Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VEL | |
Entity Registrant Name | Velocity Financial, Inc. | |
Entity Central Index Key | 0001692376 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 32,415,860 | |
Entity File Number | 001-39183 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0659719 | |
Entity Address, Address Line One | 30699 Russell Ranch Road | |
Entity Address, Address Line Two | Suite 295 | |
Entity Address, City or Town | Westlake Village | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91362 | |
City Area Code | 818 | |
Local Phone Number | 532-3700 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 46,250 | $ 35,965 |
Restricted cash | 9,217 | 11,639 |
Loans held for sale, net | 0 | 87,908 |
Loans held for investment, net | 3,118,799 | 2,527,564 |
Loans held for investment, at fair value | 1,351 | 1,359 |
Total loans, net | 3,120,150 | 2,616,831 |
Accrued interest receivables | 15,820 | 13,159 |
Receivables due from servicers | 75,688 | 74,330 |
Other receivables | 1,320 | 1,812 |
Real estate owned, net | 19,218 | 17,557 |
Property and equipment, net | 3,632 | 3,830 |
Deferred tax asset | 15,195 | 16,604 |
Mortgage servicing rights, at fair value | 8,438 | 7,152 |
Goodwill | 6,775 | 6,775 |
Other assets | 11,036 | 6,824 |
Total assets | 3,332,739 | 2,812,478 |
LIABILITIES | ||
Accounts payable and accrued expenses | 78,384 | 92,195 |
Secured financing, net | 209,227 | 162,845 |
Securitizations, net | 2,477,226 | 1,911,879 |
Warehouse and repurchase facilities, net | 208,390 | 301,069 |
Total liabilities | 2,973,227 | 2,467,988 |
Commitments and contingencies | ||
EQUITY | ||
Common stock ($0.01 par value, 100,000,000 shares authorized at June 30, 2022 and December 31, 2021; 32,415,860 and 32,293,042 shares issued and outstanding, respectively) | 325 | 323 |
Treasury stock, at cost (33,647 common shares at June 30, 2022 and none at December 31, 2021) | (458) | |
Additional paid-in capital | 297,840 | 296,364 |
Retained earnings | 58,188 | 44,422 |
Total Velocity Financial Inc. stockholders' equity | 355,895 | 341,109 |
Noncontrolling interest in subsidiary | 3,617 | 3,381 |
Total equity | 359,512 | 344,490 |
Total liabilities and equity | $ 3,332,739 | $ 2,812,478 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Class Of Stock [Line Items] | ||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,415,860 | 32,293,042 |
Common stock, shares, outstanding | 32,415,860 | 32,293,042 |
Treasury stock, common shares | 33,647 | 33,647 |
ASSETS | ||
Restricted cash | $ 9,217 | $ 11,639 |
Loans held for investment, net | 3,118,799 | 2,527,564 |
Real estate owned, net | 19,218 | 17,557 |
Other assets | 11,036 | 6,824 |
Total assets | 3,332,739 | 2,812,478 |
LIABILITIES | ||
Accounts payable and accrued expenses | 78,384 | 92,195 |
Total liabilities | 2,973,227 | 2,467,988 |
Variable Interest Entity Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 2,976 | 4,713 |
Loans held for investment, net | 2,730,516 | 2,202,010 |
Accrued interest and other receivables | 86,896 | 83,493 |
Real estate owned, net | 16,135 | 9,861 |
Other assets | 92 | 9 |
Total assets | 2,836,615 | 2,300,086 |
LIABILITIES | ||
Accounts payable and accrued expenses | 46,883 | 45,705 |
Securities issued | 2,477,226 | 1,911,879 |
Total liabilities | $ 2,524,109 | $ 1,957,584 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Interest income | $ 59,243 | $ 44,978 | $ 111,292 | $ 85,685 |
Interest expense — portfolio related | 28,752 | 20,566 | 52,308 | 41,399 |
Net interest income — portfolio related | 30,491 | 24,412 | 58,984 | 44,286 |
Interest expense — corporate debt | 4,182 | 4,309 | 21,322 | 11,658 |
Net interest income | 26,309 | 20,103 | 37,662 | 32,628 |
Provision for (reversal of) loan losses | 279 | (1,000) | 1,009 | (895) |
Net interest income after provision for (reversal of) loan losses | 26,030 | 21,103 | 36,653 | 33,523 |
Other operating income | ||||
Gain on disposition of loans | 1,776 | 2,391 | 6,317 | 5,230 |
Unrealized gain on fair value loans | 6 | 20 | 16 | 18 |
Other income (expense) | 1,257 | 21 | 2,354 | (15) |
Total other operating income | 3,039 | 2,432 | 8,687 | 5,233 |
Operating expenses | ||||
Compensation and employee benefits | 6,553 | 4,546 | 11,876 | 9,732 |
Rent and occupancy | 426 | 430 | 868 | 893 |
Loan servicing | 3,290 | 1,922 | 5,741 | 3,788 |
Professional fees | 1,062 | 795 | 2,423 | 1,329 |
Real estate owned, net | (251) | 1,039 | (426) | 1,548 |
Other operating expenses | 3,199 | 1,918 | 6,047 | 3,977 |
Total operating expenses | 14,279 | 10,650 | 26,529 | 21,267 |
Income before income taxes | 14,790 | 12,885 | 18,811 | 17,489 |
Income tax expense | 4,019 | 3,432 | 4,809 | 4,640 |
Net income | 10,771 | 9,453 | 14,002 | 12,849 |
Net income attributable to noncontrolling interest | 126 | 236 | ||
Net income attributable to Velocity Financial, Inc. | 10,645 | 9,453 | 13,766 | 12,849 |
Less: undistributed earnings attributable to participating securities | 164 | 3,571 | 212 | 4,854 |
Net earnings attributable to common stockholders | $ 10,481 | $ 5,882 | $ 13,554 | $ 7,995 |
Earnings per common share | ||||
Basic | $ 0.33 | $ 0.29 | $ 0.42 | $ 0.40 |
Diluted | $ 0.31 | $ 0.28 | $ 0.40 | $ 0.38 |
Weighted average common shares outstanding | ||||
Basic | 31,917 | 20,087 | 31,904 | 20,087 |
Diluted | 34,057 | 33,960 | 34,130 | 33,684 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Parent | Noncontrolling Interest |
Beginning balance at Dec. 31, 2020 | $ 219,589 | $ 201 | $ 204,190 | $ 15,198 | $ 219,589 | ||
Beginning balance, shares at Dec. 31, 2020 | 20,087,494 | ||||||
Restricted stock awarded and earned stock compensation | 231 | $ 5 | 226 | 231 | |||
Restricted stock awarded and earned stock compensation, shares | 480,000 | ||||||
Stock-based compensation | 254 | 254 | 254 | ||||
Net income | 3,396 | 3,396 | 3,396 | ||||
Ending balance at Mar. 31, 2021 | 223,470 | $ 206 | 204,670 | 18,594 | 223,470 | ||
Ending balance, shares at Mar. 31, 2021 | 20,567,494 | ||||||
Beginning balance at Dec. 31, 2020 | 219,589 | $ 201 | 204,190 | 15,198 | 219,589 | ||
Beginning balance, shares at Dec. 31, 2020 | 20,087,494 | ||||||
Net income | 12,849 | ||||||
Ending balance at Jun. 30, 2021 | 233,468 | $ 206 | 205,215 | 28,047 | 233,468 | ||
Ending balance, shares at Jun. 30, 2021 | 20,594,005 | ||||||
Beginning balance at Mar. 31, 2021 | 223,470 | $ 206 | 204,670 | 18,594 | 223,470 | ||
Beginning balance, shares at Mar. 31, 2021 | 20,567,494 | ||||||
Restricted stock awarded and earned stock compensation | 291 | 291 | 291 | ||||
Restricted stock awarded and earned stock compensation, shares | 26,511 | ||||||
Stock-based compensation | 254 | 254 | 254 | ||||
Net income | 9,453 | 9,453 | 9,453 | ||||
Ending balance at Jun. 30, 2021 | 233,468 | $ 206 | 205,215 | 28,047 | 233,468 | ||
Ending balance, shares at Jun. 30, 2021 | 20,594,005 | ||||||
Beginning balance at Dec. 31, 2021 | 344,490 | $ 323 | 296,364 | 44,422 | 341,109 | $ 3,381 | |
Beginning balance, shares at Dec. 31, 2021 | 32,293,042 | ||||||
Purchase of treasury stock, at cost | (458) | $ (458) | (458) | ||||
Purchase of treasury stock, at cost, shares | (33,647) | ||||||
Restricted stock awarded and earned stock compensation | 418 | $ 2 | 416 | 418 | |||
Restricted stock awarded and earned stock compensation, shares | 125,250 | ||||||
Stock-based compensation | 251 | 251 | 251 | ||||
Net income | 3,231 | 3,121 | 3,121 | 110 | |||
Ending balance at Mar. 31, 2022 | 347,932 | $ 325 | 297,031 | 47,543 | $ (458) | 344,441 | 3,491 |
Ending balance, shares at Mar. 31, 2022 | 32,418,292 | (33,647) | |||||
Beginning balance at Dec. 31, 2021 | 344,490 | $ 323 | 296,364 | 44,422 | 341,109 | 3,381 | |
Beginning balance, shares at Dec. 31, 2021 | 32,293,042 | ||||||
Net income | 14,002 | ||||||
Ending balance at Jun. 30, 2022 | 359,512 | $ 325 | 297,840 | 58,188 | $ (458) | 355,895 | 3,617 |
Ending balance, shares at Jun. 30, 2022 | 32,449,507 | (33,647) | |||||
Beginning balance at Mar. 31, 2022 | 347,932 | $ 325 | 297,031 | 47,543 | $ (458) | 344,441 | 3,491 |
Beginning balance, shares at Mar. 31, 2022 | 32,418,292 | (33,647) | |||||
Restricted stock awarded and earned stock compensation | 555 | 555 | 555 | ||||
Restricted stock awarded and earned stock compensation, shares | 31,215 | ||||||
Stock-based compensation | 254 | 254 | 254 | ||||
Net income | 10,771 | 10,645 | 10,645 | 126 | |||
Ending balance at Jun. 30, 2022 | $ 359,512 | $ 325 | $ 297,840 | $ 58,188 | $ (458) | $ 355,895 | $ 3,617 |
Ending balance, shares at Jun. 30, 2022 | 32,449,507 | (33,647) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 14,002 | $ 12,849 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 401 | 603 |
Amortization of right-of-use assets | 664 | 565 |
Provision for (reversal of) loan losses | 1,009 | (895) |
Provision for repurchase of loans | 235 | |
Purchase of held for sale loans | (755) | |
Repayments on loans held for sale | 11 | |
Net accretion of discount on purchased loans and deferred loan origination costs | 3,981 | 3,092 |
(Reversal of) provision for uncollectible borrower advances | (14) | 47 |
Gain on disposition of loans | (4,809) | (4,598) |
Real estate acquired through foreclosure in excess of recorded investment | (1,508) | (632) |
Amortization of debt issuance discount and costs | 16,956 | 10,156 |
Loss on disposal of property and equipment | 14 | 18 |
Change in valuation of real estate owned | (93) | 1,235 |
Change in valuation of fair value loans | (16) | (18) |
Change in valuation of mortgage servicing rights | (1,286) | |
Change in valuation of held for sale loans | (2) | |
Gain on sale of real estate owned | (1,620) | (162) |
Stock-based compensation | 1,479 | 1,030 |
Deferred tax expense (benefit) | 1,408 | (6,542) |
(Increase) decrease in operating assets and liabilities: | ||
Accrued interest and other receivables | (1,680) | (476) |
Other assets | (4,882) | (1,081) |
Accounts payable and accrued expenses | (11,141) | 6,451 |
Net cash provided by operating activities | 13,100 | 20,896 |
Cash flows from investing activities: | ||
Purchase of loans held for investment | (5,021) | (3,490) |
Origination of loans held for investment | (1,033,277) | (496,497) |
Proceeds from sales of loans originally classified as held for investment | 224,060 | 82,856 |
Payoffs of loans held for investment and loans at fair value | 302,098 | 274,042 |
Proceeds from sale of real estate owned | 9,294 | 4,076 |
Purchase of real estate owned | (2,250) | |
Capitalized real estate owned improvements | (29) | |
Change in advances | 1,338 | (667) |
Change in impounds and deposits | (3,904) | 167 |
Purchase of property and equipment | (217) | (102) |
Net cash used in investing activities | (507,879) | (139,644) |
Cash flows from financing activities: | ||
Warehouse repurchase facilities advances | 951,071 | 414,030 |
Warehouse repurchase facilities repayments | (1,043,666) | (337,332) |
Proceeds from secured financing | 215,000 | 175,000 |
Repayment of secured financing | (170,844) | (79,969) |
Proceeds of securitizations, net | 879,136 | 251,274 |
Repayment of securitizations | (308,298) | (273,810) |
Purchase of treasury stock | (458) | |
Debt issuance costs | (19,299) | (15,076) |
Net cash provided by financing activities | 502,642 | 134,117 |
Net increase in cash, cash equivalents, and restricted cash | 7,863 | 15,369 |
Cash, cash equivalents, and restricted cash at beginning of period | 47,604 | 20,293 |
Cash, cash equivalents, and restricted cash at end of period | 55,467 | 35,662 |
Supplemental cash flow information: | ||
Cash paid during the period for interest | 49,779 | 42,898 |
Cash paid during the period for income taxes | 21,579 | 4,682 |
Noncash transactions from investing and financing activities: | ||
Transfer of loans held for investment to held for sale | 206,319 | 80,498 |
Transfer of loans held for investment to real estate owned | 5,485 | 8,767 |
Transfer of accrued interest to loans held for investment | 816 | 618 |
Discount on issuance of securitizations | 17,136 | 27 |
Transfer of loans held for sale to held for investment | $ 73,598 | $ 4,615 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization And Description of Business | Note 1 — Organization and Description of Business Velocity Financial, LLC (VF or the Company) was a Delaware limited liability company formed on July 9, 2012 for the purpose of acquiring all membership units in Velocity Commercial Capital, LLC (VCC). On January 16, 2020, Velocity Financial, LLC converted from a Delaware limited liability company to a Delaware corporation and changed its name to Velocity Financial, Inc. Upon completion of the conversion, Velocity Financial, LLC’s Class A equity units of 97,513,533 and Class D equity units of 60,193,989 were converted to 11,749,994 shares of Velocity Financial, Inc. common stock. On January 22, 2020, the Company completed its initial public offering of 7,250,000 shares of common stock at a price to the public of $ 13.00 per share. On January 28, 2020, the Company completed the sale of an additional 1,087,500 shares of its common stock, representing the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $ 13.00 per share. The Company’s stock trades on The New York Stock Exchange under the symbol “VEL”. VCC, a California LLC formed on June 2, 2004, is a mortgage lender that originates and acquires commercial investor real estate loans, providing capital to the investor real estate loan market. The Company is licensed as a California Finance Lender and, as such, is required to maintain a minimum net worth of $ 250 thousand. The Company does not believe there is any potential risk of not being able to meet this regulatory requirement. The Company uses its equity capital and borrowed funds to originate and invest in investor real estate loans and seeks to generate income based primarily on the difference between the yield on its investor real estate loan portfolio and the cost of its borrowings. The Company may also sell loans from time to time. The Company does not originate or acquire investments outside of the United States of America. The Company, through its wholly owned subsidiaries, is the sole beneficial owner of the Velocity Commercial Capital Loan Trusts, from the 2015-1 Trust through and including the 2022-3 Trust, all of which are New York common law trusts, with the exceptions of the VCC 2020-MC1 Trust and the VCC 2022-MC1 Trust which are Delaware statutory trusts. The Trusts are bankruptcy remote, variable interest entities (VIE) formed for the purpose of providing secured borrowings to the Company and are consolidated with the accounts of the Company. On December 28, 2021, the Company acquired an 80 % ownership interest in Century Health & Housing Capital, LLC (“Century”), paying a cash purchase price of $ 12.8 million. Century is a licensed “Ginnie Mae” issuer/servicer that provides government-insured Federal Housing Administration (FHA) mortgage financing for multifamily housing, senior housing and long-term care/assisted living facilities. Century originates loans through its borrower-direct origination channel and services the loans through its in-house servicing platform, which enables the formation of long-term relationships with its clients and drives strong portfolio retention. Century is a consolidated subsidiary of the Company as of completion of the acquisition. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 — Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited Consolidated Financial Statements as of and for the six months ended June 30, 2022 and 2021 have been prepared on a basis that is substantially consistent with the accounting principles applied to the Company’s audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal, recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter for the full year. The interim financial information should be read in conjunction with the Company’s audited Consolidated Financial Statements. (a) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of consolidated income and expenses during the reporting period. (b) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies , of its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission. There have been no significant changes to the Company’s significant accounting policies as described in its 2021 Annual Report. (c) Principles of Consolidation The principles of consolidation require management to determine and reassess the requirement to consolidate VIEs each reporting period, and therefore, the determination may change based on new facts and circumstances pertaining to each VIE. This could result in a material impact to the Company’s consolidated financial statements in subsequent reporting periods. The Company consolidates the assets, liabilities, and remainder interests of the Trusts as management determined that VCC is the primary beneficiary of these entities. The Company’s ongoing asset management responsibilities provide the Company with the power to direct the activities that most significantly impact the VIE’s economic performance, and the remainder interests provide the Company with the right to receive benefits and the obligation to absorb losses, limited to its investment in the remainder interest of the Trusts. The consolidated financial statements as of June 30, 2022 and December 31, 2021 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. |
Current Accounting Developments
Current Accounting Developments | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
Current Accounting Developments | Note 3 — Current Accounting Developments (a) Recently Issued Accounting Standards ASU 2022-2, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments in this ASU eliminate the recognition and measurement guidance for troubled debt restructuring by Creditors, and require enhanced disclosures for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. ASU 2022-4 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables. This ASU is effective January 1, 2023 for the Company. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements. (b) Treasury Shares The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jun. 30, 2022 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 4 — Cash, Cash Equivalents, and Restricted Cash The Company is required to hold cash for potential future advances due to certain borrowers. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 (in thousands): Six Months Ended June 30, 2022 2021 Cash and cash equivalents $ 46,250 $ 27,741 Restricted cash 9,217 7,921 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 55,467 $ 35,662 |
Loans Held for Sale, Net
Loans Held for Sale, Net | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans Held for Sale, Net | Note 5 — Loans Held for Sale, Net The following table summarizes loans held for sale as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Unpaid principal balance $ — $ 87,422 Valuation adjustments — — Deferred loan origination costs — 486 Ending balance $ — $ 87,908 |
Loans Held for Investment and L
Loans Held for Investment and Loans Held for Investment at Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment and Loans Held for Investment at Fair Value | Note 6 — Loans Held for Investment and Loans Held for Investment at Fair Value The following tables summarize loans held for investment as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 3,088,950 $ 1,308 $ 3,090,258 Valuation adjustments on FVO loans — 43 43 Deferred loan origination costs 34,754 — 34,754 3,123,704 1,351 3,125,055 Allowance for loan losses ( 4,905 ) — ( 4,905 ) Total loans held for investment and loans held for investment at $ 3,118,799 $ 1,351 $ 3,120,150 December 31, 2021 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 2,498,466 $ 1,332 $ 2,499,798 Valuation adjustments on FVO loans — 27 27 Deferred loan origination costs 33,360 — 33,360 2,531,826 1,359 2,533,185 Allowance for loan losses ( 4,262 ) — ( 4,262 ) Total loans held for investment and loans held for investment at $ 2,527,564 $ 1,359 $ 2,528,923 The following tables summarize the Unpaid Principal Balance (“UPB”) and amortized cost basis of loans in the Company's COVID-19 forbearance program for the three and six months ended June 30, 2022 and the year ended December 31, 2021 ($ in thousands): Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 UPB % Amortized Cost % UPB % Amortized Cost % Beginning balance $ 260,709 $ 263,860 $ 292,429 $ 295,990 Foreclosures ( 1,427 ) ( 1,438 ) ( 1,427 ) ( 1,438 ) Repayments ( 22,968 ) ( 23,349 ) ( 54,688 ) ( 55,479 ) Ending balance $ 236,314 $ 239,073 $ 236,314 $ 239,073 Performing/Accruing $ 187,872 79.5 % $ 190,101 79.5 % $ 187,872 79.5 % $ 190,101 79.5 % Nonperforming/Nonaccrual $ 48,442 20.5 % $ 48,972 20.5 % $ 48,442 20.5 % $ 48,972 20.5 % December 31, 2021 UPB % Amortized Cost % Beginning balance $ 392,073 $ 396,918 Additions 2,616 2,615 Foreclosures ( 402 ) ( 408 ) Repayments ( 101,858 ) ( 103,135 ) Ending balance $ 292,429 $ 295,990 Performing/Accruing $ 233,307 79.8 % $ 236,076 79.8 % Nonperforming/Nonaccrual $ 59,122 20.2 % $ 59,914 20.2 % Since April 1, 2020, the inception of the COVID-19 forbearance program, the Company has modified $ 409.0 million in UPB of loans, which includes capitalized interest of $ 10.9 million. As of June 30, 2022, $ 188.8 million in UPB of modified loans has been paid down, which includes $ 3.8 million of capitalized interest received and the Company has not forgiven any capitalized interest. Approximately 79.5 % and 79.8 % of the COVID forbearance loans in UPB were performing, and 20.5 % and 20.2 % were on nonaccrual status as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022 and December 31, 2021, the gross unpaid principal balance of loans held for investment pledged as collateral for the Company’s warehouse facilities, and securitizations issued were as follows (in thousands): June 30, 2022 December 31, 2021 The 2013 repurchase agreement $ 105,783 $ 202,511 The 2021 repurchase agreement 101,570 114,072 The Bank credit agreement 33,962 30,959 The 2021 term repurchase agreement 29,828 53,217 The July 2021 term repurchase agreement 875 — Total pledged loans $ 272,018 $ 400,759 2015-1 Trust $ — $ 31,931 2016-1 Trust 44,917 52,623 2017-2 Trust 75,129 94,809 2018-1 Trust 58,384 71,051 2018-2 Trust 122,113 154,974 2019-1 Trust 116,326 144,727 2019-2 Trust 107,197 132,358 2019-3 Trust 87,283 103,266 2020-1 Trust 162,582 189,547 2020-2 Trust 86,339 98,403 2020-MC1 Trust — 134,957 2021-1 Trust 224,063 249,396 2021-2 Trust 186,540 198,039 2021-3 Trust 195,199 202,138 2021-4 Trust 293,146 314,547 2022-1 Trust 269,025 — 2022-2 Trust 250,812 — 2022-MC1 Trust 108,055 — 2022-3 Trust 310,432 — Total $ 2,697,542 $ 2,172,766 (a) Nonaccrual Loans The following tables present the amortized cost basis, or recorded investment, of the Company’s loans held for investment that were nonperforming and on nonaccrual status as of June 30, 2022 and December 31, 2021. There were no loans accruing interest that were greater than 90 days past due as of June 30, 2022 and December 31, 2021. June 30, 2022 Total Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans with Allowance ($ in thousands) Commercial - Purchase $ 14,911 $ 14,647 $ 264 $ 6 0.1 % Commercial - Refinance 80,442 76,077 4,365 434 3.7 Residential 1-4 Unit - Purchase 22,885 22,542 343 52 0.4 Residential 1-4 Unit - Refinance 96,649 94,594 2,055 196 1.7 Short Term 1-4 Unit - Purchase 2,302 2,302 — — — Short Term 1-4 Unit - Refinance 38,013 33,268 4,745 476 4.0 Total $ 255,202 $ 243,430 $ 11,772 $ 1,164 9.9 % Troubled Debt Restructuring included $ 160 $ — $ — $ 25 — December 31, 2021 Total Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans with Allowance ($ in thousands) Commercial - Purchase $ 17,260 $ 16,501 $ 759 $ 9 0.1 % Commercial - Refinance 85,935 79,131 6,804 826 6.2 Residential 1-4 Unit - Purchase 17,385 17,128 257 96 0.7 Residential 1-4 Unit - Refinance 107,552 105,515 2,037 138 1.0 Short Term 1-4 Unit - Purchase 2,986 2,881 105 31 0.2 Short Term 1-4 Unit - Refinance 45,300 41,870 3,430 306 2.3 Total $ 276,418 $ 263,026 $ 13,392 $ 1,406 10.5 % Troubled Debt Restructuring included $ 165 $ — $ — $ 25 — The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables. The Company has also made the accounting policy election to write off accrued interest receivables by reversing interest income when loans are placed on nonaccrual status, or 90 days or more past due. The Company will continue to evaluate the COVID-19 forbearance-granted loans on an individual basis to determine if a reserve should be established on the collectability of the accrued interest and whether any loans should be placed on nonaccrual status at a future date. The following tables present the amortized cost basis in the loans held for investment, excluding loans held for investment at fair value, as of June 30, 2022 and 2021, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, 2022 2021 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 677,491 $ 77 $ 366,737 $ 53 Commercial - Refinance 912,774 335 690,964 225 Residential 1-4 Unit - Purchase 529,796 61 276,896 63 Residential 1-4 Unit - Refinance 887,720 269 608,543 281 Short Term 1-4 Unit - Purchase 57,973 4 40,205 639 Short Term 1-4 Unit - Refinance 57,950 132 104,371 117 Total $ 3,123,704 $ 878 $ 2,087,716 $ 1,378 Six Months Ended June 30, 2022 2021 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 677,491 $ 192 $ 366,737 $ 192 Commercial - Refinance 912,774 587 690,964 693 Residential 1-4 Unit - Purchase 529,796 281 276,896 121 Residential 1-4 Unit - Refinance 887,720 566 608,543 801 Short Term 1-4 Unit - Purchase 57,973 25 40,205 685 Short Term 1-4 Unit - Refinance 57,950 371 104,371 358 Total $ 3,123,704 $ 2,022 $ 2,087,716 $ 2,850 The cash basis interest income recognized on nonaccrual loans was $ 8.7 million and $ 9.9 million for the three months ended June 30, 2022 and 2021, respectively, and $ 16.0 million and $ 16.7 million for the six months ended June 30, 2022 and 2021, respectively. No accrued interest income was recognized on nonaccrual loans for the three and six months ended June 30, 2022. The average recorded investment of individually evaluated loans, computed using month-end balances, was $ 260.8 million and $ 337.9 million for the three months ended June 30, 2022 and 2021 , and $ 271.3 million and $ 337.5 million for the six months ended June 30, 2022 and 2021, respectively. There were no commitments to lend additional funds to debtors whose loans have been modified in troubled debt restructuring as of June 30, 2022 and 2021 . (b) Allowance for Credit Losses The allowance for credit losses is maintained at a level deemed adequate by management to provide for expected losses in the portfolio at the balance sheet date. The allowance for credit losses is measured using two components. A component that measures expected credit losses on a collective (pool) basis when similar risk characteristics exist and a component that measures expected credit losses on an individual loan basis. To estimate the allowance for credit losses in the loans held for investment portfolio, management follows a detailed internal process, considering a number of different factors including, but not limited to, the ongoing analyses of loans, historical loss rates, relevant environmental factors, relevant market research, trends in delinquencies, effects and changes in credit concentrations, and ongoing evaluation of fair values. The Company uses an open pool loss rate methodology to model expected credit losses on a collective basis. To determine the loss rates for the open pool method, the Company starts with its historical database of losses, segmenting the loans by loan purpose, product type and repayment period. A third-party model applying the open pool method is used to estimate an annual average loss rates by dividing the respective pool's quarterly historical losses by the pool's respective prior quarter’s ending unamortized loan cost balance and deriving an annual average loss rate from the historical quarterly loss rates. The model then adjusts the annual average loss rates based upon macroeconomic forecasts over a reasonable and supportable period, followed by a straight-line reversion to the historical loss rates. The adjusted annual average loss rates are applied to the forecasted pool balance within each segment. The forecasted balances in the loan pool segments are calculated based on a principal amortization using contractual maturity, factoring in further principal reductions from estimated prepayments. For the June 30, 2022 estimate, the Company considered a severe stress scenario with a six-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. Management concluded that applying the severe stress scenario was appropriate given the uncertainty around future COVID cases, the war between Russia and Ukraine, spike in inflation, continued disruption in the supply chain, and concerns of a recession. Once a loan becomes nonperforming (90 or more days past due), it no longer shares the same risk characteristics of the other loans within its segment of homogeneous loans (pool). Nonperforming loans are considered collateral dependent by the Company. These loans are evaluated individually using the practical expedient to determine the credit exposure. The following tables present the activity in the allowance for credit losses for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2022 $ 518 $ 2,140 $ 389 $ 1,029 $ 50 $ 537 $ 4,663 Provision for loan losses 94 ( 125 ) 51 241 ( 16 ) 34 279 Charge-offs — ( 19 ) — — — ( 18 ) ( 37 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated 606 1,562 388 1,074 34 77 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated 662,580 832,332 506,911 791,071 55,671 19,937 2,868,502 Three Months Ended June 30, 2021 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2021 $ 328 $ 1,990 $ 322 $ 1,227 $ 386 $ 1,628 $ 5,881 Provision for loan losses 48 28 ( 41 ) ( 229 ) ( 313 ) ( 493 ) ( 1,000 ) Charge-offs ( 114 ) ( 95 ) — ( 151 ) — ( 558 ) ( 918 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 Six Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2022 $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Provision for loan losses 374 ( 123 ) 40 427 ( 9 ) 300 1,009 Charge-offs ( 147 ) ( 25 ) — ( 105 ) — ( 89 ) ( 366 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated 606 1,562 388 1,074 34 77 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated 662,580 832,332 506,911 791,071 55,671 19,937 2,868,502 Six Months Ended June 30, 2021 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2021 $ 373 $ 2,093 $ 333 $ 1,216 $ 595 $ 1,235 $ 5,845 Provision for loan losses 3 ( 76 ) ( 15 ) ( 218 ) ( 508 ) ( 81 ) ( 895 ) Charge-offs ( 114 ) ( 94 ) ( 37 ) ( 151 ) ( 14 ) ( 577 ) ( 987 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 (c) Credit Quality Indicator A credit quality indicator is a statistic used by the Company to monitor and assess the credit quality of loans held for investment, excluding loans held for investment at fair value. The Company monitors its charge-off rate in relation to its nonperforming loans as a credit quality indicator. Nonperforming loans are loans that are 90 or more days past due, in bankruptcy, in foreclosure, or not accruing interest. As of June 30, 2022, the annualized charge-off rate was 0.27 % of average nonperforming loans. The charge-off rate was 0.42 % for the year ended December 31, 2021. Other credit quality indicators include aging status and accrual status. The following table presents the aging status of the amortized cost basis in the loans held for investment portfolio, excluding loans held for investment at fair value, which include $ 239.1 million and $ 296.0 million loans in the Company’s COVID-19 forbearance program as of June 30, 2022 and December 31, 2021, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total June 30, 2022 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 310 $ 1,875 $ 12,726 $ 14,911 $ — $ 14,911 Commercial - Refinance 3,551 6,314 70,417 80,282 160 80,442 Residential 1-4 Unit - Purchase 325 672 21,888 22,885 — 22,885 Residential 1-4 Unit - Refinance 1,029 2,701 92,919 96,649 — 96,649 Short Term 1-4 Unit - Purchase — — 2,302 2,302 — 2,302 Short Term 1-4 Unit - Refinance — 247 37,766 38,013 — 38,013 Total loans individually evaluated $ 5,215 $ 11,809 $ 238,018 $ 255,042 $ 160 $ 255,202 Loans collectively evaluated Commercial - Purchase $ 13,431 $ 9,952 $ — $ 23,383 $ 639,197 $ 662,580 Commercial - Refinance 30,249 14,483 — 44,732 787,600 832,332 Residential 1-4 Unit - Purchase 14,855 3,805 — 18,660 488,251 506,911 Residential 1-4 Unit - Refinance 42,227 10,519 — 52,746 738,325 791,071 Short Term 1-4 Unit - Purchase 3,052 677 — 3,729 51,942 55,671 Short Term 1-4 Unit - Refinance 3,476 570 — 4,046 15,891 19,937 Total loans collectively evaluated $ 107,290 $ 40,006 $ — $ 147,296 $ 2,721,206 $ 2,868,502 Ending balance $ 112,505 $ 51,815 $ 238,018 $ 402,338 $ 2,721,366 $ 3,123,704 30–59 days 60–89 days 90+days Total Total December 31, 2021 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 700 $ 2,314 $ 14,246 $ 17,260 $ — $ 17,260 Commercial - Refinance 4,464 6,818 74,488 85,770 165 85,935 Residential 1-4 Unit - Purchase — 682 16,703 17,385 — 17,385 Residential 1-4 Unit - Refinance 807 1,088 105,657 107,552 — 107,552 Short Term 1-4 Unit - Purchase 1,224 — 1,762 2,986 — 2,986 Short Term 1-4 Unit - Refinance 615 1,010 43,675 45,300 — 45,300 Total loans individually evaluated $ 7,810 $ 11,912 $ 256,531 $ 276,253 $ 165 $ 276,418 Loans collectively evaluated Commercial - Purchase $ 17,319 $ 4,034 $ — $ 21,353 $ 470,808 $ 492,161 Commercial - Refinance 31,769 7,025 — 38,794 658,532 697,326 Residential 1-4 Unit - Purchase 14,905 5,580 — 20,485 370,900 391,385 Residential 1-4 Unit - Refinance 39,045 9,548 — 48,593 574,175 622,768 Short Term 1-4 Unit - Purchase 21,412 217 — 21,629 4,374 26,003 Short Term 1-4 Unit - Refinance 4,060 5,561 — 9,621 16,144 25,765 Total loans collectively evaluated $ 128,510 $ 31,965 $ — $ 160,475 $ 2,094,933 $ 2,255,408 Ending balance $ 136,320 $ 43,877 $ 256,531 $ 436,728 $ 2,095,098 $ 2,531,826 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due. In addition to the aging status, the Company also evaluates credit quality by accrual status. The following tables present the amortized cost in loans held for investment, excluding loans held for investment at fair value, based on accrual status and by loan origination year as of June 30, 2022 and December 31, 2021 (in thousands). Term Loans Amortized Cost Basis by Origination Year June 30, 2022: 2022 2021 2020 2019 2018 Pre-2018 Total Commercial - Purchase Payment performance Performing $ 215,509 $ 268,001 $ 41,591 $ 64,227 $ 39,948 $ 33,304 $ 662,580 Nonperforming — 1,212 186 6,540 1,535 5,438 14,911 Total Commercial - Purchase $ 215,509 $ 269,213 $ 41,777 $ 70,767 $ 41,483 $ 38,742 $ 677,491 Commercial - Refinance Payment performance Performing $ 224,064 $ 225,103 $ 58,086 $ 124,285 $ 100,753 $ 100,041 $ 832,332 Nonperforming 540 8,266 3,857 21,462 20,646 25,671 80,442 Total Commercial - Refinance $ 224,604 $ 233,369 $ 61,943 $ 145,747 $ 121,399 $ 125,712 $ 912,774 Residential 1-4 Unit - Purchase Payment performance Performing $ 162,492 $ 242,544 $ 11,541 $ 39,733 $ 22,505 $ 28,096 $ 506,911 Nonperforming 985 8,063 2,169 3,042 3,474 5,152 22,885 Total Residential 1-4 $ 163,477 $ 250,607 $ 13,710 $ 42,775 $ 25,979 $ 33,248 $ 529,796 Residential 1-4 Unit - Refinance Payment performance Performing $ 247,970 $ 314,865 $ 26,150 $ 95,470 $ 44,360 $ 62,256 $ 791,071 Nonperforming 509 14,566 7,111 28,920 24,066 21,477 96,649 Total Residential 1-4 $ 248,479 $ 329,431 $ 33,261 $ 124,390 $ 68,426 $ 83,733 $ 887,720 Short Term 1-4 Unit - Purchase Payment performance Performing $ 29,097 $ 7,493 $ 15,037 $ 4,044 $ — $ — $ 55,671 Nonperforming — — 995 1,202 105 — 2,302 Total Short Term 1-4 $ 29,097 $ 7,493 $ 16,032 $ 5,246 $ 105 $ — $ 57,973 Short Term 1-4 Unit - Refinance Payment performance Performing $ 13,024 $ 1,582 $ 2,543 $ 2,788 $ — $ — $ 19,937 Nonperforming — 244 12,464 20,264 5,041 — 38,013 Total Short Term 1-4 $ 13,024 $ 1,826 $ 15,007 $ 23,052 $ 5,041 $ — $ 57,950 Total Portfolio $ 894,190 $ 1,091,939 $ 181,730 $ 411,977 $ 262,433 $ 281,435 $ 3,123,704 Term Loans Amortized Cost Basis by Origination Year December 31, 2021 2021 2020 2019 2018 2017 Pre-2017 Total Commercial - Purchase Payment performance Performing $ 277,618 $ 45,836 $ 81,541 $ 46,637 $ 24,164 $ 16,365 $ 492,161 Nonperforming 288 1,781 5,541 4,180 3,539 1,931 17,260 Total Commercial - Purchase $ 277,906 $ 47,617 $ 87,082 $ 50,817 $ 27,703 $ 18,296 $ 509,421 Commercial - Refinance Payment performance Performing $ 239,688 $ 64,966 $ 144,017 $ 118,735 $ 62,374 $ 67,545 $ 697,325 Nonperforming 2,482 3,949 26,012 26,869 16,492 10,131 85,935 Total Commercial - Refinance $ 242,170 $ 68,915 $ 170,029 $ 145,604 $ 78,866 $ 77,676 $ 783,260 Residential 1-4 Unit - Purchase Payment performance Performing $ 263,180 $ 12,878 $ 48,930 $ 29,544 $ 12,863 $ 23,990 $ 391,385 Nonperforming 1,372 2,749 3,896 3,736 3,487 2,145 17,385 Total Residential 1-4 $ 264,552 $ 15,627 $ 52,826 $ 33,280 $ 16,350 $ 26,135 $ 408,770 Residential 1-4 Unit - Refinance Payment performance Performing $ 343,199 $ 31,334 $ 114,145 $ 59,825 $ 31,774 $ 42,491 $ 622,768 Nonperforming 11,646 6,040 31,816 30,626 16,677 10,747 107,552 Total Residential 1-4 $ 354,845 $ 37,374 $ 145,961 $ 90,451 $ 48,451 $ 53,238 $ 730,320 Short Term 1-4 Unit - Purchase Payment performance Performing $ 1,890 $ 15,582 $ 8,531 $ — $ — $ — $ 26,003 Nonperforming — 1,565 1,316 105 — — 2,986 Total Short Term 1-4 $ 1,890 $ 17,147 $ 9,847 $ 105 $ — $ — $ 28,989 Short Term 1-4 Unit - Refinance Payment performance Performing $ 1,448 $ 11,991 $ 12,326 $ — $ — $ — $ 25,765 Nonperforming 1,038 15,819 22,618 5,825 — — 45,300 Total Short Term 1-4 $ 2,486 $ 27,810 $ 34,944 $ 5,825 $ — $ — $ 71,065 Total Portfolio $ 1,143,849 $ 214,490 $ 500,689 $ 326,082 $ 171,370 $ 175,345 $ 2,531,825 |
Receivables Due From Servicers
Receivables Due From Servicers | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Receivables Due From Servicers | Note 7 — Receivables Due From Servicers The following tables summarize receivables due from servicers as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Securitizations Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 41,347 $ 1,855 $ 43,202 Other loan servicing receivables 13,024 1,414 14,438 Loan servicing receivables 54,371 3,269 57,640 Corporate and escrow advances receivable 17,985 63 18,048 Total receivables due from servicers $ 72,356 $ 3,332 $ 75,688 December 31, 2021 Securitizations Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 42,344 $ 1,165 $ 43,509 Other loan servicing receivables 10,718 730 11,448 Loan servicing receivables 53,062 1,895 54,957 Corporate and escrow advances receivable 17,884 1,489 19,373 Total receivables due from servicers $ 70,946 $ 3,384 $ 74,330 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2022 | |
Transfers And Servicing [Abstract] | |
Mortgage Servicing Rights | Note 8 — Mortgage Servicing Rights Mortgage loans serviced are related to the Century business and not included in the consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others amounted to $ 505.1 million and $ 520.6 million as of June 30, 2022 and December 31, 2021, respectively. The Company has elected to record its mortgage servicing rights using the fair value measurement method. Significant assumptions used in determining the fair value of servicing rights as of June 30, 2022 and December 31, 2021 include: 1) Weighted average discount rate of 8.1 % and 8.0 %, respectively. 2) Weighted average conditional prepayment rate of 2.2 % and 3.2 %, respectively. The following table presents the Company's mortgage servicing rights (in thousands): June 30, 2022 December 31, 2021 Balance at the beginning of year $ 7,152 $ — Mortgage servicing rights acquired, at fair value — 7,152 Additions — — Fair value adjustments 1,286 — Balance at end of period $ 8,438 $ 7,152 |
Securitizations Net
Securitizations Net | 6 Months Ended |
Jun. 30, 2022 | |
Transfers And Servicing [Abstract] | |
Securitization, Net | Note 9 — Securitizations, Net From May 2011 through June 2022, the Company completed twenty-three sec uritizations, issuing $ 4.9 billion of securities to third parties through twenty-three respective Trusts. The Company is the sole beneficial interest holder of the remaining Trusts, which are variable interest entities included in the consolidated financial statements. The transactions are accounted for as secured borrowings under U.S. GAAP. The securities are subject to redemption by the Company when the stated principal balance is less than a certain percentage, ranging from 5 %– 30 % of the original stated principal balance of loans at issuance. As a result, the actual maturity dates of the securities issued could be earlier than their respective stated maturity dates, ranging from July 2045 through May 2052 . The following table summarizes the outstanding balance, net of discounts and deal costs, of the securities and the effective interest rate for the six months ended June 30, 2022 and 2021 ($ in thousands): Six Months Ended June 30, Securitizations: 2022 2021 Securitizations, net $ 2,477,226 $ 1,558,163 Interest expense 44,428 37,333 Average outstanding balance 2,175,263 1,545,969 Effective interest rate (1) 4.08 % 4.83 % (1) Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 3.38 % and debt issuance cost amortization of 0.70 % and average rate of 4.12 % and debt issuance cost amortization of 0.71 % for the six months ended June 30, 2022 and 2021 , respectively. |
Other Debt
Other Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Other Debt | Note 10 — Other Debt Secured financings and warehouse facilities were utilized to finance the origination and purchase of commercial real estate mortgage loans. Warehouse facilities are designated to fund mortgage loans that are purchased and originated within specified underwriting guidelines. Most of these lines of credit fund less than 100 % of the principal balance of the mortgage loans originated and purchased, requiring the use of working capital to fund the remaining portion. (a) Secured Financing, Net (Corporate Debt) On February 5, 2021, the Company entered into a five-year $ 175.0 million syndicated corporate debt agreement, the (“the 2021 Term Loan”). The 2021 Term Loan had an interest rate equal to one-month LIBOR plus 8.00 % with a 1.00 % LIBOR floor, and matures on February 4, 2026 . A portion of the net proceeds from the 2021 Term Loan was used to redeem all the amounts owed pursuant to the 2019 debt agreement (“2019 Term Loan”). The remaining portion of the net proceeds from the 2021 Term Loan was used for loan originations and general corporate purposes. The 2021 Term Loan was paid off in March 2022 . On March 15, 2022, the Company entered into a five-year $ 215.0 million syndicated corporate debt agreement, the (“the 2022 Term Loan”). The 2022 Term Loan bears interest at a fixed rate of 7.125 % and matures on March 15, 2027 . Interest on the 2022 Term Loan is paid every six months . A portion of the net proceeds from the 2022 Term Loan was used to redeem all the amounts owed pursuant to the 2021 Term Loan. The remaining portion of the net proceeds from the 2022 Term Loan is used for loan originations and general corporate purposes. As of June 30, 2022, the balance of the 2022 Term Loan was $ 215.0 million. The balance in the consolidated balance sheets is net of debt issuance costs of $ 5.8 million as of June 30, 2022 . The 2022 Term Loan is secured by substantially all assets of the Company not otherwise pledged under a securitization or warehouse facility and contains certain reporting and financial covenants. Should the Company fail to adhere to those covenants, the lenders have the right to demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of June 30, 2022, the Company was in compliance with these covenants. (b) Warehouse Repurchase and Revolving Loan Facilities, Net On January 4, 2011 , Century entered into a Master Participation and Facility Agreement with a bank (“Facility Agreement”). The Facility Agreement has a current extended maturity date of July 31, 2023 , and is a short-term borrowing facility, collateralized by performing loans, with a maximum capacity of $ 60.0 million, and bears interest at one-month Secured Overnight Financing Rate (“SOFR”) plus 1.60 % with a 0.25 % floor. On August 8, 2016 , Century entered a Promissory Note Revolving Credit Line with a bank (“Revolving Credit Line”). The Revolving Credit Line has a current extended maturity date of July 31, 2023 , and is a short-term unsecured borrowing line, with a maximum capacity of $ 3.0 million, and bears interest at SOFR plus 2.00 % with a 0.25 % floor. On May 17, 2013 , the Company entered into a Repurchase Agreement (“the 2013 Repurchase Agreement”) with a warehouse lender. The 2013 Repurchase Agreement is a modified mark-to-market agreement and has a current maturity date of September 29, 2023 , and is a short-term borrowing facility, collateralized by a pool of performing loans, with a maximum capacity of $ 300.0 million, and bears interest at SOFR plus 3.25 %. All borrower payments on loans financed under the warehouse repurchase facility are first used to pay interest on the facility. The effective interest rates were 5.0 % and 4.2 % as of June 30, 2022 and December 31, 2021, respectively. On September 12, 2018 , the Company entered into a three-year non-mark-to-market secured revolving loan facility agreement (“the Bank Credit Agreement”) with a bank. The Bank Credit Agreement has a current extended maturity date of November 10, 2023 . During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at the lesser of the one-month LIBOR Rate with a 0.75 % floor, plus 3.5 % per annum and the maximum rate, which is the highest lawful and non-usurious rate of interest applicable to the loan. The maximum capacity under this facility is $ 50.0 million. The effective interest rates were 4.2 % and 7.3 % as of June 30, 2022 and December 31, 2021, respectively. On December 26, 2019 , the Company entered into a $ 3.0 million loan agreement (“the 2019 Loan”) with a lender. The 2019 Loan was secured by five real properties acquired by the Company through foreclosure or by deed-in lieu of foreclosure. This loan was paid off in March 2022 . The effective interest rate was 0.0 % as of June 30, 2022 and 10.5 % December 31, 2021. On January 29, 2021 , the Company entered into a non-mark-to-market Repurchase Agreement (“the 2021 Repurchase Agreement”) with a warehouse lender. The 2021 Repurchase Agreement has a maturity date of February 28, 2023 , and is a short-term borrowing facility, collateralized by a pool of loans, with a maximum capacity of $ 200.0 million, and bears interest at one-month LIBOR plus a margin of 3.50 % during the availability period and 4.50 % during the amortization period. All borrower payments on loans financed under the warehouse repurchase facility are first used to pay interest on the facility. The effective interest rates were 5.6 % and 5.9 % as of June 30, 2022 and December 31, 2021, respectively. On April 16, 2021 , the Company entered into a non-mark-to-market Term Repurchase Agreement (“the 2021 Term Repurchase Agreement”) with a warehouse lender. The 2021 Term Repurchase Agreement has a maturity date of April 16, 2024 , with a borrowing period through April 16, 2023. During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at one-month LIBOR plus 3.0 % per annum. The maximum capacity under this facility is $ 100.0 million. The effective interest rates were 3.4 % and 3.5 % as of June 30, 2022 and December 31, 2021, respectively. On July 29, 2021, the Company entered into a non-mark-to-market Term Repurchase Agreement (“the July 2021 Term Repurchase Agreement”) with a warehouse lender. The July 2021 Term Repurchase Agreement has a maturity date of July 29, 2024 , with an option to extend the term to July 29, 2025 . During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at one-month LIBOR with a 0.5 % floor plus 4.5 % per annum. The maximum capacity under this facility is $ 100.0 million. The effective interest rate was 4.2 % as of June 30, 2022 and there was no balance outstanding as of December 31, 2021. Certain of the Company’s loans are pledged as security under the warehouse repurchase facilities and the revolving loan facility, which contain covenants. Should the Company fail to adhere to those covenants or otherwise default under the facilities, the lenders have the right to terminate the facilities and demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of June 30, 2022 and December 31, 2021, the Company was in compliance with these covenants. The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Period end (1) Maximum Period end (1) Maximum The 2021 term repurchase agreement $ 21,632 $ 100,000 $ 41,636 $ 100,000 The 2021 repurchase agreement 78,608 200,000 82,580 200,000 The July 2021 term repurchase agreement 454 100,000 — 100,000 The 2013 repurchase agreement 83,923 300,000 153,499 200,000 The Bank credit agreement 25,587 50,000 22,385 50,000 The 2019 loan agreement — — 2,700 3,000 Total $ 210,204 $ 750,000 $ 302,800 $ 653,000 (1) Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $ 1.8 million and $ 1.7 million as of June 30, 2022 and December 31, 2021 , respectively. The following table provides an overview of the activity and effective interest rate for the three and six months ended June 30, 2022 and 2021 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Warehouse and repurchase facilities: Average outstanding balance $ 318,960 $ 166,981 $ 328,603 $ 140,254 Highest outstanding balance at any month-end 379,169 250,927 426,959 250,927 Effective interest rate (1) 5.16 % 5.65 % 4.80 % 5.80 % (1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance. The rate includes average rate of 4.59 % and debt issuance cost amortization of 0.57 %, and average rate of 4.44 % and debt issuance cost amortization of 1.21 %, for the three months ended June 30, 2022 and 2021 , respectively, and includes average rate of 4.23 % and debt issuance cost amortization of 0.57 %, and average rate 4.58 % and debt issuance cost amortization 1.22 % for the six months ended June 30, 2022 and 2021 , respectively. The following table provides a summary of interest expense that includes debt issuance cost amortization, interest, amortization of discount, and deal cost amortization for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Warehouse and repurchase facilities $ 4,115 $ 2,361 $ 7,880 $ 4,067 Securitizations 24,637 18,205 44,428 37,332 Interest expense — portfolio related 28,752 20,566 52,308 41,399 Interest expense — corporate debt 4,182 4,309 21,322 11,658 (1) Total interest expense $ 32,934 $ 24,875 $ 73,630 $ 53,057 (1) Included in the $ 11.7 million of interest expense – corporate debt for the six months ended June 30, 2021 was the one-time debt issuance costs write-off of $ 2.9 million and prepayment fee of $ 1.6 million associated with the payoff of $ 78.0 million in outstanding principal amount in February 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies (a) Repurchase Liability When the Company sells loans, it is required to make normal and customary representations and warranties about the loans to the purchaser. The loan sale agreements generally require the Company to repurchase loans if the Company breaches a representation or warranty given to the loan purchaser. In addition, the Company may be required to repurchase loans as a result of borrower fraud or if a payment default occurs on a loan shortly after its sale. The Company records a repurchase liability relating to representations and warranties and early payment defaults. The method used to estimate the liability for repurchase is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults. The Company establishes a liability at the time loans are sold and continually updates the estimated repurchase liability. The level of the repurchase liability for representations and warranties and early payment default requires considerable management judgment. As of June 30, 2022 and December 31, 2021, the balance of repurchase liabili ty was $ 376 thousand and $ 141 thousand, respectively, and it is included in accounts payable and accrued expenses in the consolidated balance sheets. (b) Legal Proceedings The Company is a party to various legal proceedings in the normal course of business. The Company, after consultation with legal counsel, believes the disposition of all pending litigation will not have a material effect on the Company’s consolidated financial condition or results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 12 — Stock-Based Compensation The Company’s Amended and Restated 2020 Omnibus Incentive Plan, or the 2020 Plan, authorizes grants of stock‑based compensation instruments to purchase or issue up to 2,770,000 shares of Company common stock. In connection with its IPO in January 2020, the Company granted stock options to non-employee directors and certain employees, including named executive officers to purchase approximately 782,500 shares of common stock with an exercise price per share equal to the initial public offering price of $ 13.00 . On December 24, 2020, the Company granted stock options to a non-employee director to purchase 12,500 shares of common stock with an exercise price per share equal to the grant date market price of $ 6.28 . In January 2021, the Company issued 480,000 shares of restricted stock awards to certain employees, including named executive officers at no cost to employees. In May 2021, the Company issued 26,511 shares of restricted stock awards to certain non-employee directors. In February 2022, the Company issued 125,250 shares of restricted stock awards and 102,750 shares of performance stock unit awards to certain employees, including named executive officers at no cost to employees. In May 2022, the Company issued 31,215 shares of restricted stock awards to certain non-employee directors. Restricted stock-based awards vest ratably over a service period of three years from the date of the grant. Performance-based stock unit awards are linked to the average core net income annual growth over the three-year period of 2022 – 2024. Settlement of vested performance-based stock units will be made on the date that the Compensation Committee certifies the average core net income annual growth for the three-year period. Compensation expense related to restricted stock-based awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. Compensation expense related to performance-based stock unit awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using an estimate of the probability of achieving the performance target. The estimates will be reviewed quarterly and the expense adjusted accordingly. The Company recognized $ 0.8 million and $ 0.5 million compensation expense related to the outstanding stock options, unvested restricted stock awards, and unvested performance-based stock unit awards granted to employees for the three months ended June 30, 2022 and 2021, respectively. Such amount is included in “Compensation and employee benefits” on the Consolidated Statement of Income. The amount of unrecognized compensation expense related to unvested stock options, restricted stock awards and performance-based stock unit awards tota led $ 5.3 millio n and $ 4.7 million as of June 30, 2022 and 2021, respectively. Treasury share purchases represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. No share was purchased during the three months ended June 30, 2022. During the three months ended March 31, 2022, the Company purchased treasury shares of 33,647 at an average price of $ 13.61 per share. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 — Earnings Per Share The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that shared in earnings. The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share data) (In thousands, except per share data) Basic EPS: Net income attributable to common stockholders $ 10,645 $ 9,453 $ 13,766 $ 12,849 Less: undistributed earnings attributable to participating securities 164 3,571 212 4,854 Net earnings attributable to common stock $ 10,481 $ 5,882 $ 13,554 $ 7,995 Weighted average common shares outstanding 31,917 20,087 31,904 20,087 Basic earnings per common share $ 0.33 $ 0.29 $ 0.42 $ 0.40 Diluted EPS: Net income attributable to common stockholders $ 10,645 $ 9,453 $ 13,766 $ 12,849 Weighted average common shares outstanding 31,917 20,087 31,904 20,087 Add dilutive effects for assumed conversion of Series A preferred stock — 11,688 — 11,688 Add dilutive effects for warrants 1,986 1,985 2,057 1,786 Add dilutive effects for stock options 4 3 4 2 Add dilutive effects of unvested restricted stock awards 150 197 165 121 Weighted average diluted common shares outstanding 34,057 33,960 34,130 33,684 Diluted income per common share $ 0.31 $ 0.28 $ 0.40 $ 0.38 The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock options 773 773 773 773 Unvested restricted stock awards 125 — 125 — Unvested performance-based stock units 103 — 103 — Share equivalents excluded from EPS 1,001 773 1,001 773 |
Convertible Preferred Stock
Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2022 | |
Convertible Preferred Stock [Abstract] | |
Convertible Preferred Stock | Note 14 — Convertible Preferred Stock On April 7, 2020, the Company issued and sold in a private placement Series A Convertible Preferred Stock plus warrants (the “Warrants”) to purchase additional shares of the Company’s common stock to funds affiliated with Snow Phipps and a fund affiliated with Pacific Investment Management Company LLC (TOBI). Snow Phipps and TOBI are considered affiliates and, therefore, are related parties to the Company. On October 8, 2021, the Company exercised its option to convert all of its Series A Convertible Preferred Stock into common stock. The Warrants are exercisable at the warrant holder’s option at any time and from time to time, in whole or in part, until April 7, 2025 at an exercise price of $ 2.96 per share of common stock, with respect to 2,008,749 of the Warrants, and at an exercise price of $ 4.94 per share of common stock, with respect to 1,004,375 of the Warrants. The exercise price and the number of shares of common stock issuable upon exercise of the Warrants are subject to customary antidilution adjustments and certain issuances of common stock (or securities convertible into or exercisable for common stock) at a price (or having a conversion or exercise price) that is less than the then current exercise price. The Company is not required to affect an exercise of Warrants, if after giving effect to the issuance of common stock upon exercise of such Warrants such warrant holder together with its affiliates would beneficially own 49 % or more of the Company’s outstanding common stock. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 15 — Fair Value Measurements Fair Value Determination ASC Topic 820, “ Fair Value Measurement ,” defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and requires disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: o Level 1 - Valuation is based on quoted prices for identical instruments traded in active markets. o Level 2 - Valuation is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. o Level 3 - Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. Given the nature of some of the Company’s assets and liabilities, clearly determinable market-based valuation inputs are often not available; therefore, these assets and liabilities are valued using internal estimates. As subjectivity exists with respect to the valuation estimates used, the fair values disclosed may not equal prices that can ultimately be realized if the assets are sold or the liabilities are settled with third parties. Below is a description of the valuation methods for the assets and liabilities recorded at fair value on either a recurring or nonrecurring basis and for estimating fair value of financial instruments not recorded at fair value for disclosure purposes. While management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the measurement date. Cash and Cash Equivalents and Restricted Cash Cash and restricted cash are recorded at historical cost. The carrying amount is a reasonable estimate of fair value as these instruments have short-term maturities and interest rates that approximate market, a Level 1 measurement. Loans Held for Investment Loans held for investment are recorded at their outstanding principal balance, net of purchase discounts, deferred loan origination fees/costs, and allowance for credit losses. The Company determined the fair value estimate of loans held for investment using a third-party loan valuation model, a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage loans held for investment are discount rates, prepayment speeds, loss severity, and default rates. Significant changes in any of those inputs could result in a significant change to the loans’ fair value measurement. Collateral Dependent or Loans Individually Evaluated Nonaccrual loans held for investment are evaluated individually and are adjusted to the fair value of the collateral when the fair value of the collateral is below the carrying value of the loan. To the extent a loan is collateral dependent, the Company determines the allowance for credit losses based on the estimated fair value of the underlying collateral. The fair value of each loan’s collateral is generally based on appraisals or broker price opinions obtained, less estimated costs to sell, a Level 3 measurement. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value, with fair value adjustments recorded on a nonrecurring basis. The Company uses a discounted cash flow model to estimate the fair value of loans held for sale, a Level 3 measurement. Interest-Only Strips The Company retains an interest-only strip on certain sales of held for sale loans. The interest-only strips are classified as trading securities under FASB ASC Topic 320, Investments-Debt Securities . The interest-only strips are measured based on their estimated fair values using a discounted cash flow model, a Level 3 measurement. Changes in fair value are reflected in income as they occur. Loans Held for Investment, at Fair Value The Company has elected to account for certain purchased distressed loans held for investment, at fair value (the FVO Loans) using FASB ASC Topic 825, Financial Instruments (ASC 825). The FVO loans are measured based on their estimated fair values. Management identified all of these loans to be accounted for at estimated fair value at the instrument level. Changes in fair value are reflected in income as they occur. The Company uses a third-party loan valuation model to estimate the fair value at instrument level, a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company’s mortgage loans held for investment, at fair value are discount rate, property values, prepayment speeds, loss severity, and default rates. Significant changes in any of those inputs in isolation could result in a significant change to the loans’ fair value measurement. Real Estate Owned, Net (REO) Real estate owned, net is initially recorded at the property’s estimated fair value, based on appraisals or broker price opinions obtained, less estimated costs to sell, at the acquisition date, a Level 3 measurement. From time to time, nonrecurring fair value adjustments are made to real estate owned, net based on the current updated appraised value of the property, or management’s judgment and estimation of value based on recent market trends or negotiated sales prices with potential buyers. Mortgage Servicing Rights The Company determined the fair values based on a third-party valuation model that calculates the present value of estimated future net servicing income, a Level 3 measurement. Secured Financing, Net (Corporate Debt) The Company determined the fair values estimate of the secured financing using the estimated cash flows discounted at an appropriate market rate, a Level 3 measurement. Warehouse Repurchase Facilities, Net Warehouse repurchase facilities are recorded at historical cost. The carrying amount is a reasonable estimate of fair value as these instruments have short-term maturities of one-year or less and interest rates that approximate market plus a spread, a Level 2 measurement. Securitizations, Net The fair value estimate of securities issued is based on third-party valuation models that calculate estimated cash flows discounted at an appropriate market rate, a Level 3 measurement. Accrued Interest Receivable and Accrued Interest Payable The carrying amounts of accrued interest receivable and accrued interest payable approximate fair value due to the short-term nature of these instruments, a Level 1 measurement. The Company does not have any off-balance sheet financial instruments. Receivables Due From Servicers The carrying amounts of receivables due from servicers approximate fair value due to the short-term nature of these instruments, a Level 1 measurement. Fair Value Disclosures The following tables present information on assets measured and recorded at fair value as of June 30, 2022 and December 31, 2021, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at June 30, 2022 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,351 $ 1,351 Mortgage servicing rights — — 8,438 8,438 Total recurring fair value measurements — — 9,789 9,789 Nonrecurring fair value measurements: Real estate owned, net — — 19,218 19,218 Individually evaluated loans requiring specific allowance, net — — 10,608 10,608 Total nonrecurring fair value measurements — — 29,826 29,826 Total assets $ — $ — $ 39,615 $ 39,615 Fair value measurements using Total at December 31, 2021 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,359 $ 1,359 Mortgage servicing rights — — 7,152 7,152 Total recurring fair value measurements — — 8,511 8,511 Nonrecurring fair value measurements: Loans held for sale, net — — 87,422 87,422 Real estate owned, net — — 17,557 17,557 Impaired loans requiring specific allowance, net — — 11,987 11,987 Total nonrecurring fair value measurements — — 116,966 116,966 Total assets $ — $ — $ 125,477 $ 125,477 The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on assets measured on a nonrecurring basis 2022 2021 2022 2021 Loans held for sale, net $ — $ ( 15 ) $ — $ 2 Real estate held for sale, net ( 143 ) ( 800 ) 93 ( 1,235 ) Individually evaluated loans requiring specific allowance, net 434 1,029 242 720 Total net gain (loss) $ 291 $ 214 $ 335 $ ( 513 ) The following tables present the primary valuation techniques and unobservable inputs related to Level 3 assets as of June 30, 2022 and December 31, 2021 ($ in thousands): June 30, 2022 Asset category Fair value Primary Unobservable Range Weighted Individually evaluated $ 10,608 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 19,218 Market comparables Selling costs 8.0 % 8.0 % Loans held for investment, 1,351 Discounted cash flow Discount rate 5.8 % 5.8 % Collateral value (% of UPB) 97 % to 120.0 % 107.0 % Timing of resolution/payoff (months) 1.0 to 40.0 38.0 Prepayment rate 1.0 % to 30.0 % 30.0 % Default rate 0.0 % to 6.3 % 0.6 % Loss severity rate 0.0 % to 21.0 % 4.0 % Mortgage servicing rights 8,438 Discounted cash flow Discount rate 8 % to 12.0 % 8.1 % Prepayment rate 0.8 % to 6.0 % 2.2 % December 31, 2021 Asset category Fair value Primary Unobservable Range Weighted Individually evaluated $ 11,987 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 17,557 Market comparables Selling costs 8.0 % 8.0 % Loans held for investment, 1,359 Discounted cash flow Discount rate 5.8 % 5.8 % Collateral value (% of UPB) 95.0 % to 120.0 % 106.0 % Timing of resolution/payoff (months) 1 to 38 34.8 Prepayment rate 19.2 % to 50 % 30.0 % Default rate 0.0 % to 6.7 % 1.0 % Loss severity rate 0.0 % to 13.4 % 3.0 % Loans held for sale 87,422 Discounted cash flow Discount rate 5.8 % 5.8 % Timing of resolution/payoff (months) 3 to 37 13.0 Mortgage servicing rights 7,152 Discounted cash flow Discount rate 8.0 % to 12.0 % 8.0 % Prepayment rate 2.4 % to 3.5 % 3.2 % The following is a rollforward of loans that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning balance $ 1,352 $ 1,364 $ 1,359 $ 1,539 Loans liquidated — — — ( 163 ) Principal paydowns ( 7 ) ( 14 ) ( 24 ) ( 24 ) Total unrealized gain included in net income 6 20 16 18 Ending balance $ 1,351 $ 1,370 $ 1,351 $ 1,370 The following is a rollforward of interest-only strips that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning balance $ — $ 125 $ — $ 238 Interest-only strip additions — — — — Interest-only strip write-offs — ( 44 ) — ( 157 ) Total unrealized loss included in net income — — — — Ending balance $ — $ 81 $ — $ 81 The Company estimates the fair value of certain financial instruments on a quarterly basis. These instruments are recorded at fair value through the use of a valuation allowance only if they are individually evaluated. As described above, these adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. As of June 30, 2022 and December 31, 2021, the only financial assets measured at fair value, or lower of cost or fair value, were certain individually evaluated loans held for investment, loans held for sale, mortgage servicing rights, interest-only strips, REO and FVO loans, which were measured using unobservable inputs, including appraisals and broker price opinions on the values of the underlying collateral. Individually evaluated loans requiring an allowance were carried at approximatel y $ 10.6 million and $ 12.0 million as of June 30, 2022 and December 31, 2021 , net of specific allowance for credit losses of approximately $ 1.2 million and $ 1.4 million, respectively. A financial instrument is cash, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from a second entity on potentially favorable terms. The methods and assumptions used in estimating the fair values of the Company’s financial instruments are described above. The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated (in thousands): June 30, 2022 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 46,250 $ 46,250 $ — $ — $ 46,250 Restricted cash 9,217 9,217 — — 9,217 Loans held for investment, net 3,118,799 — — 3,295,277 3,295,277 Loans held for investment, at fair value 1,351 — — 1,351 1,351 Accrued interest receivables 15,820 15,820 — — 15,820 Mortgage servicing rights 8,438 — — 8,438 8,438 Liabilities: Secured financing, net $ 209,227 $ — $ — $ 212,827 $ 212,827 Warehouse repurchase facilities, net 208,390 — 208,390 — 208,390 Securitizations, net 2,477,226 — — 2,312,506 2,312,506 Accrued interest payable 13,074 13,074 — — 13,074 December 31, 2021 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 35,965 $ 35,965 $ — $ — $ 35,965 Restricted cash 11,639 11,639 — — 11,639 Loans held for sale, net 87,908 — — 87,908 87,908 Loans held for investment, net 2,527,564 — — 2,655,357 2,655,357 Loans held for investment, at fair value 1,359 — — 1,359 1,359 Accrued interest receivable 13,159 13,159 — — 13,159 Mortgage servicing rights 7,152 — — 7,152 7,152 Liabilities: Secured financing, net $ 162,845 $ — $ — $ 170,843 $ 170,843 Warehouse repurchase facilities, net 301,069 — 301,069 — 301,069 Securitizations, net 1,911,879 — — 1,931,002 1,931,002 Accrued interest payable 6,254 6,254 — — 6,254 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent Events On May 19, 2022, at the Company's annual meeting of stockholders, stockholders approved the Velocity Financial Employee Stock Purchase Plan (the “ESPP”) which authorizes 568,182 shares of Common Stock for issuance under the ESPP. The number of shares of Common Stock authorized for issuance under the ESPP shall automatically increase on the first day of each fiscal year, beginning with January 1, 2023, and continuing until (and including) January 1, 2032, with such annual increase equal to the lesser of (i) 568,182 shares, (ii) 1 % of the number of shares of Common Stock issued and outstanding on December 31 of the immediately preceding fiscal year and (iii) an amount determined by the board of directors of the Company. The ESPP consists of two 6-month Offering Periods each year, with the stock purchases made at the end of each Offering Period. The ESPP’s first Offering Period started on July 1, 2022. The Company has evaluated events that have occurred subsequent to June 30, 2022 through the issuance of the accompanying consolidated financial statements and has concluded there are no other subsequent events that would require recognition or disclosure in the accompanying consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | (a) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of consolidated income and expenses during the reporting period. |
Significant Accounting Policies | (b) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies , of its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission. There have been no significant changes to the Company’s significant accounting policies as described in its 2021 Annual Report. |
Principles of Consolidation | (c) Principles of Consolidation The principles of consolidation require management to determine and reassess the requirement to consolidate VIEs each reporting period, and therefore, the determination may change based on new facts and circumstances pertaining to each VIE. This could result in a material impact to the Company’s consolidated financial statements in subsequent reporting periods. The Company consolidates the assets, liabilities, and remainder interests of the Trusts as management determined that VCC is the primary beneficiary of these entities. The Company’s ongoing asset management responsibilities provide the Company with the power to direct the activities that most significantly impact the VIE’s economic performance, and the remainder interests provide the Company with the right to receive benefits and the obligation to absorb losses, limited to its investment in the remainder interest of the Trusts. The consolidated financial statements as of June 30, 2022 and December 31, 2021 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 (in thousands): Six Months Ended June 30, 2022 2021 Cash and cash equivalents $ 46,250 $ 27,741 Restricted cash 9,217 7,921 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 55,467 $ 35,662 |
Loans Held for Sale, Net (Table
Loans Held for Sale, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Loans Held for Sale | The following table summarizes loans held for sale as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Unpaid principal balance $ — $ 87,422 Valuation adjustments — — Deferred loan origination costs — 486 Ending balance $ — $ 87,908 |
Loans Held for Investment and_2
Loans Held for Investment and Loans Held for Investment at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Loans Held for Investment | The following tables summarize loans held for investment as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 3,088,950 $ 1,308 $ 3,090,258 Valuation adjustments on FVO loans — 43 43 Deferred loan origination costs 34,754 — 34,754 3,123,704 1,351 3,125,055 Allowance for loan losses ( 4,905 ) — ( 4,905 ) Total loans held for investment and loans held for investment at $ 3,118,799 $ 1,351 $ 3,120,150 December 31, 2021 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 2,498,466 $ 1,332 $ 2,499,798 Valuation adjustments on FVO loans — 27 27 Deferred loan origination costs 33,360 — 33,360 2,531,826 1,359 2,533,185 Allowance for loan losses ( 4,262 ) — ( 4,262 ) Total loans held for investment and loans held for investment at $ 2,527,564 $ 1,359 $ 2,528,923 |
Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program | The following tables summarize the Unpaid Principal Balance (“UPB”) and amortized cost basis of loans in the Company's COVID-19 forbearance program for the three and six months ended June 30, 2022 and the year ended December 31, 2021 ($ in thousands): Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 UPB % Amortized Cost % UPB % Amortized Cost % Beginning balance $ 260,709 $ 263,860 $ 292,429 $ 295,990 Foreclosures ( 1,427 ) ( 1,438 ) ( 1,427 ) ( 1,438 ) Repayments ( 22,968 ) ( 23,349 ) ( 54,688 ) ( 55,479 ) Ending balance $ 236,314 $ 239,073 $ 236,314 $ 239,073 Performing/Accruing $ 187,872 79.5 % $ 190,101 79.5 % $ 187,872 79.5 % $ 190,101 79.5 % Nonperforming/Nonaccrual $ 48,442 20.5 % $ 48,972 20.5 % $ 48,442 20.5 % $ 48,972 20.5 % December 31, 2021 UPB % Amortized Cost % Beginning balance $ 392,073 $ 396,918 Additions 2,616 2,615 Foreclosures ( 402 ) ( 408 ) Repayments ( 101,858 ) ( 103,135 ) Ending balance $ 292,429 $ 295,990 Performing/Accruing $ 233,307 79.8 % $ 236,076 79.8 % Nonperforming/Nonaccrual $ 59,122 20.2 % $ 59,914 20.2 % |
Schedule of Loans Held for Investment Pledged as Collateral for Warehouse Facilities and Securitizations Issued | As of June 30, 2022 and December 31, 2021, the gross unpaid principal balance of loans held for investment pledged as collateral for the Company’s warehouse facilities, and securitizations issued were as follows (in thousands): June 30, 2022 December 31, 2021 The 2013 repurchase agreement $ 105,783 $ 202,511 The 2021 repurchase agreement 101,570 114,072 The Bank credit agreement 33,962 30,959 The 2021 term repurchase agreement 29,828 53,217 The July 2021 term repurchase agreement 875 — Total pledged loans $ 272,018 $ 400,759 2015-1 Trust $ — $ 31,931 2016-1 Trust 44,917 52,623 2017-2 Trust 75,129 94,809 2018-1 Trust 58,384 71,051 2018-2 Trust 122,113 154,974 2019-1 Trust 116,326 144,727 2019-2 Trust 107,197 132,358 2019-3 Trust 87,283 103,266 2020-1 Trust 162,582 189,547 2020-2 Trust 86,339 98,403 2020-MC1 Trust — 134,957 2021-1 Trust 224,063 249,396 2021-2 Trust 186,540 198,039 2021-3 Trust 195,199 202,138 2021-4 Trust 293,146 314,547 2022-1 Trust 269,025 — 2022-2 Trust 250,812 — 2022-MC1 Trust 108,055 — 2022-3 Trust 310,432 — Total $ 2,697,542 $ 2,172,766 |
Schedule of Nonaccrual With No Allowance for Loan Loss and Total Nonaccrual of Loans Held for Investment | The following tables present the amortized cost basis, or recorded investment, of the Company’s loans held for investment that were nonperforming and on nonaccrual status as of June 30, 2022 and December 31, 2021. There were no loans accruing interest that were greater than 90 days past due as of June 30, 2022 and December 31, 2021. June 30, 2022 Total Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans with Allowance ($ in thousands) Commercial - Purchase $ 14,911 $ 14,647 $ 264 $ 6 0.1 % Commercial - Refinance 80,442 76,077 4,365 434 3.7 Residential 1-4 Unit - Purchase 22,885 22,542 343 52 0.4 Residential 1-4 Unit - Refinance 96,649 94,594 2,055 196 1.7 Short Term 1-4 Unit - Purchase 2,302 2,302 — — — Short Term 1-4 Unit - Refinance 38,013 33,268 4,745 476 4.0 Total $ 255,202 $ 243,430 $ 11,772 $ 1,164 9.9 % Troubled Debt Restructuring included $ 160 $ — $ — $ 25 — December 31, 2021 Total Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans with Allowance ($ in thousands) Commercial - Purchase $ 17,260 $ 16,501 $ 759 $ 9 0.1 % Commercial - Refinance 85,935 79,131 6,804 826 6.2 Residential 1-4 Unit - Purchase 17,385 17,128 257 96 0.7 Residential 1-4 Unit - Refinance 107,552 105,515 2,037 138 1.0 Short Term 1-4 Unit - Purchase 2,986 2,881 105 31 0.2 Short Term 1-4 Unit - Refinance 45,300 41,870 3,430 306 2.3 Total $ 276,418 $ 263,026 $ 13,392 $ 1,406 10.5 % Troubled Debt Restructuring included $ 165 $ — $ — $ 25 — |
Schedule of Accrued Interest Receivables Written Off by Reversing Interest Income by Portfolio Segment | The following tables present the amortized cost basis in the loans held for investment, excluding loans held for investment at fair value, as of June 30, 2022 and 2021, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, 2022 2021 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 677,491 $ 77 $ 366,737 $ 53 Commercial - Refinance 912,774 335 690,964 225 Residential 1-4 Unit - Purchase 529,796 61 276,896 63 Residential 1-4 Unit - Refinance 887,720 269 608,543 281 Short Term 1-4 Unit - Purchase 57,973 4 40,205 639 Short Term 1-4 Unit - Refinance 57,950 132 104,371 117 Total $ 3,123,704 $ 878 $ 2,087,716 $ 1,378 Six Months Ended June 30, 2022 2021 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 677,491 $ 192 $ 366,737 $ 192 Commercial - Refinance 912,774 587 690,964 693 Residential 1-4 Unit - Purchase 529,796 281 276,896 121 Residential 1-4 Unit - Refinance 887,720 566 608,543 801 Short Term 1-4 Unit - Purchase 57,973 25 40,205 685 Short Term 1-4 Unit - Refinance 57,950 371 104,371 358 Total $ 3,123,704 $ 2,022 $ 2,087,716 $ 2,850 |
Schedule of Activity in Allowance for Credit Losses | The following tables present the activity in the allowance for credit losses for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2022 $ 518 $ 2,140 $ 389 $ 1,029 $ 50 $ 537 $ 4,663 Provision for loan losses 94 ( 125 ) 51 241 ( 16 ) 34 279 Charge-offs — ( 19 ) — — — ( 18 ) ( 37 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated 606 1,562 388 1,074 34 77 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated 662,580 832,332 506,911 791,071 55,671 19,937 2,868,502 Three Months Ended June 30, 2021 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2021 $ 328 $ 1,990 $ 322 $ 1,227 $ 386 $ 1,628 $ 5,881 Provision for loan losses 48 28 ( 41 ) ( 229 ) ( 313 ) ( 493 ) ( 1,000 ) Charge-offs ( 114 ) ( 95 ) — ( 151 ) — ( 558 ) ( 918 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 Six Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2022 $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Provision for loan losses 374 ( 123 ) 40 427 ( 9 ) 300 1,009 Charge-offs ( 147 ) ( 25 ) — ( 105 ) — ( 89 ) ( 366 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated 606 1,562 388 1,074 34 77 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated 662,580 832,332 506,911 791,071 55,671 19,937 2,868,502 Six Months Ended June 30, 2021 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2021 $ 373 $ 2,093 $ 333 $ 1,216 $ 595 $ 1,235 $ 5,845 Provision for loan losses 3 ( 76 ) ( 15 ) ( 218 ) ( 508 ) ( 81 ) ( 895 ) Charge-offs ( 114 ) ( 94 ) ( 37 ) ( 151 ) ( 14 ) ( 577 ) ( 987 ) Ending balance $ 262 $ 1,923 $ 281 $ 847 $ 73 $ 577 $ 3,963 Allowance related to: Loans individually evaluated $ 57 $ 1,005 $ 120 $ 342 $ 56 $ 369 $ 1,949 Loans collectively evaluated 205 918 161 507 16 207 2,014 Amortized cost related to: Loans individually evaluated $ 19,314 $ 92,397 $ 21,084 $ 112,294 $ 23,883 $ 50,002 $ 318,974 Loans collectively evaluated 347,423 598,567 255,812 496,249 16,322 54,369 1,768,742 |
Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio | The following table presents the aging status of the amortized cost basis in the loans held for investment portfolio, excluding loans held for investment at fair value, which include $ 239.1 million and $ 296.0 million loans in the Company’s COVID-19 forbearance program as of June 30, 2022 and December 31, 2021, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total June 30, 2022 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 310 $ 1,875 $ 12,726 $ 14,911 $ — $ 14,911 Commercial - Refinance 3,551 6,314 70,417 80,282 160 80,442 Residential 1-4 Unit - Purchase 325 672 21,888 22,885 — 22,885 Residential 1-4 Unit - Refinance 1,029 2,701 92,919 96,649 — 96,649 Short Term 1-4 Unit - Purchase — — 2,302 2,302 — 2,302 Short Term 1-4 Unit - Refinance — 247 37,766 38,013 — 38,013 Total loans individually evaluated $ 5,215 $ 11,809 $ 238,018 $ 255,042 $ 160 $ 255,202 Loans collectively evaluated Commercial - Purchase $ 13,431 $ 9,952 $ — $ 23,383 $ 639,197 $ 662,580 Commercial - Refinance 30,249 14,483 — 44,732 787,600 832,332 Residential 1-4 Unit - Purchase 14,855 3,805 — 18,660 488,251 506,911 Residential 1-4 Unit - Refinance 42,227 10,519 — 52,746 738,325 791,071 Short Term 1-4 Unit - Purchase 3,052 677 — 3,729 51,942 55,671 Short Term 1-4 Unit - Refinance 3,476 570 — 4,046 15,891 19,937 Total loans collectively evaluated $ 107,290 $ 40,006 $ — $ 147,296 $ 2,721,206 $ 2,868,502 Ending balance $ 112,505 $ 51,815 $ 238,018 $ 402,338 $ 2,721,366 $ 3,123,704 30–59 days 60–89 days 90+days Total Total December 31, 2021 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 700 $ 2,314 $ 14,246 $ 17,260 $ — $ 17,260 Commercial - Refinance 4,464 6,818 74,488 85,770 165 85,935 Residential 1-4 Unit - Purchase — 682 16,703 17,385 — 17,385 Residential 1-4 Unit - Refinance 807 1,088 105,657 107,552 — 107,552 Short Term 1-4 Unit - Purchase 1,224 — 1,762 2,986 — 2,986 Short Term 1-4 Unit - Refinance 615 1,010 43,675 45,300 — 45,300 Total loans individually evaluated $ 7,810 $ 11,912 $ 256,531 $ 276,253 $ 165 $ 276,418 Loans collectively evaluated Commercial - Purchase $ 17,319 $ 4,034 $ — $ 21,353 $ 470,808 $ 492,161 Commercial - Refinance 31,769 7,025 — 38,794 658,532 697,326 Residential 1-4 Unit - Purchase 14,905 5,580 — 20,485 370,900 391,385 Residential 1-4 Unit - Refinance 39,045 9,548 — 48,593 574,175 622,768 Short Term 1-4 Unit - Purchase 21,412 217 — 21,629 4,374 26,003 Short Term 1-4 Unit - Refinance 4,060 5,561 — 9,621 16,144 25,765 Total loans collectively evaluated $ 128,510 $ 31,965 $ — $ 160,475 $ 2,094,933 $ 2,255,408 Ending balance $ 136,320 $ 43,877 $ 256,531 $ 436,728 $ 2,095,098 $ 2,531,826 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due. |
Schedule of Amortized Cost in Loans Held for Investment based on Accrual Status and by Loan Origination Year | The following tables present the amortized cost in loans held for investment, excluding loans held for investment at fair value, based on accrual status and by loan origination year as of June 30, 2022 and December 31, 2021 (in thousands). Term Loans Amortized Cost Basis by Origination Year June 30, 2022: 2022 2021 2020 2019 2018 Pre-2018 Total Commercial - Purchase Payment performance Performing $ 215,509 $ 268,001 $ 41,591 $ 64,227 $ 39,948 $ 33,304 $ 662,580 Nonperforming — 1,212 186 6,540 1,535 5,438 14,911 Total Commercial - Purchase $ 215,509 $ 269,213 $ 41,777 $ 70,767 $ 41,483 $ 38,742 $ 677,491 Commercial - Refinance Payment performance Performing $ 224,064 $ 225,103 $ 58,086 $ 124,285 $ 100,753 $ 100,041 $ 832,332 Nonperforming 540 8,266 3,857 21,462 20,646 25,671 80,442 Total Commercial - Refinance $ 224,604 $ 233,369 $ 61,943 $ 145,747 $ 121,399 $ 125,712 $ 912,774 Residential 1-4 Unit - Purchase Payment performance Performing $ 162,492 $ 242,544 $ 11,541 $ 39,733 $ 22,505 $ 28,096 $ 506,911 Nonperforming 985 8,063 2,169 3,042 3,474 5,152 22,885 Total Residential 1-4 $ 163,477 $ 250,607 $ 13,710 $ 42,775 $ 25,979 $ 33,248 $ 529,796 Residential 1-4 Unit - Refinance Payment performance Performing $ 247,970 $ 314,865 $ 26,150 $ 95,470 $ 44,360 $ 62,256 $ 791,071 Nonperforming 509 14,566 7,111 28,920 24,066 21,477 96,649 Total Residential 1-4 $ 248,479 $ 329,431 $ 33,261 $ 124,390 $ 68,426 $ 83,733 $ 887,720 Short Term 1-4 Unit - Purchase Payment performance Performing $ 29,097 $ 7,493 $ 15,037 $ 4,044 $ — $ — $ 55,671 Nonperforming — — 995 1,202 105 — 2,302 Total Short Term 1-4 $ 29,097 $ 7,493 $ 16,032 $ 5,246 $ 105 $ — $ 57,973 Short Term 1-4 Unit - Refinance Payment performance Performing $ 13,024 $ 1,582 $ 2,543 $ 2,788 $ — $ — $ 19,937 Nonperforming — 244 12,464 20,264 5,041 — 38,013 Total Short Term 1-4 $ 13,024 $ 1,826 $ 15,007 $ 23,052 $ 5,041 $ — $ 57,950 Total Portfolio $ 894,190 $ 1,091,939 $ 181,730 $ 411,977 $ 262,433 $ 281,435 $ 3,123,704 Term Loans Amortized Cost Basis by Origination Year December 31, 2021 2021 2020 2019 2018 2017 Pre-2017 Total Commercial - Purchase Payment performance Performing $ 277,618 $ 45,836 $ 81,541 $ 46,637 $ 24,164 $ 16,365 $ 492,161 Nonperforming 288 1,781 5,541 4,180 3,539 1,931 17,260 Total Commercial - Purchase $ 277,906 $ 47,617 $ 87,082 $ 50,817 $ 27,703 $ 18,296 $ 509,421 Commercial - Refinance Payment performance Performing $ 239,688 $ 64,966 $ 144,017 $ 118,735 $ 62,374 $ 67,545 $ 697,325 Nonperforming 2,482 3,949 26,012 26,869 16,492 10,131 85,935 Total Commercial - Refinance $ 242,170 $ 68,915 $ 170,029 $ 145,604 $ 78,866 $ 77,676 $ 783,260 Residential 1-4 Unit - Purchase Payment performance Performing $ 263,180 $ 12,878 $ 48,930 $ 29,544 $ 12,863 $ 23,990 $ 391,385 Nonperforming 1,372 2,749 3,896 3,736 3,487 2,145 17,385 Total Residential 1-4 $ 264,552 $ 15,627 $ 52,826 $ 33,280 $ 16,350 $ 26,135 $ 408,770 Residential 1-4 Unit - Refinance Payment performance Performing $ 343,199 $ 31,334 $ 114,145 $ 59,825 $ 31,774 $ 42,491 $ 622,768 Nonperforming 11,646 6,040 31,816 30,626 16,677 10,747 107,552 Total Residential 1-4 $ 354,845 $ 37,374 $ 145,961 $ 90,451 $ 48,451 $ 53,238 $ 730,320 Short Term 1-4 Unit - Purchase Payment performance Performing $ 1,890 $ 15,582 $ 8,531 $ — $ — $ — $ 26,003 Nonperforming — 1,565 1,316 105 — — 2,986 Total Short Term 1-4 $ 1,890 $ 17,147 $ 9,847 $ 105 $ — $ — $ 28,989 Short Term 1-4 Unit - Refinance Payment performance Performing $ 1,448 $ 11,991 $ 12,326 $ — $ — $ — $ 25,765 Nonperforming 1,038 15,819 22,618 5,825 — — 45,300 Total Short Term 1-4 $ 2,486 $ 27,810 $ 34,944 $ 5,825 $ — $ — $ 71,065 Total Portfolio $ 1,143,849 $ 214,490 $ 500,689 $ 326,082 $ 171,370 $ 175,345 $ 2,531,825 |
Receivables Due From Servicers
Receivables Due From Servicers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Receivables Due from Servicers | The following tables summarize receivables due from servicers as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 Securitizations Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 41,347 $ 1,855 $ 43,202 Other loan servicing receivables 13,024 1,414 14,438 Loan servicing receivables 54,371 3,269 57,640 Corporate and escrow advances receivable 17,985 63 18,048 Total receivables due from servicers $ 72,356 $ 3,332 $ 75,688 December 31, 2021 Securitizations Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 42,344 $ 1,165 $ 43,509 Other loan servicing receivables 10,718 730 11,448 Loan servicing receivables 53,062 1,895 54,957 Corporate and escrow advances receivable 17,884 1,489 19,373 Total receivables due from servicers $ 70,946 $ 3,384 $ 74,330 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers And Servicing [Abstract] | |
Summary of Mortgage Servicing Rights | The following table presents the Company's mortgage servicing rights (in thousands): June 30, 2022 December 31, 2021 Balance at the beginning of year $ 7,152 $ — Mortgage servicing rights acquired, at fair value — 7,152 Additions — — Fair value adjustments 1,286 — Balance at end of period $ 8,438 $ 7,152 |
Securitizations Net (Tables)
Securitizations Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers And Servicing [Abstract] | |
Summary of Outstanding Balance Net of Discounts and Deals Costs of Securities and Effective Interest Rate | The following table summarizes the outstanding balance, net of discounts and deal costs, of the securities and the effective interest rate for the six months ended June 30, 2022 and 2021 ($ in thousands): Six Months Ended June 30, Securitizations: 2022 2021 Securitizations, net $ 2,477,226 $ 1,558,163 Interest expense 44,428 37,333 Average outstanding balance 2,175,263 1,545,969 Effective interest rate (1) 4.08 % 4.83 % (1) Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 3.38 % and debt issuance cost amortization of 0.70 % and average rate of 4.12 % and debt issuance cost amortization of 0.71 % for the six months ended June 30, 2022 and 2021 , respectively. |
Other Debt (Tables)
Other Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding | The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Period end (1) Maximum Period end (1) Maximum The 2021 term repurchase agreement $ 21,632 $ 100,000 $ 41,636 $ 100,000 The 2021 repurchase agreement 78,608 200,000 82,580 200,000 The July 2021 term repurchase agreement 454 100,000 — 100,000 The 2013 repurchase agreement 83,923 300,000 153,499 200,000 The Bank credit agreement 25,587 50,000 22,385 50,000 The 2019 loan agreement — — 2,700 3,000 Total $ 210,204 $ 750,000 $ 302,800 $ 653,000 (1) Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $ 1.8 million and $ 1.7 million as of June 30, 2022 and December 31, 2021 , respectively. |
Schedule of Activity and Effective Interest Rate | The following table provides an overview of the activity and effective interest rate for the three and six months ended June 30, 2022 and 2021 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Warehouse and repurchase facilities: Average outstanding balance $ 318,960 $ 166,981 $ 328,603 $ 140,254 Highest outstanding balance at any month-end 379,169 250,927 426,959 250,927 Effective interest rate (1) 5.16 % 5.65 % 4.80 % 5.80 % (1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance. The rate includes average rate of 4.59 % and debt issuance cost amortization of 0.57 %, and average rate of 4.44 % and debt issuance cost amortization of 1.21 %, for the three months ended June 30, 2022 and 2021 , respectively, and includes average rate of 4.23 % and debt issuance cost amortization of 0.57 %, and average rate 4.58 % and debt issuance cost amortization 1.22 % for the six months ended June 30, 2022 and 2021 , respectively. |
Summary of Interest Expense | The following table provides a summary of interest expense that includes debt issuance cost amortization, interest, amortization of discount, and deal cost amortization for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Warehouse and repurchase facilities $ 4,115 $ 2,361 $ 7,880 $ 4,067 Securitizations 24,637 18,205 44,428 37,332 Interest expense — portfolio related 28,752 20,566 52,308 41,399 Interest expense — corporate debt 4,182 4,309 21,322 11,658 (1) Total interest expense $ 32,934 $ 24,875 $ 73,630 $ 53,057 (1) Included in the $ 11.7 million of interest expense – corporate debt for the six months ended June 30, 2021 was the one-time debt issuance costs write-off of $ 2.9 million and prepayment fee of $ 1.6 million associated with the payoff of $ 78.0 million in outstanding principal amount in February 2021. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share Calculations | The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands, except per share data) (In thousands, except per share data) Basic EPS: Net income attributable to common stockholders $ 10,645 $ 9,453 $ 13,766 $ 12,849 Less: undistributed earnings attributable to participating securities 164 3,571 212 4,854 Net earnings attributable to common stock $ 10,481 $ 5,882 $ 13,554 $ 7,995 Weighted average common shares outstanding 31,917 20,087 31,904 20,087 Basic earnings per common share $ 0.33 $ 0.29 $ 0.42 $ 0.40 Diluted EPS: Net income attributable to common stockholders $ 10,645 $ 9,453 $ 13,766 $ 12,849 Weighted average common shares outstanding 31,917 20,087 31,904 20,087 Add dilutive effects for assumed conversion of Series A preferred stock — 11,688 — 11,688 Add dilutive effects for warrants 1,986 1,985 2,057 1,786 Add dilutive effects for stock options 4 3 4 2 Add dilutive effects of unvested restricted stock awards 150 197 165 121 Weighted average diluted common shares outstanding 34,057 33,960 34,130 33,684 Diluted income per common share $ 0.31 $ 0.28 $ 0.40 $ 0.38 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock options 773 773 773 773 Unvested restricted stock awards 125 — 125 — Unvested performance-based stock units 103 — 103 — Share equivalents excluded from EPS 1,001 773 1,001 773 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Information on Assets Measured and Recorded at Fair Value | The following tables present information on assets measured and recorded at fair value as of June 30, 2022 and December 31, 2021, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at June 30, 2022 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,351 $ 1,351 Mortgage servicing rights — — 8,438 8,438 Total recurring fair value measurements — — 9,789 9,789 Nonrecurring fair value measurements: Real estate owned, net — — 19,218 19,218 Individually evaluated loans requiring specific allowance, net — — 10,608 10,608 Total nonrecurring fair value measurements — — 29,826 29,826 Total assets $ — $ — $ 39,615 $ 39,615 Fair value measurements using Total at December 31, 2021 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 1,359 $ 1,359 Mortgage servicing rights — — 7,152 7,152 Total recurring fair value measurements — — 8,511 8,511 Nonrecurring fair value measurements: Loans held for sale, net — — 87,422 87,422 Real estate owned, net — — 17,557 17,557 Impaired loans requiring specific allowance, net — — 11,987 11,987 Total nonrecurring fair value measurements — — 116,966 116,966 Total assets $ — $ — $ 125,477 $ 125,477 |
Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis | The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on assets measured on a nonrecurring basis 2022 2021 2022 2021 Loans held for sale, net $ — $ ( 15 ) $ — $ 2 Real estate held for sale, net ( 143 ) ( 800 ) 93 ( 1,235 ) Individually evaluated loans requiring specific allowance, net 434 1,029 242 720 Total net gain (loss) $ 291 $ 214 $ 335 $ ( 513 ) |
Valuation Techniques and Unobservable Inputs Related to Level 3 Assets | The following tables present the primary valuation techniques and unobservable inputs related to Level 3 assets as of June 30, 2022 and December 31, 2021 ($ in thousands): June 30, 2022 Asset category Fair value Primary Unobservable Range Weighted Individually evaluated $ 10,608 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 19,218 Market comparables Selling costs 8.0 % 8.0 % Loans held for investment, 1,351 Discounted cash flow Discount rate 5.8 % 5.8 % Collateral value (% of UPB) 97 % to 120.0 % 107.0 % Timing of resolution/payoff (months) 1.0 to 40.0 38.0 Prepayment rate 1.0 % to 30.0 % 30.0 % Default rate 0.0 % to 6.3 % 0.6 % Loss severity rate 0.0 % to 21.0 % 4.0 % Mortgage servicing rights 8,438 Discounted cash flow Discount rate 8 % to 12.0 % 8.1 % Prepayment rate 0.8 % to 6.0 % 2.2 % December 31, 2021 Asset category Fair value Primary Unobservable Range Weighted Individually evaluated $ 11,987 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 17,557 Market comparables Selling costs 8.0 % 8.0 % Loans held for investment, 1,359 Discounted cash flow Discount rate 5.8 % 5.8 % Collateral value (% of UPB) 95.0 % to 120.0 % 106.0 % Timing of resolution/payoff (months) 1 to 38 34.8 Prepayment rate 19.2 % to 50 % 30.0 % Default rate 0.0 % to 6.7 % 1.0 % Loss severity rate 0.0 % to 13.4 % 3.0 % Loans held for sale 87,422 Discounted cash flow Discount rate 5.8 % 5.8 % Timing of resolution/payoff (months) 3 to 37 13.0 Mortgage servicing rights 7,152 Discounted cash flow Discount rate 8.0 % to 12.0 % 8.0 % Prepayment rate 2.4 % to 3.5 % 3.2 % |
Rollforward of Loans and Interest Only Strips Measured at Estimated Fair Value on Recurring Basis | The following is a rollforward of loans that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning balance $ 1,352 $ 1,364 $ 1,359 $ 1,539 Loans liquidated — — — ( 163 ) Principal paydowns ( 7 ) ( 14 ) ( 24 ) ( 24 ) Total unrealized gain included in net income 6 20 16 18 Ending balance $ 1,351 $ 1,370 $ 1,351 $ 1,370 The following is a rollforward of interest-only strips that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Beginning balance $ — $ 125 $ — $ 238 Interest-only strip additions — — — — Interest-only strip write-offs — ( 44 ) — ( 157 ) Total unrealized loss included in net income — — — — Ending balance $ — $ 81 $ — $ 81 |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated (in thousands): June 30, 2022 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 46,250 $ 46,250 $ — $ — $ 46,250 Restricted cash 9,217 9,217 — — 9,217 Loans held for investment, net 3,118,799 — — 3,295,277 3,295,277 Loans held for investment, at fair value 1,351 — — 1,351 1,351 Accrued interest receivables 15,820 15,820 — — 15,820 Mortgage servicing rights 8,438 — — 8,438 8,438 Liabilities: Secured financing, net $ 209,227 $ — $ — $ 212,827 $ 212,827 Warehouse repurchase facilities, net 208,390 — 208,390 — 208,390 Securitizations, net 2,477,226 — — 2,312,506 2,312,506 Accrued interest payable 13,074 13,074 — — 13,074 December 31, 2021 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 35,965 $ 35,965 $ — $ — $ 35,965 Restricted cash 11,639 11,639 — — 11,639 Loans held for sale, net 87,908 — — 87,908 87,908 Loans held for investment, net 2,527,564 — — 2,655,357 2,655,357 Loans held for investment, at fair value 1,359 — — 1,359 1,359 Accrued interest receivable 13,159 13,159 — — 13,159 Mortgage servicing rights 7,152 — — 7,152 7,152 Liabilities: Secured financing, net $ 162,845 $ — $ — $ 170,843 $ 170,843 Warehouse repurchase facilities, net 301,069 — 301,069 — 301,069 Securitizations, net 1,911,879 — — 1,931,002 1,931,002 Accrued interest payable 6,254 6,254 — — 6,254 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) - USD ($) | 6 Months Ended | ||||
Dec. 28, 2021 | Jan. 28, 2020 | Jan. 22, 2020 | Jun. 30, 2022 | Jan. 16, 2020 | |
Class Of Stock [Line Items] | |||||
Date of incorporation | Jul. 09, 2012 | ||||
Minimum net worth required | $ 250,000 | ||||
Century | |||||
Class Of Stock [Line Items] | |||||
Payments to acquire businesses | $ 12,800,000 | ||||
Percentage of voting interests acquired | 80% | ||||
Class A equity units | |||||
Class Of Stock [Line Items] | |||||
Shares issued upon conversion of equity units | 97,513,533 | ||||
Class D equity units | |||||
Class Of Stock [Line Items] | |||||
Shares issued upon conversion of equity units | 60,193,989 | ||||
Common Stock | |||||
Class Of Stock [Line Items] | |||||
Shares issued upon conversion of equity units | 11,749,994 | ||||
Issuance of common stock, shares | 1,087,500 | 7,250,000 | |||
Stock price | $ 13 | $ 13 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 46,250 | $ 35,965 | $ 27,741 | |
Restricted cash | 9,217 | 11,639 | 7,921 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 55,467 | $ 47,604 | $ 35,662 | $ 20,293 |
Loans Held for Sale, Net - Summ
Loans Held for Sale, Net - Summary of Loans Held for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Held For Sale [Abstract] | ||
Unpaid principal balance | $ 0 | $ 87,422 |
Valuation adjustments | 0 | |
Deferred loan origination costs | 0 | 486 |
Ending balance | $ 0 | $ 87,908 |
Loans Held for Investment and_3
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Allowance for loan losses | $ (4,905) | $ (4,663) | $ (4,262) | $ (3,963) | $ (5,881) | $ (5,845) |
Net Loans Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 3,088,950 | 2,498,466 | ||||
Deferred loan origination costs | 34,754 | 33,360 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 3,123,704 | 2,531,826 | ||||
Allowance for loan losses | (4,905) | (4,262) | ||||
Total loans held for investment and loans held for investment at fair value, net | 3,118,799 | 2,527,564 | ||||
Loans At Fair Value Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 1,308 | 1,332 | ||||
Valuation adjustments on FVO loans | 43 | 27 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 1,351 | 1,359 | ||||
Total loans held for investment and loans held for investment at fair value, net | 1,351 | 1,359 | ||||
Total Loans Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 3,090,258 | 2,499,798 | ||||
Valuation adjustments on FVO loans | 43 | 27 | ||||
Deferred loan origination costs | 34,754 | 33,360 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 3,125,055 | 2,533,185 | ||||
Allowance for loan losses | (4,905) | (4,262) | ||||
Total loans held for investment and loans held for investment at fair value, net | $ 3,120,150 | $ 2,528,923 |
Loans Held for Investment and_4
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program (Details) - COVID 19 Forbearance Program - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
UPB Beginning balance | $ 260,709 | $ 292,429 | $ 392,073 | |
UPB Additions | 2,616 | |||
UPB Foreclosures | (1,427) | (1,427) | (402) | |
UPB Repayments | (22,968) | (54,688) | (101,858) | |
UPB Ending balance | 236,314 | 236,314 | 292,429 | |
UPB Performing/Accruing, Amount | 187,872 | 187,872 | 233,307 | |
UPB Nonperforming/Nonaccrual, Amount | $ 48,442 | $ 48,442 | $ 59,122 | |
UPB Performing/Accruing, Percentage | 79.50% | 79.50% | 79.80% | 79.50% |
UPB Nonperforming/Nonaccrual, Percentage | 20.50% | 20.50% | 20.20% | 20.50% |
Amortized Cost Beginning balance | $ 263,860 | $ 295,990 | $ 396,918 | |
Amortized Cost Additions | 2,615 | |||
Amortized Cost Foreclosures | (1,438) | (1,438) | (408) | |
Amortized Cost Repayments | (23,349) | (55,479) | (103,135) | |
Amortized Cost Ending balance | 239,073 | 239,073 | 295,990 | |
Amortized Cost Performing/Accruing, Amount | 190,101 | 190,101 | 236,076 | |
Amortized Cost Nonperforming/Nonaccrual, Amount | $ 48,972 | $ 48,972 | $ 59,914 | |
Amortized Cost Performing/Accruing, Percentage | 79.50% | 79.50% | 79.80% | 79.50% |
Amortized Cost Nonperforming/Nonaccrual, Percentage | 20.50% | 20.50% | 20.20% | 20.50% |
Loans Held for Investment and_5
Loans Held for Investment and Loans Held for Investment at Fair Value - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 27 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Accrued interest income recognized on nonaccrual loans | $ 0 | $ 0 | ||||||
Cash basis interest income recognized on nonaccrual loans | 8,700,000 | $ 9,900,000 | 16,000,000 | $ 16,700,000 | ||||
Average recorded investment of individually evaluated loans, computed using month-end balances | 260,800,000 | $ 337,900,000 | $ 271,300,000 | $ 337,500,000 | ||||
Stress Scenario , Descriptions | For the June 30, 2022 estimate, the Company considered a severe stress scenario with a six-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. Management concluded that applying the severe stress scenario was appropriate given the uncertainty around future COVID cases, the war between Russia and Ukraine, spike in inflation, continued disruption in the supply chain, and concerns of a recession. | |||||||
COVID-19 | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Loans | 239,100,000 | $ 239,100,000 | $ 296,000,000 | $ 239,100,000 | ||||
90+days | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Annualized charge rate of non performing loans | 0.27% | 0.42% | ||||||
COVID 19 Forbearance Program | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Amount of loan granted for unusual risk forbearance | $ 188,800,000 | $ 188,800,000 | 188,800,000 | $ 409,000,000 | ||||
Accrued interest income recognized on nonaccrual loans | $ 3,800,000 | $ 10,900,000 | ||||||
Loans held for investment unpaid principal balance performing and accruing, percentage | 79.50% | 79.50% | 79.80% | 79.50% | 79.50% | |||
Loans held for investment unpaid principal balance nonperforming and nonaccrual percentage | 20.50% | 20.50% | 20.20% | 20.50% | 20.50% |
Loans Held for Investment and_6
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Loans Held for Investment Pledged as Collateral for Warehouse Facilities and Securitizations Issued (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | $ 272,018 | $ 400,759 |
Total | 2,697,542 | 2,172,766 |
2013 Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 105,783 | 202,511 |
2021 Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 101,570 | 114,072 |
Bank Credit Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 33,962 | 30,959 |
2021 Term Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 29,828 | 53,217 |
July 2021 Term Repurchase Agreement | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 875 | |
2015-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 31,931 | |
2016-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 44,917 | 52,623 |
2017-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 75,129 | 94,809 |
2018-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 58,384 | 71,051 |
2018-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 122,113 | 154,974 |
2019-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 116,326 | 144,727 |
2019-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 107,197 | 132,358 |
2019-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 87,283 | 103,266 |
2020-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 162,582 | 189,547 |
2020-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 86,339 | 98,403 |
2020-MC1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 134,957 | |
2021-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 224,063 | 249,396 |
2021-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 186,540 | 198,039 |
2021-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 195,199 | 202,138 |
2021-4 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 293,146 | $ 314,547 |
2022-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 269,025 | |
2022-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 250,812 | |
2022-MC1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 108,055 | |
2022-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 310,432 |
Loans Held for Investment and_7
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Nonaccrual With No Allowance for Loan Loss and Total Nonaccrual of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 255,202 | $ 276,418 | |
Nonaccrual with No Allowance for Loan Loss | 243,430 | 263,026 | |
Nonaccrual with Allowance for Loan Loss | 11,772 | 13,392 | |
Allowance for Loans Individually Evaluated | $ 1,164 | $ 1,406 | $ 1,949 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 9.90% | 10.50% | |
Troubled Debt Restructuring included in nonaccrual loans: | $ 160 | $ 165 | |
Commercial - Purchase | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | 14,911 | 17,260 | |
Nonaccrual with No Allowance for Loan Loss | 14,647 | 16,501 | |
Nonaccrual with Allowance for Loan Loss | 264 | 759 | |
Allowance for Loans Individually Evaluated | $ 6 | $ 9 | 57 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 0.10% | 0.10% | |
Commercial - Refinance | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 80,442 | $ 85,935 | |
Nonaccrual with No Allowance for Loan Loss | 76,077 | 79,131 | |
Nonaccrual with Allowance for Loan Loss | 4,365 | 6,804 | |
Allowance for Loans Individually Evaluated | $ 434 | $ 826 | 1,005 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 3.70% | 6.20% | |
Residential 1-4 Unit - Purchase | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 22,885 | $ 17,385 | |
Nonaccrual with No Allowance for Loan Loss | 22,542 | 17,128 | |
Nonaccrual with Allowance for Loan Loss | 343 | 257 | |
Allowance for Loans Individually Evaluated | $ 52 | $ 96 | 120 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 0.40% | 0.70% | |
Residential 1-4 Unit - Refinance | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 96,649 | $ 107,552 | |
Nonaccrual with No Allowance for Loan Loss | 94,594 | 105,515 | |
Nonaccrual with Allowance for Loan Loss | 2,055 | 2,037 | |
Allowance for Loans Individually Evaluated | $ 196 | $ 138 | 342 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 1.70% | 1% | |
Short Term 1-4 Unit - Purchase | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 2,302 | $ 2,986 | |
Nonaccrual with No Allowance for Loan Loss | 2,302 | 2,881 | |
Nonaccrual with Allowance for Loan Loss | 105 | ||
Allowance for Loans Individually Evaluated | $ 31 | 56 | |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 0.20% | ||
Short Term 1-4 Unit - Refinance | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | 38,013 | $ 45,300 | |
Nonaccrual with No Allowance for Loan Loss | 33,268 | 41,870 | |
Nonaccrual with Allowance for Loan Loss | 4,745 | 3,430 | |
Allowance for Loans Individually Evaluated | $ 476 | $ 306 | $ 369 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 4% | 2.30% | |
Individual Loan Evaluation | |||
Financing Receivable Impaired [Line Items] | |||
Troubled Debt Restructuring included in nonaccrual loans: | $ 25 | $ 25 |
Loans Held for Investment and_8
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Accrued Interest Receivables Written Off by Reversing Interest Income by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | $ 3,123,704 | $ 2,087,716 | $ 3,123,704 | $ 2,087,716 |
Financing Receivable, Accrued Interest, Writeoff | 878 | 1,378 | 2,022 | 2,850 |
Commercial - Purchase | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 677,491 | 366,737 | 677,491 | 366,737 |
Financing Receivable, Accrued Interest, Writeoff | 77 | 53 | 192 | 192 |
Commercial - Refinance | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 912,774 | 690,964 | 912,774 | 690,964 |
Financing Receivable, Accrued Interest, Writeoff | 335 | 225 | 587 | 693 |
Residential 1-4 Unit - Purchase | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 529,796 | 276,896 | 529,796 | 276,896 |
Financing Receivable, Accrued Interest, Writeoff | 61 | 63 | 281 | 121 |
Residential 1-4 Unit - Refinance | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 887,720 | 608,543 | 887,720 | 608,543 |
Financing Receivable, Accrued Interest, Writeoff | 269 | 281 | 566 | 801 |
Short Term 1-4 Unit - Purchase | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 57,973 | 40,205 | 57,973 | 40,205 |
Financing Receivable, Accrued Interest, Writeoff | 4 | 639 | 25 | 685 |
Short Term 1-4 Unit - Refinance | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 57,950 | 104,371 | 57,950 | 104,371 |
Financing Receivable, Accrued Interest, Writeoff | $ 132 | $ 117 | $ 371 | $ 358 |
Loans Held for Investment and_9
Loans Held for Investment and Loans Held for Investment at Fair Value - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Allowance for credit losses: | |||||
Beginning balance | $ 4,663 | $ 5,881 | $ 4,262 | $ 5,845 | |
Provision for loan losses | 279 | (1,000) | 1,009 | (895) | |
Charge-offs | (37) | (918) | (366) | (987) | |
Ending balance | 4,905 | 3,963 | 4,905 | 3,963 | |
Allowance for Loans Individually Evaluated | 1,164 | 1,949 | 1,164 | 1,949 | $ 1,406 |
Allowance related to Loans collectively evaluated | 3,741 | 2,014 | 3,741 | 2,014 | |
Amortized cost related to Loans individually evaluated | 255,202 | 318,974 | 255,202 | 318,974 | |
Amortized cost related to Loans collectively evaluated | 2,868,502 | 1,768,742 | 2,868,502 | 1,768,742 | |
Commercial - Purchase | |||||
Allowance for credit losses: | |||||
Beginning balance | 518 | 328 | 385 | 373 | |
Provision for loan losses | 94 | 48 | 374 | 3 | |
Charge-offs | (114) | (147) | (114) | ||
Ending balance | 612 | 262 | 612 | 262 | |
Allowance for Loans Individually Evaluated | 6 | 57 | 6 | 57 | 9 |
Allowance related to Loans collectively evaluated | 606 | 205 | 606 | 205 | |
Amortized cost related to Loans individually evaluated | 14,911 | 19,314 | 14,911 | 19,314 | |
Amortized cost related to Loans collectively evaluated | 662,580 | 347,423 | 662,580 | 347,423 | |
Commercial - Refinance | |||||
Allowance for credit losses: | |||||
Beginning balance | 2,140 | 1,990 | 2,144 | 2,093 | |
Provision for loan losses | (125) | 28 | (123) | (76) | |
Charge-offs | (19) | (95) | (25) | (94) | |
Ending balance | 1,996 | 1,923 | 1,996 | 1,923 | |
Allowance for Loans Individually Evaluated | 434 | 1,005 | 434 | 1,005 | 826 |
Allowance related to Loans collectively evaluated | 1,562 | 918 | 1,562 | 918 | |
Amortized cost related to Loans individually evaluated | 80,442 | 92,397 | 80,442 | 92,397 | |
Amortized cost related to Loans collectively evaluated | 832,332 | 598,567 | 832,332 | 598,567 | |
Residential 1-4 Unit - Purchase | |||||
Allowance for credit losses: | |||||
Beginning balance | 389 | 322 | 400 | 333 | |
Provision for loan losses | 51 | (41) | 40 | (15) | |
Charge-offs | (37) | ||||
Ending balance | 440 | 281 | 440 | 281 | |
Allowance for Loans Individually Evaluated | 52 | 120 | 52 | 120 | 96 |
Allowance related to Loans collectively evaluated | 388 | 161 | 388 | 161 | |
Amortized cost related to Loans individually evaluated | 22,885 | 21,084 | 22,885 | 21,084 | |
Amortized cost related to Loans collectively evaluated | 506,911 | 255,812 | 506,911 | 255,812 | |
Residential 1-4 Unit - Refinance | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,029 | 1,227 | 948 | 1,216 | |
Provision for loan losses | 241 | (229) | 427 | (218) | |
Charge-offs | (151) | (105) | (151) | ||
Ending balance | 1,270 | 847 | 1,270 | 847 | |
Allowance for Loans Individually Evaluated | 196 | 342 | 196 | 342 | 138 |
Allowance related to Loans collectively evaluated | 1,074 | 507 | 1,074 | 507 | |
Amortized cost related to Loans individually evaluated | 96,649 | 112,294 | 96,649 | 112,294 | |
Amortized cost related to Loans collectively evaluated | 791,071 | 496,249 | 791,071 | 496,249 | |
Short Term 1-4 Unit - Purchase | |||||
Allowance for credit losses: | |||||
Beginning balance | 50 | 386 | 43 | 595 | |
Provision for loan losses | (16) | (313) | (9) | (508) | |
Charge-offs | (14) | ||||
Ending balance | 34 | 73 | 34 | 73 | |
Allowance for Loans Individually Evaluated | 56 | 56 | 31 | ||
Allowance related to Loans collectively evaluated | 34 | 16 | 34 | 16 | |
Amortized cost related to Loans individually evaluated | 2,302 | 23,883 | 2,302 | 23,883 | |
Amortized cost related to Loans collectively evaluated | 55,671 | 16,322 | 55,671 | 16,322 | |
Short Term 1-4 Unit - Refinance | |||||
Allowance for credit losses: | |||||
Beginning balance | 537 | 1,628 | 342 | 1,235 | |
Provision for loan losses | 34 | (493) | 300 | (81) | |
Charge-offs | (18) | (558) | (89) | (577) | |
Ending balance | 553 | 577 | 553 | 577 | |
Allowance for Loans Individually Evaluated | 476 | 369 | 476 | 369 | $ 306 |
Allowance related to Loans collectively evaluated | 77 | 207 | 77 | 207 | |
Amortized cost related to Loans individually evaluated | 38,013 | 50,002 | 38,013 | 50,002 | |
Amortized cost related to Loans collectively evaluated | $ 19,937 | $ 54,369 | $ 19,937 | $ 54,369 |
Loans Held for Investment an_10
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio (Details) - COVID19 Pandemic - Aging Status and Accrual Status - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 3,123,704 | $ 2,531,826 |
Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 255,202 | 276,418 |
Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 14,911 | 17,260 |
Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 80,442 | 85,935 |
Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 22,885 | 17,385 |
Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 96,649 | 107,552 |
Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 2,302 | 2,986 |
Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 38,013 | 45,300 |
Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 2,868,502 | 2,255,408 |
Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 662,580 | 492,161 |
Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 832,332 | 697,326 |
Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 506,911 | 391,385 |
Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 791,071 | 622,768 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 55,671 | 26,003 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 19,937 | 25,765 |
30-59 days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 112,505 | 136,320 |
30-59 days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,215 | 7,810 |
30-59 days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 310 | 700 |
30-59 days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,551 | 4,464 |
30-59 days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 325 | |
30-59 days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,029 | 807 |
30-59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,224 | |
30-59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 615 | |
30-59 days | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 107,290 | 128,510 |
30-59 days | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 13,431 | 17,319 |
30-59 days | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 30,249 | 31,769 |
30-59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 14,855 | 14,905 |
30-59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 42,227 | 39,045 |
30-59 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,052 | 21,412 |
30-59 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,476 | 4,060 |
60-89 days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 51,815 | 43,877 |
60-89 days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 11,809 | 11,912 |
60-89 days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,875 | 2,314 |
60-89 days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 6,314 | 6,818 |
60-89 days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 672 | 682 |
60-89 days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,701 | 1,088 |
60-89 days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 247 | 1,010 |
60-89 days | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 40,006 | 31,965 |
60-89 days | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 9,952 | 4,034 |
60-89 days | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 14,483 | 7,025 |
60-89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,805 | 5,580 |
60-89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 10,519 | 9,548 |
60-89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 677 | 217 |
60-89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 570 | 5,561 |
90+days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 238,018 | 256,531 |
90+days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 238,018 | 256,531 |
90+days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 12,726 | 14,246 |
90+days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 70,417 | 74,488 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 21,888 | 16,703 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 92,919 | 105,657 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,302 | 1,762 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 37,766 | 43,675 |
Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 402,338 | 436,728 |
Past Due | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 255,042 | 276,253 |
Past Due | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 14,911 | 17,260 |
Past Due | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 80,282 | 85,770 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 22,885 | 17,385 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 96,649 | 107,552 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,302 | 2,986 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 38,013 | 45,300 |
Past Due | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 147,296 | 160,475 |
Past Due | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 23,383 | 21,353 |
Past Due | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 44,732 | 38,794 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 18,660 | 20,485 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 52,746 | 48,593 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,729 | 21,629 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 4,046 | 9,621 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,721,366 | 2,095,098 |
Current | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 160 | 165 |
Current | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 160 | 165 |
Current | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,721,206 | 2,094,933 |
Current | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 639,197 | 470,808 |
Current | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 787,600 | 658,532 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 488,251 | 370,900 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 738,325 | 574,175 |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 51,942 | 4,374 |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | $ 15,891 | $ 16,144 |
Loans Held for Investment an_11
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Amortized Cost in Loans Held for Investment based on Accrual Status and by Loan Origination Year (Details) - Accrual Status - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | $ 894,190 | $ 1,143,849 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,091,939 | 214,490 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 181,730 | 500,689 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 411,977 | 326,082 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 262,433 | 171,370 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 281,435 | 175,345 |
Total | 3,123,704 | 2,531,825 |
Commercial Purchase Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 215,509 | 277,906 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 269,213 | 47,617 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 41,777 | 87,082 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 70,767 | 50,817 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 41,483 | 27,703 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 38,742 | 18,296 |
Total | 677,491 | 509,421 |
Commercial Purchase Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 215,509 | 277,618 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 268,001 | 45,836 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 41,591 | 81,541 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 64,227 | 46,637 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 39,948 | 24,164 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 33,304 | 16,365 |
Total | 662,580 | 492,161 |
Commercial Purchase Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 288 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,212 | 1,781 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 186 | 5,541 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 6,540 | 4,180 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,535 | 3,539 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 5,438 | 1,931 |
Total | 14,911 | 17,260 |
Commercial Refinance Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 224,604 | 242,170 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 233,369 | 68,915 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 61,943 | 170,029 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 145,747 | 145,604 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 121,399 | 78,866 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 125,712 | 77,676 |
Total | 912,774 | 783,260 |
Commercial Refinance Portfolio Segment | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 224,064 | 239,688 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 225,103 | 64,966 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 58,086 | 144,017 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 124,285 | 118,735 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 100,753 | 62,374 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 100,041 | 67,545 |
Total | 832,332 | 697,325 |
Commercial Refinance Portfolio Segment | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 540 | 2,482 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 8,266 | 3,949 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 3,857 | 26,012 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 21,462 | 26,869 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 20,646 | 16,492 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 25,671 | 10,131 |
Total | 80,442 | 85,935 |
Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 163,477 | 264,552 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 250,607 | 15,627 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 13,710 | 52,826 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 42,775 | 33,280 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 25,979 | 16,350 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 33,248 | 26,135 |
Total | 529,796 | 408,770 |
Residential 1-4 Unit - Purchase | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 162,492 | 263,180 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 242,544 | 12,878 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 11,541 | 48,930 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 39,733 | 29,544 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 22,505 | 12,863 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 28,096 | 23,990 |
Total | 506,911 | 391,385 |
Residential 1-4 Unit - Purchase | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 985 | 1,372 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 8,063 | 2,749 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,169 | 3,896 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 3,042 | 3,736 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 3,474 | 3,487 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 5,152 | 2,145 |
Total | 22,885 | 17,385 |
Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 248,479 | 354,845 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 329,431 | 37,374 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 33,261 | 145,961 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 124,390 | 90,451 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 68,426 | 48,451 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 83,733 | 53,238 |
Total | 887,720 | 730,320 |
Residential 1-4 Unit - Refinance | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 247,970 | 343,199 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 314,865 | 31,334 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 26,150 | 114,145 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 95,470 | 59,825 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 44,360 | 31,774 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 62,256 | 42,491 |
Total | 791,071 | 622,768 |
Residential 1-4 Unit - Refinance | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 509 | 11,646 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 14,566 | 6,040 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 7,111 | 31,816 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 28,920 | 30,626 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 24,066 | 16,677 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 21,477 | 10,747 |
Total | 96,649 | 107,552 |
Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 29,097 | 1,890 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,493 | 17,147 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 16,032 | 9,847 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 5,246 | 105 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 105 | |
Total | 57,973 | 28,989 |
Short Term 1-4 Unit - Purchase | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 29,097 | 1,890 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,493 | 15,582 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 15,037 | 8,531 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,044 | |
Total | 55,671 | 26,003 |
Short Term 1-4 Unit - Purchase | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,565 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 995 | 1,316 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,202 | 105 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 105 | |
Total | 2,302 | 2,986 |
Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 13,024 | 2,486 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,826 | 27,810 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 15,007 | 34,944 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 23,052 | 5,825 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,041 | |
Total | 57,950 | 71,065 |
Short Term 1-4 Unit - Refinance | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 13,024 | 1,448 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,582 | 11,991 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,543 | 12,326 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,788 | |
Total | 19,937 | 25,765 |
Short Term 1-4 Unit - Refinance | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 1,038 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 244 | 15,819 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 12,464 | 22,618 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 20,264 | 5,825 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,041 | |
Total | $ 38,013 | $ 45,300 |
Receivables Due From Servicer_2
Receivables Due From Servicers - Summary of Receivables Due From Servicers (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | $ 43,202 | $ 43,509 |
Other loan servicing receivables | 14,438 | 11,448 |
Loan Servicing Receivables Current, Total | 57,640 | 54,957 |
Corporate and escrow advances receivable | 18,048 | 19,373 |
Total receivables due from servicers | 75,688 | 74,330 |
Securitizations | ||
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | 41,347 | 42,344 |
Other loan servicing receivables | 13,024 | 10,718 |
Loan Servicing Receivables Current, Total | 54,371 | 53,062 |
Corporate and escrow advances receivable | 17,985 | 17,884 |
Total receivables due from servicers | 72,356 | 70,946 |
Warehouse and Repurchase Facilities and Other | ||
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | 1,855 | 1,165 |
Other loan servicing receivables | 1,414 | 730 |
Loan Servicing Receivables Current, Total | 3,269 | 1,895 |
Corporate and escrow advances receivable | 63 | 1,489 |
Total receivables due from servicers | $ 3,332 | $ 3,384 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | ||
Unpaid principal balance of mortgage loans serviced for others, amount | $ 505.1 | $ 520.6 |
Fair value of servicing rights, weighted average discount rate | 8.10% | 8% |
Fair value of servicing rights, weighted average constant prepayment rate | 2.20% | 3.20% |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | ||
Balance at the beginning of year | $ 7,152 | |
Mortgage servicing rights acquired, at fair value | $ 7,152 | |
Fair value adjustments | 1,286 | |
Balance at end of year | $ 8,438 | $ 7,152 |
Securitizations, Net - Addition
Securitizations, Net - Additional Information (Detail) $ in Billions | 6 Months Ended |
Jun. 30, 2022 USD ($) Securities | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Number of securitizations | Securities | 23 |
Issuing of securities to third parties | $ | $ 4.9 |
Minimum | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Securities redemption when principal balance is less than a certain percentage | 5% |
Maturity dates of the securities | 2045-07 |
Maximum | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Securities redemption when principal balance is less than a certain percentage | 30% |
Maturity dates of the securities | 2052-05 |
Securitizations Net - Summary o
Securitizations Net - Summary of Outstanding Balance Net of Discounts and Deals Costs of Securities and Effective Interest Rate (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Securitizations, net | $ 2,477,226 | $ 1,558,163 | $ 1,911,879 |
Average outstanding balance | $ 2,175,263 | $ 1,545,969 | |
Effective interest rate | 4.08% | 4.83% | |
Securitizations | |||
Debt Instrument [Line Items] | |||
Interest expense - portfolio related | $ 44,428 | $ 37,333 |
Securitizations Net - Summary_2
Securitizations Net - Summary of Outstanding Balance Net of Discounts and Deals Costs of Securities and Effective Interest Rate (Parenthetical) (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | ||
Average interest rate | 3.38% | 4.12% |
Debt issue cost amortization rate | 0.70% | 0.71% |
Other Debt - Additional Informa
Other Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||||
Mar. 15, 2022 | Feb. 05, 2021 | Dec. 26, 2019 | Sep. 12, 2018 | Aug. 08, 2016 | Jan. 04, 2011 | Apr. 16, 2021 | Jan. 29, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Lines of credit fund maximum percentage of principle balance of mortgage loans | 100% | |||||||||
Line of credit, maximum capacity | $ 750,000,000 | $ 653,000,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 3 years | |||||||||
Debt instrument, description | one-month LIBOR | |||||||||
Debt Instrument, effective interest rate | 4.20% | 7.30% | ||||||||
Agreement entered date | Sep. 12, 2018 | |||||||||
Debt instrument, maturity date | Nov. 10, 2023 | |||||||||
Line of credit, maximum capacity | $ 50,000,000 | |||||||||
Revolving Credit Line | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Agreement entered date | Aug. 08, 2016 | |||||||||
Debt instrument, maturity date | Jul. 31, 2023 | |||||||||
Revolving Credit Line | Short-Term Unsecured Borrowing | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum capacity | $ 3,000,000 | |||||||||
LIBOR | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, floor rate | 0.75% | |||||||||
Debt instrument, spread rate | 3.50% | |||||||||
SOFR | Revolving Credit Line | Short-Term Unsecured Borrowing | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, floor rate | 0.25% | |||||||||
Debt instrument, spread rate | 2% | |||||||||
2022 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest payments, frequency | six months | |||||||||
Corporate Debt Agreement | 2022 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Debt instrument, face amount | $ 215,000,000 | |||||||||
Term loans, balance | $ 215,000,000 | |||||||||
Debt issuance costs, net | $ 5,800,000 | |||||||||
Debt instrument, maturity date | Mar. 15, 2027 | |||||||||
Debt instrument, fixed interest rate | 7.125% | |||||||||
Corporate Debt Agreement | 2021 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Debt instrument, face amount | $ 175,000,000 | |||||||||
Debt instrument, description | one-month LIBOR | |||||||||
Debt instrument paid off | 2022-03 | |||||||||
Debt instrument, maturity date | Feb. 04, 2026 | |||||||||
Corporate Debt Agreement | 2021 Term Loan | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, floor rate | 1% | |||||||||
Debt instrument, spread rate | 8% | |||||||||
2013 Repurchase Agreement | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, spread rate | 3.25% | |||||||||
Debt Instrument, effective interest rate | 5% | 4.20% | ||||||||
Agreement entered date | May 17, 2013 | |||||||||
Debt instrument, maturity date | Sep. 29, 2023 | |||||||||
Line of credit, maximum capacity | $ 300,000,000 | $ 200,000,000 | ||||||||
2019 Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 3,000,000 | |||||||||
Debt Instrument, effective interest rate | 0% | 10.50% | ||||||||
Debt instrument paid off | 2022-03 | |||||||||
Agreement entered date | Dec. 26, 2019 | |||||||||
Line of credit, maximum capacity | $ 3,000,000 | |||||||||
2021 Repurchase Agreement | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, description | one-month LIBOR | |||||||||
Debt Instrument, effective interest rate | 5.60% | 5.90% | ||||||||
Agreement entered date | Jan. 29, 2021 | |||||||||
Debt instrument, maturity date | Feb. 28, 2023 | |||||||||
Line of credit, maximum capacity | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||
2021 Repurchase Agreement | Minimum | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, spread rate | 3.50% | |||||||||
2021 Repurchase Agreement | Maximum | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, spread rate | 4.50% | |||||||||
2021 Term Repurchase Agreement | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, description | one-month LIBOR | |||||||||
Debt Instrument, effective interest rate | 3.40% | 3.50% | ||||||||
Agreement entered date | Apr. 16, 2021 | |||||||||
Debt instrument, maturity date | Apr. 16, 2024 | |||||||||
Line of credit, maximum capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||
2021 Term Repurchase Agreement | Minimum | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, spread rate | 3% | |||||||||
July 2021 Term Repurchase Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, description | one-month LIBOR | |||||||||
Debt Instrument, effective interest rate | 4.20% | |||||||||
Line of credit, maximum capacity | $ 100,000,000 | |||||||||
Line of credit, outstanding amount | 0 | |||||||||
Interest rate description | Each loan advance bears interest at one-month LIBOR with a 0.5% floor plus 4.5% per annum. | |||||||||
Line of credit , maturity date | Jul. 29, 2024 | |||||||||
Line of credit facility, description | The July 2021 Term Repurchase Agreement has a maturity date of July 29, 2024, with an option to extend the term to July 29, 2025 | |||||||||
July 2021 Term Repurchase Agreement | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum capacity | $ 100,000,000 | $ 100,000,000 | ||||||||
July 2021 Term Repurchase Agreement | LIBOR | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, floor rate | 0.50% | |||||||||
Debt instrument, spread rate | 4.50% | |||||||||
Facility Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Agreement entered date | Jan. 04, 2011 | |||||||||
Debt instrument, maturity date | Jul. 31, 2023 | |||||||||
Facility Agreement | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, description | one-month Secured Overnight Financing Rate (“SOFR”) | |||||||||
Line of credit, maximum capacity | $ 60,000,000 | |||||||||
Facility Agreement | SOFR | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, floor rate | 0.25% | |||||||||
Debt instrument, spread rate | 1.60% |
Other Debt - Summary of Maximum
Other Debt - Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Apr. 16, 2021 | Jan. 29, 2021 | Sep. 12, 2018 |
Debt Instrument [Line Items] | |||||
Period end balance | $ 210,204,000 | $ 302,800,000 | |||
Maximum borrowing capacity | 750,000,000 | 653,000,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 50,000,000 | ||||
2021 Term Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 21,632,000 | 41,636,000 | |||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | $ 100,000,000 | ||
2021 Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 78,608,000 | 82,580,000 | |||
Maximum borrowing capacity | 200,000,000 | 200,000,000 | $ 200,000,000 | ||
July 2021 Term Repurchase Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | ||||
July 2021 Term Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 454,000 | ||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | |||
2013 Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 83,923,000 | 153,499,000 | |||
Maximum borrowing capacity | 300,000,000 | 200,000,000 | |||
Bank Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 25,587,000 | 22,385,000 | |||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | |||
2019 Term Loan | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 2,700,000 | ||||
Maximum borrowing capacity | $ 3,000,000 |
Other Debt - Summary of Maxim_2
Other Debt - Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Warehouse Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 1.8 | $ 1.7 |
Other Debt - Schedule of Activi
Other Debt - Schedule of Activity and Effective Interest Rate (Details) - Warehouse and Repurchase Facilities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Average outstanding balance | $ 318,960 | $ 166,981 | $ 328,603 | $ 140,254 |
Highest outstanding balance at any month-end | $ 379,169 | $ 250,927 | $ 426,959 | $ 250,927 |
Effective interest rate | 5.16% | 5.65% | 4.80% | 5.80% |
Other Debt - Schedule of Acti_2
Other Debt - Schedule of Activity and Effective Interest Rate (Parenthetical) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Debt Instrument, average rate | 4.59% | 4.44% | 4.23% | 4.58% |
Debt issue cost amortization percentage | 0.57% | 1.21% | 0.57% | 1.22% |
Other Debt - Summary of Interes
Other Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | $ 28,752 | $ 20,566 | $ 52,308 | $ 41,399 |
Interest expense — corporate debt | 4,182 | 4,309 | 21,322 | 11,658 |
Total interest expense | 32,934 | 24,875 | 73,630 | 53,057 |
Warehouse and Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | 4,115 | 2,361 | 7,880 | 4,067 |
Securitizations | ||||
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | $ 24,637 | $ 18,205 | $ 44,428 | $ 37,332 |
Other Debt - Summary of Inter_2
Other Debt - Summary of Interest Expense (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Interest expense — corporate debt | $ 4,182 | $ 4,309 | $ 21,322 | $ 11,658 | |
Repayment of outstanding principal amount | $ 170,844 | 79,969 | |||
Corporate Debt Agreement | Owl Rock Capital Corporation | 2019 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest expense — corporate debt | 11,700 | ||||
Write off of debt issuance cost | 2,900 | ||||
Prepayment penalties | $ 1,600 | ||||
Repayment of outstanding principal amount | $ 78,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments And Contingencies Disclosure [Abstract] | ||
Repurchase liability | $ 376 | $ 141 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Dec. 24, 2020 | Jan. 31, 2020 | May 31, 2022 | Feb. 28, 2022 | May 31, 2021 | Jan. 31, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted stock awarded and earned stock compensation, shares | 125,250 | 480,000 | ||||||||
Compensation expense related to the outstanding stock options granted | $ 0.8 | $ 0.5 | ||||||||
Amount of unrecognized compensation expense related to unvested stock options | $ 5.3 | $ 4.7 | $ 5.3 | |||||||
Treasury shares purchased | 0 | 33,647 | ||||||||
Treasury shares, average price per share | $ 13.61 | |||||||||
Restricted Stock-based Awards | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Awards granted requisite service period | 3 years | |||||||||
Description of compensation expense related to stock options | Compensation expense related to restricted stock-based awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. | |||||||||
Performance Stock Unit | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares issued | 102,750 | |||||||||
Non-Employee Directors | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted stock awarded and earned stock compensation, shares | 31,215 | 26,511 | ||||||||
2020 Omnibus Incentive Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of shares authorized to grant | 2,770,000 | 2,770,000 | ||||||||
Stock options granted | 12,500 | 782,500 | ||||||||
Exercise price of unvested stock options | $ 6.28 | |||||||||
2020 Omnibus Incentive Plan | Initial Public Offering | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Exercise price of unvested stock options | $ 13 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic EPS: | ||||
Net income attributable to common stockholders | $ 10,645 | $ 9,453 | $ 13,766 | $ 12,849 |
Less: undistributed earnings attributable to participating securities | 164 | 3,571 | 212 | 4,854 |
Net earnings attributable to common stockholders | $ 10,481 | $ 5,882 | $ 13,554 | $ 7,995 |
Weighted average common shares outstanding | 31,917 | 20,087 | 31,904 | 20,087 |
Basic earnings per common share | $ 0.33 | $ 0.29 | $ 0.42 | $ 0.40 |
Diluted EPS: | ||||
Net income attributable to common stockholders | $ 10,645 | $ 9,453 | $ 13,766 | $ 12,849 |
Weighted average common shares outstanding | 31,917 | 20,087 | 31,904 | 20,087 |
Add dilutive effects for warrants | 1,986 | 1,985 | 2,057 | 1,786 |
Add dilutive effects for stock options | 4 | 3 | 4 | 2 |
Add dilutive effects of unvested restricted stock awards | 150 | 197 | 165 | 121 |
Weighted Average Number of Shares Outstanding, Diluted, Total | 34,057 | 33,960 | 34,130 | 33,684 |
Diluted income per common share | $ 0.31 | $ 0.28 | $ 0.40 | $ 0.38 |
Series A Preferred Stock | ||||
Diluted EPS: | ||||
Add dilutive effects for assumed conversion of Series A preferred stock | 11,688 | 11,688 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 1,001 | 773 | 1,001 | 773 |
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 773 | 773 | 773 | 773 |
Unvested restricted stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 125 | 125 | ||
Unvested performance-based stock units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 103 | 103 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) | Jun. 30, 2022 $ / shares shares |
Convertible Redeemable Preferred Stock [Line Items] | |
Percentage of common stock held by warrant holder and affiliates | 49% |
Exercise Price of $2.96 per Share of Common Stock | |
Convertible Redeemable Preferred Stock [Line Items] | |
Exercise price per share | $ / shares | $ 2.96 |
Warrants to purchase an aggregate shares | shares | 2,008,749 |
Exercise Price of $4.94 per Share of Common Stock | |
Convertible Redeemable Preferred Stock [Line Items] | |
Exercise price per share | $ / shares | $ 4.94 |
Warrants to purchase an aggregate shares | shares | 1,004,375 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Information on Assets Measured and Recorded at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | $ 1,351 | $ 1,359 |
Mortgage servicing rights | 8,438 | 7,152 |
Assets | 39,615 | 125,477 |
Real estate owned, net | 19,218 | 17,557 |
Recurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1,351 | 1,359 |
Mortgage servicing rights | 8,438 | 7,152 |
Assets | 9,789 | 8,511 |
Nonrecurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 29,826 | 116,966 |
Loans held for sale, net | 87,422 | |
Real estate owned, net | 19,218 | 17,557 |
Individually evaluated/Impaired loans requiring specific allowance, net | 10,608 | 11,987 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 39,615 | 125,477 |
Level 3 | Recurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1,351 | 1,359 |
Mortgage servicing rights | 8,438 | 7,152 |
Assets | 9,789 | 8,511 |
Level 3 | Nonrecurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets | 29,826 | 116,966 |
Loans held for sale, net | 87,422 | |
Real estate owned, net | 19,218 | 17,557 |
Individually evaluated/Impaired loans requiring specific allowance, net | $ 10,608 | $ 11,987 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis (Details) - Nonrecurring Fair Value Measurements - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | $ 291 | $ 214 | $ 335 | $ (513) |
Loans Held for Sale, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | (15) | 2 | ||
Real Estate Held For Sale, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | (143) | (800) | 93 | (1,235) |
Individually Evaluated Loans Requiring Specific Allowance, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | $ 434 | $ 1,029 | $ 242 | $ 720 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Unobservable Inputs Related to Level 3 Assets (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 39,615 | $ 125,477 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 39,615 | $ 125,477 |
Level 3 | Valuation, Market Approach | Measurement Input Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | 0.080 |
Real estate owned, net | 0.080 | 0.080 |
Level 3 | Discounted Cash Flow | Discount rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.058 | 0.058 |
Loans held for sale | 0.058 | |
Level 3 | Minimum | Discounted Cash Flow | Discount rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, at fair value | 0.08 | 0.080 |
Level 3 | Minimum | Discounted Cash Flow | Collateral Value (% of UPB) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.97 | 0.950 |
Level 3 | Minimum | Discounted Cash Flow | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment,at fair value | 1 month | 1 month |
Loans held for sale | 3 months | |
Level 3 | Minimum | Discounted Cash Flow | Measurement Input, Prepayment Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.010 | 0.192 |
Mortgage servicing rights, at fair value | 0.008 | 0.024 |
Level 3 | Minimum | Discounted Cash Flow | Default Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0 | 0 |
Level 3 | Minimum | Discounted Cash Flow | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0 | 0 |
Level 3 | Maximum | Discounted Cash Flow | Discount rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, at fair value | 0.120 | 0.120 |
Level 3 | Maximum | Discounted Cash Flow | Collateral Value (% of UPB) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1.200 | 1.200 |
Level 3 | Maximum | Discounted Cash Flow | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment,at fair value | 40 months | 38 months |
Loans held for sale | 37 months | |
Level 3 | Maximum | Discounted Cash Flow | Measurement Input, Prepayment Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.300 | 0.50 |
Mortgage servicing rights, at fair value | 0.060 | 0.035 |
Level 3 | Maximum | Discounted Cash Flow | Default Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.063 | 0.067 |
Level 3 | Maximum | Discounted Cash Flow | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.210 | 0.134 |
Level 3 | Weighted Average | Valuation, Market Approach | Measurement Input Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | 0.080 |
Real estate owned, net | 0.080 | 0.080 |
Level 3 | Weighted Average | Discounted Cash Flow | Discount rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.058 | 0.058 |
Loans held for sale | 0.058 | |
Mortgage servicing rights, at fair value | 0.081 | 0.080 |
Level 3 | Weighted Average | Discounted Cash Flow | Collateral Value (% of UPB) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 1.070 | 1.060 |
Level 3 | Weighted Average | Discounted Cash Flow | Timing of Resolution/Payoff | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment,at fair value | 38 months | 34 months 24 days |
Loans held for sale | 13 months | |
Level 3 | Weighted Average | Discounted Cash Flow | Measurement Input, Prepayment Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.300 | 0.300 |
Mortgage servicing rights, at fair value | 0.022 | 0.032 |
Level 3 | Weighted Average | Discounted Cash Flow | Default Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.006 | 0.010 |
Level 3 | Weighted Average | Discounted Cash Flow | Loss Severity Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.040 | 0.030 |
Level 3 | Individually evaluated loans requiring allowance net | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 10,608 | $ 11,987 |
Level 3 | Real Estate Owned, Net | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 19,218 | 17,557 |
Level 3 | Loans Held for Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 1,351 | 1,359 |
Level 3 | Loans Held For Sale | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 87,422 | |
Level 3 | Mortgage Servicing Rights | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 8,438 | $ 7,152 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of Loans and Interest Only Strips Measured at Estimated Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loans | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | $ 1,352 | $ 1,364 | $ 1,359 | $ 1,539 |
Loans liquidated | 163 | |||
Principal paydowns | (7) | (14) | (24) | (24) |
Total unrealized gain (loss) included in net income | 6 | 20 | 16 | 18 |
Ending balance | $ 1,351 | 1,370 | $ 1,351 | 1,370 |
Interest-only Strips | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | 125 | 238 | ||
Interest-only strip write-offs | (44) | (157) | ||
Ending balance | $ 81 | $ 81 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Fair Value Disclosures [Abstract] | |||
Loans individually evaluated for allowance | $ 10,600 | $ 12,000 | |
Allowance for loan losses | $ 1,164 | $ 1,406 | $ 1,949 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Assets: | |||
Restricted cash | $ 9,217 | $ 11,639 | $ 7,921 |
Loans held for investment, net | 3,118,799 | 2,527,564 | |
Loans held for investment, at fair value | 1,351 | 1,359 | |
Mortgage servicing rights | 8,438 | 7,152 | |
Liabilities: | |||
Secured financing, net | 209,227 | 162,845 | |
Securitizations, net | 2,477,226 | 1,911,879 | $ 1,558,163 |
Carrying Value | |||
Assets: | |||
Cash | 46,250 | 35,965 | |
Restricted cash | 9,217 | 11,639 | |
Loans held for sale, net | 87,908 | ||
Loans held for investment, net | 3,118,799 | 2,527,564 | |
Loans held for investment, at fair value | 1,351 | 1,359 | |
Accrued interest receivables | 15,820 | 13,159 | |
Mortgage servicing rights | 8,438 | 7,152 | |
Liabilities: | |||
Secured financing, net | 209,227 | 162,845 | |
Warehouse repurchase facilities, net | 208,390 | 301,069 | |
Securitizations, net | 2,477,226 | 1,911,879 | |
Accrued interest payable | 13,074 | 6,254 | |
Estimate of Fair Value Measurement | |||
Assets: | |||
Cash | 46,250 | 35,965 | |
Restricted cash | 9,217 | 11,639 | |
Loans held for sale, net | 87,908 | ||
Loans held for investment, net | 3,295,277 | 2,655,357 | |
Loans held for investment, at fair value | 1,351 | 1,359 | |
Accrued interest receivables | 15,820 | 13,159 | |
Mortgage servicing rights | 8,438 | 7,152 | |
Liabilities: | |||
Secured financing, net | 212,827 | 170,843 | |
Warehouse repurchase facilities, net | 208,390 | 301,069 | |
Securitizations, net | 2,312,506 | 1,931,002 | |
Accrued interest payable | 13,074 | 6,254 | |
Level 1 | Estimate of Fair Value Measurement | |||
Assets: | |||
Cash | 46,250 | 35,965 | |
Restricted cash | 9,217 | 11,639 | |
Accrued interest receivables | 15,820 | 13,159 | |
Liabilities: | |||
Accrued interest payable | 13,074 | 6,254 | |
Level 2 | Estimate of Fair Value Measurement | |||
Liabilities: | |||
Warehouse repurchase facilities, net | 208,390 | 301,069 | |
Level 3 | Estimate of Fair Value Measurement | |||
Assets: | |||
Loans held for sale, net | 87,908 | ||
Loans held for investment, net | 3,295,277 | 2,655,357 | |
Loans held for investment, at fair value | 1,351 | 1,359 | |
Mortgage servicing rights | 8,438 | 7,152 | |
Liabilities: | |||
Secured financing, net | 212,827 | 170,843 | |
Securitizations, net | $ 2,312,506 | $ 1,931,002 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - ESPP | May 19, 2022 shares |
Subsequent Event [Line Items] | |
Common stock shares authorized for issuance | 568,182 |
Maximum number of shares authorized for issuance as percentage of common stock issued and outstanding | 1% |