municipal non-senior debt securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 30,031,714 | | | | | | (1,424,851) | | | | | | 1,878,152 | | | | | | (197,514) | | | | | | 31,909,866 | | | | | | (1,622,365) | | |
| | | | | | | | | Carrying Value — asset (liability) | | |||||||||||||||
March 31, 2021 | | | Total VIE assets | | | Finance receivables | | | Available-for-sale debt securities | | | Net assets | | ||||||||||||
Finance Receivable | | | | $ | 19,723,000 | | | | | | 1,088,698 | | | | | | — | | | | | | 1,088,698 | | |
Purchased Rights to Tax Revenues | | | | | 76,475,947 | | | | | | — | | | | | | 45,480,545 | | | | | | 45,480,545 | | |
| | | | $ | 96,198,947 | | | | | | 1,088,698 | | | | | | 45,480,545 | | | | | | 46,569,243 | | |
| | | | | | | | | Carrying Value — asset (liability) | | |||||||||||||||
December 31, 2020 | | | Total VIE assets | | | Finance receivables | | | Available-for-sale debt securities | | | Net assets | | ||||||||||||
Finance Receivable | | | | $ | 19,723,000 | | | | | | 1,063,246 | | | | | | — | | | | | | 1,063,246 | | |
Purchased Rights to Tax Revenues | | | | | 81,154,000 | | | | | | — | | | | | | 45,007,240 | | | | | | 45,007,240 | | |
| | | | $ | 100,877,000 | | | | | | 1,063,246 | | | | | | 45,007,240 | | | | | | 46,070,486 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Cash | | | | $ | 2,111,258 | | | | | | 19,678,175 | | |
Accrued interest receivable | | | | | 9,007,409 | | | | | | 8,237,462 | | |
Investment in marketable securities held in trust | | | | | 534,377,606 | | | | | | 488,644,137 | | |
Total net assets | | | | $ | 545,496,273 | | | | | | 516,559,774 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Total return swap | | | | | 13,090,000 | | | | | | 13,090,000 | | |
Term Taxable AB Trust financing | | | | | 149,885,439 | | | | | | 149,874,352 | | |
Total secured borrowings | | | | $ | 162,975,439 | | | | | | 162,964,352 | | |
Asset (liability) | | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Fair value | | |||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | $ | 79,724,633 | | | | | | — | | | | | | 70,631,106 | | | | | | 9,093,527 | | | | | | 79,724,633 | | |
| | | | | 79,724,633 | | | | | | — | | | | | | 70,631,106 | | | | | | 9,093,527 | | | | | | 79,724,633 | | |
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | | 1,712,490,405 | | | | | | — | | | | | | 1,375,570,803 | | | | | | 336,919,602 | | | | | | 1,712,490,405 | | |
Total marketable securities | | | | | 1,792,215,038 | | | | | | — | | | | | | 1,446,201,909 | | | | | | 346,013,129 | | | | | | 1,792,215,038 | | |
Reverse repurchase agreement, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement | | | | | 53,984,733 | | | | | | — | | | | | | 53,984,733 | | | | | | — | | | | | | 53,984,733 | | |
Repurchase agreement | | | | | (51,341,250) | | | | | | — | | | | | | (51,341,250) | | | | | | — | | | | | | (51,341,250) | | |
Treasuries sold short | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Reverse repurchase agreement, net | | | | | 2,643,483 | | | | | | — | | | | | | 2,643,483 | | | | | | — | | | | | | 2,643,483 | | |
| | | | $ | 1,794,858,521 | | | | | | — | | | | | | 1,448,845,392 | | | | | | 346,013,129 | | | | | | 1,794,858,521 | | |
Asset (liability) | | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Fair value | | |||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | $ | 56,358,374 | | | | | | — | | | | | | 47,264,847 | | | | | | 9,093,527 | | | | | | 56,358,374 | | |
| | | | | 56,358,374 | | | | | | — | | | | | | 47,264,847 | | | | | | 9,093,527 | | | | | | 56,358,374 | | |
Available-for-sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal debt securities | | | | | 1,750,590,488 | | | | | | — | | | | | | 1,415,552,416 | | | | | | 335,038,072 | | | | | | 1,750,590,488 | | |
Total marketable securities | | | | | 1,806,948,862 | | | | | | — | | | | | | 1,462,817,263 | | | | | | 344,131,599 | | | | | | 1,806,948,862 | | |
Reverse repurchase agreement, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement | | | | | 65,041,913 | | | | | | — | | | | | | 65,041,913 | | | | | | — | | | | | | 65,041,913 | | |
Repurchase agreement | | | | | (61,231,113) | | | | | | — | | | | | | (61,231,113) | | | | | | — | | | | | | (61,231,113) | | |
Treasuries sold short | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Reverse repurchase agreement, net | | | | | 3,810,800 | | | | | | — | | | | | | 3,810,800 | | | | | | — | | | | | | 3,810,800 | | |
| | | | $ | 1,810,759,662 | | | | | | — | | | | | | 1,466,628,063 | | | | | | 344,131,599 | | | | | | 1,810,759,662 | | |
| | | | Fair value at March 31, 2021 | | | Valuation technique | | | Unobservable inputs | | | Range of inputs (weighted average) | | |||
| Investments in marketable securities: | | | | | | | | | | | | | | | | |
| Trading: | | | | | | | | | | | | | | | | |
| Municipal debt investments | | | | $ | 9,093,527 | | | | Discounted Cash Flow | | | WAL | | | 21.0 years | |
| | | | | | | | | | | | | Yield | | | 9.0% | |
| Available-for-sale: | | | | | | | | | | | | | | | | |
| Municipal debt investments | | | | | 92,098,081 | | | | Market pricing based on recent transactions | | | Price | | | $45.00 – $102.00 $(67.75) | |
| | | | | | 244,821,521 | | | | Discounted Cash Flow | | | WAL | | | 0.5 – 41.1 years (19.8 years) | |
| | | | | | 336,919,602 | | | | | | | Yield | | | 5.5% – 14.0% (10.0)% | |
| Total | | | | $ | 346,013,129 | | | | | | | | | | | |
| | | | Fair value at December 31, 2020 | | | Valuation technique | | | Unobservable inputs | | | Range of inputs (weighted average) | | | | | | |||||||||||
| Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | ||||||||
| Trading: | | | | | | | | | | | | | | | | | | | | | ||||||||
| Municipal debt investments | | | | $ | 9,093,527 | | | | Discounted Cash Flow | | | WAL | | | 18.7 years | | | | | | ||||||||
| | | | | | | | | | | | | Yield | | | 9.0% | | | | | | ||||||||
| Available-for-sale: | | | | | | | | | | | | | | | | | | | | | ||||||||
| Municipal debt investments | | | | | 74,819,300 | | | | Market pricing based on recent transactions | | | Price | | | $45.00 – $100.00 $(71.99) | | | | | | | | | | | | | |
| | | | | | 260,218,772 | | | | Discounted Cash Flow | | | WAL | | | 0.5 – 41.4 years (18.5 years) | | | | | | ||||||||
| | | | | | | | | | | | | Yield | | | 6% – 11% (10)% | | | | | | ||||||||
| | | | | | 335,038,072 | | | | | | | | | | | | | | | | ||||||||
| Total | | | | $ | 344,131,599 | | | | | | | | | | | | | | | |
| | | Beginning balance December 31, 2020 | | | Unrealized gain(loss) | | | Purchases | | | Realized gain (loss) | | | Discount amortization (premium accretion) | | | Sales/ redemptions | | | Transfers out of Level 3 | | | Transfers into Level 3 | | | Ending balance March 31 2021 | | | Change in unrealized gains for the year for investments still held at March , 2021 | | ||||||||||||||||||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading | | | | $ | 9,093,527 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,093,527 | | | | | | — | | |
Available-for- sale | | | | | 335,038,072 | | | | | | 2,571,115 | | | | | | 5,150,730 | | | | | | — | | | | | | 2,153,032 | | | | | | (3,190,661) | | | | | | (19,743,839) | | | | | | 14,941,153 | | | | | | 336,919,602 | | | | | | 2,571,115 | | |
| | | | $ | 344,131,599 | | | | | | 2,571,115 | | | | | | 5,150,730 | | | | | | — | | | | | | 2,153,032 | | | | | | (3,190,661) | | | | | | (19,743,839) | | | | | | 14,941,153 | | | | | | 346,013,129 | | | | | | 2,571,115 | | |
| | | Beginning balance December 31, 2019 | | | Unrealized gain(loss) | | | Purchases | | | Realized gain (loss) | | | Discount amortization (premium accretion) | | | Sales/ redemptions | | | Transfers out of Level 3 | | | Transfers into Level 3 | | | Ending balance March 31, 2020 | | | Change in unrealized gains for the period for investments still held at March 31, 2020 | | ||||||||||||||||||||||||||||||
Investments in marketable securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trading | | | | $ | 8,741,527 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,741,527 | | | | | | — | | |
Available-for-sale | | | | | 252,581,167 | | | | | | (606,864) | | | | | | 238,678 | | | | | | — | | | | | | 2,147,593 | | | | | | (4,725,262) | | | | | | — | | | | | | — | | | | | | 249,635,312 | | | | | | — | | |
| | | | $ | 261,322,694 | | | | | | (606,864) | | | | | | 238,678 | | | | | | — | | | | | | 2,147,593 | | | | | | (4,725,262) | | | | | | — | | | | | | — | | | | | | 258,376,839 | | | | | | — | | |
| | | | | | | | | Estimated fair value | | |||||||||||||||||||||
| | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |||||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents and restricted cash | | | | $ | 72,374,692 | | | | | | 72,374,692 | | | | | | — | | | | | | — | | | | | | 72,374,692 | | |
Investments in finance receivables | | | | | 71,790,904 | | | | | | — | | | | | | — | | | | | | 76,232,389 | | | | | | 76,232,389 | | |
Investment in private fund | | | | | 1,597,549 | | | | | | — | | | | | | 1,597,549 | | | | | | — | | | | | | 1,597,549 | | |
Total financial assets | | | | $ | 145,763,145 | | | | | | 72,374,692 | | | | | | 1,597,549 | | | | | | 76,232,389 | | | | | | 150,204,630 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured borrowings | | | | $ | 162,975,439 | | | | | | — | | | | | | 162,975,439 | | | | | | — | | | | | | 162,975,439 | | |
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 347,524,350 | | | | | | — | | | | | | — | | | | | | 353,382,279 | | | | | | 353,382,279 | | |
Total financial liabilities | | | | $ | 510,499,789 | | | | | | — | | | | | | 162,975,439 | | | | | | 353,382,279 | | | | | | 516,357,718 | | |
| | | | | | | | | Estimated fair value | | |||||||||||||||||||||
| | | Carrying amount | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | |||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents and restricted cash | | | | $ | 88,220,755 | | | | | | 88,220,755 | | | | | | — | | | | | | — | | | | | | 88,220,755 | | |
Investments in finance receivables | | | | | 76,523,447 | | | | | | — | | | | | | — | | | | | | 78,503,682 | | | | | | 78,503,682 | | |
Investment in private fund | | | | | 1,418,472 | | | | | | — | | | | | | 1,418,472 | | | | | | — | | | | | | 1,418,472 | | |
Total financial assets | | | | $ | 166,162,674 | | | | | | 88,220,755 | | | | | | 1,418,472 | | | | | | 78,503,682 | | | | | | 168,142,909 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured borrowings | | | | $ | 162,964,352 | | | | | | — | | | | | | 162,964,352 | | | | | | — | | | | | | 162,964,352 | | |
Mandatorily redeemable noncontrolling interest in consolidated entities | | | | | 330,817,000 | | | | | | — | | | | | | — | | | | | | 333,762,530 | | | | | | 333,762,530 | | |
Total financial liabilities | | | | $ | 493,781,352 | | | | | | — | | | | | | 162,964,352 | | | | | | 333,762,530 | | | | | | 496,726,882 | | |
| | | Gross amounts of recognized assets (liabilities) | | | Gross amounts offset in the consolidated balance sheet | | | Net amounts of assets (liabilities) presented in the consolidated balance sheet | | | Amounts not offset in the consolidated balance sheet | | ||||||||||||||||||||||||||||||
| | | Financial instruments (policy election)(1) | | | Financial instruments (accounting criteria not met)(2) | | | Financial collateral assets pledged(3) | | | Net amount | | ||||||||||||||||||||||||||||||
Description: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement asset | | | | $ | 53,984,733 | | | | | | (51,341,250) | | | | | | 2,643,483 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,643,483 | | |
Secured Borrowings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOB Trust debt financing | | | | | (149,885,439) | | | | | | — | | | | | | (149,885,439) | | | | | | — | | | | | | — | | | | | | 149,885,439 | | | | | | — | | |
Total Return Swap | | | | | (13,090,000) | | | | | | — | | | | | | (13,090,000) | | | | | | — | | | | | | — | | | | | | 13,090,000 | | | | | | — | | |
Total | | | | $ | (108,990,706) | | | | | | (51,341,250) | | | | | | (160,331,956) | | | | | | — | | | | | | — | | | | | | 162,975,439 | | | | | | 2,643,483 | | |
| | | Gross amounts of recognized assets (liabilities) | | | Gross amounts offset in the consolidated balance sheet | | | Net amounts of assets (liabilities) presented in the consolidated balance sheet | | | Amounts not offset in the consolidated balance sheet | | ||||||||||||||||||||||||||||||
| | | Financial instruments (policy election)(1) | | | Financial instruments (accounting criteria not met)(2) | | | Financial collateral assets pledged(3) | | | Net amount | | ||||||||||||||||||||||||||||||
Description: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreement asset | | | | $ | 65,041,913 | | | | | | (61,231,113) | | | | | | 3,810,800 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,810,800 | | |
Secured Borrowings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOB Trust debt financing | | | | | (149,874,352) | | | | | | — | | | | | | (149,874,352) | | | | | | — | | | | | | — | | | | | | 149,874,352 | | | | | | — | | |
Total Return Swap | | | | | (13,090,000) | | | | | | — | | | | | | (13,090,000) | | | | | | — | | | | | | — | | | | | | 13,090,000 | | | | | | — | | |
Total | | | | $ | (97,922,439) | | | | | | (61,231,113) | | | | | | (159,153,552) | | | | | | — | | | | | | — | | | | | | 162,964,352 | | | | | | 3,810,800 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Marketable securities purchased not yet settled | | | | $ | 23,344,090 | | | | | | 1,513 | | |
Accounts payable and accrued expenses | | | | | 4,397,830 | | | | | | 4,569,380 | | |
Accrued incentive expense | | | | | 2,295,431 | | | | | | 7,700,000 | | |
Accrued interest expense | | | | | 2,192,368 | | | | | | 1,152,515 | | |
Operating lease liability | | | | | 245,548 | | | | | | 303,714 | | |
Total accounts payable and accrued liabilities | | | | $ | 32,475,267 | | | | | | 13,727,122 | | |
| Lease payments allocable to office operating lease | | | | | | |||||
| 2021 | | | | | | | $ | 186,973 | | |
| 2022 | | | | | | | | 63,964 | | |
| | | | | | | | $ | 250,937 | | |
| Present value of operating lease liability | | | | | | | $ | 245,548 | | |
| SEC Registration Fee | | | | $ | 26,413.69 | | |
| FINRA Filing Fee | | | | $ | 36,816 | | |
| Listing Fee | | | | $ | 25,000 | | |
| Accounting Fees & Expenses | | | | $ | 300,000 | | |
| Legal Fees and Expenses | | | | $ | 1,501,770 | | |
| Printing Fees and Expenses | | | | $ | 80,000 | | |
| Transfer Agent and Registrar Fees | | | | $ | 10,000 | | |
| Miscellaneous | | | | $ | 20,000 | | |
| Total | | | | $ | 2,000,000 | | |
Exhibit | | | Description | | |||
| | 1.1 | | | | | |
| | 3.1* | | | | | |
| | 3.2* | | | | | |
| | 4.1 | | | | | |
| | 4.2 | | | | | |
| | 5.1 | | | | | |
| | 10.1 | | | | | |
| | 10.2 | | | | | |
| | 10.3 | | | | | |
| | 10.4 | | | | | |
| | 10.5 | | | | | |
| | 10.6 | | | | | |
| | 10.7* | | | | | |
| | 10.8* | | | | | |
| | 10.9 | | | | | |
| | 10.10 | | | | | |
| | 10.11 | | | | | |
| | 10.12 | | | | | |
| | 10.13 | | | | | |
| | 10.14 | | | | | |
| | 10.15 | | | | | |
| | 10.16 | | | | | |
| | 21.1 | | | | | |
| | 23.1* | | | | |
Exhibit | | | Description | | |||
| | 23.2* | | | | | |
| | 23.3 | | | | | |
| | 24.1* | | | | | |
| | 99.1* | | | | | |
| | 99.2* | | | | | |
| | 99.3* | | | | | |
| | 99.4* | | | | | |
| | 99.5* | | | | |
| Date: July | | | /s/ Jim Thompson Jim Thompson Sole director of the Board of Directors, Chairman nominee, Chief Executive Officer, and President (Principal Executive Officer) | |
| Date: July | | | /s/ Paige Deskin Paige Deskin Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |