Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36491 | |
Entity Registrant Name | Century Communities, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 68-0521411 | |
Entity Address, Address Line One | 8390 East Crescent Parkway | |
Entity Address, Address Line Two | Suite 650 | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | 303 | |
Local Phone Number | 770-8300 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,025,879 | |
Entity Central Index Key | 0001576940 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 405,722 | $ 296,724 |
Cash held in escrow | 12,691 | 56,569 |
Accounts receivable | 52,787 | 52,797 |
Inventories | 2,741,187 | 2,830,645 |
Mortgage loans held for sale | 155,732 | 203,558 |
Prepaid expenses and other assets | 260,505 | 250,535 |
Property and equipment, net | 33,019 | 31,688 |
Deferred tax assets, net | 20,939 | 20,856 |
Goodwill | 30,395 | 30,395 |
Total assets | 3,712,977 | 3,773,767 |
Liabilities: | ||
Accounts payable | 106,525 | 106,926 |
Accrued expenses and other liabilities | 258,412 | 299,588 |
Notes payable | 1,026,615 | 1,019,412 |
Revolving line of credit | ||
Mortgage repurchase facilities | 149,784 | 197,626 |
Total liabilities | 1,541,336 | 1,623,552 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized, 32,025,785 and 31,772,791 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 320 | 318 |
Additional paid-in capital | 580,489 | 584,803 |
Retained earnings | 1,590,832 | 1,565,094 |
Total stockholders' equity | 2,171,641 | 2,150,215 |
Total liabilities and stockholders' equity | $ 3,712,977 | $ 3,773,767 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 50,000,000 | 50,000,000 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 32,025,785 | 31,772,791 |
Common stock shares outstanding | 32,025,785 | 31,772,791 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Total revenues | $ 752,990 | $ 1,016,350 |
Selling, general and administrative | (98,313) | (101,639) |
Other income (expense) | 1,498 | (862) |
Income before income tax expense | 44,009 | 188,776 |
Income tax expense | (10,698) | (46,280) |
Net income | $ 33,311 | $ 142,496 |
Earnings per share: | ||
Basic | $ 1.04 | $ 4.25 |
Diluted | $ 1.04 | $ 4.20 |
Weighted average common shares outstanding: | ||
Basic | 31,914,414 | 33,530,610 |
Diluted | 32,117,082 | 33,942,234 |
Homebuilding [Member] | ||
Revenues | ||
Total revenues | $ 737,135 | $ 990,045 |
Cost of revenues | (601,385) | (709,919) |
Home Sales [Member] | ||
Revenues | ||
Total revenues | 735,600 | 988,415 |
Cost of revenues | (601,385) | (709,073) |
Land Sales And Other [Member] | ||
Revenues | ||
Total revenues | 1,535 | 1,630 |
Cost of revenues | (846) | |
Financial Services [Member] | ||
Revenues | ||
Total revenues | 15,855 | 26,305 |
Cost of revenues | $ (10,781) | $ (15,154) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net income | $ 33,311 | $ 142,496 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,292 | 2,606 |
Stock-based compensation expense | 5,360 | 4,064 |
Fair value of mortgage loans held for sale and other | 205 | 4,443 |
Abandonment of lot option contracts | 638 | 875 |
Deferred income taxes | (83) | (33) |
Loss on disposition of assets | 198 | 384 |
Changes in assets and liabilities: | ||
Cash held in escrow | 43,878 | 7,085 |
Accounts receivable | 10 | (4,106) |
Inventories | 90,152 | (222,863) |
Mortgage loans held for sale | 48,241 | 144,361 |
Prepaid expenses and other assets | 8,247 | (28,959) |
Accounts payable | (401) | 6,841 |
Accrued expenses and other liabilities | (41,714) | 52,239 |
Net cash provided by operating activities | 191,334 | 109,433 |
Investing activities | ||
Purchases of property and equipment | (4,820) | (5,841) |
Expenditures related to development of rental properties | (16,268) | |
Other investing activities | 152 | 750 |
Net cash used in investing activities | (20,936) | (5,091) |
Financing activities | ||
Borrowings under revolving credit facilities | 141,500 | |
Payments on revolving credit facilities | (141,500) | |
Borrowing under construction loan agreements | 7,137 | |
Proceeds from issuance of insurance premium notes and other | 3,032 | 16,863 |
Principal payments on insurance premium notes and other | (3,364) | (5,235) |
Net payments for mortgage repurchase facilities | (47,842) | (138,848) |
Withholding of common stock upon vesting of stock-based compensation awards | (9,880) | (12,138) |
Repurchases of common stock under stock repurchase program | (62,377) | |
Dividend payments | (7,365) | (6,657) |
Other financing activities | (34) | |
Net cash used in financing activities | (58,282) | (208,426) |
Net increase (decrease) | 112,116 | (104,084) |
Cash and cash equivalents and Restricted cash, Beginning of period | 308,492 | 322,241 |
Cash and cash equivalents and Restricted cash, End of period | 420,608 | 218,157 |
Supplemental cash flow disclosure | ||
Cash paid (refund) for income taxes | (893) | |
Cash and cash equivalents and Restricted cash | ||
Cash and cash equivalents | 405,722 | 209,046 |
Restricted cash (Note 5) | 14,886 | 9,111 |
Cash and cash equivalents and Restricted cash | $ 420,608 | $ 218,157 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance at Dec. 31, 2021 | $ 338 | $ 697,845 | $ 1,066,325 | $ 1,764,508 |
Beginning balance, shares at Dec. 31, 2021 | 33,761 | |||
Vesting of stock-based compensation awards | $ 5 | (5) | ||
Vesting of stock-based compensation awards, shares | 480 | |||
Withholding of common stock upon vesting of stock-based compensation awards | $ (3) | (12,135) | (12,138) | |
Withholding of common stock upon vesting of stock-based compensation awards, shares | (190) | |||
Repurchases of common stock | $ (10) | (62,367) | (62,377) | |
Repurchases of common stock, shares | (1,013) | |||
Stock-based compensation expense | 4,064 | 4,064 | ||
Cash dividends declared and dividend equivalents | 79 | (6,736) | (6,657) | |
Other | (34) | (34) | ||
Net income | 142,496 | 142,496 | ||
Ending balance at Mar. 31, 2022 | $ 330 | 627,447 | 1,202,085 | 1,829,862 |
Ending balance, shares at Mar. 31, 2022 | 33,038 | |||
Beginning balance at Dec. 31, 2022 | $ 318 | 584,803 | 1,565,094 | 2,150,215 |
Beginning balance, shares at Dec. 31, 2022 | 31,773 | |||
Vesting of stock-based compensation awards | $ 4 | (4) | ||
Vesting of stock-based compensation awards, shares | 412 | |||
Withholding of common stock upon vesting of stock-based compensation awards | $ (2) | (9,878) | (9,880) | |
Withholding of common stock upon vesting of stock-based compensation awards, shares | (159) | |||
Stock-based compensation expense | 5,360 | 5,360 | ||
Cash dividends declared and dividend equivalents | 208 | (7,573) | (7,365) | |
Net income | 33,311 | 33,311 | ||
Ending balance at Mar. 31, 2023 | $ 320 | $ 580,489 | $ 1,590,832 | $ 2,171,641 |
Ending balance, shares at Mar. 31, 2023 | 32,026 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 18 states. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand targets a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade opportunities. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade opportunities. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Century Complete. Our indirect wholly-owned subsidiaries, Inspire Home Loans Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title, and insurance services, respectively, primarily to our homebuyers, have been identified as our Financial Services segment. Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, primarily in Colorado. Century Living, LLC is included in our Corporate segment. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations for the periods presented. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2022, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 that was filed with the SEC on February 2, 2023. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. |
Reporting Segments
Reporting Segments | 3 Months Ended |
Mar. 31, 2023 | |
Reporting Segments [Abstract] | |
Reporting Segments | 2. Reporting Segments Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 18 states. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand is managed by geographic location, and each of our four geographic regions offers a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Each of our four geographic regions is considered a separate operating segment. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade selections. Our Century Complete brand currently has operations in 11 states and it is considered a separate operating segment. The management of our four Century Communities geographic regions and Century Complete reports to our chief operating decision makers (which we refer to as “CODMs”), the Co-Chief Executive Officers of our Company. The CODMs review the results of our operations, including total revenue and income before income tax expense to determine profitability and to allocate resources. Accordingly, we have presented our homebuilding operations as the following five reportable segments: West (California and Washington) Mountain (Arizona, Colorado, Nevada, and Utah) Texas Southeast (Florida, Georgia, North Carolina, South Carolina, and Tennessee) Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Kentucky, Louisiana, Michigan, North Carolina, Ohio, South Carolina) Commencing in the first quarter of 2023, our Century Complete operations in Texas were realigned and are now managed under our Texas segment. Accordingly, we have presented segment information under this new basis as of and for the three months ended March 31, 2023, and we have restated the corresponding segment information for those segments as of December 31, 2022 and for the three months ended March 31, 2022 . We have identified our Financial Services operations, which provide mortgage, title, and insurance services to our homebuyers, as a sixth reportable segment. Our Corporate operations are a non-operating segment, as our Corporate operations serve to support our homebuilding, and to a lesser extent our Financial Services operations, through functions, such as our executive, finance, treasury, human resources, accounting and legal departments. Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, primarily in Colorado. Century Living, LLC is included in our Corporate segment. The following table summarizes total revenue and income (loss) before income tax expense by segment (in thousands ): Three Months Ended March 31, 2023 2022 Revenue: West $ 129,081 $ 262,710 Mountain 246,275 281,360 Texas 89,532 138,563 Southeast 87,126 149,600 Century Complete 185,121 157,812 Financial Services 15,855 26,305 Corporate — — Total revenue $ 752,990 $ 1,016,350 Income (loss) before income tax expense: West $ 7,973 $ 71,242 Mountain 27,808 56,999 Texas 3,673 22,837 Southeast 11,966 30,865 Century Complete 13,950 22,425 Financial Services 5,074 11,151 Corporate ( 26,435 ) ( 26,743 ) Total income before income tax expense $ 44,009 $ 188,776 The following table summarizes total assets by segment (in thousands): March 31, December 31, 2023 2022 West $ 632,820 $ 665,827 Mountain 1,017,045 1,122,892 Texas 506,763 508,862 Southeast 420,158 415,887 Century Complete 339,254 376,131 Financial Services 321,703 372,284 Corporate 475,234 311,884 Total assets $ 3,712,977 $ 3,773,767 Corporate assets primarily include certain cash and cash equivalents, certain property and equipment, costs associated with development of multi-family rental properties, prepaid insurance, and deferred financing costs on our revolving line of credit. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories included the following (in thousands): March 31, December 31, 2023 2022 Homes under construction $ 1,115,524 $ 1,213,919 Land and land development 1,559,679 1,554,951 Capitalized interest 65,984 61,775 Total inventories $ 2,741,187 $ 2,830,645 |
Financial Services
Financial Services | 3 Months Ended |
Mar. 31, 2023 | |
Financial Services [Abstract] | |
Financial Services | 4. Financial Services Our Financial Services are principally comprised of our mortgage lending operations, Inspire Home Loans Inc. (which we refer to as “Inspire”). Inspire is a full-service mortgage lender and primarily originates mortgage loans for our homebuyers. Inspire sells substantially all of the loans it originates either as loans with servicing rights released, or with servicing rights retained, in the secondary mortgage market within a short period of time after origination, generally within 30 days. Inspire primarily finances these loans using its mortgage repurchase facilities. As of March 31, 2023 and December 31, 2022, Inspire had mortgage loans held for sale with an aggregate fair value of $ 155.7 million and $ 203.6 million, respectively, and an aggregate outstanding principal balance of $ 153.8 million and $ 202.0 million, respectively. Net gains on the sale of mortgage loans were $ 1.8 million and $ 10.4 million for the three months ended March 31, 2023 and 2022, respectively. The loss from the change in fair value for mortgage loans held for sale was nominal for the three months ended March 31, 2023 and was $ 9.7 million for the three months ended March 31, 2022. Mortgage loans held for sale and mortgage servicing rights are carried at fair value , with gains and losses from the changes in fair value reflected in financial services revenue on our condensed consolidated statements of operations. Management believes carrying mortgage loans held for sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them. Net gains and losses from the sale of mortgage loans held for sale, which are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale, are also included in financial services revenue on our condensed consolidated statements of operations. Mortgage loans in process for which interest rates were locked by borrowers, or interest rate lock commitments, totaled approximately $ 98.9 million and $ 68.1 million at March 31, 2023 and December 31, 2022, respectively, and carried a weighted average interest rate of approximately 5.6 % and 6.1 %, respectively . Interest rate risks related to these obligations are typically mitigated by the preselling of loans to investors or through our interest rate hedging program. Derivative instruments used to economically hedge our market and interest rate risk are carried at fair value. Derivative instruments typically include interest rate lock commitments and forward commitments on mortgage-backed securities. Changes in fair value of these derivatives as well as any gains or losses upon settlement are reflected in financial services revenue on our condensed consolidated statements of operations. Refer to Note 13 – Fair Value Disclosures for further information regarding our derivative instruments. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | 5. Prepaid Expenses and Other Assets Prepaid expenses and other assets included the following (in thousands): March 31, December 31, 2023 2022 Prepaid insurance $ 28,921 $ 31,716 Lot option and escrow deposits 42,364 48,354 Performance deposits 12,835 12,626 Restricted cash (1) 14,886 11,768 Multi-family rental properties under construction 73,475 56,615 Mortgage loans held for investment at fair value 20,078 18,875 Mortgage loans held for investment at amortized cost 6,420 6,574 Mortgage servicing rights 23,901 24,164 Derivative assets 3,082 1,958 Other assets and prepaid expenses 34,543 37,885 Total prepaid expenses and other assets $ 260,505 $ 250,535 (1) Restricted cash consists of restricted cash related to land development, earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain compensating balances associated with our mortgage repurchase facilities and other financing obligations. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | 6. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities included the following (in thousands): March 31, December 31, 2023 2022 Earnest money deposits $ 16,749 $ 17,903 Warranty reserve 12,331 13,136 Self-insurance reserve 19,076 16,998 Accrued compensation costs 33,107 80,415 Land development and home construction accruals 130,610 128,483 Accrued interest 13,753 10,670 Income taxes payable 677 — Derivative liabilities 1,692 1,526 Other accrued liabilities 30,417 30,457 Total accrued expenses and other liabilities $ 258,412 $ 299,588 |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2023 | |
Warranties [Abstract] | |
Warranties | 7. Warranties Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and adjust the amounts recorded, if necessary. Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $ 0.5 million and $ 0.6 million during the three months ended March 31, 2023 and 2022, respectively. These adjustments are included in cost of home sales revenues on our condensed consolidated statements of operations. Changes in our warranty accrual for the three months ended March 31, 2023 and 2022 are detailed in the table below (in thousands) : Three Months Ended March 31, 2023 2022 Beginning balance $ 13,136 $ 13,343 Warranty expense provisions 1,829 1,902 Payments ( 2,176 ) ( 1,185 ) Warranty adjustment ( 458 ) ( 557 ) Ending balance $ 12,331 $ 13,503 |
Self-Insurance Reserve
Self-Insurance Reserve | 3 Months Ended |
Mar. 31, 2023 | |
Self-Insurance Reserve [Abstract] | |
Self-Insurance Reserve | 8. Self-Insurance Reserve We maintain general liability insurance coverage, including coverage for certain construction defects. These insurance policies protect us against a portion of the risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. In circumstances where we have elected to retain a higher portion of the overall risk for construction defect claims in return for a lower initial premium, we reserve for the estimated costs that we will incur that are above our coverage limits or that are not covered by our insurance policies. The reserve is recorded on an undiscounted basis at the time revenue is recognized for each home closing. Amounts accrued, which are included in accrued expenses and other liabilities on the consolidated balance sheets, are based on third party actuarial analyses that are primarily based on industry data and partially on our historical claims, which include estimates of claims incurred but not yet reported. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. Our self-insurance liability is presented on a gross basis without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable. During the three months ended March 31, 2023 and 2022, we recorded no change to our self-insurance reserve. Any adjustments are included in cost of home sales revenues on our condensed consolidated statements of operations. Changes in our self-insurance reserve for incurred but not reported construction defect claims for the three months ended March 31, 2023 and 2022 are detailed in the table below (in thousands) : Three Months Ended March 31, 2023 2022 Beginning balance $ 16,998 $ 5,103 Self-insurance expense provisions 2,115 2,372 Payments ( 37 ) — Self-insurance adjustment — — Ending balance $ 19,076 $ 7,475 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt [Abstract] | |
Debt | 9. Debt Our outstanding debt obligations included the following as of March 31, 2023 and December 31, 2022 (in thousands): March 31, December 31, 2023 2022 3.875 % senior notes, due August 2029 (1) $ 495,077 $ 494,884 6.750 % senior notes, due May 2027 (1) 496,598 496,394 Other financing obligations (2) 34,940 28,134 Notes payable 1,026,615 1,019,412 Revolving line of credit — — Mortgage repurchase facilities 149,784 197,626 Total debt $ 1,176,399 $ 1,217,038 (1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest expense over the respective terms of the senior notes. (2) As of March 31, 2023, other financing obligations included $ 20.4 million related to insurance premium notes and certain secured borrowings, as well as $ 14.5 million outstanding under the construction loan agreements. As of December 31, 2022, other financing obligations included $ 20.7 million related to insurance premium notes and certain secured borrowings, as well as $ 7.4 million outstanding under the construction loan agreements. Construction Loan Agreements On March 17, 2023, a wholly owned subsidiary of Century Living, LLC entered into a construction loan agreement with UMB Bank, N.A., and certain wholly owned subsidiaries of Century Living, LLC, are party to construction loan agreements entered into during 2022 with PNC Bank, National Association and U.S. Bank National Association, a national banking association, d/b/a Housing Capital Company (which along with UMB Bank, N.A., we collectively refer to as “the lenders”), respectively. The three construction loan agreements collectively provide that we may borrow up to $ 187.6 million from the lenders for purposes of construction of multi-family projects in Colorado, with advances made by the lenders upon the satisfaction of certain conditions. Borrowings under the construction loan agreements bear interest at various rates, including a fixed rate, and floating interest rates per annum equal to the Secured Overnight Financing Rate (which we refer to as “SOFR”) and the Bloomberg Short-term Bank Yield Index, plus an applicable margin. The outstanding principal balances and all accrued and unpaid interest is due on varying maturity dates through March 17, 2028 , with certain of the construction loan agreements allowing for the option to extend the maturity dates for a period of 12 months if certain conditions are satisfied. The construction loan agreements contain customary affirmative and negative covenants (including covenants related to construction completion, and limitations on the use of loan proceeds, transfers of land, equipment, and improvements), as well as customary events of default. As of March 31, 2023, $ 14.5 million was outstanding under the construction loan agreements, with borrowings bearing a weighted average interest rate of 6.778 % during the three months ended March 31, 2023, and we were in compliance with all covenants thereunder. Revolving Line of Credit In 2021, we entered into a Second Amended and Restated Credit Agreement (which we refer to as the “Second A&R Credit Agreement”) with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, and the lenders party thereto. The Second A&R Credit Agreement, which amended and restated our prior Amended and Restated Credit Agreement , provides us with a senior unsecured revolving line of credit (which we refer to as the “revolving line of credit”) of up to $ 800.0 million, and unless terminated earlier, will mature on April 30, 2026 . The revolving line of credit includes a $ 250.0 million sublimit for standby letters of credit. Under the terms of the Second A&R Credit Agreement, the Company is entitled to request an increase in the size of the revolving line of credit by an amount not exceeding $ 200.0 million. Our obligations under the Second A&R Credit Agreement are guaranteed by certain of our subsidiaries. The Second A&R Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. On December 21, 2022, we entered into a First Modification Agreement with Texas Capital Bank (formerly known as Texas Capital Bank, National Association), as Administrative Agent, amending the Second A&R Credit Agreement pursuant to which, effective January 3, 2023, all existing borrowings using an interest rate based on a LIBOR reference rate had the interest rate replaced with one based on an adjusted term SOFR reference rate, which equals the greater of (i) 0.50% or (ii) the one-month quotation of the secured overnight financing rate administered by the Federal Reserve Bank of New York, plus 0.10%. As of March 31, 2023 and December 31, 2022, no amounts were outstanding under the revolving line of credit, respectively, and we were in compliance with all covenants under the Second A&R Credit Agreement. Mortgage Repurchase Facilities – Financial Services Inspire is a party to mortgage warehouse facilities with Comerica Bank and J.P. Morgan, and formerly Wells Fargo, (since the agreement with Wells Fargo was terminated during the three months ended March 31, 2023) (which facilities we refer to as the “repurchase facilities”), which provide Inspire with uncommitted repurchase facilities of up to an aggregate of $ 200.0 million as of March 31, 2023, secured by the mortgage loans financed thereunder. The repurchase facilities have varying short term maturity dates through December 21, 2023 and bear a weighted average interest rate of 6.38 % during the three months ended March 31, 2023. Amounts outstanding under the repurchase facilities are not guaranteed by us or any of our subsidiaries, and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type. As of March 31, 2023 and December 31, 2022, we had $ 149.8 million and $ 197.6 million outstanding under the repurchase facilities, respectively, and were in compliance with all covenants thereunder. |
Interest on Senior Notes and Re
Interest on Senior Notes and Revolving Line of Credit | 3 Months Ended |
Mar. 31, 2023 | |
Interest on Senior Notes and Revolving Line of Credit [Abstract] | |
Interest on Senior Notes and Revolving Line of Credit | 10. Interest on Senior Notes and Revolving Line of Credit Interest on our senior notes and Revolving Line of Credit is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the three months ended March 31, 2023 and 2022, we capitalized all interest costs incurred on these facilities during these periods. Our interest costs were as follows (in thousands): Three Months Ended March 31, 2023 2022 Interest capitalized beginning of period 61,775 53,379 Interest capitalized during period 14,016 14,019 Less: capitalized interest in cost of sales ( 9,807 ) ( 12,146 ) Interest capitalized end of period 65,984 55,252 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 11 . Income Taxes At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and to use that rate to provide for income taxes for the current year-to-date reporting period. Our 2023 estimated annual effective tax rate, before discrete items, of 25.0 % is driven by our blended federal and state statutory rate of 24.6 %, and certain permanent differences between GAAP and tax, including disallowed deductions for executive compensation and estimated federal energy home credits for the current year home deliveries, which combined resulted in a net increase of 0.4 %. For the three months ended March 31, 2023, our estimated annual rate of 25.0 % was benefitted by discrete items which had a net impact of decreasing our rate by 0.7 %, including excess tax benefits for vested stock-based compensation. Our estimated annual rate for the three months ended March 31, 2023 of 25.0 % increased by 260 basis points as compared to our effective tax rate for the year ended December 31, 2022 of 22.4 %. The increase in our estimated rate is a result of the enactment of the Inflation Reduction Act of 2022 during the third quarter of 2022, which modified the energy efficient home credit beginning with homes closed on or after January 1, 2023 and provided for more stringent energy standards than previous periods. For the three months ended March 31, 2023 and 2022, we recorded income tax expense of $ 10.7 million and $ 46.3 million, respectively . |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 12. Fair Value Disclosures Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage loans held for investment, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis. We also utilize fair value measurements on a non-recurring basis for inventories and intangible assets when events and circumstances indicate that the carrying value is not recoverable. The fair value hierarchy and its application to the Company’s assets and liabilities is as follows: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date. Mortgage loans held for sale – Fair value is based on quoted market prices for committed and uncommitted mortgage loans. Derivative assets and liabilities – Derivative assets are associated with interest rate lock commitments and investor commitments on loans and derivative liabilities are associated with forward commitments. Fair value is based on market prices for similar instruments. Level 3 – Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at the measurement date. Mortgage servicing rights - The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service. Mortgage loans held for investment at fair value – The fair value of mortgage loans held for investment at fair value is calculated based on Level 3 analysis which incorporates information including the value of underlying collateral, from markets where there is little observable trading activity. The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022, respectively (in thousands): March 31, December 31, Balance Sheet Classification Hierarchy 2023 2022 Mortgage loans held for sale Mortgage loans held for sale Level 2 $ 155,732 $ 203,558 Mortgage loans held for investment at fair value (1) Prepaid expenses and other assets Level 3 $ 20,078 $ 18,875 Derivative assets Prepaid expenses and other assets Level 2 $ 3,082 $ 1,958 Mortgage servicing rights (2) Prepaid expenses and other assets Level 3 $ 23,901 $ 24,164 Derivative liabilities Accrued expenses and other liabilities Level 2 $ 1,692 $ 1,526 (1) The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include, among other items, the value of underlying collateral, from markets where there is little observable trading activity. (2) The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were 8.1 %, 9.0 %, and $ 0.073 per year per loan, respectively, as of March 31, 2023, and 7.6 %, 9.0 %, and $ 0.072 per year per loan, respectively, as of December 31, 2022. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement. The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements, with gains and losses from the changes in fair value reflected in financial services revenue on our condensed consolidated statements of operations (in thousands): Three Months Ended March 31, Mortgage servicing rights 2023 2022 Beginning of period $ 24,164 $ 13,701 Originations 1,045 3,406 Settlements ( 151 ) ( 305 ) Changes in fair value ( 1,157 ) 1,248 End of period $ 23,901 $ 18,050 Three Months Ended March 31, Mortgage loans held-for-investment at fair value 2023 2022 Beginning of period $ 18,875 $ 10,631 Transfers from loans held for sale 1,434 3,926 Settlements — ( 529 ) Reduction in unpaid principal balance ( 104 ) ( 54 ) Changes in fair value ( 127 ) ( 19 ) End of period $ 20,078 $ 13,955 For the financial assets and liabilities that the Company does not reflect at fair value, the following present both their respective carrying value and fair value at March 31, 2023 and December 31, 2022, respectively (in thousands). March 31, 2023 December 31, 2022 Hierarchy Carrying Fair Value Carrying Fair Value Cash and cash equivalents Level 1 $ 405,722 $ 405,722 $ 296,724 $ 296,724 3.875 % senior notes (1)(2) Level 2 $ 495,077 $ 425,000 $ 494,884 $ 395,000 6.750 % senior notes (1)(2) Level 2 $ 496,598 $ 492,500 $ 496,394 $ 477,500 Revolving line of credit (3) Level 2 $ — $ — $ — $ — Other financing obligations (3)(4) Level 3 $ 34,940 $ 34,940 $ 28,134 $ 28,134 Mortgage repurchase facilities (3) Level 2 $ 149,784 $ 149,784 $ 197,626 $ 197,626 (1) Estimated fair value of the senior notes is based on recent trading activity in inactive markets. (2) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of March 31, 2023, these amounts totaled $ 4.9 million and $ 3.4 million for the 3.875 % senior notes and 6.750 % senior notes, respectively. As of December 31, 2022, these amounts totaled $ 5.1 million and $ 3.6 million for the 3.875 % senior notes and 6.750 % senior notes, respectively. (3) Carrying amount approximates fair value due to short-term nature and interest rate terms. (4) Other financing obligations included $ 20.4 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 2.40 % to 6.40 %, and $ 14.5 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 6.778 % during the period ended March 31, 2023. Other financing obligations included $ 20.7 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 2.40 % to 5.84 %, and $ 7.4 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 5.634 % during the period ended December 31, 2022. Non-financial assets and liabilities include items such as inventory and property and equipment that are measured at fair value when acquired and as a result of impairments, if deemed necessary. No impairment charges were recorded in the three months ended March 31, 2023 and 2022. When impairment charges are recognized, the estimated fair value of communities are determined through a discounted cash flow approach utilizing Level 3 inputs. Changes in our cash flow projections in future periods related to these communities may change our conclusions on the recoverability of inventory in the future. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation During the three months ended March 31, 2023 and 2022, we granted restricted stock units (which we refer to as “RSUs”) covering 0.2 million and 0.2 million shares of common stock, respectively, with a grant date fair value of $ 62.61 and $ 64.37 per share, respectively, that primarily vest over a three year period. During the three months ended March 31, 2023, we did no t grant performance share units (which we refer to as “PSUs”). During the three months ended March 31, 2022, we granted PSUs covering up to 0.5 million shares of common stock, assuming maximum level of performance, with a grant date fair value of $ 55.93 per share that are subject to both service and performance vesting conditions. The quantity of shares that will ultimately vest for the PSUs ranges from 0 % to up to 250 % of a targeted number of shares for each participant and will be determined based on an achievement of a three year adjusted pre-tax income performance goal. During the three months ended March 31, 2023 and 2022, we issued 0.3 million and 0.3 million shares of common stock, respectively, upon the vesting and settlement of PSUs that were granted in previous periods. Approximately 0.6 million shares will vest from 2024 to 2025 if the defined maximum performance targets are met, and no shares will vest if the defined minimum performance targets are not met. A summary of our outstanding PSUs, assuming the current estimated level of performance achievement, and RSUs are as follows (in thousands, except years): As of March 31, 2023 Unvested units 770 Unrecognized compensation cost $ 24,436 Weighted-average years to recognize compensation cost 1.90 During the three months ended March 31, 2023 and 2022, we recognized stock-based compensation expense of $ 5.4 million and $ 4.1 million, respectively. Stock-based compensation expense is included in selling, general, and administrative expense on our condensed consolidated statements of operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 14. Stockholders’ Equity The Company’s authorized capital stock consists of 100.0 million shares of common stock, par value $ 0.01 per share, and 50.0 million shares of preferred stock, par value $ 0.01 per share. As of March 31, 2023 and December 31, 2022, there were 32.0 million and 31.8 million shares of common stock issued and outstanding, respectively, and no shares of preferred stock outstanding. On May 4, 2022, the stockholders approved the adoption of the Century Communities, Inc. 2022 Omnibus Incentive Plan (which we refer to as the “2022 Incentive Plan”), which replaced the Century Communities, Inc. Amended and Restated 2017 Omnibus Incentive Plan (which we refer to as our “2017 Incentive Plan”). Under the 2022 Incentive Plan, 3.1 million shares of common stock are available for issuance to eligible participants, plus 51.2 thousand shares of our common stock that remained available for issuance under the 2017 Incentive Plan and any shares subject to awards outstanding under the 2017 Incentive Plan that are subsequently forfeited, cancelled, expire or otherwise terminate without the issuance of such shares. During the three months ended March 31, 2023 and 2022, we issued 0.4 million and 0.5 million shares of common stock, respectively, related to the vesting and settlement of RSUs and PSUs. As of March 31, 2023, approximately 2.9 million shares of common stock remained available for issuance under the 2022 Incentive Plan. The following table sets forth cash dividends declared by our Board of Directors to holders of record of our common stock during the three months ended March 31, 2023 and 2022, respectively (in thousands, except per share information): Three Months ended March 31, 2023 Cash Dividends Declared and Paid Declaration Date Record Date Paid Date Per Share Amount February 8, 2023 March 1, 2023 March 15, 2023 $ $ 0.23 $ 7,365 Three Months ended March 31, 2022 Cash Dividends Declared and Paid Declaration Date Record Date Paid Date Per Share Amount February 16, 2022 March 2, 2022 March 16, 2022 $ 0.20 $ 6,657 Under the 2022 Incentive Plan and the previous 2017 Incentive Plan, at the discretion of the Compensation Committee of the Board of Directors, RSUs and PSUs granted under the plan have the right to earn dividend equivalents, which entitles the holders of such RSUs and PSUs to additional RSUs and PSUs equal to the same dividend value per share as holders of common stock. Dividend equivalents are subject to the same vesting and other terms and conditions as the underlying RSUs and PSUs. We are party to a Distribution Agreement with J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, and Fifth Third Securities, Inc. (which we refer to as the “Distribution Agreement”), as sales agents pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 100.0 million from time to time through any of the sales agents party thereto in “at-the-market” offerings, in accordance with the terms and conditions set forth in the Distribution Agreement. The Distribution Agreement will remain in full force and effect until terminated by either party pursuant to the terms of the agreement or such date that the maximum offering amount has been sold in accordance with the terms of the agreement. We did no t sell or issue any shares of our common stock during the three months ended March 31, 2023 and 2022, and as of March 31, 2023, all $ 100.0 million remained available for sale. We authorized a stock repurchase program in 2018, under which we may repurchase up to 4.5 million shares of our outstanding common stock. During the three months ended March 31, 2023, we did not repurchase any shares of common stock. During the three months ended March 31, 2022, an aggregate of 1.0 million shares of our common stock were repurchased for a total purchase price of approximately $ 62.4 million at a weighted average price of $ 61.52 per share. The maximum number of shares available to be repurchased under the stock repurchase program as of March 31, 2023 was 1,508,169 shares. During the three months ended March 31, 2023 and 2022, shares of common stock at a total cost of $ 9.9 million and $ 12.1 million, respectively, were netted and surrendered as payment for minimum statutory withholding obligations in connection with the vesting of outstanding stock-based compensation awards. Shares surrendered by the participants in accordance with the applicable award agreements and plan are deemed repurchased and retired by us but are not part of our publicly announced share repurchase programs. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share We use the treasury stock method to calculate earnings per share as our currently issued non-vested RSUs and PSUs do not have participating rights. The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2023 and 2022 (in thousands, except share and per share information): Three Months Ended March 31, 2023 2022 Numerator Net income $ 33,311 $ 142,496 Denominator Weighted average common shares outstanding - basic 31,914,414 33,530,610 Dilutive effect of stock-based compensation awards 202,668 411,624 Weighted average common shares outstanding - diluted 32,117,082 33,942,234 Earnings per share: Basic $ 1.04 $ 4.25 Diluted $ 1.04 $ 4.20 Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive. We excluded 0.5 million and 0.6 million common stock unit equivalents from diluted earnings per share during each of the three months ended March 31, 2023 and 2022, respectively, related to the PSUs for which performance conditions remained unsatisfied . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Letters of Credit and Performance Bonds In the normal course of business, we post letters of credit and performance and other bonds primarily related to our land development performance obligations with local municipalities. As of March 31, 2023 and December 31, 2022, we had $ 570.8 million and $ 574.8 million, respectively, in letters of credit and performance and other bonds issued and outstanding. Legal Proceedings We are subject to claims and lawsuits that arise primarily in the ordinary course of business, which consist primarily of construction claims. It is the opinion of our management that if the claims have merit, parties other than the Company would be, at least in part, liable for the claims, and the eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows. When we believe that a loss is probable and estimable, we record a charge on our condensed consolidated statements of operations for our estimated loss. Under various insurance policies, we have the ability to recoup costs in excess of applicable self-insured retentions. Estimates of such amounts are recorded in other assets on our condensed consolidated balance sheet when recovery is probable. We do not believe that the ultimate resolution of any claims and lawsuits will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Accounting | Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 18 states. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land. We build and sell homes under our Century Communities and Century Complete brands. Our Century Communities brand targets a wide range of buyer profiles including: entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade opportunities. Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade opportunities. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Century Complete. Our indirect wholly-owned subsidiaries, Inspire Home Loans Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title, and insurance services, respectively, primarily to our homebuyers, have been identified as our Financial Services segment. Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, primarily in Colorado. Century Living, LLC is included in our Corporate segment. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations for the periods presented. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2022, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 that was filed with the SEC on February 2, 2023. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. |
Reporting Segments (Tables)
Reporting Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Reporting Segments [Abstract] | |
Schedule of Total Revenue and Pretax Income (loss) by Segment | Three Months Ended March 31, 2023 2022 Revenue: West $ 129,081 $ 262,710 Mountain 246,275 281,360 Texas 89,532 138,563 Southeast 87,126 149,600 Century Complete 185,121 157,812 Financial Services 15,855 26,305 Corporate — — Total revenue $ 752,990 $ 1,016,350 Income (loss) before income tax expense: West $ 7,973 $ 71,242 Mountain 27,808 56,999 Texas 3,673 22,837 Southeast 11,966 30,865 Century Complete 13,950 22,425 Financial Services 5,074 11,151 Corporate ( 26,435 ) ( 26,743 ) Total income before income tax expense $ 44,009 $ 188,776 |
Schedule of Total Assets by Segment | March 31, December 31, 2023 2022 West $ 632,820 $ 665,827 Mountain 1,017,045 1,122,892 Texas 506,763 508,862 Southeast 420,158 415,887 Century Complete 339,254 376,131 Financial Services 321,703 372,284 Corporate 475,234 311,884 Total assets $ 3,712,977 $ 3,773,767 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Schedule of Inventory | March 31, December 31, 2023 2022 Homes under construction $ 1,115,524 $ 1,213,919 Land and land development 1,559,679 1,554,951 Capitalized interest 65,984 61,775 Total inventories $ 2,741,187 $ 2,830,645 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | March 31, December 31, 2023 2022 Earnest money deposits $ 16,749 $ 17,903 Warranty reserve 12,331 13,136 Self-insurance reserve 19,076 16,998 Accrued compensation costs 33,107 80,415 Land development and home construction accruals 130,610 128,483 Accrued interest 13,753 10,670 Income taxes payable 677 — Derivative liabilities 1,692 1,526 Other accrued liabilities 30,417 30,457 Total accrued expenses and other liabilities $ 258,412 $ 299,588 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Warranties [Abstract] | |
Schedule of Changes in Warranty Accrual | Three Months Ended March 31, 2023 2022 Beginning balance $ 13,136 $ 13,343 Warranty expense provisions 1,829 1,902 Payments ( 2,176 ) ( 1,185 ) Warranty adjustment ( 458 ) ( 557 ) Ending balance $ 12,331 $ 13,503 |
Self-Insurance Reserve (Tables)
Self-Insurance Reserve (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Self-Insurance Reserve [Abstract] | |
Changes In Self Insurance Reserve | Three Months Ended March 31, 2023 2022 Beginning balance $ 16,998 $ 5,103 Self-insurance expense provisions 2,115 2,372 Payments ( 37 ) — Self-insurance adjustment — — Ending balance $ 19,076 $ 7,475 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt [Abstract] | |
Schedule of Outstanding Debt Obligations | March 31, December 31, 2023 2022 3.875 % senior notes, due August 2029 (1) $ 495,077 $ 494,884 6.750 % senior notes, due May 2027 (1) 496,598 496,394 Other financing obligations (2) 34,940 28,134 Notes payable 1,026,615 1,019,412 Revolving line of credit — — Mortgage repurchase facilities 149,784 197,626 Total debt $ 1,176,399 $ 1,217,038 (1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest expense over the respective terms of the senior notes. (2) As of March 31, 2023, other financing obligations included $ 20.4 million related to insurance premium notes and certain secured borrowings, as well as $ 14.5 million outstanding under the construction loan agreements. As of December 31, 2022, other financing obligations included $ 20.7 million related to insurance premium notes and certain secured borrowings, as well as $ 7.4 million outstanding under the construction loan agreements. |
Interest on Senior Notes and _2
Interest on Senior Notes and Revolving Line of Credit (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Interest on Senior Notes and Revolving Line of Credit [Abstract] | |
Schedule of Capitalized Interest Costs | Three Months Ended March 31, 2023 2022 Interest capitalized beginning of period 61,775 53,379 Interest capitalized during period 14,016 14,019 Less: capitalized interest in cost of sales ( 9,807 ) ( 12,146 ) Interest capitalized end of period 65,984 55,252 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | March 31, December 31, Balance Sheet Classification Hierarchy 2023 2022 Mortgage loans held for sale Mortgage loans held for sale Level 2 $ 155,732 $ 203,558 Mortgage loans held for investment at fair value (1) Prepaid expenses and other assets Level 3 $ 20,078 $ 18,875 Derivative assets Prepaid expenses and other assets Level 2 $ 3,082 $ 1,958 Mortgage servicing rights (2) Prepaid expenses and other assets Level 3 $ 23,901 $ 24,164 Derivative liabilities Accrued expenses and other liabilities Level 2 $ 1,692 $ 1,526 (1) The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include, among other items, the value of underlying collateral, from markets where there is little observable trading activity. (2) The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were 8.1 %, 9.0 %, and $ 0.073 per year per loan, respectively, as of March 31, 2023, and 7.6 %, 9.0 %, and $ 0.072 per year per loan, respectively, as of December 31, 2022. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement. |
Schedule of Reconciliation of Level 3 Recurring at Fair Value | Three Months Ended March 31, Mortgage servicing rights 2023 2022 Beginning of period $ 24,164 $ 13,701 Originations 1,045 3,406 Settlements ( 151 ) ( 305 ) Changes in fair value ( 1,157 ) 1,248 End of period $ 23,901 $ 18,050 Three Months Ended March 31, Mortgage loans held-for-investment at fair value 2023 2022 Beginning of period $ 18,875 $ 10,631 Transfers from loans held for sale 1,434 3,926 Settlements — ( 529 ) Reduction in unpaid principal balance ( 104 ) ( 54 ) Changes in fair value ( 127 ) ( 19 ) End of period $ 20,078 $ 13,955 |
Schedule of Carrying Values and Fair Values of Financial Instruments | March 31, 2023 December 31, 2022 Hierarchy Carrying Fair Value Carrying Fair Value Cash and cash equivalents Level 1 $ 405,722 $ 405,722 $ 296,724 $ 296,724 3.875 % senior notes (1)(2) Level 2 $ 495,077 $ 425,000 $ 494,884 $ 395,000 6.750 % senior notes (1)(2) Level 2 $ 496,598 $ 492,500 $ 496,394 $ 477,500 Revolving line of credit (3) Level 2 $ — $ — $ — $ — Other financing obligations (3)(4) Level 3 $ 34,940 $ 34,940 $ 28,134 $ 28,134 Mortgage repurchase facilities (3) Level 2 $ 149,784 $ 149,784 $ 197,626 $ 197,626 (1) Estimated fair value of the senior notes is based on recent trading activity in inactive markets. (2) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of March 31, 2023, these amounts totaled $ 4.9 million and $ 3.4 million for the 3.875 % senior notes and 6.750 % senior notes, respectively. As of December 31, 2022, these amounts totaled $ 5.1 million and $ 3.6 million for the 3.875 % senior notes and 6.750 % senior notes, respectively. (3) Carrying amount approximates fair value due to short-term nature and interest rate terms. (4) Other financing obligations included $ 20.4 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 2.40 % to 6.40 %, and $ 14.5 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 6.778 % during the period ended March 31, 2023. Other financing obligations included $ 20.7 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 2.40 % to 5.84 %, and $ 7.4 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 5.634 % during the period ended December 31, 2022. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Summary of Outstanding RSUs and PSUs | As of March 31, 2023 Unvested units 770 Unrecognized compensation cost $ 24,436 Weighted-average years to recognize compensation cost 1.90 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Schedule of Dividends Declared | Three Months ended March 31, 2023 Cash Dividends Declared and Paid Declaration Date Record Date Paid Date Per Share Amount February 8, 2023 March 1, 2023 March 15, 2023 $ $ 0.23 $ 7,365 Three Months ended March 31, 2022 Cash Dividends Declared and Paid Declaration Date Record Date Paid Date Per Share Amount February 16, 2022 March 2, 2022 March 16, 2022 $ 0.20 $ 6,657 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended March 31, 2023 2022 Numerator Net income $ 33,311 $ 142,496 Denominator Weighted average common shares outstanding - basic 31,914,414 33,530,610 Dilutive effect of stock-based compensation awards 202,668 411,624 Weighted average common shares outstanding - diluted 32,117,082 33,942,234 Earnings per share: Basic $ 1.04 $ 4.25 Diluted $ 1.04 $ 4.20 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 segment state | |
Basis of Presentation [Abstract] | |
Number of operating states | state | 18 |
Number of reportable segments | segment | 5 |
Reporting Segments (Narrative)
Reporting Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 region segment state | |
Segment Reporting Information [Line Items] | |
Number of operating states | 18 |
Number of reportable segments | segment | 5 |
Century Complete [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating states | 11 |
Number of operating regions | region | 4 |
Reporting Segments (Schedule of
Reporting Segments (Schedule of Total Revenue and Pretax Income (loss) by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 752,990 | $ 1,016,350 |
Total income before income tax expense | 44,009 | 188,776 |
West [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 129,081 | 262,710 |
Total income before income tax expense | 7,973 | 71,242 |
Mountain [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 246,275 | 281,360 |
Total income before income tax expense | 27,808 | 56,999 |
Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 89,532 | 138,563 |
Total income before income tax expense | 3,673 | 22,837 |
Southeast [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 87,126 | 149,600 |
Total income before income tax expense | 11,966 | 30,865 |
Century Complete [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 185,121 | 157,812 |
Total income before income tax expense | 13,950 | 22,425 |
Financial Services [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 15,855 | 26,305 |
Total income before income tax expense | 5,074 | 11,151 |
Corporate [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total income before income tax expense | $ (26,435) | $ (26,743) |
Reporting Segments (Schedule _2
Reporting Segments (Schedule of Total Assets by Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,712,977 | $ 3,773,767 |
West [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 632,820 | 665,827 |
Mountain [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,017,045 | 1,122,892 |
Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 506,763 | 508,862 |
Southeast [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 420,158 | 415,887 |
Century Complete [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 339,254 | 376,131 |
Financial Services [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 321,703 | 372,284 |
Corporate [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 475,234 | $ 311,884 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||||
Homes under construction | $ 1,115,524 | $ 1,213,919 | ||
Land and land development | 1,559,679 | 1,554,951 | ||
Capitalized interest | 65,984 | 61,775 | $ 55,252 | $ 53,379 |
Total inventories | $ 2,741,187 | $ 2,830,645 |
Financial Services (Narrative)
Financial Services (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financial Services [Line Items] | |||
Mortgage loans in process | $ 98,900 | $ 68,100 | |
Mortgage loans held for sale | 155,732 | 203,558 | |
Mortgage loans held for sale aggregate outstanding principal balance | 153,800 | $ 202,000 | |
Net gains (losses) on the sale of mortgage loans | $ 1,800 | $ 10,400 | |
Increase (Decrease) in Loans Held-for-sale | $ 9,700 | ||
Weighted Average [Member] | |||
Financial Services [Line Items] | |||
Interest rate | 5.60% | 6.10% |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Schedule of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Assets [Abstract] | ||
Prepaid insurance | $ 28,921 | $ 31,716 |
Lot option and escrow deposits | 42,364 | 48,354 |
Performance deposits | 12,835 | 12,626 |
Restricted cash | 14,886 | 11,768 |
Multi-family rental properties under construction | 73,475 | 56,615 |
Mortgage loans held for investment at fair value | 20,078 | 18,875 |
Mortgage loans held for investment at amortized cost | 6,420 | 6,574 |
Mortgage servicing rights | 23,901 | 24,164 |
Derivative assets | 3,082 | 1,958 |
Other assets and prepaid expenses | 34,543 | 37,885 |
Total prepaid expenses and other assets | $ 260,505 | $ 250,535 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Schedule of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses and Other Liabilities [Abstract] | ||||
Earnest money deposits | $ 16,749 | $ 17,903 | ||
Warranty reserve | 12,331 | 13,136 | $ 13,503 | $ 13,343 |
Self-insurance reserve | 19,076 | 16,998 | $ 7,475 | $ 5,103 |
Accrued compensation costs | 33,107 | 80,415 | ||
Land development and home construction accruals | 130,610 | 128,483 | ||
Accrued interest | 13,753 | 10,670 | ||
Income taxes payable | 677 | |||
Derivative liabilities | $ 1,692 | $ 1,526 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Total accrued expenses and other liabilities | Total accrued expenses and other liabilities | ||
Other accrued liabilities | $ 30,417 | $ 30,457 | ||
Total accrued expenses and other liabilities | $ 258,412 | $ 299,588 |
Warranties (Narrative) (Details
Warranties (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Warranties [Abstract] | ||
Warranty reserve adjustment | $ (458) | $ (557) |
Warranties (Schedule of Changes
Warranties (Schedule of Changes in Warranty Accrual) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Warranties [Abstract] | ||
Beginning balance | $ 13,136 | $ 13,343 |
Warranty expense provisions | 1,829 | 1,902 |
Payments | (2,176) | (1,185) |
Warranty adjustment | (458) | (557) |
Ending balance | $ 12,331 | $ 13,503 |
Self-Insurance Reserve (Narrati
Self-Insurance Reserve (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Self-Insurance Reserve [Abstract] | ||
Self-insurance adjustment |
Self-Insurance Reserve (Changes
Self-Insurance Reserve (Changes In Self Insurance Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Self-Insurance Reserve [Abstract] | ||
Beginning balance | $ 16,998 | $ 5,103 |
Self-insurance expense provisions | 2,115 | 2,372 |
Payments | (37) | |
Self-insurance adjustment | ||
Ending balance | $ 19,076 | $ 7,475 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 17, 2023 item | May 21, 2021 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Notes payable | $ 1,026,615 | $ 1,019,412 | ||
Line of credit facility, outstanding amount | ||||
Mortgage repurchase facilities | 149,784 | 197,626 | ||
Mortgage Repurchase Facilities - Financial Services [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgage repurchase facilities | 149,800 | 197,600 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, outstanding amount | $ 0 | 0 | ||
Inspire [Member] | Mortgage Repurchase Facilities - Financial Services [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 6.38% | |||
Maximum [Member] | Inspire [Member] | Mortgage Repurchase Facilities - Financial Services [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Dec. 21, 2023 | |||
Line of credit facility. maximum borrowing capacity | $ 200,000 | |||
Second Amended And Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Apr. 30, 2026 | |||
Line of credit facility. maximum borrowing capacity | $ 800,000 | |||
Letter of credit sublimit | 250,000 | |||
Second Amended And Restated Credit Agreement [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, increased amount | $ 200,000 | |||
Construction Loan Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of construction loan agreements | item | 3 | |||
Principal amount | $ 187,600 | |||
Weighted average interest rate | 6.778% | |||
Maturity date | Mar. 17, 2028 | |||
Notes payable | $ 14,500 | |||
Debt instrument, option to extend maturity, term | 12 months | |||
Senior Note 3.875% Due August 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.875% | |||
Notes payable | $ 495,077 | $ 494,884 |
Debt (Schedule of Outstanding D
Debt (Schedule of Outstanding Debt Obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Notes payable | $ 1,026,615 | $ 1,019,412 |
Revolving line of credit | ||
Mortgage repurchase facilities | 149,784 | 197,626 |
Total debt | 1,176,399 | 1,217,038 |
Senior Note 3.875% Due August 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 495,077 | 494,884 |
Interest rate | 3.875% | |
Maturity date | 2029-08 | |
Senior Notes 6.750% Due May 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 496,598 | 496,394 |
Interest rate | 6.75% | |
Maturity date | 2027-05 | |
Construction Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 14,500 | 7,400 |
Other Financing Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 34,940 | 28,134 |
Other Financing Obligations [Member] | Insurance Premium Notes And Certain Secured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 20,400 | $ 20,700 |
Interest on Senior Notes and _3
Interest on Senior Notes and Revolving Line of Credit (Schedule of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest on Senior Notes and Revolving Line of Credit [Abstract] | ||
Interest capitalized beginning of period | $ 61,775 | $ 53,379 |
Interest capitalized during period | 14,016 | 14,019 |
Less: capitalized interest in cost of sales | (9,807) | (12,146) |
Interest capitalized end of period | $ 65,984 | $ 55,252 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Examination [Line Items] | ||||
Effective tax rate | 25% | 22.40% | ||
Decrease to effective tax rate | 0.70% | |||
Difference Between Estimated Annual Tax Rate And Prior Year Effective Tax Rate | 2.60% | |||
Income tax expense | $ 10,698 | $ 46,280 | ||
Forecast [Member] | ||||
Income Tax Examination [Line Items] | ||||
Effective tax rate | 25% | |||
Blended federal and state statutory rate | 24.60% | |||
Decrease to effective tax rate | 0.40% |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Impairment charge | $ 0 | $ 0 |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule of Assets and Liabilities Measured at Fair Value) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) $ / item | Dec. 31, 2022 USD ($) $ / item | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for sale | $ 155,732 | $ 203,558 |
Mortgage loans held for investment at fair value | 20,078 | 18,875 |
Derivative assets | $ 3,082 | $ 1,958 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets |
Derivative liabilities | $ 1,692 | $ 1,526 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Mortgage servicing rights, cost to service per year per loan | $ / item | 0.073 | 0.072 |
Prepayment Rate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights rates | 8.1 | 7.6 |
Discount Rate [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights rates | 9 | 9 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for sale | $ 155,732 | $ 203,558 |
Derivative assets | 3,082 | 1,958 |
Derivative liabilities | 1,692 | 1,526 |
Level 3 [Member] | Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans held for investment at fair value | 20,078 | 18,875 |
Mortgage servicing rights | $ 23,901 | $ 24,164 |
Fair Value Disclosures (Sched_2
Fair Value Disclosures (Schedule of Reconciliation of Level 3 Recurring at Fair Value) (Details) - Level 3 [Member] - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of period | $ 24,164 | |
End of period | 23,901 | |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of period | 24,164 | $ 13,701 |
Originations | 1,045 | 3,406 |
Settlements | (151) | (305) |
Changes in fair value | (1,157) | 1,248 |
End of period | 23,901 | 18,050 |
Mortgage Loans Held-For-Investment [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning of period | 18,875 | 10,631 |
Transfers from loans held for sale | 1,434 | 3,926 |
Settlements | (529) | |
Reduction in unpaid principal balance | (104) | (54) |
Changes in fair value | (127) | (19) |
End of period | $ 20,078 | $ 13,955 |
Fair Value Disclosures (Sched_3
Fair Value Disclosures (Schedule of Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 405,722 | $ 296,724 | $ 209,046 |
Revolving line of credit | |||
Mortgage repurchase facilities | 149,784 | 197,626 | |
Notes payable | 1,026,615 | 1,019,412 | |
Other Financing Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | 34,940 | 28,134 | |
Senior Notes 3.875% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amounts include unamortized deferred financing costs, premiums and discounts | $ 4,900 | $ 5,100 | |
Interest rate | 3.875% | 3.875% | |
Senior Notes 6.750% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amounts include unamortized deferred financing costs, premiums and discounts | $ 3,400 | $ 3,600 | |
Interest rate | 6.75% | 6.75% | |
Construction Loan Agreement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 14,500 | $ 7,400 | |
Debt, Weighted Average Interest Rate | 6.778% | 5.634% | |
Insurance Premium Notes And Certain Secured Borrowings [Member] | Other Financing Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 20,400 | $ 20,700 | |
Level 1 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 405,722 | 296,724 | |
Level 1 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 405,722 | 296,724 | |
Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving line of credit | |||
Mortgage repurchase facilities | 149,784 | 197,626 | |
Level 2 [Member] | Carrying Value [Member] | Senior Notes 3.875% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | 495,077 | 494,884 | |
Level 2 [Member] | Carrying Value [Member] | Senior Notes 6.750% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | 496,598 | 496,394 | |
Level 2 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving line of credit | |||
Mortgage repurchase facilities | 149,784 | 197,626 | |
Level 2 [Member] | Fair Value [Member] | Senior Notes 3.875% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | 425,000 | 395,000 | |
Level 2 [Member] | Fair Value [Member] | Senior Notes 6.750% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | 492,500 | 477,500 | |
Level 3 [Member] | Carrying Value [Member] | Other Financing Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | 34,940 | 28,134 | |
Level 3 [Member] | Fair Value [Member] | Other Financing Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes payable | $ 34,940 | $ 28,134 | |
Minimum [Member] | Insurance Premium Notes And Certain Secured Borrowings [Member] | Other Financing Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate | 2.40% | 2.40% | |
Maximum [Member] | Insurance Premium Notes And Certain Secured Borrowings [Member] | Other Financing Obligations [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate | 6.40% | 5.84% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 5.4 | $ 4.1 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 200,000 | 200,000 |
Grant date fair value | $ 62.61 | $ 64.37 |
Awards vesting period | 3 years | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares vested | 300,000 | 300,000 |
Shares granted | 0 | 500,000 |
Grant date fair value | $ 55.93 | |
Awards vesting period | 3 years | |
Shares will vest if defined maximum performance targets are met | 600,000 | |
Shares will vest if defined maximum performance targets are not met | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 300,000 | 300,000 |
Performance Share Units [Member] | Tranche One [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance target range | 0% | |
Performance Share Units [Member] | Tranche Two [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance target range | 250% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Outstanding RSUs and PSUs) (Details) - RSUs And PSUs [Member] shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested units | shares | 770 |
Unrecognized compensation cost | $ | $ 24,436 |
Weighted-average years to recognize compensation cost | 1 year 10 months 24 days |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | May 04, 2022 | Nov. 06, 2018 | |
Class of Stock [Line Items] | |||||
Common stock shares authorized | 100,000,000 | 100,000,000 | |||
Common stock, par value | $ 0.01 | $ 0.01 | |||
Preferred stock shares authorized | 50,000,000 | 50,000,000 | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||
Common stock shares issued | 32,025,785 | 31,772,791 | |||
Common stock shares outstanding | 32,025,785 | 31,772,791 | |||
Preferred stock shares outstanding | 0 | 0 | |||
Shares authorized to be repurchased | 4,500,000 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 61.52 | ||||
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 9.9 | $ 12.1 | |||
Common stock repurchased | 1,000,000 | ||||
Common stock repurchased, amount | $ 62.4 | ||||
Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Shares available to be purchased | 1,508,169 | ||||
Omnibus 2022 Incentive Plan [Member] | |||||
Class of Stock [Line Items] | |||||
Vesting of stock-based compensation awards, shares | 400,000 | 500,000 | |||
Common stock shares for stock award issuance | 2,900,000 | 3,100,000 | |||
2017 Incentive Plan [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock shares for stock award issuance | 51,200 | ||||
Distribution Agreement [Member] | |||||
Class of Stock [Line Items] | |||||
Aggregate offering price | $ 100 | ||||
Available for sale, common stock | $ 100 | ||||
Common stock shares sold and issued | 0 | 0 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Dividends Declared) (Details) - Quarterly Dividend Q1 [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Dividends Payable [Line Items] | ||
Declaration Date | Feb. 08, 2023 | Feb. 16, 2022 |
Record Date | Mar. 01, 2023 | Mar. 02, 2022 |
Payable Date | Mar. 15, 2023 | Mar. 16, 2022 |
Cash Dividends Declared, Per Share | $ 0.23 | $ 0.20 |
Cash Dividends Declared, Amount | $ 7,365 | $ 6,657 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares related to PSU's granted | 0.5 | 0.6 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net income | $ 33,311 | $ 142,496 |
Denominator | ||
Weighted average common shares outstanding - basic | 31,914,414 | 33,530,610 |
Dilutive effect of restricted stock units | 202,668 | 411,624 |
Weighted average common shares outstanding - diluted | 32,117,082 | 33,942,234 |
Earnings per share: | ||
Basic | $ 1.04 | $ 4.25 |
Diluted | $ 1.04 | $ 4.20 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies [Abstract] | ||
Outstanding letters of credit and performance bonds | $ 570.8 | $ 574.8 |