Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 93.6 | ||
Entity Common Stock, Shares Outstanding | 32,624,787 | ||
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 $0.01 per share | ||
Security Exchange Name | NYSE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Certain portions of our Definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934 in connection with our 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K. | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Los Angeles, California | ||
KPMG LLP | |||
Document Information [Line Items] | |||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Los Angeles, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 45,248 | $ 35,965 |
Restricted cash | 16,808 | 11,639 |
Loans held for sale, net | 87,908 | |
Loans held for investment, net | 3,272,390 | 2,527,564 |
Loans held for investment, at fair value | 276,095 | 1,359 |
Total loans, net | 3,548,485 | 2,616,831 |
Accrued interest receivables | 20,463 | 13,159 |
Receivables due from servicers | 65,644 | 74,330 |
Other receivables | 1,075 | 1,812 |
Real estate owned, net | 13,325 | 17,557 |
Property and equipment, net | 3,356 | 3,830 |
Deferred tax asset | 5,033 | 16,604 |
Mortgage servicing rights, at fair value | 9,238 | 7,152 |
Goodwill | 6,775 | 6,775 |
Other assets | 13,525 | 6,824 |
Total assets | 3,748,975 | 2,812,478 |
LIABILITIES | ||
Accounts payable and accrued expenses | 91,525 | 92,195 |
Secured financing, net | 209,846 | 162,845 |
Securitizations, net | 2,736,290 | 1,911,879 |
Warehouse and repurchase facilities, net | 330,814 | 301,069 |
Total liabilities | 3,368,475 | 2,467,988 |
Commitments and contingencies | ||
EQUITY | ||
Common stock ($0.01 par value, 100,000,000 shares authorized; 32,523,516 and 32,293,042 shares issued, 32,489,869 and 32,293,042 shares outstanding at December 31, 2022 and 2021, respectively) | 326 | 323 |
Treasury stock, at cost (33,647 common shares at December 31, 2022 and none at December 31, 2021) | (458) | |
Additional paid-in capital | 300,310 | 296,364 |
Retained earnings | 76,633 | 44,422 |
Total Velocity Financial Inc. stockholders' equity | 376,811 | 341,109 |
Noncontrolling interest in subsidiary | 3,689 | 3,381 |
Total equity | 380,500 | 344,490 |
Total liabilities and equity | $ 3,748,975 | $ 2,812,478 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 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 | 32,523,516 | 32,293,042 |
Common stock, shares, outstanding | 32,489,869 | 32,293,042 |
Treasury stock, common shares | 33,647 | 0 |
ASSETS | ||
Restricted cash | $ 16,808 | $ 11,639 |
Loans held for investment, net | 3,272,390 | 2,527,564 |
Real estate owned, net | 13,325 | 17,557 |
Other assets | 13,525 | 6,824 |
Total assets | 3,748,975 | 2,812,478 |
LIABILITIES | ||
Accounts payable and accrued expenses | 91,525 | 92,195 |
Total liabilities | 3,368,475 | 2,467,988 |
Variable Interest Entity Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 2,968 | 4,713 |
Loans held for investment, net | 3,108,316 | 2,202,010 |
Accrued interest and other receivables | 77,191 | 83,493 |
Real estate owned, net | 10,380 | 9,861 |
Other assets | 15 | 9 |
Total assets | 3,198,870 | 2,300,086 |
LIABILITIES | ||
Accounts payable and accrued expenses | 50,169 | 45,705 |
Securities issued | 2,736,290 | 1,911,879 |
Total liabilities | $ 2,786,459 | $ 1,957,584 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Interest income | $ 240,343 | $ 181,968 | $ 167,322 |
Interest expense — portfolio related | 127,723 | 85,386 | 87,826 |
Net interest income — portfolio related | 112,620 | 96,582 | 79,496 |
Interest expense — corporate debt | 29,472 | 20,609 | 12,049 |
Net interest income | 83,148 | 75,973 | 67,447 |
Provision for (reversal of) loan losses | 1,152 | (292) | 5,068 |
Net interest income after provision for loan losses | 81,996 | 76,265 | 62,379 |
Other operating income | |||
Gain on disposition of loans | 7,107 | 7,892 | 7,576 |
Unrealized gain on fair value loans | 8,265 | 29 | 442 |
Unrealized gain on mortgage servicing rights | 2,086 | ||
Other income (expense) | 4,767 | 267 | (1,698) |
Total other operating income | 22,225 | 8,188 | 6,320 |
Operating expenses | |||
Compensation and employee benefits | 30,458 | 19,190 | 20,731 |
Rent and occupancy | 1,748 | 1,769 | 1,743 |
Loan servicing | 12,298 | 8,282 | 7,802 |
Professional fees | 4,179 | 3,781 | 4,238 |
Real estate owned, net | (70) | 3,150 | 2,656 |
Other operating expenses | 11,056 | 8,488 | 8,400 |
Total operating expenses | 59,669 | 44,660 | 45,570 |
Income before income taxes | 44,552 | 39,793 | 23,129 |
Income tax expense | 12,033 | 10,569 | 5,352 |
Net income | 32,519 | 29,224 | 17,777 |
Net income attributable to noncontrolling interest | 308 | ||
Net income attributable to Velocity Financial, Inc. | 32,211 | 29,224 | 17,777 |
Less undistributed earnings attriuable to participating securities | 491 | 8,589 | |
Less deemed dividends on preferred stock | 48,955 | ||
Net earnings attributable to common shareholders | $ 31,720 | $ 20,635 | $ (31,178) |
Earnings (loss) per common share | |||
Basic | $ 0.99 | $ 0.90 | $ (1.55) |
Diluted | $ 0.94 | $ 0.86 | $ (1.55) |
Weighted average common shares outstanding | |||
Basic | 31,913 | 22,813 | 20,087 |
Diluted | 34,131 | 33,982 | 20,087 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' / MEMBERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A equity units | Class D equity units | Members' Equity | Members' Equity Class A equity units | Members' Equity Class D equity units | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Parent | Parent Cumulative Effect, Period of Adoption, Adjustment | Parent Class A equity units | Parent Class D equity units | Non-controlling Interest |
Beginning balance at Dec. 31, 2019 | $ 152,844 | $ 152,844 | $ 152,844 | ||||||||||||||
Cumulative effect of change in accounting principle at Dec. 31, 2019 | $ (96) | $ (96) | $ (96) | ||||||||||||||
Conversion | $ (92,650) | $ (60,194) | $ (92,650) | $ (60,194) | $ (92,650) | $ (60,194) | |||||||||||
Issuance of common stock | 247,740 | $ 201 | $ 247,539 | 247,740 | |||||||||||||
Issuance of common stock, shares | 20,087,494 | ||||||||||||||||
Deemed dividends-convertible preferred stock | (48,955) | (46,472) | $ (2,483) | (48,955) | |||||||||||||
Issuance of warrants | 2,158 | 2,158 | 2,158 | ||||||||||||||
Stock-based compensation | 965 | 965 | 965 | ||||||||||||||
Net income | 17,777 | 17,777 | 17,777 | ||||||||||||||
Ending balance at Dec. 31, 2020 | 219,589 | $ 201 | 204,190 | 15,198 | 219,589 | ||||||||||||
Ending balance at Dec. 31, 2020 | 20,087,494 | ||||||||||||||||
Issuance of common stock | 90,144 | $ 122 | 90,022 | 90,144 | |||||||||||||
Issuance of common stock, shares | 11,699,037 | ||||||||||||||||
Restricted stock awarded and earned stock compensation | 1,132 | 1,132 | 1,132 | ||||||||||||||
Restricted stock awarded and earned stock compensation, shares | 506,511 | ||||||||||||||||
Stock-based compensation | 1,020 | 1,020 | 1,020 | ||||||||||||||
Net income | 29,224 | 29,224 | 29,224 | ||||||||||||||
Recognition of non-controlling interest | 3,381 | $ 3,381 | |||||||||||||||
Ending balance at Dec. 31, 2021 | 344,490 | $ 323 | 296,364 | 44,422 | 341,109 | 3,381 | |||||||||||
Ending balance at Dec. 31, 2021 | 32,293,042 | ||||||||||||||||
Issuance of common stock | 607 | $ 1 | 606 | 607 | |||||||||||||
Issuance of common stock, shares | 74,009 | ||||||||||||||||
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 | 3,342 | $ 2 | 3,340 | 3,342 | |||||||||||||
Restricted stock awarded and earned stock compensation, shares | 156,465 | ||||||||||||||||
Net income | 32,519 | 32,211 | 32,211 | 308 | |||||||||||||
Ending balance at Dec. 31, 2022 | $ 380,500 | $ 326 | $ 300,310 | $ 76,633 | $ (458) | $ 376,811 | $ 3,689 | ||||||||||
Ending balance at Dec. 31, 2022 | 32,523,516 | (33,647) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 32,519 | $ 29,224 | $ 17,777 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 796 | 1,119 | 1,219 |
Amortization of right-of-use assets | 1,320 | 1,292 | 1,227 |
Provision for (reversal of) loan losses | 1,152 | (292) | 5,068 |
Origination of loans held for sale | (31,255) | (96,064) | |
Proceeds from sales of loans held for sale | 32,156 | 80,858 | |
Purchase of held for sale loans | (1,500) | (1,232) | |
Repayments on loans held for sale | 2,673 | 19,415 | |
Net accretion of discount on purchased loans and deferred loan origination costs | 7,009 | 6,519 | 4,587 |
Provision for (reversal of) uncollectible borrower advances | (175) | (80) | 871 |
Gain on disposition of loans | (3,699) | (6,776) | (6,911) |
Real estate acquired through foreclosure in excess of recorded investment | (3,408) | (1,117) | (665) |
Amortization of debt issuance discount and costs | 28,294 | 20,224 | 16,156 |
Loss on disposal of property and equipment | 3 | 18 | 42 |
Change in valuation of real estate owned | 364 | 1,759 | 1,734 |
Change in valuation of fair value loans | (8,265) | (29) | (442) |
Change in valuation of held for sale loans | (17) | (328) | |
Change in valuation of mortgage servicing rights | (2,086) | ||
Gain on sale of real estate owned | (2,939) | (409) | (644) |
Stock-based compensation | 3,343 | 2,159 | 965 |
Deferred tax expense (benefit) | 11,571 | (9,950) | 1,667 |
Change in operating assets and liabilities: | |||
Accrued interest and other receivables | (7,421) | (3,287) | (5,603) |
Other assets | (8,043) | (360) | 4,137 |
Accounts payable and accrued expenses | (2,562) | 16,452 | 11,058 |
Net cash provided by operating activities | 48,674 | 57,622 | 54,892 |
Cash flows from investing activities: | |||
Purchase of loans held for investment | (18,231) | (20,586) | (3,571) |
Origination of loans held for investment | (1,739,572) | (1,344,027) | (343,607) |
Proceeds from sales of loans originally classified as held for investment | 292,472 | 135,787 | 99,601 |
Payoffs of loans held for investment and loans at fair value | 541,676 | 568,837 | 341,971 |
Proceeds from sale of real estate owned | 22,497 | 9,637 | 7,469 |
Purchase of real estate owned | (2,250) | ||
Capitalized real estate owned improvements | (194) | (846) | |
Change in advances | (5,414) | (5,429) | (8,709) |
Change in impounds and deposits | 910 | 9,202 | (3,843) |
Purchase of property and equipment | (326) | (135) | (726) |
Proceeds from sale of investments | 1,180 | ||
Acquisition of Century, net of cash acquired | (10,755) | ||
Net cash (used in) provided by investing activities | (908,238) | (656,483) | 87,739 |
Cash flows from financing activities: | |||
Warehouse repurchase facilities advances | 1,687,005 | 1,215,971 | 420,196 |
Warehouse repurchase facilities repayments | (1,658,065) | (989,374) | (766,679) |
Proceeds from secured financing | 215,000 | 175,000 | |
Repayment of secured financing | (170,844) | (82,156) | (75,000) |
Proceeds of securitizations, net | 1,369,985 | 977,678 | 536,687 |
Repayment of securitizations | (543,620) | (643,500) | (398,324) |
Debt issuance costs | (25,594) | (27,024) | (8,869) |
Purchase of treasury stock | (458) | ||
Net proceeds from issuance of preferred stock | 41,044 | ||
Proceeds from issuance of warrants | 2,158 | ||
Issuance of common stock | 607 | 137 | 100,800 |
Deferred stock issuance costs | (560) | ||
IPO deal costs | (1,903) | ||
Net cash provided by (used in) financing activities | 874,016 | 626,172 | (149,890) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 14,452 | 27,311 | (7,259) |
Cash, cash equivalents, and restricted cash at beginning of year | 47,604 | 20,293 | 27,552 |
Cash, cash equivalents, and restricted cash at end of year | 62,056 | 47,604 | 20,293 |
Supplemental cash flow information: | |||
Cash paid during the year for interest | 118,711 | 85,019 | 85,407 |
Cash paid during the year for income taxes | 23,039 | 9,645 | 965 |
Noncash transactions from investing and financing activities: | |||
Transfer of loans held for investment to loans held for sale | 279,233 | 205,671 | 110,678 |
Transfer of loans held for investment to real estate owned | 10,031 | 11,466 | 9,747 |
Capitalized interest on loans held for investment | 1,399 | 2,046 | 7,814 |
Transfer of loans held for sale to held for investment | 77,190 | 11,137 | 213,609 |
Deferred IPO costs charged against additional paid-in capital | $ (4,000) | ||
Discount (premium) on issuance of securitizations | $ 23,398 | 2,051 | |
Preferred stock conversion to common stock | 90,000 | ||
Business combination: | |||
Investment securities | 1,181 | ||
Fair value of tangible asset acquired | 688 | ||
Mortgage servicing rights | 7,152 | ||
Other receivables | 154 | ||
Goodwill | 6,775 | ||
Liabilities assumed | $ 1,814 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 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 (LLC) 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, the 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 small balance 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 on the difference between the yield on its investor real estate loan portfolio and the cost of its borrowings. The Company does not engage in any other significant line of business or offer any other products or services, nor does it 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 2016-1 Trust through and including the 2022-5 Trust, all of which are New York common law trusts, with the exception of VCC 2022-MC1 Trust which is a Delaware statutory trust. 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”). 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. In addition, as a servicer of Ginnie Mae loans, Century is required to maintain a minimum net worth, and Century is in compliance with this requirement as of December 31, 2022. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 consolidated financial statements of the Company have been prepared on the accrual basis of accounting and in accordance with United States Generally Accepted Accounting Principles (U.S. GAAP). 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. 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 December 31, 2022 and 2021 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. Business Combination The Company accounts for its business combinations using the acquisition method of accounting. Assets acquired and the liabilities assumed as part of a business combination are recognized separately from goodwill at their acquisition date fair values. Goodwill is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company, with the assistance of outside specialists as necessary, use estimates and assumptions to value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable. The Company may refine these estimates during the measurement period which may be up to one year from the acquisition date. As a result, during the measurement period, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Income. Restricted Cash Restricted cash consisted of the required specified reserves by the 2020-2 and 2022-MC1 Trust agreements to pay the notes on each payment date if collections on mortgage loans are insufficient to make payments on the notes, and cash held by the Company for potential future advances due certain borrowers. Loans Held for Investment and Loans Held for Sale Except for loans originated in accordance with the guidelines of Ginnie Mae's program, which loans are originated with the intent to sell, originated loans and purchased loans are classified as held-for-investment when management has the intent and ability to hold such loans for the foreseeable future or until maturity. Loans held for investment originated prior to September 30, 2022, are carried at amortized cost, which is the outstanding principal balance, adjusted for net deferred loan origination costs and fees and allowance for loan losses. Loans originated or acquired after September 30, 2022 are carried at fair value. Interest income is accrued on the unpaid principal balance (UPB) at their respective stated interest rates. Generally, loans are placed on nonaccrual status when they become 90 days past due. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Interest income is subsequently recognized only to the extent cash payments are received or when the loan has been placed back in accrual status. Loans are restored to accrual status when (1) the loan becomes current and none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (2) if the loan has been formally restructured in a manner that reasonably assures repayment and performance according to its modified terms. Under these terms, the Company requires that the borrower continues to make the full restructured principal and interest payments for six consecutive months before restoring the loan to accrual status. The deferred loans under the Company’s forbearance program are considered current at the time of deferral, and the Company continues to accrue interest on these loans. Deferred loans that subsequently went 90 days past due after the deferral date were placed on nonaccrual status with any accrued interest income reversed through earnings. The Company evaluates the COVID-19 forbearance-granted loans on an individual basis to determine if a reserve should be established on the collectability of the unamortized cost and accrued interest, and whether any loans should be placed on nonaccrual status. For originated loans prior to October 1, 2022, carried at amortized cost, net deferred loan origination costs are amortized to interest income using the level yield method. Loan origination fees and costs on loans originated or acquired after September 30, 2022 are expensed as incurred. Loans are classified as held for sale when management has the intent to sell them. Loans held for sale originated prior to October 1, 2022 are carried at lower of cost or estimated fair value. Loans held for sale originated or acquired effective October 1, 2022 are carried at estimated fair value. The Century loans are considered as held for sale until they meet the sale criteria describe in the following paragraphs, which is generally when they are delivered to GNMA in exchange for GNMA securities. The Company will service the loan for Ginnie Mae. On occasion, as part of the Company’s management strategy of the loans held in its portfolio, the Company will transfer loans from held for investment to held for sale. Upon transfer of any loans that were held at amortized cost, any associated allowance for loan loss is charged off and the carrying value of the loan is adjusted to the lower of cost or estimated fair value. The net deferred fees and costs associated with loans held for sale are deferred (not accreted or amortized to interest income) until the related loans are sold. The Company recognizes transfers of loans as sales when it surrenders control over the loans. Control over transferred loans is deemed to be surrendered when (1) the loans have been isolated from the Company, (2) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred loans, and (3) the Company does not maintain effective control over the transferred loans through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return the specific loans. Gains or losses on the sale of these loans are included in “Gain on disposition of loans” in the Consolidated Statements of Income. Interest income on loans held for sale is recognized over the life of the loans using their contractual interest rates. Income recognition is suspended, and the unpaid interest receivable is reversed against interest income when loans become 90 days delinquent, or when, in management’s opinion, a full recovery of interest and principal becomes doubtful. Income recognition is resumed when the loan becomes contractually current. Mortgage Servicing Rights The Company retains the servicing rights of the Ginnie Mae insured loans that are sold in the secondary market by Century. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur and are included as a component of non-interest income or expense on the Consolidated Statements of Income. The fair value of servicing rights is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Loans serviced for others are not included in the Consolidated Balance Sheet. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Allowance for Loan Losses Effective January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments replacing the incurred loss accounting approach with the current expected credit loss approach for all financial assets measured at amortized cost, which as of the adoption date consisted entirely of our held for investment loan portfolio. Under the current expected credit loss ("CECL") methodology, 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. For the collective pool component, the Company identified the following portfolio segments based on risk characteristics of the loans in its loan portfolio (pool): • Residential 1– 4 Unit – Purchase (loans to purchase 1– 4 unit residential rental properties); • Residential 1– 4 Unit – Refinance (refinance loans on 1– 4 unit residential rental properties); • Commercial – Purchase (loans to purchase traditional commercial properties); • Commercial – Refinance (refinance loans on traditional commercial properties); • Short Term 1– 4 Unit – Purchase (short-term loans to purchase 1– 4 unit residential rental properties); and • Short Term 1– 4 Unit – Refinance (short-term refinance loans on 1– 4 unit residential rental properties). The Company determines the collectability of its loans in the collective pools by evaluating certain risk characteristics. The segmentation of its loan portfolio was determined based on analyses of its loan portfolio performance over the past nine years. Based on analyses of the loan portfolio’s historical performance, the Company concluded that loan purpose and product types are the most significant risk factors in determining its expectation of future loan losses. Loan purpose considers whether a borrower is acquiring the property or refinancing an existing property. The historical experience shows that refinance loans have higher loss rates than loans for property acquisitions. Product type includes residential 1-4 unit property and traditional commercial property. The historical experience shows that traditional commercial property loans have higher loss rates than residential 1-4 unit property. Short term loans have a maturity of one to 2 years from origination. Long term loans have a maturity of up to 30 years from origination. The Company estimates the allowance for loan losses using relevant available information, from internal and external sources, relating to historical performance, current conditions, and reasonable and supportable macroeconomic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency levels, or term, as well as for changes in environmental conditions, such as unemployment rates, property values and changes in the competitive or regulatory environment. The Company uses an open pool loss rate methodology to model expected credit losses. 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. Estimated prepayments, or Constant Prepayment Rates ("CPRs") are developed from multiple loan characteristic considerations, such as property types, FICO scores, loan purpose, and prepayment penalty terms, which is the most significant driver of prepayment activity. The prepayment penalty terms differ between the short-term and long-term loans, and the Company has developed a CPR curve for its short-term loans ( 2-year or less) and one for its long-term loans ( 30-year ). Data from 2012-2022 is used to develop prepayment rates for the Company’s long-term loans. Because of the prepayment penalty structure in the Company’s long-term loans, prepayments during the active penalty term are historically low and begin to ramp up after the prepayment penalty term. The active prepayment penalty term is considered for existing and new loans over the reasonable and supportable forecast period in determining estimated prepayments. The Company back-tests the CPR curves on a quarterly basis and adjusts the CPR curves as appropriate. The reasonable and supportable period is meant to represent the period in which the Company believes the forecasted macroeconomic variables can be reasonably estimated. Significant variables or assumptions incorporated in the macroeconomic forecasts include U.S. unemployment, treasury yields, U.S. real gross domestic product (GDP), and U.S. real estate housing prices. The Company considers multiple scenarios from different macroeconomic forecasts and uses different forecast and revision periods for estimating lifetime expected credit losses. For the December 31, 2020 CECL estimate, the Company considered a COVID-19 adverse stress scenario and a COVID-19 severe stress scenario, both with a five-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. Management decided that using only the adverse stress scenario did not factor for recent additional COVID-related risks such as the post-holiday spike in infections and deaths, unknown impact of a recent mutant virus, success of the vaccine, and impact of recent Presidential executive orders. Management concluded that applying a 50% weight to the adverse and severe stress scenarios was appropriate given the status of the pandemic at year-end. The various scenarios, the weighting of scenarios, as well as the forecast period and reversion to historical loss is subject to change as conditions in the market change and the Company’s ability to forecast economic events evolves. For the December 31, 2021 CECL estimate, the Company considered a COVID-19 severe stress scenario with a five-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. The various scenarios, as well as the forecast period and reversion to historical loss is subject to change as conditions in the market change and the Company’s ability to forecast economic events evolves. For the December 31, 2022 CECL estimate, the Company considered a severe stress scenario with an eight-quarter reasonable and supportable forecast period followed by a two-quarter straight-line reversion period. The various scenarios, as well as the forecast period and reversion to historical loss is subject to change as conditions in the market change and the Company’s ability to forecast economic events evolves. The Company has determined that 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). The Company pulls these loans out of the segments and evaluates the loans individually using the practical expedient to determine the credit exposure. Nonperforming loans are considered collateral dependent by the Company. Using the practical expedient, the fair value of the underlying collateral, less estimated selling costs, is compared to the carrying value of the loan in the determination of a credit loss. The allowance for loan losses for individually assessed or evaluated loans is the difference between the fair value of the collateral underlying the loans at the reporting date, adjusted for estimated selling costs, and the amortized cost basis. The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when the Company believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance for loan losses is maintained at a level deemed adequate by management to provide for expected losses in the portfolio at the balance sheet date. While management uses available information to estimate its required allowance for loan losses, future additions to the allowance for credit losses may be necessary based on changes in estimates resulting from economic and other conditions. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Accrued interest receivable is excluded from the amortized cost of loans and it is presented as accrued interest receivable in the Consolidated Balance Sheets. Effective October 1, 2022, the Company elected to apply FVO accounting to its newly originated loans. Loans carried at fair value do not require a separate allowance for loan loss since any loan impairment will be reflected in the fair value of the loan. All loans originated or acquired prior to October 1, 2022, are carried at amortized cost and are subject to a CECL reserve. Troubled Debt Restructurings Troubled debt restructurings (TDRs) are renegotiated loans where borrower concessions have been granted, such as reduction of the UPB or interest rate and for which the borrower is experiencing financial difficulty. Insignificant concessions, such as short-term forbearances, do not constitute a TDR. The Company measures TDR impairment based on the present value of expected future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, it may also measure impairment based on a loan's observable market price, or the fair value of the collateral less selling costs if the loan is a collateral-dependent loan. Once a loan is classified as a TDR, it remains a TDR for the purpose of calculating the allowance for credit losses for the remainder of its contractual term. Accrued Interest and Other Receivables Accrued interest and other receivables represent accrued and uncollected interest on loans in accrual status; principal and interest payments received, but unremitted by the servicer; and receivables from borrowers for escrow and other advances, net of an allowance for uncollectible borrower advances. Real Estate Owned, Net (REO) Properties acquired through foreclosure, deed in lieu of foreclosure, or from third parties that meet all of the following criteria are classified as real estate owned: (i) management has the intent to sell the property; (ii) the property is available for immediate sale in its present condition, or management intends on making necessary repairs to render the property saleable, subject only to terms that are usual and customary; and (iii) it is unlikely that any significant changes to the plan will be made or that the plan will be withdrawn. Real estate owned 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, establishing a new cost basis. If the recorded loan balance at the time of transfer exceeds the estimated fair value of the property less estimated costs to sell, the charge is recorded to the allowance for loan losses. If the estimated fair value of the property less estimated costs to sell exceeds the recorded loan balance at the time of transfer, the write-up is first recorded as a recapture to the allowance for loan losses to the extent of any previous charge and then to gain on the REO. Any subsequent write-downs in the fair value of the REO after the transfer date are charged to real estate owned, net in the Consolidated Statements of Income and recognized through a valuation allowance. Subsequent increases in the fair value of the REO less selling costs reduce the valuation allowance, but not below zero, and are credited to real estate owned, net. Property and Equipment, Net Property and equipment is recorded at cost, less accumulated depreciation, computed principally by the straight-line method based on the estimated useful lives of the specific assets, which range from three to seven years . Software is amortized over the estimated useful lives of the specific assets, which range from three to ten years using the straight-line method. Leasehold improvements are amortized over the lives of the respective leases or the service lives of the improvements, whichever is shorter. Goodwill Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date less any noncontrolling interest. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized but tested for impairment at least annually in the fourth quarter, or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. Off Balance Sheet Credit Exposure The Company has no off-balance-sheet assets or liabilities with credit exposure. Income Taxes Income taxes are accounted for using the asset and liability method. Under this method a deferred tax asset or liability is measured based on the enacted tax rates expected to apply to taxable income in the years in which the differences between the financial statement carrying amounts and tax bases of existing assets and liabilities are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce the net carrying amount of deferred tax assets ("DTA") if it is determined to be more likely than not, that all or some portion of the potential deferred tax asset will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the DTA will or will not be realized. The Company's ultimate realization of the DTA is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables. The Company determines whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the positions in question. Income tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An income tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. Stock-Based Compensation Compensation expense for stock options, and restricted stock awards is based on the fair value of the award at the date of grant. The fair value of stock options and options under the Company’s Employee Stock Purchase Plan (“ESPP”) is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of restricted stock awards are determined based on the Company’s current market price on the date of grant. Under the Company’s ESPP, employees may purchase shares of common stock at a price equal to 85 % of the lesser of the fair market value of the stock on the first or the last trading day of each offering period. The Company records compensation expenses related to the discount given to participating employees. Compensation expense for performance stock units is measured using the fair value at the date of grant and recorded over each vesting period, and may be adjusted over the vesting period based on interim estimates of performance against the pre-set objectives. Compensation expense for all stock-based awards is recognized in the consolidated financial statements on a straight-line basis over the requisite service period, which is generally defined as the vesting period. The Company recognizes forfeitures as they occur and the income tax effects of awards are recognized in the consolidated statements of income when awards vest or are settled. Earnings per Share Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of stock-based awards. Treasury share s 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. |
Current Accounting Developments
Current Accounting Developments | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Current Accounting Developments | Note 3 — Current Accounting Developments Recently Issued Accounting Standards ASU 2022-02, "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 2022-02 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. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 12 Months Ended |
Dec. 31, 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 certain Trusts and potential future advances due certain borrowers. In accordance with various mortgage servicing and related agreements, Century maintains escrow accounts for mortgage insurance premium, tax and insurance, working capital, sinking fund and other mortgage related escrows. The total escrow balances payable amounted to $ 68.5 million at December 31, 2022. This amount is not reflected on the balance sheet of the Company at December 31, 2022. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows as of December 31, 2022, 2021, and 2020 (in thousands): December 31, 2022 2021 2020 Cash and cash equivalents $ 45,248 $ 35,965 $ 13,273 Restricted cash 16,808 11,639 7,020 Total cash, cash equivalents, and restricted $ 62,056 $ 47,604 $ 20,293 |
Loans Held for Sale, Net
Loans Held for Sale, Net | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Unpaid principal balance $ — $ 87,422 Valuation adjustments — — Deferred loan origination costs — 486 Ending balance $ — $ 87,908 There were no loans held for sale as of December 31, 2022 . |
Loans Held for Investment and L
Loans Held for Investment and Loans Held for Investment at Fair Value | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021 (in thousands): December 31, 2022 Loans held for Loans held for Total loans investment, investment, at held for net fair value investment Unpaid principal balance $ 3,243,854 $ 268,632 $ 3,512,486 Valuation adjustments on FVO loans — 7,463 7,463 Deferred loan origination costs 33,429 — 33,429 3,277,283 276,095 3,553,378 Allowance for loan losses ( 4,893 ) — ( 4,893 ) Total loans held for investment, net $ 3,272,390 $ 276,095 $ 3,548,485 December 31, 2021 Loans held for Loans held for Total loans investment, investment, at held for net fair value 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, net $ 2,527,564 $ 1,359 $ 2,528,923 During the year ended December 31, 2022 , $ 292.4 million in UPB of loans held for investment have participated in the COVID-19 forbearance program and the Company granted a 90-days forbearance period on these loans. The following table summarizes the UPB and amortized cost basis of the loans in the Company's COVID-19 forbearance program as of December 31, 2022 ($ in thousands): December 31, 2022 UPB % Amortized Cost % Beginning balance $ 292,429 $ 295,990 Additions — — Foreclosures ( 3,593 ) ( 3,620 ) Repayments ( 87,831 ) ( 89,024 ) Ending balance $ 201,005 $ 203,346 Performing/Accruing $ 161,455 80.3 % $ 163,346 80.3 % Nonperforming/Nonaccrual $ 39,550 19.7 % $ 40,000 19.7 % 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 $ 409.6 million in UPB of loans, which includes capitalized interest of $ 11.5 million. As of December 31, 2022 , $ 215.8 million in UPB of modified loans has been paid down, which includes $ 4.3 million of capitalized interest received. Approximately 80.3 % and 79.8 % of the COVID forbearance loans in UPB were performing, and 19.7 % and 20.2 % were on nonaccrual status as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the gross unpaid principal balance of loans held for investment pledged as collateral for the Company’s warehouse facility agreements, and securitizations issued were as follows (in thousands): December 31, 2022 2021 The 2013 repurchase agreement $ 170,185 $ 202,511 The 2021 repurchase agreement 101,024 114,072 The Bank credit agreement 39,087 30,959 The 2021 term repurchase agreement 104,594 53,217 The July 2021 term repurchase agreement 3,859 — Total pledged loans $ 418,749 $ 400,759 2015-1 Trust $ — $ 31,931 2016-1 Trust 39,720 52,623 2017-2 Trust 67,048 94,809 2018-1 Trust 48,139 71,051 2018-2 Trust 104,791 154,974 2019-1 Trust 104,249 144,727 2019-2 Trust 91,025 132,358 2019-3 Trust 75,618 103,266 2020-1 Trust 144,913 189,547 2020-2 Trust 81,259 98,403 2020-MC1 Trust — 134,957 2021-1 Trust 208,875 249,396 2021-2 Trust 172,144 198,039 2021-3 Trust 178,861 202,138 2021-4 Trust 275,741 314,547 2022-1 Trust 262,526 — 2022-2 Trust 245,339 — 2022-MC1 Trust 97,246 — 2022-3 Trust 299,638 — 2022-4 Trust 326,627 — 2022-5 Trust 251,288 — Total $ 3,075,047 $ 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, excluding loans carried at fair value, that were nonperforming and on nonaccrual status as of December 31, 2022 and 2021. Also included in the tables below is a TDR individually evaluated for allowance for loan loss. December 31, 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/ Impaired Loans Commercial - Purchase $ 22,571 $ 22,437 $ 134 $ 28 0.2 % Commercial - Refinance 87,133 82,330 4,803 517 4.1 Residential 1-4 Unit - Purchase 27,984 27,516 468 118 0.9 Residential 1-4 Unit - Refinance 113,909 111,742 2,167 175 1.4 Short Term 1-4 Unit - Purchase 8,140 8,140 — — — Short Term 1-4 Unit - Refinance 35,602 30,612 4,990 258 2.1 Total $ 295,339 $ 282,777 $ 12,562 $ 1,096 8.7 % Performing troubled debt restructuring: $ — $ — $ — $ 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/ Impaired Loans 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, other than the COVID-19 forbearance-granted loans. Any future payments received for these loans will be recognized on a cash basis. The Company continues 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 table presents the amortized cost basis in the loans held for investment as of December 31, 2022 and 2021, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the years ended December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 701,408 $ ( 640 ) $ 509,421 $ ( 346 ) Commercial - Refinance 907,097 ( 1,343 ) 783,260 ( 1,176 ) Residential 1-4 Unit - Purchase 588,433 ( 596 ) 408,770 ( 209 ) Residential 1-4 Unit - Refinance 939,305 ( 1,602 ) 730,321 ( 1,474 ) Short Term 1-4 Unit - Purchase 69,884 ( 189 ) 28,989 ( 821 ) Short Term 1-4 Unit - Refinance 71,157 ( 502 ) 71,065 ( 653 ) Total $ 3,277,284 $ ( 4,872 ) $ 2,531,826 $ ( 4,679 ) For the years ended December 31, 2022 and 2021 , cash basis interest income recognized on nonaccrual loans was $ 27.3 million and $ 31.2 million, respectively. Other than loans in the Company's COVID-19 forbearance program, no accrued interest income was recognized on nonaccrual loans for the years ended December 31, 2022 and 2021 . The average recorded investment of individually evaluated loans, computed using month-end balances, was $ 269.4 million and $ 311.2 million for the years ended December 31, 2022 and 2021, respectively. There were no commitments to lend additional funds to debtors whose loans have been modified as of December 31, 2022 and 2021. (b) Allowance for Loan Losses The following tables present the activity in the allowance for loan losses for the years ended December 31, 2022 and 2021 (in thousands): December 31, 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: Balance - January 1, 2022 $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Provision for loan losses 401 ( 88 ) 149 429 ( 22 ) 283 1,152 Charge-offs ( 147 ) ( 25 ) ( 7 ) ( 105 ) — ( 237 ) ( 521 ) Ending balance $ 639 $ 2,031 $ 542 $ 1,272 $ 21 $ 388 $ 4,893 Allowance related to: Loans individually evaluated $ 28 $ 517 $ 118 $ 175 $ — $ 258 $ 1,096 Loans collectively evaluated $ 611 $ 1,514 $ 424 $ 1,097 $ 21 $ 130 $ 3,797 Amortized cost related to: Loans individually evaluated $ 22,571 $ 87,133 $ 27,984 $ 113,909 $ 8,140 $ 35,602 $ 295,339 Loans collectively evaluated $ 678,837 $ 819,964 $ 560,449 $ 825,396 $ 61,744 $ 35,555 $ 2,981,945 December 31, 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: Balance - January 1, 2020 $ 373 $ 2,093 $ 333 $ 1,216 $ 595 $ 1,235 $ 5,845 Provision for loan losses 154 164 104 ( 60 ) ( 538 ) ( 116 ) ( 292 ) Charge-offs ( 142 ) ( 113 ) ( 37 ) ( 208 ) ( 14 ) ( 777 ) ( 1,291 ) Ending balance $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Allowance related to: Loans individually evaluated $ 9 $ 826 $ 96 $ 138 $ 31 $ 306 $ 1,406 Loans collectively evaluated $ 376 $ 1,318 $ 305 $ 811 $ 10 $ 36 $ 2,856 Amortized cost related to: Loans individually evaluated $ 17,260 $ 85,935 $ 17,385 $ 107,552 $ 2,986 $ 45,300 $ 276,418 Loans collectively evaluated $ 492,161 $ 697,326 $ 391,385 $ 622,768 $ 26,003 $ 25,765 $ 2,255,408 (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 its credit quality indicator. The charge-offs over the average nonperforming loans were 0.20 %, 0.42 %, and 0.65 % for the years ended December 31, 2022 , 2021 and 2020 , respectively. The recovery rates on long-term nonperforming assets were 106.7 %, 104.2 % and 103.1 % for the years ended December 31, 2022 , 2021 and 2020 , respectively. On short-term nonperforming assets, the recovery rates were 107.0 % and 102.7 % for the years ended December 31, 2022 and 2021, respectively. Short-term loans were classified as held for sale during the year ended December 31, 2020. Other credit quality indicators include aging status and accrual status. Nonperforming loans are loans that are 90 or more days past due, in bankruptcy, in foreclosure, or not accruing interest. The following tables present the aging status of the amortized cost basis in the loans held for investment portfolio, which include $ 203.3 million and $ 296.0 million loans in the Company’s COVID-19 forbearance program as of December 31, 2022 and 2021, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total December 31, 2022 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 865 $ — $ 21,706 $ 22,571 $ — $ 22,571 Commercial - Refinance 4,415 5,943 76,619 86,977 156 87,133 Residential 1-4 Unit - Purchase 590 592 26,802 27,984 — 27,984 Residential 1-4 Unit - Refinance 1,715 2,728 109,466 113,909 — 113,909 Short Term 1-4 Unit - Purchase 176 — 7,964 8,140 — 8,140 Short Term 1-4 Unit - Refinance 657 — 34,945 35,602 — 35,602 Total loans individually evaluated $ 8,418 $ 9,263 $ 277,502 $ 295,183 $ 156 $ 295,339 Loans collectively evaluated Commercial - Purchase $ 24,899 $ 5,096 $ — $ 29,995 $ 648,842 $ 678,837 Commercial - Refinance 41,711 20,561 — 62,272 757,692 819,964 Residential 1-4 Unit - Purchase 22,840 13,948 — 36,788 523,661 560,449 Residential 1-4 Unit - Refinance 64,925 23,224 — 88,149 737,247 825,396 Short Term 1-4 Unit - Purchase 21,273 294 — 21,567 40,177 61,744 Short Term 1-4 Unit - Refinance 5,550 1,191 — 6,741 28,814 35,555 Total loans collectively evaluated $ 181,198 $ 64,314 $ — $ 245,512 $ 2,736,433 $ 2,981,945 Ending balance $ 189,616 $ 73,577 $ 277,502 $ 540,695 $ 2,736,589 $ 3,277,284 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due . 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 . The following table presents the aging of the amortized cost basis of loans held for investment in the Company's COVID-19 forbearance program as of December 31, 2022 and 2021(in thousands): 30–59 days 60–89 days 90+days Total Total December 31, 2022 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ — $ — $ 2,880 $ 2,880 $ — $ 2,880 Commercial - Refinance 767 186 16,194 17,147 — 17,147 Residential 1-4 Unit - Purchase — — 1,116 1,116 — 1,116 Residential 1-4 Unit - Refinance — — 10,039 10,039 — 10,039 Short Term 1-4 Unit - Purchase — — 279 279 — 279 Short Term 1-4 Unit - Refinance 180 — 8,359 8,539 — 8,539 Total loans individually evaluated $ 947 $ 186 $ 38,867 $ 40,000 $ — $ 40,000 Loans collectively evaluated Commercial - Purchase $ 1,682 $ 656 $ — $ 2,338 $ 22,323 $ 24,661 Commercial - Refinance 5,874 3,786 — 9,660 62,699 72,359 Residential 1-4 Unit - Purchase 2,346 1,036 — 3,382 7,277 10,659 Residential 1-4 Unit - Refinance 4,118 1,539 — 5,657 30,178 35,835 Short Term 1-4 Unit - Purchase 19,832 — — 19,832 — 19,832 Short Term 1-4 Unit - Refinance — — — — — — Total loans collectively evaluated $ 33,852 $ 7,017 $ — $ 40,869 $ 122,477 $ 163,346 Ending balance $ 34,799 $ 7,203 $ 38,867 $ 80,869 $ 122,477 $ 203,346 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due. Also includes accruing loans 90+ day past due. 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 $ 163 $ 1,622 $ 4,259 $ 6,044 $ — $ 6,044 Commercial - Refinance — 2,820 18,520 21,340 — 21,340 Residential 1-4 Unit - Purchase — — 3,045 3,045 — 3,045 Residential 1-4 Unit - Refinance — — 22,670 22,670 — 22,670 Short Term 1-4 Unit - Purchase 99 — 180 279 — 279 Short Term 1-4 Unit - Refinance 404 299 5,833 6,536 — 6,536 Total loans individually evaluated $ 666 $ 4,741 $ 54,507 $ 59,914 $ — $ 59,914 Loans collectively evaluated Commercial - Purchase $ 2,209 $ 1,158 $ — $ 3,367 $ 30,904 $ 34,271 Commercial - Refinance 8,309 2,444 — 10,753 90,040 100,793 Residential 1-4 Unit - Purchase 315 231 — 546 18,321 18,867 Residential 1-4 Unit - Refinance 4,086 319 — 4,405 48,314 52,719 Short Term 1-4 Unit - Purchase 20,869 — — 20,869 761 21,630 Short Term 1-4 Unit - Refinance 942 4,149 — 5,091 2,705 7,796 Total loans collectively evaluated $ 36,730 $ 8,301 $ — $ 45,031 $ 191,045 $ 236,076 Ending balance $ 37,396 $ 13,042 $ 54,507 $ 104,945 $ 191,045 $ 295,990 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due. Also includes accruing loans 90+ day 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 December 31, 2022 and 2021 (in thousands). Term Loans Amortized Cost Basis by Origination Year December 31, 2022: 2022 2021 2020 2019 2018 Pre-2018 Total Commercial - Purchase Payment performance Performing $ 273,950 $ 249,100 $ 36,064 $ 56,322 $ 33,193 $ 30,208 $ 678,837 Nonperforming 1,274 6,959 1,579 5,809 3,205 3,745 22,571 Total Commercial - Purchase $ 275,224 $ 256,059 $ 37,643 $ 62,131 $ 36,398 $ 33,953 $ 701,408 Commercial - Refinance Payment performance Performing $ 263,754 $ 210,898 $ 55,795 $ 103,633 $ 93,161 $ 92,723 $ 819,964 Nonperforming 9,012 11,801 3,855 23,423 20,408 18,634 87,133 Total Commercial - Refinance $ 272,766 $ 222,699 $ 59,650 $ 127,056 $ 113,569 $ 111,357 $ 907,097 Residential 1-4 Unit - Purchase Payment performance Performing $ 249,625 $ 227,235 $ 10,710 $ 31,685 $ 18,891 $ 22,303 $ 560,449 Nonperforming 7,281 10,107 2,165 2,313 1,553 4,565 27,984 Total Residential 1-4 $ 256,906 $ 237,342 $ 12,875 $ 33,998 $ 20,444 $ 26,868 $ 588,433 Residential 1-4 Unit - Refinance Payment performance Performing $ 338,959 $ 285,195 $ 24,703 $ 84,208 $ 39,870 $ 52,461 $ 825,396 Nonperforming 21,391 25,023 6,907 27,746 15,834 17,008 113,909 Total Residential 1-4 $ 360,350 $ 310,218 $ 31,610 $ 111,954 $ 55,704 $ 69,469 $ 939,305 Short Term 1-4 Unit - Purchase Payment performance Performing $ 40,967 $ 944 $ 15,659 $ 4,174 $ — $ — $ 61,744 Nonperforming 1,287 5,212 995 542 104 — 8,140 Total Short Term 1-4 $ 42,254 $ 6,156 $ 16,654 $ 4,716 $ 104 $ — $ 69,884 Short Term 1-4 Unit - Refinance Payment performance Performing $ 35,555 $ — $ — $ — $ — $ — $ 35,555 Nonperforming 786 1,221 10,545 18,245 4,805 — 35,602 Total Short Term 1-4 $ 36,341 $ 1,221 $ 10,545 $ 18,245 $ 4,805 $ — $ 71,157 Total Portfolio $ 1,243,841 $ 1,033,695 $ 168,977 $ 358,100 $ 231,024 $ 241,647 $ 3,277,284 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 |
Mortgage Loans on Real Estate
Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Mortgage Loans on Real Estate | Note 7 — Mortgage Loans on Real Estate The following tables present the Company’s loans (UPB) collateralized by real estate as of December 31, 2022 and 2021 (in thousands). December 31, 2022 Description Interest Final Unpaid Nonaccrual 1-4 unit residential (3) Under $1.0 million 4.0 % - 13.5 % January 1, 2053 $ 1,374,726 $ 127,125 $1.0 million and over 4.0 % - 11.5 % January 1, 2053 476,813 57,508 1,851,539 184,633 Traditional commercial (4) Under $1.0 million 4.0 % - 13.7 % January 1, 2053 1,196,378 69,763 $1.0 million and over 4.0 % - 11.7 % January 1, 2053 464,569 38,393 1,660,947 108,156 Total at December 31, 2022 $ 3,512,486 $ 292,789 December 31, 2021 Description Interest Final Unpaid Nonaccrual 1-4 unit residential (3) Under $1.0 million 4.0 % - 13.5 % January 1, 2052 $ 987,069 $ 127,214 $1.0 million and over 4.0 % - 11.5 % January 1, 2052 325,025 44,426 1,312,094 171,640 Traditional commercial (4) Under $1.0 million 3.1 % - 13.0 % January 1, 2052 969,599 73,039 $1.0 million and over 4.0 % - 10.2 % January 1, 2052 305,528 28,421 1,275,127 101,460 Total at December 31, 2021 $ 2,587,221 $ 273,100 (1) The aggregate cost of the Company’s loan portfolio for Federal income tax purposes was $ 3,553,379 and $ 2,621,093 as of December 31, 2022 and 2021, respectively. (2) As of December 31, 2022 and 2021, $ 168.4 million and $ 155.1 million, respectively, of the total UPB were interest-only loans with interest payable monthly and the principal payable at maturity. (3) The principal and interest on the 1-4 unit residential mortgage loans is payable monthly over the life of the loan to maturity. These loans generally contain a 3 % prepayment penalty provision if the loan is prepaid within the first 3 years. (4) The principal and interest on the traditional commercial mortgage loans is payable monthly over the life of the loan to maturity. These loans generally contain a 5 % prepayment penalty provision if the loan is prepaid within the first 3 years. The following table presents the reconciliation of the UPB of mortgage loans for the years ended December 31, 2022, 2021, and 2020: December 31, 2022 2021 2020 Balance at beginning of period $ 2,587,220 $ 1,944,804 $ 2,059,344 Addition during period: New mortgage loans 1,761,853 1,326,275 435,037 Acquisition 17,657 22,437 4,643 Capitalized Interest 1,604 2,045 7,814 Deduction during period: Collection of principal ( 525,986 ) ( 568,081 ) ( 374,576 ) Collection of capitalized interest ( 2,155 ) ( 2,163 ) — Foreclosures ( 10,031 ) ( 11,603 ) ( 10,781 ) Mortgages sold ( 317,676 ) ( 126,494 ) ( 176,677 ) Balance at end of period $ 3,512,486 $ 2,587,220 $ 1,944,804 |
Receivables Due From Servicers
Receivables Due From Servicers | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables Due From Servicers | Note 8 — Receivables Due From Servicers The following tables summarize receivables due from servicers as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Securitizations Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 24,400 $ 664 $ 25,064 Other loan servicing receivables 13,095 2,521 15,616 Loan servicing receivables 37,495 3,185 40,680 Corporate and escrow advances receivable 21,995 2,969 24,964 Total receivables due from servicers $ 59,490 $ 6,154 $ 65,644 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 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 9 — Property and Equipment, Net As of December 31, 2022 and 2021, property and equipment consisted of the following (in thousands): December 31, 2022 2021 Furniture $ 927 $ 885 Computer equipment 986 1,222 Office equipment 409 278 Leasehold improvements 578 578 Capitalized software 6,671 7,634 Building 685 685 10,256 11,282 Accumulated depreciation and amortization ( 6,900 ) ( 7,452 ) Ending balance $ 3,356 $ 3,830 During the years ended December 31, 2022, 2021 and 2020 , depreciation and amortization expense was $ 0.8 million, $ 1.1 million, and $ 1.2 million, respectively. The Company engaged a third-party consulting firm to assist in the building and implementation of a data warehouse and loan origination systems. The data warehouse was placed into service in 2017 and the loan origination system was placed into service in 2018. The total capitalized costs for the data warehouse and loan origination systems (LOS) were $ 5.7 million as of December 31, 2022 and 2021 . Total accumulated depreciation and amortization included accumulated amortization on the data warehouse and the LOS of $ 4.1 million and $ 3.7 million as of December 31, 2022 and 2021, respectively. The estimated aggregate amortization expense related to capitalized software for each of the next five years is $ 0.4 million for 2023, 2024, 2025, 2026, and $ 0.2 million for 2027. |
Real Estate Owned, Net
Real Estate Owned, Net | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Real Estate Owned, Net | Note 10 — Real Estate Owned, Net The Company’s real estate owned activities were as follows during the years ended December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Beginning balance $ 17,557 $ 15,767 Additions 13,439 12,583 Capitalized improvements — 194 Sales ( 19,558 ) ( 9,228 ) Other adjustments 2,250 — Valuation adjustments ( 363 ) ( 1,759 ) Ending balance $ 13,325 $ 17,557 The following table summarizes information about real estate operating income and expenses, realized gains and losses on sales of real estate, and unrealized gains and losses resulting from adjustments to valuation allowances for the years ended December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 2021 2020 Operating income $ 275 $ 451 $ 444 Operating expenses ( 2,781 ) ( 2,251 ) ( 2,010 ) Valuation adjustments ( 363 ) ( 1,759 ) ( 1,734 ) Net gain on sales of real estate 2,939 409 644 Total $ 70 $ ( 3,150 ) $ ( 2,656 ) Net gain (loss) on sales of real estate represents the difference between the net proceeds from the liquidation of the underlying properties and their respective carrying values. The following table provides additional information about the number of properties sold and the gross gains and losses recognized in real estate owned, net, in the consolidated statements of income, during the years ended December 31, 2022, 2021 and 2020 (in thousands, except properties sold): Year Ended December 31, 2022 2021 2020 Properties Gain Properties Gain Properties Gain sold (loss) sold (loss) sold (loss) Sales resulting in gains 31 $ 3,401 23 $ 972 14 $ 837 Sales resulting in losses 12 ( 462 ) 14 ( 563 ) 9 ( 193 ) Total 43 $ 2,939 37 $ 409 23 $ 644 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Note 11 — Mortgage Servicing Rights Mortgage loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others by Century amounted to $ 491.9 million and $ 520.6 million as of December 31, 2022 and 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 December 31, 2022 and 2021 include: 1) Weighted average discount rate of 8.1 % and 8.0 %, and 2) Weighted average constant prepayment rate of 6.3 % and 3.2 %. The following table presents the Company's mortgage servicing rights (in thousands): December 31, 2022 2022 2021 Balance at the beginning of year $ 7,152 $ — Mortgage servicing rights acquired — 7,152 Additions — — Fair value adjustments 2,086 — Balance at end of year $ 9,238 $ 7,152 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 12 — Goodwill FASB ASC 350, Intangibles - Goodwill and Other , requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstance indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess. The goodwill was recorded as part of the purchase accounting of Century on December 28, 2021, Management has assessed goodwill and concluded that no impairment existed as of December 31, 2022. The following table presents the activity for goodwill (in thousands): December 31, 2022 2021 Balance at the beginning of year $ 6,775 $ — Goodwill acquired — 6,775 Balance at end of year $ 6,775 $ 6,775 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | Note 13 — Other Assets Other assets were comprised of the following as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Prepaid expenses $ 1,843 $ 1,628 Interest-only strips and deposits 176 166 Deferred costs 501 502 Income tax receivable 8,301 — Operating leases - right of use assets, net 2,424 3,744 Appraisal fees for loans in process ( 58 ) 479 Other assets 338 305 Total other assets $ 13,525 $ 6,824 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 14 — Leases The Company adopted ASU 2016-02, Leases (Topic 842) and all subsequent related ASUs using the alternative transition method effective January 1, 2019. The Company has elected the package of practical expedients that permits the Company to not reassess prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected all the new standard’s available transition practical expedients, including the short-term lease recognition exemption that includes not recognizing right-of-use (“ROU”) assets or lease liabilities for existing short-term leases, and the practical expedient to not separate lease and non-lease components for all leases. The Company determines if a contract arrangement is a lease at inception. The Company primarily enters into operating lease contracts for office space and certain equipment. As part of the property lease agreements, the Company may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The ROU lease asset also includes any lease payments made and lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not possess any leases that have variable lease payments or residual value guarantees. The Company uses its incremental borrowing rates to determine the present value of its lease liabilities. The weighted average borrowing rate was 5.88 %, 5.86 %, and 6.01 % as of December 31, 2022, 2021 , and 2020, respectively. The Company’s leases have remaining terms ranging from 2 years to 5 years , and the weighted average remaining lease term was 2.0 years as of December 31, 2022. Short-term leases (initial term of less than 12 months) are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. As of December 31, 2022 and 2021 , operating lease ROU assets included in other assets was $ 2.4 million and $ 3.7 million, respectively. Operating lease liabilities included in accounts payable and accrued expenses was $ 2.7 million and $ 4.0 million as of December 31, 2022 and 2021 , respectively. Operating lease expense is a component of “Rent and occupancy” expense on the consolidated statements of income. Operating lease expense was $ 1.7 million, $ 1.8 million, and $ 1.5 million for the year ended December 31, 2022, 2021, and 2020, respectively, and included short-term leases that were immaterial. The following table presents supplemental cash flow information related to leases for the years ended December 31, 2022, 2021, and 2020 (in thousands): December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,632 $ 1,626 $ 1,524 ROU assets obtained in exchange for lease obligations: Operating leases $ 26 $ 256 $ — The following table presents maturities of operating lease liabilities as of December 31, 2022 (in thousands): December 31, 2022 Operating Leases 2023 $ 1,514 2024 1,209 2025 170 2026 105 2027 53 Thereafter 290 Total lease payments 3,341 Less: Imputed interest ( 691 ) Present value of lease liabilities $ 2,650 |
Securitizations, Net
Securitizations, Net | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Securitizations, Net | Note 15 — Securitizations, Net As of December 31, 2022 , the Company is the sole beneficial interest holder of twenty-one Trusts, which are variable interest entities included in the consolidated financial statements. The securitization 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 10 %– 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. The following table summarizes securities issued, ownership retained by the Company at the time of the securitization, and as of December 31, 2022 and 2021, and the stated maturity for each outstanding securitization (in thousands): Securities Retained as of Trusts Securities Issuance December 31, December 31, Stated Maturity 2015-1 Trust $ 285,457 $ 27,372 $ — $ 15,526 July 2045 2016-1 Trust 319,809 38,792 17,541 17,633 April 2046 2017-2 Trust 245,601 12,927 2,697 4,064 October 2047 2018-1 Trust 176,816 9,308 2,065 2,849 April 2048 2018-2 Trust 307,988 16,210 4,352 6,608 October 2048 2019-1 Trust 235,580 12,399 4,178 6,180 March 2049 2019-2 Trust 207,020 10,901 4,007 5,922 July 2049 2019-3 Trust 154,419 8,127 3,281 4,799 October 2049 2020-1 Trust 248,700 13,159 6,746 8,678 February 2050 2020-2 Trust 96,352 32,118 12,847 12,847 June 2050 2020-MC1 Trust 179,371 96,585 — 108,891 July 2050 2021-1 Trust 251,301 13,227 10,120 12,518 May 2051 2021-2 Trust 194,918 10,260 — — August 2051 2021-3 Trust 204,205 — — — October 2051 2021-4 Trust 319,116 — — — December 2051 2022-1 Trust 273,594 5,015 4,718 — February 2052 2022-2 Trust 241,388 11,202 11,170 — March 2052 2022-MC1 Trust 84,967 40,911 44,038 — May 2047 2022-3 Trust 296,323 18,914 18,587 — May 2052 2022-4 Trust 308,357 25,190 25,027 — July 2052 2022-5 Trust 188,754 65,459 65,141 — October 2052 Total $ 4,820,036 $ 468,076 $ 236,515 $ 206,515 The following table summarizes outstanding bond balances for each securitization as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 2015-1 Trust $ — $ 17,536 2016-1 Trust 22,369 36,401 2017-2 Trust 59,183 86,497 2018-1 Trust 43,596 62,375 2018-2 Trust 93,792 143,152 2019-1 Trust 91,167 132,306 2019-2 Trust 82,508 122,205 2019-3 Trust 67,899 95,521 2020-1 Trust 136,643 174,550 2020-2 Trust 60,445 80,676 2020-MC1 Trust — 35,711 2021-1 Trust 196,969 236,190 2021-2 Trust 170,072 197,744 2021-3 Trust 178,038 202,793 2021-4 Trust 273,489 315,489 2022-1 Trust 256,667 — 2022-2 Trust 233,045 — 2022-MC1 Trust 54,528 — 2022-3 Trust 280,066 — 2022-4 Trust 301,856 — 2022-5 Trust 186,577 — Total outstanding bond balance $ 2,788,909 $ 1,939,146 The securities and certificates are typically issued at a discount to par, which is recorded as a contra liability to the securities issued. The discount is amortized as an adjustment of yield over the stated term of the securities adjusted for prepayments. As of December 31, 2022 and 2021, unamortized discounts or premiums associated with the Trusts are as follows (in thousands): December 31, 2022 2021 2015-1 Trust $ — $ 35 2016-1 Trust ( 150 ) 84 2017-2 Trust 8 12 2018-1 Trust 6 10 2018-2 Trust 11 16 2019-1 Trust 9 19 2019-2 Trust 6 10 2019-3 Trust 4 7 2020-1 Trust 3 5 2020-2 Trust 786 1,692 2020-MC1 Trust — 385 2021-Trust 15 21 2021-2 Trust 162 214 2021-3 Trust 660 925 2021-4 Trust 642 838 2022-1 Trust 3,546 — 2022-2 Trust 3,665 — 2022-MC1 Trust 388 — 2022-3 Trust 6,161 — 2022-4 Trust 4,878 — 2022-5 Trust 727 — Total unamortized discounts (premiums) $ 21,527 $ 4,273 Professional and other capitalized issuance costs associated with the securitizations are recorded as a contra liability to the securities issued. As of December 31, 2022 and 2021, capitalized issuance costs associated with the Trusts are as follows (in thousands): December 31, 2022 2021 2015-1 Trust $ — $ 32 2016-1 Trust 8 52 2017-2 Trust 535 808 2018-1 Trust 303 561 2018-2 Trust 908 1,371 2019-1 Trust 687 1,385 2019-2 Trust 866 1,325 2019-3 Trust 675 1,042 2020-1 Trust 1,351 2,032 2020-2 Trust 369 847 2020-MC1 Trust — 380 2021-1 Trust 1,978 2,897 2021-2 Trust 1,924 2,757 2021-3 Trust 2,178 3,055 2021-4 Trust 3,177 4,449 2022-1 Trust 3,045 — 2022-2 Trust 2,880 — 2022-MC1 Trust 877 — 2022-3 Trust 3,679 — 2022-4 Trust 3,303 — 2022-5 Trust 2,349 — Total capitalized issuance costs $ 31,092 $ 22,994 As of December 31, 2022 and 2021, the weighted average rate on the sold securities and certificates for the Trusts are as follows: December 31, 2022 2021 2015-1 Trust — % 7.22 % 2016-1 Trust 8.59 8.22 2017-2 Trust 3.92 3.37 2018-1 Trust 4.05 4.04 2018-2 Trust 4.46 4.39 2019-1 Trust 4.06 4.02 2019-2 Trust 3.46 3.44 2019-3 Trust 3.25 3.26 2020-1 Trust 2.89 2.82 2020-2 Trust 4.60 4.45 2020-MC1 Trust — 4.42 2021-1 Trust 1.73 1.73 2021-2 Trust 2.02 2.28 2021-3 Trust 2.44 2.45 2021-4 Trust 3.20 3.11 2022-1 Trust 3.93 — 2022-2 Trust 5.07 — 2022-MC1 Trust 6.91 — 2022-3 Trust 5.67 — 2022-4 Trust 6.23 — 2022-5 Trust 7.10 — |
Other Debt
Other Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Other Debt | Note 16 — Other Debt The secured financing and warehouse facilities are 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. 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 (“2021 Term Loan”). The 2021 Term Loan bore interest at a rate equal to one-month LIBOR plus 8.00 % with a 1.00 % LIBOR floor and was set to mature on February 4, 2026 . As of December 31, 2021, the balance of the 2021 Term Loan was $ 170.8 million. The balance in the consolidated balance sheets is net of debt issuance costs and discounts of $ 8.0 million as of December 31, 2021. On March 15, 2022, the Company entered into a five-year $ 215.0 million syndicated corporate debt agreement (“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 December 31, 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 $ 5.2 million as of December 31, 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 December 31, 2022, the Company was in compliance with all 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 (“the 2011 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. The effective interest rate was 5.6 % for the year ended December 31, 2022. On August 8, 2016 , Century entered into 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 3.50 %. 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 5.7 % and 4.2 %, for the years ended December 31, 2022 and 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, 2025 . During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at SFOR plus 3.61 %, with a floor of 4.25 %. The maximum loan amount under this facility is $ 50.0 million. The effective interest rates were 5.8 % and 7.3 % for the years ended December 31, 2022 and 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 is secured by five real properties acquired by the Company through foreclosure or by deed-in lieu of foreclosure. The 2019 Loan bore a fixed interest rate of 9.5 %, with an extended maturity date of June 1, 2022 . This loan was paid off in March 2022. The effective interest rate was 10.5 % for the years ended December 31, 2022 and 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 current extended maturity date of April 14 , 2023 , and was a short-term borrowing facility, collateralized by a pool of loans, with a maximum capacity of $ 200.0 million, and bore interest at SOFR 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 6.4 % and 5.9 % for the years ended December 31, 2022 and 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. There was no balance outstanding for the year ended December 31, 2022 . The effective interest rates were 5.6 % and 3.5 % for the years ended December 31, 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 rates were 10.0 % and 3.5 % for the years ended December 31, 2022 and 2021, respectively. On October 7, 2022 , the Company entered into a $ 10.2 million short-term repurchase agreement ("the October 2022 Repurchase Agreement) with the 2013 Repurchase Agreement warehouse lender. The October Repurchase Agreement had a maturity date of January 5, 2023 and bore interest at SOFR plus 1.58 %. The maturity date has been extended to March 31, 2023 and the borrowing amount has increased to $ 15.0 million. The maximum capacity under this agreement was $ 18.8 million. The effective interest rate was 6.1 % for the year ended December 31, 2022. 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 December 31, 2022 and 2021, the Company was in compliance with all covenants. The following table summarizes the maximum borrowing capacity and current gross balances outstanding for the Company’s warehouse facilities and loan agreements as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Period end (1) Maximum Period end (1) Maximum The 2021 term repurchase agreement $ 74,334 $ 100,000 $ 41,636 $ 100,000 The 2021 repurchase agreement 79,504 200,000 82,580 200,000 The July 2021 term repurchase agreement 2,185 100,000 — 100,000 The 2013 repurchase agreement 136,165 300,000 153,499 200,000 The Bank credit agreement 29,495 50,000 22,385 50,000 The 2019 loan agreement — — 2,700 3,000 The October 2022 repurchase agreement 10,057 18,818 — — The September 2022 term repurchase agreement — 60,000 — — Revolving credit line — 3,000 — — Total $ 331,740 $ 831,818 $ 302,800 $ 653,000 (1) Warehouse repurchase facilities amounts in the consolidated balance sheet are net of debt issuance costs amounting to $ 0.9 million and $ 1.7 million as of December 31, 2022 and 2021 . The following table provides an overview of the activity and effective interest rate for the years ended December 31, 2022, 2021, and 2020 ($ in thousands): December 31, 2022 2021 2020 Warehouse and repurchase facilities: Average outstanding balance $ 299,060 $ 183,663 $ 168,098 Highest outstanding balance at any month-end 426,959 336,775 439,547 Effective interest rate (1) 5.84 % 5.28 % 4.97 % (1) Represents interest expense divided by average gross outstanding balance and includes average rate of 5.22 %, 4.23 %, and 4.31 %, and debt issue cost amortization of 0.62 %, 1.05 %, and 0.66 %, as of December 31, 2022, 2021, and 2020 , 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 years ended December 31, 2022, 2021, and 2020 (in thousands): December 31, 2022 2021 2020 Warehouse and repurchase facilities $ 17,454 $ 9,706 $ 8,352 Securitizations 110,269 75,680 79,474 Interest expense — portfolio related 127,723 85,386 87,826 Interest expense — corporate debt 29,472 20,609 12,049 Total interest expense $ 157,195 $ 105,995 $ 99,875 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 — Income Taxes The Company elected to be treated as a corporation, for tax purposes, effective January 1, 2018. As a result, the Company calculated its deferred tax balance as of January 1, 2018 and, per U.S. GAAP, recognized a deferred tax liability of $ 5.5 million with a corresponding increase to income tax expense in January 2018, the period in which the change was made. The following table details the Company’s income tax expense (benefit) (in thousands): December 31, 2022 2021 2020 Current tax expense (benefit): Federal $ ( 90 ) $ 15,042 $ 4,454 State 552 5,477 ( 769 ) Total current tax expense $ 462 $ 20,519 $ 3,685 Deferred tax expense (benefit): Federal $ 8,553 $ ( 7,362 ) $ 564 State 3,018 ( 2,588 ) 1,103 Total deferred tax expense (benefit) $ 11,571 $ ( 9,950 ) $ 1,667 Total income tax expense $ 12,033 $ 10,569 $ 5,352 The following table contains a reconciliation of the Company’s provision for income taxes at the federal statutory tax rate to the provision for income taxes at the effective tax rate as of December 31, 2022, 2021, and 2020: December 31, 2022 2021 2020 Federal income tax provision at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 6.3 5.6 8.6 Permanent items 0.2 0.1 0.1 Federal true-ups — — 0.5 Tax credits ( 0.3 ) ( 0.2 ) ( 0.4 ) Change in unrecognized tax benefit — — ( 7.9 ) Other — 0.1 1.2 Effective tax rate 27.2 % 26.6 % 23.1 % The changes in state income taxes and unrecognized tax benefit in the reconciliation are primarily due to changes in state apportionment and the related valuation impacts on taxes payable as well as the deferred tax asset in the prior year. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are presented below (in thousands): December 31, 2022 2021 Deferred tax assets: REMIC book-tax basis difference $ — $ 10,433 Net operating loss 8,451 — Mark-to-market on loans 355 7,066 Lease liability 783 1,151 Stock compensation 1,485 888 Accrued vacation 283 226 Intangibles 5 7 REO — 225 Deferred state taxes 696 — Other 154 82 Gross deferred tax assets 12,212 20,078 Deferred tax liabilities: REMIC book-tax basis difference ( 4,941 ) — Right-of-use assets ( 717 ) ( 1,064 ) Deferred origination costs ( 138 ) ( 1,306 ) Property and equipment ( 595 ) ( 710 ) REO ( 30 ) — Deferred state taxes — ( 394 ) MSR valuation ( 758 ) — Gross deferred tax liabilities ( 7,179 ) ( 3,474 ) Total net deferred tax asset $ 5,033 $ 16,604 The Company’s main temporary difference is due to the difference between the U.S. income tax and U.S. GAAP treatment with respect to its REMIC securities. For tax purposes, the issuances are considered taxable sales; whereas, for U.S. GAAP purposes, the REMIC issuances are considered financings. Federal net operating loss ("NOL") carryforwards of $ 6.4 million generated after 2017 are available to offset future U.S. federal taxable income over an indefinite period. State NOL carryforwards totaling $ 2.0 million are available to offset future taxable income and began to expire in 2027 . NOL carryforward periods for the various states jurisdictions generally range from 5 to 20 years. The Company had no valuation allowance as of December 31, 2022 and 2021. Based on the Company’s estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal, state, and local jurisdictions, where applicable. As of December 31, 2022, the Company is no longer subject to U.S. tax examinations for years before 2019 and is no longer subject to state tax examinations for years before 2018. The Company periodically reviews its income tax positions based on tax laws and regulations and financial reporting considerations, and records adjustments as appropriate. This review takes into consideration the status of current taxing authorities' examinations of the Company's tax returns, recent positions taken by the taxing authorities on similar transactions, if any, and the overall tax environment. The Company had gross unrecognized tax benefits in the amount of $ 1.9 million recorded as of December 31, 2022 and 2021 . If recognized, $ 1.5 million of the unrecognized tax benefit would affect the 2022 annual effective tax rate. Interest and penalties on unrecognized tax benefits is reported by the Company as a component of tax expense, and the Company recorded interest and penalties in its consolidated statements of income in the amount of $ 0.1 million, $ 0.1 million, and $( 0.5 ) million as of December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022 and 2021 , the accrued interest and penalties related to unrecognized tax benefits remained at $ 0.6 million. There are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. Detailed below is a reconciliation of the Company's gross unrecognized tax benefits for the years ended December 31, 2022 and 2021, respectively (in thousands): December 31, 2022 2021 Beginning balance $ 1,911 $ 1,860 Changes related to current year tax positions 68 49 Changes related to prior year tax positions 19 2 Decreases due to lapsed statutes of limitations ( 58 ) — Ending balance $ 1,940 $ 1,911 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 18 — 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. (a) Stock Options 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 . The Company uses the Black-Scholes option pricing model to value stock options in determining the stock-based compensation expense. Forfeitures are recognized as they occur. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. The expected dividend yield was zero as the Company is not expected to pay dividends in the foreseeable future. Expected volatility is based on the estimated average maximum volatility provided by a third-party investment bank due to the lack of historical volatilities of the Company’s common stock. There were no stock options granted in the years ended December 31, 2022, and 2021 . The following table presents the assumptions used in the option pricing model at the grant date for options granted in the year ended December 31, 2020: Assumptions: December 31, 2020 Expected volatility 0.28 Expected dividends — Risk-free interest rate 1.50 Expected forfeited rate — The tables below summarize stock option activity during the years ended December 31, 2022 and 2021: December 31, 2022 ($ in thousands, except per share amounts) Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options outstanding at beginning of year 785,000 $ 12.89 Granted — — Exercised — — Forfeited — — Options outstanding at end of year 785,000 $ 12.89 7.1 years $ 42 Options exercisable at end of year 523,333 $ 12.89 7.1 years $ 28 Options expected to vest (1) 261,667 $ 12.89 7.1 years $ 14 December 31, 2021 ($ in thousands, except per share amounts) Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options outstanding at beginning of year 785,000 $ 12.89 Granted — — Exercised — — Forfeited — — Options outstanding at end of year 785,000 $ 12.89 8.1 years 93 Options exercisable at end of year 261,667 $ 12.89 8.1 years 31 Options expected to vest (1) 523,333 $ 12.89 8.1 years 62 (1) The number of options expected to vest reflects no expected forfeiture . The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the “in-the-money” option exercise price. Stock options vest ratably over a service period of three years from the date of the grant. Compensation expense related to stock options 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. Unvested stock options outstanding were 261,667 and 523,333 shares as of December 31, 2022 and 2021 , respectively, at a weighted average exercise price per share of $ 12.89 . The amount of unrecognized compensation expense related to unvested stock options was $ 52.0 thousand, and the weighted average period over which it is expected to be recognized is 0.18 years as of December 31, 2022. (b) Restricted Stock Awards 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 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. The fair value of restricted stock awards is determined based on the fair market value of the Company's common shares on the grant date. The estimated fair value of restricted stock awards is amortized as an expense over the three-year requisite service period. The Company has elected to recognize forfeitures as they occurred rather than estimating service-based forfeitures over the requisite service period. The amount of unrecognized compensation expense related to unvested restricted stock awards was $ 2.7 million, and the weighted average period over which it is expected to be recognized is 1.63 years as of December 31, 2022. The table below summarizes restricted stock award activity during the year ended December 31, 2022 and 2021: Employee Non-Employee Director Total December 31, 2022 Restricted Stock Awards Restricted Stock Awards Restricted Stock Awards ($ in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 480,000 $ 7.04 26,511 $ 10.75 506,511 $ 7.23 Granted 125,250 12.63 31,215 9.13 156,465 11.93 Vested ( 160,000 ) 7.04 ( 8,837 ) 10.75 ( 168,837 ) 7.23 Forfeited — — — — — — Nonvested at December 31, 2022 445,250 $ 8.61 48,889 $ 9.72 494,139 $ 8.72 Employee Non-Employee Director Total December 31, 2021 Restricted Stock Awards Restricted Stock Awards Restricted Stock Awards ($ in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 — $ — — $ — — $ — Granted 480,000 7.04 26,511 10.75 506,511 7.23 Vested — — — — — — Forfeited — — — — — — Nonvested at December 31, 2021 480,000 $ 7.04 26,511 $ 10.75 506,511 $ 7.23 (c) Performance Stock Units In February 2022, the Company granted 102,750 shares of performance stock unit (" PSU") to certain employees, including named executive officers under the 2020 Plan. PSUs will vest based on the achievement of predetermined performance goals over performance periods determined by the Compensation Committee. PSUs are subject to forfeiture until predetermined performance conditions have been achieved. The Company recognizes share-based compensation expense for PSUs on a straight-line basis over the requisite service period of the award when it is probable that the performance conditions will be achieved. Compensation expense for PSUs with financial performance measures is measured using the fair value at the date of grant and recorded over each vesting period, and may be adjusted over the vesting period based on interim estimates of performance against the pre-set objectives. The 102,750 PSUs granted in 2022 represent 100 % of the original target award amount, vesting eligibility is based on performance and service conditions of three years. Accordingly, the number of shares issued at the end of the performance period could range between 0 % and 200 % of the original target award amount of 102,750 units. A summary of the PSU activity as of December 31, 2022 under the 2020 Omnibus Plan is presented below: December 31, 2022 ($ in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value (per share) Outstanding at beginning of year, nonvested — $ — Granted 102,750 12.63 Vested — — Forfeited — — Outstanding at end of year, nonvested 102,750 $ 12.63 (d) Employee Stock Purchase Plan In July 2022, the Company initiated an ESPP which allows permitted eligible employees to purchase shares of the Company's common stock through payroll deductions of up to 15 % of their eligible compensation, subject to certain limitations. The purchase price of the shares under the ESPP equals 85 % of the lower of the fair market value of the Company's common stock on either the first or last day of each six-month offering period. As of December 31, 2022 , 74,009 shares had been issued pursuant to ESPP. Compensation expense for the ESPP is calculated as of the beginning of the offering period as the fair value of the employees’ purchase rights utilizing the Black-Scholes option valuation model and is recognized as a compensation expense over the offering period. The table below presents the fair value assumptions used for the period indicated: Assumptions: December 31, 2022 Risk-free interest rate 2.50 % Expected term (in years) 0.5 Expected volatility 49.93 % Dividend yield — Grant date fair value per share $ 11.31 The Company recognized a total of $ 3.1 million and $ 2.1 million compensation expense related to the outstanding stock options, unvested restricted stock awards, ESPP, and unvested performance-based stock unit awards granted to employees during the years ended December 31, 2022 and 2021 , respectively. Such amount is included in “Compensation and employee benefits” on the Consolidated Statement of Income. The total amount of unrecognized compensation expense related to unvested stock options, restricted stock awards, and performance-based stock unit awards remained at $ 3.6 million as of December 31, 2022 and 2021. 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. 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. No common stock purchases were made by the Company during the last nine months of 2022. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 19 — Earnings (Loss) 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 income (loss) per share calculations for the years ended December 31, 2022, 2021, and 2020: December 31, 2022 2021 2020 (In thousands, except per share data) Basic EPS: Net income $ 32,211 $ 29,224 $ 17,777 Less: deemed dividends on preferred stock — — 48,955 Net income (loss) attributable to common shareholders 32,211 29,224 ( 31,178 ) Less: earnings attributable to participating securities 491 8,589 — Net earnings (loss) attributable to common shareholders $ 31,720 $ 20,635 $ ( 31,178 ) Weighted average common shares outstanding 31,913 22,813 20,087 Basic income (loss) per common share $ 0.99 $ 0.90 $ ( 1.55 ) Diluted EPS: Net income (loss) attributable to common shareholders $ 32,211 $ 20,635 $ ( 31,178 ) Weighted average common shares outstanding 31,913 22,813 20,087 Add dilutive effects for assumed conversion of Series A preferred stock — 8,989 — Add dilutive effects for warrants 2,025 1,974 — Add dilutive effects for stock options 5 3 — Add dilutive effects of unvested restricted stock awards 188 203 — Weighted average diluted common shares outstanding 34,131 33,982 20,087 Diluted income (loss) per common share $ 0.94 $ 0.86 $ ( 1.55 ) 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): December 31, 2022 2021 2020 Shares underlying Series A Convertible Preferred Stock — — 11,688 Shares underlying warrants — — 3,013 Stock options 773 773 785 Unvested restricted stock awards — — — Shares equivalents excluded from EPS 773 773 15,486 |
Convertible Redeemable Preferre
Convertible Redeemable Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Redeemable Preferred Stock [Abstract] | |
Convertible Redeemable Preferred Stock | Note 20 — Convertible Redeemable 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 45,000 outstanding shares of Series A Convertible Preferred Stock into 11,688,310 shares of its common stock. " The Warrants are exercisable at the warrantholder’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 2,008,750 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 warrantholder together with its affiliates would beneficially own 49 % or more of the Company’s outstanding common stock. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 21 — Concentration of Risk The Company originates and purchases loans secured by a broad spectrum of commercial property throughout the United States. As of December 31, 2022 and 2021, geographic and property type concentrations of loans, by unpaid principal balance, were as follows: December 31, 2022 2021 Geographic concentration: California 22.8 % 23.3 % New York 19.9 21.4 Florida 13.3 13.5 New Jersey 7.5 7.7 Other states (individually less than 5.0%) 36.5 34.1 100.0 % 100.0 % December 31, 2022 2021 Property type concentration: Investor 1-4 52.7 % 50.7 % Mixed use 12.6 12.8 Retail 8.7 9.1 Multifamily 8.6 8.8 Office 5.7 6.1 Warehouse 6.4 6.7 Other (individually less than 5.0%) 5.3 5.8 100.0 % 100.0 % As of December 31, 2022 and 2021 , the Company held $ 13.3 million and $ 17.6 million, respectively, of real estate owned, net, with geographic concentrations as follows: December 31, 2022 2021 Geographic concentration: Maryland 16.8 % 21.4 % Connecticut — 6.1 Ohio 1.4 11.9 California — 24.9 North Carolina — 1.1 New Jersey 11.2 10.7 Florida 16.1 — Massachusetts 21.3 — New York 5.7 — Texas 14.1 — Other states (individually less than 5.0%) 13.4 23.9 100.0 % 100.0 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 22 — 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 update the estimated repurchase liability. The level of the repurchase liability for representations and warranties and early payment default requires considerable management judgment. The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase, actual loss experience, estimated future loss exposure and other relevant factors including economic conditions. As of December 31, 2022 and 2021, the balance of repurchase liability was $ 124 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. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Note 23— Retirement Plan The Company maintains a qualified 401(k) retirement plan in accordance with the Internal Revenue Service code. Employees meeting certain eligibility requirements as detailed in the plan document may participate by deferring eligible compensation into the plan. The plan allows for discretionary employer matching contribution. For the years ended December 31, 2022, 2021, and 2020 , the Company expensed $ 794 thousand, $ 579 thousand, and $ 476 thousand, respectively. These amounts are included in "compensation and employee benefits" on the consolidated statements of income. |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | Note 24 — Other Operating Expenses The following table presents the components of other operating expenses for the years ended December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 2021 2020 Travel, marketing and business development $ 1,421 $ 661 $ 578 Data processing and telecommunications 3,022 2,476 2,150 Office expenses 1,161 1,396 1,579 Insurance, taxes, and licenses 2,452 2,457 2,179 Other 3,000 1,498 1,914 Total other operating expenses $ 11,056 $ 8,488 $ 8,400 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 25 — Related Party Transactions On April 7, 2020, the Company issued and sold in a private placement 45,000 newly issued shares of Series A Convertible Preferred Stock, par value $ 0.01 per share (the “Preferred”), at a price per share of $ 1,000 , plus warrants (the “Warrants”) to purchase an aggregate of 3,013,125 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 45,000 outstanding shares of Series A Convertible Preferred Stock into 11,688,310 shares of its common stock. In the ordinary course of business, the Company sells held for sale loans to various financial institutions through a market bidding process. As a result of this process, the Company may sell held for sale loans to an affiliate. The Company sold $188.4 million and $0.1 million in UPB of loans to an affiliate during the years ended December 31, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 26 — Fair Value Measurements a) 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: • Level 1 - Valuation is based on quoted prices for identical instruments traded in active markets. • 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. • 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. b) 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. c) Loans Held for Investment Loans held for investment originated prior to October 1, 2022, are recorded at amortized cost, which is their outstanding principal balance, net of purchase discounts, deferred loan origination fees/costs, and allowance for credit losses. Effective October 1, 2022, the Company elected to carry its newly originated loans at fair value using FASB ASC Topic 825, Financial Instruments (ASC 825). The Company determines 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. d) Collateral Dependent or Loans Individually Evaluated Nonaccrual loans held for investment at amortized cost are evaluated individually and are recorded at fair value on a nonrecurring basis. To the extent such 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. e) Loans Held for Sale Loans held for sale that were originated prior to October 1, 2022, 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. f) Loans Held for Sale, at Fair Value Loans held for sale that are originated effective October 1, 2022, are carried at fair value. The Company determines the fair value estimate of loans held for sale 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. The Company has also elected to account for certain loans originated with the intent to sell to Ginnie Mae at fair value. These loans are measured based on the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value, including the value attributable to mortgage servicing and credit risk, and current commitments to purchase loans, a Level 2 measurement. 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. g) 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. h) 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 modified discounted cash flow 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. i) 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. j) 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. k) 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. l) 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. m) Securitizations, Net The fair value estimate of securities issued is determined by using estimated cash flows discounted at an appropriate market rate, a Level 3 measurement. n) 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. o) 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. p) Fair Value Disclosures The following tables present information on assets measured and recorded at fair value as of December 31, 2022 and 2021, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at December 31, 2022 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 276,095 $ 276,095 Mortgage servicing rights — — 9,238 9,238 Total recurring fair value measurements — — 285,333 285,333 Nonrecurring fair value measurements: Loans held for sale, net — — — — Real estate owned, net — — 13,325 13,325 Individually evaluated loans requiring specific allowance, net — — 11,466 11,466 Total nonrecurring fair value measurements — — 24,791 24,791 Total assets $ — $ — $ 310,124 $ 310,124 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 Individually evaluated 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 gain (losses) recognized on assets measured on a nonrecurring basis for the years indicated (in thousands): December 31, Gain (loss) on assets measured on a nonrecurring basis 2022 2021 2020 Loans held for sale, net $ — $ 17 $ 328 Real estate held for sale, net ( 363 ) ( 1,759 ) ( 1,734 ) Individually evaluated loans requiring specific allowance, net 310 1,262 ( 1,755 ) Total net loss $ ( 53 ) $ ( 480 ) $ ( 3,161 ) The following tables present the primary valuation techniques and unobservable inputs related to Level 3 assets as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 Asset category Fair value Primary Unobservable Range Weighted Individually evaluated $ 11,466 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 13,325 Market comparables Selling costs 8.0 % 8.0 % Loans held for 276,095 Discounted cash flow Discount rate 8.35 % to 9.35 % 8.9 % Collateral value 88.47 % to 103.5 % 99.1 % Timing of resolution/payoff 1 to 49 36.9 Prepayment rate 1.0 % to 30.0 % 15.1 % Default rate 0.12 % to 6.99 % 0.6 % Loss severity rate 0.0 % to 18.45 % 3.5 % Mortgage servicing rights 9,238 Discounted cash flow Discount rate 8.0 % to 12.0 % 8.1 % Prepayment rate 5.6 % to 16.8 % 6.3 % 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 1,359 Discounted cash flow Discount rate 5.8 % 5.8 % Collateral value 95.0 % to 120.0 % 106.0 % Timing of resolution/payoff 1 to 38 34.8 Prepayment rate 19.2 % to 50 % 19.5 % Default rate 0.0 % to 6.7 % 1.0 % Loss severity rate 0.0 % to 13.4 % 3.0 % Loans held for sale 87,442 Discounted cash flow Discount rate 5.8 % 5.8 % Timing of resolution/payoff 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 years indicated (in thousands): December 31, 2022 2021 2020 Beginning balance $ 1,359 $ 1,539 $ 2,960 Originations 267,278 — — Repurchase 1,048 — — Loans liquidated ( 765 ) ( 163 ) ( 1,808 ) Principal paydowns ( 261 ) ( 46 ) ( 55 ) Total unrealized gain (loss) included in net income 7,436 29 442 Ending balance $ 276,095 $ 1,359 $ 1,539 The following is a rollforward of interest-only strips that are measured at estimated fair value on a recurring basis for the years indicated (in thousands): December 31, 2022 2021 2020 Beginning balance $ — $ 238 $ 894 Interest-only strip additions — — 1,820 Interest-only strip write-offs — ( 238 ) ( 2,469 ) Total unrealized loss included in net income — — ( 7 ) Ending balance $ — $ — $ 238 The Company estimates the fair value of certain financial instruments on a quarterly basis. These instruments are recorded at fair value using a valuation allowance only if they are impaired. 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 December 31, 2022 and 2021 , the only financial assets measured at fair value were certain impaired loans held for investment, loans held for sale, 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. Impaired loans were carried at approximately $ 11.5 million and $ 12.0 million as of December 31, 2022 and 2021 , net of specific allowance for loan losses of approximately $ 1.1 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): December 31, 2022 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 45,248 $ 45,248 $ — $ — $ 45,248 Restricted cash 16,808 16,808 — — 16,808 Loans held for sale, net — — — — — Loans held for investment, net 3,272,390 — — 3,201,850 3,201,850 Loans held for investment, at fair value 276,095 — — 276,095 276,095 Accrued interest receivables 20,463 20,463 — — 20,463 Mortgage servicing rights 9,238 — — 9,238 9,238 Liabilities: Secured financing, net $ 209,846 $ — $ — $ 211,854 $ 211,854 Warehouse and repurchase facilities, net 330,814 — 330,814 — 330,814 Securitizations, net 2,736,290 — — 2,522,010 2,522,010 Accrued interest payable 16,369 16,369 — — 16,369 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 |
Select Quarterly Financial Data
Select Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Select Quarterly Financial Data (Unaudited) | Note 27 — Select Quarterly Financial Data (Unaudited) The following tables set forth the Company's unaudited quarterly results for the periods indicated: Three Months Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (in thousands) Interest income $ 65,632 $ 63,419 $ 59,243 $ 52,049 $ 49,360 $ 46,923 $ 44,978 $ 40,707 Interest expense - portfolio related 40,854 34,561 28,752 23,556 23,666 20,321 20,566 20,832 Net interest income - portfolio related 24,778 28,858 30,491 28,493 25,694 26,602 24,412 19,875 Interest expense - corporate debt 4,139 4,011 4,182 17,140 4,462 4,488 4,309 7,350 Net interest income 20,639 24,847 26,309 11,353 21,232 22,114 20,103 12,525 Provision for (reversal of) loan losses ( 437 ) 580 279 730 377 228 ( 1,000 ) 105 Net interest income after provision 21,076 24,267 26,030 10,623 20,855 21,886 21,103 12,420 Other operating income 11,029 2,509 3,039 5,648 2,617 339 2,432 2,801 Operating expenses 20,413 12,727 14,279 12,250 12,095 11,298 10,650 10,617 Income before income taxes 11,692 14,049 14,790 4,021 11,377 10,927 12,885 4,604 Income tax expense 3,465 3,759 4,019 790 3,024 2,905 3,432 1,208 Net income 8,227 10,290 10,771 3,231 8,353 8,022 9,453 3,396 Less income (loss) attributable to noncontrolling interest ( 235 ) 307 126 110 — — — — Net income attributable to Velocity Financial, Inc. $ 8,462 $ 9,983 $ 10,645 $ 3,121 $ 8,353 $ 8,022 $ 9,453 $ 3,396 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 28 — Subsequent Events The Company completed the securitization of $ 240.3 million of investor real estate loans on January 10, 2023 which will be accounted for as secured borrowings during the quarter ending March 31, 2023. The Company has evaluated events that have occurred subsequent to December 31, 2022 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | 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. |
Principles of Consolidation | 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 December 31, 2022 and 2021 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. |
Business Combination | Business Combination The Company accounts for its business combinations using the acquisition method of accounting. Assets acquired and the liabilities assumed as part of a business combination are recognized separately from goodwill at their acquisition date fair values. Goodwill is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company, with the assistance of outside specialists as necessary, use estimates and assumptions to value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable. The Company may refine these estimates during the measurement period which may be up to one year from the acquisition date. As a result, during the measurement period, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Income. |
Restricted Cash | Restricted Cash Restricted cash consisted of the required specified reserves by the 2020-2 and 2022-MC1 Trust agreements to pay the notes on each payment date if collections on mortgage loans are insufficient to make payments on the notes, and cash held by the Company for potential future advances due certain borrowers. |
Loans Held for Investment and Loans Held for Sale | Loans Held for Investment and Loans Held for Sale Except for loans originated in accordance with the guidelines of Ginnie Mae's program, which loans are originated with the intent to sell, originated loans and purchased loans are classified as held-for-investment when management has the intent and ability to hold such loans for the foreseeable future or until maturity. Loans held for investment originated prior to September 30, 2022, are carried at amortized cost, which is the outstanding principal balance, adjusted for net deferred loan origination costs and fees and allowance for loan losses. Loans originated or acquired after September 30, 2022 are carried at fair value. Interest income is accrued on the unpaid principal balance (UPB) at their respective stated interest rates. Generally, loans are placed on nonaccrual status when they become 90 days past due. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Interest income is subsequently recognized only to the extent cash payments are received or when the loan has been placed back in accrual status. Loans are restored to accrual status when (1) the loan becomes current and none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (2) if the loan has been formally restructured in a manner that reasonably assures repayment and performance according to its modified terms. Under these terms, the Company requires that the borrower continues to make the full restructured principal and interest payments for six consecutive months before restoring the loan to accrual status. The deferred loans under the Company’s forbearance program are considered current at the time of deferral, and the Company continues to accrue interest on these loans. Deferred loans that subsequently went 90 days past due after the deferral date were placed on nonaccrual status with any accrued interest income reversed through earnings. The Company evaluates the COVID-19 forbearance-granted loans on an individual basis to determine if a reserve should be established on the collectability of the unamortized cost and accrued interest, and whether any loans should be placed on nonaccrual status. For originated loans prior to October 1, 2022, carried at amortized cost, net deferred loan origination costs are amortized to interest income using the level yield method. Loan origination fees and costs on loans originated or acquired after September 30, 2022 are expensed as incurred. Loans are classified as held for sale when management has the intent to sell them. Loans held for sale originated prior to October 1, 2022 are carried at lower of cost or estimated fair value. Loans held for sale originated or acquired effective October 1, 2022 are carried at estimated fair value. The Century loans are considered as held for sale until they meet the sale criteria describe in the following paragraphs, which is generally when they are delivered to GNMA in exchange for GNMA securities. The Company will service the loan for Ginnie Mae. On occasion, as part of the Company’s management strategy of the loans held in its portfolio, the Company will transfer loans from held for investment to held for sale. Upon transfer of any loans that were held at amortized cost, any associated allowance for loan loss is charged off and the carrying value of the loan is adjusted to the lower of cost or estimated fair value. The net deferred fees and costs associated with loans held for sale are deferred (not accreted or amortized to interest income) until the related loans are sold. The Company recognizes transfers of loans as sales when it surrenders control over the loans. Control over transferred loans is deemed to be surrendered when (1) the loans have been isolated from the Company, (2) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred loans, and (3) the Company does not maintain effective control over the transferred loans through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return the specific loans. Gains or losses on the sale of these loans are included in “Gain on disposition of loans” in the Consolidated Statements of Income. Interest income on loans held for sale is recognized over the life of the loans using their contractual interest rates. Income recognition is suspended, and the unpaid interest receivable is reversed against interest income when loans become 90 days delinquent, or when, in management’s opinion, a full recovery of interest and principal becomes doubtful. Income recognition is resumed when the loan becomes contractually current. |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company retains the servicing rights of the Ginnie Mae insured loans that are sold in the secondary market by Century. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur and are included as a component of non-interest income or expense on the Consolidated Statements of Income. The fair value of servicing rights is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Loans serviced for others are not included in the Consolidated Balance Sheet. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Allowance for Loan Losses | Allowance for Loan Losses Effective January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments replacing the incurred loss accounting approach with the current expected credit loss approach for all financial assets measured at amortized cost, which as of the adoption date consisted entirely of our held for investment loan portfolio. Under the current expected credit loss ("CECL") methodology, 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. For the collective pool component, the Company identified the following portfolio segments based on risk characteristics of the loans in its loan portfolio (pool): • Residential 1– 4 Unit – Purchase (loans to purchase 1– 4 unit residential rental properties); • Residential 1– 4 Unit – Refinance (refinance loans on 1– 4 unit residential rental properties); • Commercial – Purchase (loans to purchase traditional commercial properties); • Commercial – Refinance (refinance loans on traditional commercial properties); • Short Term 1– 4 Unit – Purchase (short-term loans to purchase 1– 4 unit residential rental properties); and • Short Term 1– 4 Unit – Refinance (short-term refinance loans on 1– 4 unit residential rental properties). The Company determines the collectability of its loans in the collective pools by evaluating certain risk characteristics. The segmentation of its loan portfolio was determined based on analyses of its loan portfolio performance over the past nine years. Based on analyses of the loan portfolio’s historical performance, the Company concluded that loan purpose and product types are the most significant risk factors in determining its expectation of future loan losses. Loan purpose considers whether a borrower is acquiring the property or refinancing an existing property. The historical experience shows that refinance loans have higher loss rates than loans for property acquisitions. Product type includes residential 1-4 unit property and traditional commercial property. The historical experience shows that traditional commercial property loans have higher loss rates than residential 1-4 unit property. Short term loans have a maturity of one to 2 years from origination. Long term loans have a maturity of up to 30 years from origination. The Company estimates the allowance for loan losses using relevant available information, from internal and external sources, relating to historical performance, current conditions, and reasonable and supportable macroeconomic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are considered for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency levels, or term, as well as for changes in environmental conditions, such as unemployment rates, property values and changes in the competitive or regulatory environment. The Company uses an open pool loss rate methodology to model expected credit losses. 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. Estimated prepayments, or Constant Prepayment Rates ("CPRs") are developed from multiple loan characteristic considerations, such as property types, FICO scores, loan purpose, and prepayment penalty terms, which is the most significant driver of prepayment activity. The prepayment penalty terms differ between the short-term and long-term loans, and the Company has developed a CPR curve for its short-term loans ( 2-year or less) and one for its long-term loans ( 30-year ). Data from 2012-2022 is used to develop prepayment rates for the Company’s long-term loans. Because of the prepayment penalty structure in the Company’s long-term loans, prepayments during the active penalty term are historically low and begin to ramp up after the prepayment penalty term. The active prepayment penalty term is considered for existing and new loans over the reasonable and supportable forecast period in determining estimated prepayments. The Company back-tests the CPR curves on a quarterly basis and adjusts the CPR curves as appropriate. The reasonable and supportable period is meant to represent the period in which the Company believes the forecasted macroeconomic variables can be reasonably estimated. Significant variables or assumptions incorporated in the macroeconomic forecasts include U.S. unemployment, treasury yields, U.S. real gross domestic product (GDP), and U.S. real estate housing prices. The Company considers multiple scenarios from different macroeconomic forecasts and uses different forecast and revision periods for estimating lifetime expected credit losses. For the December 31, 2020 CECL estimate, the Company considered a COVID-19 adverse stress scenario and a COVID-19 severe stress scenario, both with a five-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. Management decided that using only the adverse stress scenario did not factor for recent additional COVID-related risks such as the post-holiday spike in infections and deaths, unknown impact of a recent mutant virus, success of the vaccine, and impact of recent Presidential executive orders. Management concluded that applying a 50% weight to the adverse and severe stress scenarios was appropriate given the status of the pandemic at year-end. The various scenarios, the weighting of scenarios, as well as the forecast period and reversion to historical loss is subject to change as conditions in the market change and the Company’s ability to forecast economic events evolves. For the December 31, 2021 CECL estimate, the Company considered a COVID-19 severe stress scenario with a five-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion period. The various scenarios, as well as the forecast period and reversion to historical loss is subject to change as conditions in the market change and the Company’s ability to forecast economic events evolves. For the December 31, 2022 CECL estimate, the Company considered a severe stress scenario with an eight-quarter reasonable and supportable forecast period followed by a two-quarter straight-line reversion period. The various scenarios, as well as the forecast period and reversion to historical loss is subject to change as conditions in the market change and the Company’s ability to forecast economic events evolves. The Company has determined that 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). The Company pulls these loans out of the segments and evaluates the loans individually using the practical expedient to determine the credit exposure. Nonperforming loans are considered collateral dependent by the Company. Using the practical expedient, the fair value of the underlying collateral, less estimated selling costs, is compared to the carrying value of the loan in the determination of a credit loss. The allowance for loan losses for individually assessed or evaluated loans is the difference between the fair value of the collateral underlying the loans at the reporting date, adjusted for estimated selling costs, and the amortized cost basis. The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when the Company believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance for loan losses is maintained at a level deemed adequate by management to provide for expected losses in the portfolio at the balance sheet date. While management uses available information to estimate its required allowance for loan losses, future additions to the allowance for credit losses may be necessary based on changes in estimates resulting from economic and other conditions. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables. When a loan is placed on nonaccrual status, the accrued and unpaid interest is reversed as a reduction of interest income and accrued interest receivable. Accrued interest receivable is excluded from the amortized cost of loans and it is presented as accrued interest receivable in the Consolidated Balance Sheets. Effective October 1, 2022, the Company elected to apply FVO accounting to its newly originated loans. Loans carried at fair value do not require a separate allowance for loan loss since any loan impairment will be reflected in the fair value of the loan. All loans originated or acquired prior to October 1, 2022, are carried at amortized cost and are subject to a CECL reserve. |
Troubled Debt Restructurings | Troubled Debt Restructurings Troubled debt restructurings (TDRs) are renegotiated loans where borrower concessions have been granted, such as reduction of the UPB or interest rate and for which the borrower is experiencing financial difficulty. Insignificant concessions, such as short-term forbearances, do not constitute a TDR. The Company measures TDR impairment based on the present value of expected future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, it may also measure impairment based on a loan's observable market price, or the fair value of the collateral less selling costs if the loan is a collateral-dependent loan. Once a loan is classified as a TDR, it remains a TDR for the purpose of calculating the allowance for credit losses for the remainder of its contractual term. |
Accrued Interest and Other Receivables | Accrued Interest and Other Receivables Accrued interest and other receivables represent accrued and uncollected interest on loans in accrual status; principal and interest payments received, but unremitted by the servicer; and receivables from borrowers for escrow and other advances, net of an allowance for uncollectible borrower advances. |
Real Estate Owned, Net (REO) | Real Estate Owned, Net (REO) Properties acquired through foreclosure, deed in lieu of foreclosure, or from third parties that meet all of the following criteria are classified as real estate owned: (i) management has the intent to sell the property; (ii) the property is available for immediate sale in its present condition, or management intends on making necessary repairs to render the property saleable, subject only to terms that are usual and customary; and (iii) it is unlikely that any significant changes to the plan will be made or that the plan will be withdrawn. Real estate owned 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, establishing a new cost basis. If the recorded loan balance at the time of transfer exceeds the estimated fair value of the property less estimated costs to sell, the charge is recorded to the allowance for loan losses. If the estimated fair value of the property less estimated costs to sell exceeds the recorded loan balance at the time of transfer, the write-up is first recorded as a recapture to the allowance for loan losses to the extent of any previous charge and then to gain on the REO. Any subsequent write-downs in the fair value of the REO after the transfer date are charged to real estate owned, net in the Consolidated Statements of Income and recognized through a valuation allowance. Subsequent increases in the fair value of the REO less selling costs reduce the valuation allowance, but not below zero, and are credited to real estate owned, net. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is recorded at cost, less accumulated depreciation, computed principally by the straight-line method based on the estimated useful lives of the specific assets, which range from three to seven years . Software is amortized over the estimated useful lives of the specific assets, which range from three to ten years using the straight-line method. Leasehold improvements are amortized over the lives of the respective leases or the service lives of the improvements, whichever is shorter. |
Goodwill | Goodwill Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date less any noncontrolling interest. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized but tested for impairment at least annually in the fourth quarter, or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. |
Off Balance Sheet Credit Exposure | Off Balance Sheet Credit Exposure The Company has no off-balance-sheet assets or liabilities with credit exposure. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Under this method a deferred tax asset or liability is measured based on the enacted tax rates expected to apply to taxable income in the years in which the differences between the financial statement carrying amounts and tax bases of existing assets and liabilities are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce the net carrying amount of deferred tax assets ("DTA") if it is determined to be more likely than not, that all or some portion of the potential deferred tax asset will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the DTA will or will not be realized. The Company's ultimate realization of the DTA is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of deferred taxes recognized could be impacted by changes to any of these variables. The Company determines whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the positions in question. Income tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An income tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for stock options, and restricted stock awards is based on the fair value of the award at the date of grant. The fair value of stock options and options under the Company’s Employee Stock Purchase Plan (“ESPP”) is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of restricted stock awards are determined based on the Company’s current market price on the date of grant. Under the Company’s ESPP, employees may purchase shares of common stock at a price equal to 85 % of the lesser of the fair market value of the stock on the first or the last trading day of each offering period. The Company records compensation expenses related to the discount given to participating employees. Compensation expense for performance stock units is measured using the fair value at the date of grant and recorded over each vesting period, and may be adjusted over the vesting period based on interim estimates of performance against the pre-set objectives. Compensation expense for all stock-based awards is recognized in the consolidated financial statements on a straight-line basis over the requisite service period, which is generally defined as the vesting period. The Company recognizes forfeitures as they occur and the income tax effects of awards are recognized in the consolidated statements of income when awards vest or are settled. |
Earnings per Share | Earnings per Share Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of stock-based awards. |
Treasury shares | 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 R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 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 that sum to the total of the same such amounts shown in the consolidated statements of cash flows as of December 31, 2022, 2021, and 2020 (in thousands): December 31, 2022 2021 2020 Cash and cash equivalents $ 45,248 $ 35,965 $ 13,273 Restricted cash 16,808 11,639 7,020 Total cash, cash equivalents, and restricted $ 62,056 $ 47,604 $ 20,293 |
Loans Held for Sale, Net (Table
Loans Held for Sale, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Loans Held for Sale | The following table summarizes loans held for sale as of December 31, 2022 and 2021 (in thousands): December 31, 2022 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) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Loans Held for Investment | The following tables summarize loans held for investment as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Loans held for Loans held for Total loans investment, investment, at held for net fair value investment Unpaid principal balance $ 3,243,854 $ 268,632 $ 3,512,486 Valuation adjustments on FVO loans — 7,463 7,463 Deferred loan origination costs 33,429 — 33,429 3,277,283 276,095 3,553,378 Allowance for loan losses ( 4,893 ) — ( 4,893 ) Total loans held for investment, net $ 3,272,390 $ 276,095 $ 3,548,485 December 31, 2021 Loans held for Loans held for Total loans investment, investment, at held for net fair value 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, net $ 2,527,564 $ 1,359 $ 2,528,923 |
Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program | The following table summarizes the UPB and amortized cost basis of the loans in the Company's COVID-19 forbearance program as of December 31, 2022 ($ in thousands): December 31, 2022 UPB % Amortized Cost % Beginning balance $ 292,429 $ 295,990 Additions — — Foreclosures ( 3,593 ) ( 3,620 ) Repayments ( 87,831 ) ( 89,024 ) Ending balance $ 201,005 $ 203,346 Performing/Accruing $ 161,455 80.3 % $ 163,346 80.3 % Nonperforming/Nonaccrual $ 39,550 19.7 % $ 40,000 19.7 % 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 Facility Agreements and Securitizations Issued | As of December 31, 2022 and 2021, the gross unpaid principal balance of loans held for investment pledged as collateral for the Company’s warehouse facility agreements, and securitizations issued were as follows (in thousands): December 31, 2022 2021 The 2013 repurchase agreement $ 170,185 $ 202,511 The 2021 repurchase agreement 101,024 114,072 The Bank credit agreement 39,087 30,959 The 2021 term repurchase agreement 104,594 53,217 The July 2021 term repurchase agreement 3,859 — Total pledged loans $ 418,749 $ 400,759 2015-1 Trust $ — $ 31,931 2016-1 Trust 39,720 52,623 2017-2 Trust 67,048 94,809 2018-1 Trust 48,139 71,051 2018-2 Trust 104,791 154,974 2019-1 Trust 104,249 144,727 2019-2 Trust 91,025 132,358 2019-3 Trust 75,618 103,266 2020-1 Trust 144,913 189,547 2020-2 Trust 81,259 98,403 2020-MC1 Trust — 134,957 2021-1 Trust 208,875 249,396 2021-2 Trust 172,144 198,039 2021-3 Trust 178,861 202,138 2021-4 Trust 275,741 314,547 2022-1 Trust 262,526 — 2022-2 Trust 245,339 — 2022-MC1 Trust 97,246 — 2022-3 Trust 299,638 — 2022-4 Trust 326,627 — 2022-5 Trust 251,288 — Total $ 3,075,047 $ 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, excluding loans carried at fair value, that were nonperforming and on nonaccrual status as of December 31, 2022 and 2021. Also included in the tables below is a TDR individually evaluated for allowance for loan loss. December 31, 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/ Impaired Loans Commercial - Purchase $ 22,571 $ 22,437 $ 134 $ 28 0.2 % Commercial - Refinance 87,133 82,330 4,803 517 4.1 Residential 1-4 Unit - Purchase 27,984 27,516 468 118 0.9 Residential 1-4 Unit - Refinance 113,909 111,742 2,167 175 1.4 Short Term 1-4 Unit - Purchase 8,140 8,140 — — — Short Term 1-4 Unit - Refinance 35,602 30,612 4,990 258 2.1 Total $ 295,339 $ 282,777 $ 12,562 $ 1,096 8.7 % Performing troubled debt restructuring: $ — $ — $ — $ 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/ Impaired Loans 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 table presents the amortized cost basis in the loans held for investment as of December 31, 2022 and 2021, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the years ended December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 701,408 $ ( 640 ) $ 509,421 $ ( 346 ) Commercial - Refinance 907,097 ( 1,343 ) 783,260 ( 1,176 ) Residential 1-4 Unit - Purchase 588,433 ( 596 ) 408,770 ( 209 ) Residential 1-4 Unit - Refinance 939,305 ( 1,602 ) 730,321 ( 1,474 ) Short Term 1-4 Unit - Purchase 69,884 ( 189 ) 28,989 ( 821 ) Short Term 1-4 Unit - Refinance 71,157 ( 502 ) 71,065 ( 653 ) Total $ 3,277,284 $ ( 4,872 ) $ 2,531,826 $ ( 4,679 ) |
Schedule of Activity in Allowance for Loan Losses | The following tables present the activity in the allowance for loan losses for the years ended December 31, 2022 and 2021 (in thousands): December 31, 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: Balance - January 1, 2022 $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Provision for loan losses 401 ( 88 ) 149 429 ( 22 ) 283 1,152 Charge-offs ( 147 ) ( 25 ) ( 7 ) ( 105 ) — ( 237 ) ( 521 ) Ending balance $ 639 $ 2,031 $ 542 $ 1,272 $ 21 $ 388 $ 4,893 Allowance related to: Loans individually evaluated $ 28 $ 517 $ 118 $ 175 $ — $ 258 $ 1,096 Loans collectively evaluated $ 611 $ 1,514 $ 424 $ 1,097 $ 21 $ 130 $ 3,797 Amortized cost related to: Loans individually evaluated $ 22,571 $ 87,133 $ 27,984 $ 113,909 $ 8,140 $ 35,602 $ 295,339 Loans collectively evaluated $ 678,837 $ 819,964 $ 560,449 $ 825,396 $ 61,744 $ 35,555 $ 2,981,945 December 31, 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: Balance - January 1, 2020 $ 373 $ 2,093 $ 333 $ 1,216 $ 595 $ 1,235 $ 5,845 Provision for loan losses 154 164 104 ( 60 ) ( 538 ) ( 116 ) ( 292 ) Charge-offs ( 142 ) ( 113 ) ( 37 ) ( 208 ) ( 14 ) ( 777 ) ( 1,291 ) Ending balance $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Allowance related to: Loans individually evaluated $ 9 $ 826 $ 96 $ 138 $ 31 $ 306 $ 1,406 Loans collectively evaluated $ 376 $ 1,318 $ 305 $ 811 $ 10 $ 36 $ 2,856 Amortized cost related to: Loans individually evaluated $ 17,260 $ 85,935 $ 17,385 $ 107,552 $ 2,986 $ 45,300 $ 276,418 Loans collectively evaluated $ 492,161 $ 697,326 $ 391,385 $ 622,768 $ 26,003 $ 25,765 $ 2,255,408 |
Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio | The following tables present the aging status of the amortized cost basis in the loans held for investment portfolio, which include $ 203.3 million and $ 296.0 million loans in the Company’s COVID-19 forbearance program as of December 31, 2022 and 2021, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total December 31, 2022 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 865 $ — $ 21,706 $ 22,571 $ — $ 22,571 Commercial - Refinance 4,415 5,943 76,619 86,977 156 87,133 Residential 1-4 Unit - Purchase 590 592 26,802 27,984 — 27,984 Residential 1-4 Unit - Refinance 1,715 2,728 109,466 113,909 — 113,909 Short Term 1-4 Unit - Purchase 176 — 7,964 8,140 — 8,140 Short Term 1-4 Unit - Refinance 657 — 34,945 35,602 — 35,602 Total loans individually evaluated $ 8,418 $ 9,263 $ 277,502 $ 295,183 $ 156 $ 295,339 Loans collectively evaluated Commercial - Purchase $ 24,899 $ 5,096 $ — $ 29,995 $ 648,842 $ 678,837 Commercial - Refinance 41,711 20,561 — 62,272 757,692 819,964 Residential 1-4 Unit - Purchase 22,840 13,948 — 36,788 523,661 560,449 Residential 1-4 Unit - Refinance 64,925 23,224 — 88,149 737,247 825,396 Short Term 1-4 Unit - Purchase 21,273 294 — 21,567 40,177 61,744 Short Term 1-4 Unit - Refinance 5,550 1,191 — 6,741 28,814 35,555 Total loans collectively evaluated $ 181,198 $ 64,314 $ — $ 245,512 $ 2,736,433 $ 2,981,945 Ending balance $ 189,616 $ 73,577 $ 277,502 $ 540,695 $ 2,736,589 $ 3,277,284 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due . 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 . The following table presents the aging of the amortized cost basis of loans held for investment in the Company's COVID-19 forbearance program as of December 31, 2022 and 2021(in thousands): 30–59 days 60–89 days 90+days Total Total December 31, 2022 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ — $ — $ 2,880 $ 2,880 $ — $ 2,880 Commercial - Refinance 767 186 16,194 17,147 — 17,147 Residential 1-4 Unit - Purchase — — 1,116 1,116 — 1,116 Residential 1-4 Unit - Refinance — — 10,039 10,039 — 10,039 Short Term 1-4 Unit - Purchase — — 279 279 — 279 Short Term 1-4 Unit - Refinance 180 — 8,359 8,539 — 8,539 Total loans individually evaluated $ 947 $ 186 $ 38,867 $ 40,000 $ — $ 40,000 Loans collectively evaluated Commercial - Purchase $ 1,682 $ 656 $ — $ 2,338 $ 22,323 $ 24,661 Commercial - Refinance 5,874 3,786 — 9,660 62,699 72,359 Residential 1-4 Unit - Purchase 2,346 1,036 — 3,382 7,277 10,659 Residential 1-4 Unit - Refinance 4,118 1,539 — 5,657 30,178 35,835 Short Term 1-4 Unit - Purchase 19,832 — — 19,832 — 19,832 Short Term 1-4 Unit - Refinance — — — — — — Total loans collectively evaluated $ 33,852 $ 7,017 $ — $ 40,869 $ 122,477 $ 163,346 Ending balance $ 34,799 $ 7,203 $ 38,867 $ 80,869 $ 122,477 $ 203,346 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due. Also includes accruing loans 90+ day past due. 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 $ 163 $ 1,622 $ 4,259 $ 6,044 $ — $ 6,044 Commercial - Refinance — 2,820 18,520 21,340 — 21,340 Residential 1-4 Unit - Purchase — — 3,045 3,045 — 3,045 Residential 1-4 Unit - Refinance — — 22,670 22,670 — 22,670 Short Term 1-4 Unit - Purchase 99 — 180 279 — 279 Short Term 1-4 Unit - Refinance 404 299 5,833 6,536 — 6,536 Total loans individually evaluated $ 666 $ 4,741 $ 54,507 $ 59,914 $ — $ 59,914 Loans collectively evaluated Commercial - Purchase $ 2,209 $ 1,158 $ — $ 3,367 $ 30,904 $ 34,271 Commercial - Refinance 8,309 2,444 — 10,753 90,040 100,793 Residential 1-4 Unit - Purchase 315 231 — 546 18,321 18,867 Residential 1-4 Unit - Refinance 4,086 319 — 4,405 48,314 52,719 Short Term 1-4 Unit - Purchase 20,869 — — 20,869 761 21,630 Short Term 1-4 Unit - Refinance 942 4,149 — 5,091 2,705 7,796 Total loans collectively evaluated $ 36,730 $ 8,301 $ — $ 45,031 $ 191,045 $ 236,076 Ending balance $ 37,396 $ 13,042 $ 54,507 $ 104,945 $ 191,045 $ 295,990 (1) Includes loans in bankruptcy and foreclosure less than 90 days past due. Also includes accruing loans 90+ day 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 December 31, 2022 and 2021 (in thousands). Term Loans Amortized Cost Basis by Origination Year December 31, 2022: 2022 2021 2020 2019 2018 Pre-2018 Total Commercial - Purchase Payment performance Performing $ 273,950 $ 249,100 $ 36,064 $ 56,322 $ 33,193 $ 30,208 $ 678,837 Nonperforming 1,274 6,959 1,579 5,809 3,205 3,745 22,571 Total Commercial - Purchase $ 275,224 $ 256,059 $ 37,643 $ 62,131 $ 36,398 $ 33,953 $ 701,408 Commercial - Refinance Payment performance Performing $ 263,754 $ 210,898 $ 55,795 $ 103,633 $ 93,161 $ 92,723 $ 819,964 Nonperforming 9,012 11,801 3,855 23,423 20,408 18,634 87,133 Total Commercial - Refinance $ 272,766 $ 222,699 $ 59,650 $ 127,056 $ 113,569 $ 111,357 $ 907,097 Residential 1-4 Unit - Purchase Payment performance Performing $ 249,625 $ 227,235 $ 10,710 $ 31,685 $ 18,891 $ 22,303 $ 560,449 Nonperforming 7,281 10,107 2,165 2,313 1,553 4,565 27,984 Total Residential 1-4 $ 256,906 $ 237,342 $ 12,875 $ 33,998 $ 20,444 $ 26,868 $ 588,433 Residential 1-4 Unit - Refinance Payment performance Performing $ 338,959 $ 285,195 $ 24,703 $ 84,208 $ 39,870 $ 52,461 $ 825,396 Nonperforming 21,391 25,023 6,907 27,746 15,834 17,008 113,909 Total Residential 1-4 $ 360,350 $ 310,218 $ 31,610 $ 111,954 $ 55,704 $ 69,469 $ 939,305 Short Term 1-4 Unit - Purchase Payment performance Performing $ 40,967 $ 944 $ 15,659 $ 4,174 $ — $ — $ 61,744 Nonperforming 1,287 5,212 995 542 104 — 8,140 Total Short Term 1-4 $ 42,254 $ 6,156 $ 16,654 $ 4,716 $ 104 $ — $ 69,884 Short Term 1-4 Unit - Refinance Payment performance Performing $ 35,555 $ — $ — $ — $ — $ — $ 35,555 Nonperforming 786 1,221 10,545 18,245 4,805 — 35,602 Total Short Term 1-4 $ 36,341 $ 1,221 $ 10,545 $ 18,245 $ 4,805 $ — $ 71,157 Total Portfolio $ 1,243,841 $ 1,033,695 $ 168,977 $ 358,100 $ 231,024 $ 241,647 $ 3,277,284 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 |
Mortgage Loans on Real Estate (
Mortgage Loans on Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Loans (UPB) Collateralized by Real Estate | The following tables present the Company’s loans (UPB) collateralized by real estate as of December 31, 2022 and 2021 (in thousands). December 31, 2022 Description Interest Final Unpaid Nonaccrual 1-4 unit residential (3) Under $1.0 million 4.0 % - 13.5 % January 1, 2053 $ 1,374,726 $ 127,125 $1.0 million and over 4.0 % - 11.5 % January 1, 2053 476,813 57,508 1,851,539 184,633 Traditional commercial (4) Under $1.0 million 4.0 % - 13.7 % January 1, 2053 1,196,378 69,763 $1.0 million and over 4.0 % - 11.7 % January 1, 2053 464,569 38,393 1,660,947 108,156 Total at December 31, 2022 $ 3,512,486 $ 292,789 December 31, 2021 Description Interest Final Unpaid Nonaccrual 1-4 unit residential (3) Under $1.0 million 4.0 % - 13.5 % January 1, 2052 $ 987,069 $ 127,214 $1.0 million and over 4.0 % - 11.5 % January 1, 2052 325,025 44,426 1,312,094 171,640 Traditional commercial (4) Under $1.0 million 3.1 % - 13.0 % January 1, 2052 969,599 73,039 $1.0 million and over 4.0 % - 10.2 % January 1, 2052 305,528 28,421 1,275,127 101,460 Total at December 31, 2021 $ 2,587,221 $ 273,100 (1) The aggregate cost of the Company’s loan portfolio for Federal income tax purposes was $ 3,553,379 and $ 2,621,093 as of December 31, 2022 and 2021, respectively. (2) As of December 31, 2022 and 2021, $ 168.4 million and $ 155.1 million, respectively, of the total UPB were interest-only loans with interest payable monthly and the principal payable at maturity. (3) The principal and interest on the 1-4 unit residential mortgage loans is payable monthly over the life of the loan to maturity. These loans generally contain a 3 % prepayment penalty provision if the loan is prepaid within the first 3 years. (4) The principal and interest on the traditional commercial mortgage loans is payable monthly over the life of the loan to maturity. These loans generally contain a 5 % prepayment penalty provision if the loan is prepaid within the first 3 years. The following table presents the reconciliation of the UPB of mortgage loans for the years ended December 31, 2022, 2021, and 2020: December 31, 2022 2021 2020 Balance at beginning of period $ 2,587,220 $ 1,944,804 $ 2,059,344 Addition during period: New mortgage loans 1,761,853 1,326,275 435,037 Acquisition 17,657 22,437 4,643 Capitalized Interest 1,604 2,045 7,814 Deduction during period: Collection of principal ( 525,986 ) ( 568,081 ) ( 374,576 ) Collection of capitalized interest ( 2,155 ) ( 2,163 ) — Foreclosures ( 10,031 ) ( 11,603 ) ( 10,781 ) Mortgages sold ( 317,676 ) ( 126,494 ) ( 176,677 ) Balance at end of period $ 3,512,486 $ 2,587,220 $ 1,944,804 |
Receivables Due From Servicers
Receivables Due From Servicers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Receivables Due from Servicers | The following tables summarize receivables due from servicers as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Securitizations Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 24,400 $ 664 $ 25,064 Other loan servicing receivables 13,095 2,521 15,616 Loan servicing receivables 37,495 3,185 40,680 Corporate and escrow advances receivable 21,995 2,969 24,964 Total receivables due from servicers $ 59,490 $ 6,154 $ 65,644 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 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | As of December 31, 2022 and 2021, property and equipment consisted of the following (in thousands): December 31, 2022 2021 Furniture $ 927 $ 885 Computer equipment 986 1,222 Office equipment 409 278 Leasehold improvements 578 578 Capitalized software 6,671 7,634 Building 685 685 10,256 11,282 Accumulated depreciation and amortization ( 6,900 ) ( 7,452 ) Ending balance $ 3,356 $ 3,830 |
Real Estate Owned, Net (Tables)
Real Estate Owned, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Summary of Activity in Real Estate Owned | The Company’s real estate owned activities were as follows during the years ended December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Beginning balance $ 17,557 $ 15,767 Additions 13,439 12,583 Capitalized improvements — 194 Sales ( 19,558 ) ( 9,228 ) Other adjustments 2,250 — Valuation adjustments ( 363 ) ( 1,759 ) Ending balance $ 13,325 $ 17,557 |
Sale of Real Estate Owned | The following table summarizes information about real estate operating income and expenses, realized gains and losses on sales of real estate, and unrealized gains and losses resulting from adjustments to valuation allowances for the years ended December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 2021 2020 Operating income $ 275 $ 451 $ 444 Operating expenses ( 2,781 ) ( 2,251 ) ( 2,010 ) Valuation adjustments ( 363 ) ( 1,759 ) ( 1,734 ) Net gain on sales of real estate 2,939 409 644 Total $ 70 $ ( 3,150 ) $ ( 2,656 ) |
Gross Gains and Losses And Number of Properties Sold | The following table provides additional information about the number of properties sold and the gross gains and losses recognized in real estate owned, net, in the consolidated statements of income, during the years ended December 31, 2022, 2021 and 2020 (in thousands, except properties sold): Year Ended December 31, 2022 2021 2020 Properties Gain Properties Gain Properties Gain sold (loss) sold (loss) sold (loss) Sales resulting in gains 31 $ 3,401 23 $ 972 14 $ 837 Sales resulting in losses 12 ( 462 ) 14 ( 563 ) 9 ( 193 ) Total 43 $ 2,939 37 $ 409 23 $ 644 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of Mortgage Servicing Rights | The following table presents the Company's mortgage servicing rights (in thousands): December 31, 2022 2022 2021 Balance at the beginning of year $ 7,152 $ — Mortgage servicing rights acquired — 7,152 Additions — — Fair value adjustments 2,086 — Balance at end of year $ 9,238 $ 7,152 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the activity for goodwill (in thousands): December 31, 2022 2021 Balance at the beginning of year $ 6,775 $ — Goodwill acquired — 6,775 Balance at end of year $ 6,775 $ 6,775 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets were comprised of the following as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Prepaid expenses $ 1,843 $ 1,628 Interest-only strips and deposits 176 166 Deferred costs 501 502 Income tax receivable 8,301 — Operating leases - right of use assets, net 2,424 3,744 Appraisal fees for loans in process ( 58 ) 479 Other assets 338 305 Total other assets $ 13,525 $ 6,824 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases | The following table presents supplemental cash flow information related to leases for the years ended December 31, 2022, 2021, and 2020 (in thousands): December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,632 $ 1,626 $ 1,524 ROU assets obtained in exchange for lease obligations: Operating leases $ 26 $ 256 $ — |
Schedule of Maturities of Operating Lease Liabilities | The following table presents maturities of operating lease liabilities as of December 31, 2022 (in thousands): December 31, 2022 Operating Leases 2023 $ 1,514 2024 1,209 2025 170 2026 105 2027 53 Thereafter 290 Total lease payments 3,341 Less: Imputed interest ( 691 ) Present value of lease liabilities $ 2,650 |
Securitizations, Net (Tables)
Securitizations, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Summary of Investor Real Estate Loans Securitized, and Securities Issued, Ownership Retained by the Company | The following table summarizes securities issued, ownership retained by the Company at the time of the securitization, and as of December 31, 2022 and 2021, and the stated maturity for each outstanding securitization (in thousands): Securities Retained as of Trusts Securities Issuance December 31, December 31, Stated Maturity 2015-1 Trust $ 285,457 $ 27,372 $ — $ 15,526 July 2045 2016-1 Trust 319,809 38,792 17,541 17,633 April 2046 2017-2 Trust 245,601 12,927 2,697 4,064 October 2047 2018-1 Trust 176,816 9,308 2,065 2,849 April 2048 2018-2 Trust 307,988 16,210 4,352 6,608 October 2048 2019-1 Trust 235,580 12,399 4,178 6,180 March 2049 2019-2 Trust 207,020 10,901 4,007 5,922 July 2049 2019-3 Trust 154,419 8,127 3,281 4,799 October 2049 2020-1 Trust 248,700 13,159 6,746 8,678 February 2050 2020-2 Trust 96,352 32,118 12,847 12,847 June 2050 2020-MC1 Trust 179,371 96,585 — 108,891 July 2050 2021-1 Trust 251,301 13,227 10,120 12,518 May 2051 2021-2 Trust 194,918 10,260 — — August 2051 2021-3 Trust 204,205 — — — October 2051 2021-4 Trust 319,116 — — — December 2051 2022-1 Trust 273,594 5,015 4,718 — February 2052 2022-2 Trust 241,388 11,202 11,170 — March 2052 2022-MC1 Trust 84,967 40,911 44,038 — May 2047 2022-3 Trust 296,323 18,914 18,587 — May 2052 2022-4 Trust 308,357 25,190 25,027 — July 2052 2022-5 Trust 188,754 65,459 65,141 — October 2052 Total $ 4,820,036 $ 468,076 $ 236,515 $ 206,515 |
Summary of Outstanding Bond Balances | The following table summarizes outstanding bond balances for each securitization as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 2015-1 Trust $ — $ 17,536 2016-1 Trust 22,369 36,401 2017-2 Trust 59,183 86,497 2018-1 Trust 43,596 62,375 2018-2 Trust 93,792 143,152 2019-1 Trust 91,167 132,306 2019-2 Trust 82,508 122,205 2019-3 Trust 67,899 95,521 2020-1 Trust 136,643 174,550 2020-2 Trust 60,445 80,676 2020-MC1 Trust — 35,711 2021-1 Trust 196,969 236,190 2021-2 Trust 170,072 197,744 2021-3 Trust 178,038 202,793 2021-4 Trust 273,489 315,489 2022-1 Trust 256,667 — 2022-2 Trust 233,045 — 2022-MC1 Trust 54,528 — 2022-3 Trust 280,066 — 2022-4 Trust 301,856 — 2022-5 Trust 186,577 — Total outstanding bond balance $ 2,788,909 $ 1,939,146 |
Summary of Unamortized Discounts or Premiums | As of December 31, 2022 and 2021, unamortized discounts or premiums associated with the Trusts are as follows (in thousands): December 31, 2022 2021 2015-1 Trust $ — $ 35 2016-1 Trust ( 150 ) 84 2017-2 Trust 8 12 2018-1 Trust 6 10 2018-2 Trust 11 16 2019-1 Trust 9 19 2019-2 Trust 6 10 2019-3 Trust 4 7 2020-1 Trust 3 5 2020-2 Trust 786 1,692 2020-MC1 Trust — 385 2021-Trust 15 21 2021-2 Trust 162 214 2021-3 Trust 660 925 2021-4 Trust 642 838 2022-1 Trust 3,546 — 2022-2 Trust 3,665 — 2022-MC1 Trust 388 — 2022-3 Trust 6,161 — 2022-4 Trust 4,878 — 2022-5 Trust 727 — Total unamortized discounts (premiums) $ 21,527 $ 4,273 |
Summary of Capitalized Issuance Costs Associated with Trusts | As of December 31, 2022 and 2021, capitalized issuance costs associated with the Trusts are as follows (in thousands): December 31, 2022 2021 2015-1 Trust $ — $ 32 2016-1 Trust 8 52 2017-2 Trust 535 808 2018-1 Trust 303 561 2018-2 Trust 908 1,371 2019-1 Trust 687 1,385 2019-2 Trust 866 1,325 2019-3 Trust 675 1,042 2020-1 Trust 1,351 2,032 2020-2 Trust 369 847 2020-MC1 Trust — 380 2021-1 Trust 1,978 2,897 2021-2 Trust 1,924 2,757 2021-3 Trust 2,178 3,055 2021-4 Trust 3,177 4,449 2022-1 Trust 3,045 — 2022-2 Trust 2,880 — 2022-MC1 Trust 877 — 2022-3 Trust 3,679 — 2022-4 Trust 3,303 — 2022-5 Trust 2,349 — Total capitalized issuance costs $ 31,092 $ 22,994 |
Summary of Weighted Average Rate on Securities and Certificates Sold | As of December 31, 2022 and 2021, the weighted average rate on the sold securities and certificates for the Trusts are as follows: December 31, 2022 2021 2015-1 Trust — % 7.22 % 2016-1 Trust 8.59 8.22 2017-2 Trust 3.92 3.37 2018-1 Trust 4.05 4.04 2018-2 Trust 4.46 4.39 2019-1 Trust 4.06 4.02 2019-2 Trust 3.46 3.44 2019-3 Trust 3.25 3.26 2020-1 Trust 2.89 2.82 2020-2 Trust 4.60 4.45 2020-MC1 Trust — 4.42 2021-1 Trust 1.73 1.73 2021-2 Trust 2.02 2.28 2021-3 Trust 2.44 2.45 2021-4 Trust 3.20 3.11 2022-1 Trust 3.93 — 2022-2 Trust 5.07 — 2022-MC1 Trust 6.91 — 2022-3 Trust 5.67 — 2022-4 Trust 6.23 — 2022-5 Trust 7.10 — |
Other Debt (Tables)
Other Debt (Tables) | 12 Months Ended |
Dec. 31, 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 for the Company’s warehouse facilities and loan agreements as of December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Period end (1) Maximum Period end (1) Maximum The 2021 term repurchase agreement $ 74,334 $ 100,000 $ 41,636 $ 100,000 The 2021 repurchase agreement 79,504 200,000 82,580 200,000 The July 2021 term repurchase agreement 2,185 100,000 — 100,000 The 2013 repurchase agreement 136,165 300,000 153,499 200,000 The Bank credit agreement 29,495 50,000 22,385 50,000 The 2019 loan agreement — — 2,700 3,000 The October 2022 repurchase agreement 10,057 18,818 — — The September 2022 term repurchase agreement — 60,000 — — Revolving credit line — 3,000 — — Total $ 331,740 $ 831,818 $ 302,800 $ 653,000 (1) Warehouse repurchase facilities amounts in the consolidated balance sheet are net of debt issuance costs amounting to $ 0.9 million and $ 1.7 million as of December 31, 2022 and 2021 . |
Schedule of Activity and Effective Interest Rate | The following table provides an overview of the activity and effective interest rate for the years ended December 31, 2022, 2021, and 2020 ($ in thousands): December 31, 2022 2021 2020 Warehouse and repurchase facilities: Average outstanding balance $ 299,060 $ 183,663 $ 168,098 Highest outstanding balance at any month-end 426,959 336,775 439,547 Effective interest rate (1) 5.84 % 5.28 % 4.97 % (1) Represents interest expense divided by average gross outstanding balance and includes average rate of 5.22 %, 4.23 %, and 4.31 %, and debt issue cost amortization of 0.62 %, 1.05 %, and 0.66 %, as of December 31, 2022, 2021, and 2020 , 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 years ended December 31, 2022, 2021, and 2020 (in thousands): December 31, 2022 2021 2020 Warehouse and repurchase facilities $ 17,454 $ 9,706 $ 8,352 Securitizations 110,269 75,680 79,474 Interest expense — portfolio related 127,723 85,386 87,826 Interest expense — corporate debt 29,472 20,609 12,049 Total interest expense $ 157,195 $ 105,995 $ 99,875 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Company’s Income Tax Expense (Benefit) | The following table details the Company’s income tax expense (benefit) (in thousands): December 31, 2022 2021 2020 Current tax expense (benefit): Federal $ ( 90 ) $ 15,042 $ 4,454 State 552 5,477 ( 769 ) Total current tax expense $ 462 $ 20,519 $ 3,685 Deferred tax expense (benefit): Federal $ 8,553 $ ( 7,362 ) $ 564 State 3,018 ( 2,588 ) 1,103 Total deferred tax expense (benefit) $ 11,571 $ ( 9,950 ) $ 1,667 Total income tax expense $ 12,033 $ 10,569 $ 5,352 |
Summary of Company's Reconciliation of the Company's Provision for Income Taxes at Federal Statutory Tax Rate | The following table contains a reconciliation of the Company’s provision for income taxes at the federal statutory tax rate to the provision for income taxes at the effective tax rate as of December 31, 2022, 2021, and 2020: December 31, 2022 2021 2020 Federal income tax provision at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 6.3 5.6 8.6 Permanent items 0.2 0.1 0.1 Federal true-ups — — 0.5 Tax credits ( 0.3 ) ( 0.2 ) ( 0.4 ) Change in unrecognized tax benefit — — ( 7.9 ) Other — 0.1 1.2 Effective tax rate 27.2 % 26.6 % 23.1 % |
Summary of Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are presented below (in thousands): December 31, 2022 2021 Deferred tax assets: REMIC book-tax basis difference $ — $ 10,433 Net operating loss 8,451 — Mark-to-market on loans 355 7,066 Lease liability 783 1,151 Stock compensation 1,485 888 Accrued vacation 283 226 Intangibles 5 7 REO — 225 Deferred state taxes 696 — Other 154 82 Gross deferred tax assets 12,212 20,078 Deferred tax liabilities: REMIC book-tax basis difference ( 4,941 ) — Right-of-use assets ( 717 ) ( 1,064 ) Deferred origination costs ( 138 ) ( 1,306 ) Property and equipment ( 595 ) ( 710 ) REO ( 30 ) — Deferred state taxes — ( 394 ) MSR valuation ( 758 ) — Gross deferred tax liabilities ( 7,179 ) ( 3,474 ) Total net deferred tax asset $ 5,033 $ 16,604 |
Summary of Reconciliation of the Company's Gross Unrecognized Tax Benefits | Detailed below is a reconciliation of the Company's gross unrecognized tax benefits for the years ended December 31, 2022 and 2021, respectively (in thousands): December 31, 2022 2021 Beginning balance $ 1,911 $ 1,860 Changes related to current year tax positions 68 49 Changes related to prior year tax positions 19 2 Decreases due to lapsed statutes of limitations ( 58 ) — Ending balance $ 1,940 $ 1,911 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Assumptions to Estimate Fair Value of Stock Options | The following table presents the assumptions used in the option pricing model at the grant date for options granted in the year ended December 31, 2020: Assumptions: December 31, 2020 Expected volatility 0.28 Expected dividends — Risk-free interest rate 1.50 Expected forfeited rate — The table below presents the fair value assumptions used for the period indicated: Assumptions: December 31, 2022 Risk-free interest rate 2.50 % Expected term (in years) 0.5 Expected volatility 49.93 % Dividend yield — Grant date fair value per share $ 11.31 |
Summary of Stock Option Activity | The tables below summarize stock option activity during the years ended December 31, 2022 and 2021: December 31, 2022 ($ in thousands, except per share amounts) Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options outstanding at beginning of year 785,000 $ 12.89 Granted — — Exercised — — Forfeited — — Options outstanding at end of year 785,000 $ 12.89 7.1 years $ 42 Options exercisable at end of year 523,333 $ 12.89 7.1 years $ 28 Options expected to vest (1) 261,667 $ 12.89 7.1 years $ 14 December 31, 2021 ($ in thousands, except per share amounts) Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options outstanding at beginning of year 785,000 $ 12.89 Granted — — Exercised — — Forfeited — — Options outstanding at end of year 785,000 $ 12.89 8.1 years 93 Options exercisable at end of year 261,667 $ 12.89 8.1 years 31 Options expected to vest (1) 523,333 $ 12.89 8.1 years 62 (1) The number of options expected to vest reflects no expected forfeiture . |
Summary of Restricted Stock Award Activities | The table below summarizes restricted stock award activity during the year ended December 31, 2022 and 2021: Employee Non-Employee Director Total December 31, 2022 Restricted Stock Awards Restricted Stock Awards Restricted Stock Awards ($ in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2021 480,000 $ 7.04 26,511 $ 10.75 506,511 $ 7.23 Granted 125,250 12.63 31,215 9.13 156,465 11.93 Vested ( 160,000 ) 7.04 ( 8,837 ) 10.75 ( 168,837 ) 7.23 Forfeited — — — — — — Nonvested at December 31, 2022 445,250 $ 8.61 48,889 $ 9.72 494,139 $ 8.72 Employee Non-Employee Director Total December 31, 2021 Restricted Stock Awards Restricted Stock Awards Restricted Stock Awards ($ in thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Nonvested at December 31, 2020 — $ — — $ — — $ — Granted 480,000 7.04 26,511 10.75 506,511 7.23 Vested — — — — — — Forfeited — — — — — — Nonvested at December 31, 2021 480,000 $ 7.04 26,511 $ 10.75 506,511 $ 7.23 |
Summary of Performance Stock Units Activities | A summary of the PSU activity as of December 31, 2022 under the 2020 Omnibus Plan is presented below: December 31, 2022 ($ in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value (per share) Outstanding at beginning of year, nonvested — $ — Granted 102,750 12.63 Vested — — Forfeited — — Outstanding at end of year, nonvested 102,750 $ 12.63 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted income (Loss) Per Share | The following table presents the basic and diluted income (loss) per share calculations for the years ended December 31, 2022, 2021, and 2020: December 31, 2022 2021 2020 (In thousands, except per share data) Basic EPS: Net income $ 32,211 $ 29,224 $ 17,777 Less: deemed dividends on preferred stock — — 48,955 Net income (loss) attributable to common shareholders 32,211 29,224 ( 31,178 ) Less: earnings attributable to participating securities 491 8,589 — Net earnings (loss) attributable to common shareholders $ 31,720 $ 20,635 $ ( 31,178 ) Weighted average common shares outstanding 31,913 22,813 20,087 Basic income (loss) per common share $ 0.99 $ 0.90 $ ( 1.55 ) Diluted EPS: Net income (loss) attributable to common shareholders $ 32,211 $ 20,635 $ ( 31,178 ) Weighted average common shares outstanding 31,913 22,813 20,087 Add dilutive effects for assumed conversion of Series A preferred stock — 8,989 — Add dilutive effects for warrants 2,025 1,974 — Add dilutive effects for stock options 5 3 — Add dilutive effects of unvested restricted stock awards 188 203 — Weighted average diluted common shares outstanding 34,131 33,982 20,087 Diluted income (loss) per common share $ 0.94 $ 0.86 $ ( 1.55 ) |
Schedule of Antidilutive Securities Excluded from Computation of 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): December 31, 2022 2021 2020 Shares underlying Series A Convertible Preferred Stock — — 11,688 Shares underlying warrants — — 3,013 Stock options 773 773 785 Unvested restricted stock awards — — — Shares equivalents excluded from EPS 773 773 15,486 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commercial Property | |
Concentration Risk [Line Items] | |
Concentrations of Loans Unpaid Principal Balance and Real Estate Owned Net | As of December 31, 2022 and 2021, geographic and property type concentrations of loans, by unpaid principal balance, were as follows: December 31, 2022 2021 Geographic concentration: California 22.8 % 23.3 % New York 19.9 21.4 Florida 13.3 13.5 New Jersey 7.5 7.7 Other states (individually less than 5.0%) 36.5 34.1 100.0 % 100.0 % December 31, 2022 2021 Property type concentration: Investor 1-4 52.7 % 50.7 % Mixed use 12.6 12.8 Retail 8.7 9.1 Multifamily 8.6 8.8 Office 5.7 6.1 Warehouse 6.4 6.7 Other (individually less than 5.0%) 5.3 5.8 100.0 % 100.0 % |
Real Estate Owned, Net | |
Concentration Risk [Line Items] | |
Concentrations of Loans Unpaid Principal Balance and Real Estate Owned Net | As of December 31, 2022 and 2021 , the Company held $ 13.3 million and $ 17.6 million, respectively, of real estate owned, net, with geographic concentrations as follows: December 31, 2022 2021 Geographic concentration: Maryland 16.8 % 21.4 % Connecticut — 6.1 Ohio 1.4 11.9 California — 24.9 North Carolina — 1.1 New Jersey 11.2 10.7 Florida 16.1 — Massachusetts 21.3 — New York 5.7 — Texas 14.1 — Other states (individually less than 5.0%) 13.4 23.9 100.0 % 100.0 % |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Operating Expenses [Abstract] | |
Summary of Other Operating Expenses | The following table presents the components of other operating expenses for the years ended December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 2021 2020 Travel, marketing and business development $ 1,421 $ 661 $ 578 Data processing and telecommunications 3,022 2,476 2,150 Office expenses 1,161 1,396 1,579 Insurance, taxes, and licenses 2,452 2,457 2,179 Other 3,000 1,498 1,914 Total other operating expenses $ 11,056 $ 8,488 $ 8,400 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at December 31, 2022 Level 1 Level 2 Level 3 fair value Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 276,095 $ 276,095 Mortgage servicing rights — — 9,238 9,238 Total recurring fair value measurements — — 285,333 285,333 Nonrecurring fair value measurements: Loans held for sale, net — — — — Real estate owned, net — — 13,325 13,325 Individually evaluated loans requiring specific allowance, net — — 11,466 11,466 Total nonrecurring fair value measurements — — 24,791 24,791 Total assets $ — $ — $ 310,124 $ 310,124 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 Individually evaluated 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 gain (losses) recognized on assets measured on a nonrecurring basis for the years indicated (in thousands): December 31, Gain (loss) on assets measured on a nonrecurring basis 2022 2021 2020 Loans held for sale, net $ — $ 17 $ 328 Real estate held for sale, net ( 363 ) ( 1,759 ) ( 1,734 ) Individually evaluated loans requiring specific allowance, net 310 1,262 ( 1,755 ) Total net loss $ ( 53 ) $ ( 480 ) $ ( 3,161 ) |
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 December 31, 2022 and 2021 ($ in thousands): December 31, 2022 Asset category Fair value Primary Unobservable Range Weighted Individually evaluated $ 11,466 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 13,325 Market comparables Selling costs 8.0 % 8.0 % Loans held for 276,095 Discounted cash flow Discount rate 8.35 % to 9.35 % 8.9 % Collateral value 88.47 % to 103.5 % 99.1 % Timing of resolution/payoff 1 to 49 36.9 Prepayment rate 1.0 % to 30.0 % 15.1 % Default rate 0.12 % to 6.99 % 0.6 % Loss severity rate 0.0 % to 18.45 % 3.5 % Mortgage servicing rights 9,238 Discounted cash flow Discount rate 8.0 % to 12.0 % 8.1 % Prepayment rate 5.6 % to 16.8 % 6.3 % 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 1,359 Discounted cash flow Discount rate 5.8 % 5.8 % Collateral value 95.0 % to 120.0 % 106.0 % Timing of resolution/payoff 1 to 38 34.8 Prepayment rate 19.2 % to 50 % 19.5 % Default rate 0.0 % to 6.7 % 1.0 % Loss severity rate 0.0 % to 13.4 % 3.0 % Loans held for sale 87,442 Discounted cash flow Discount rate 5.8 % 5.8 % Timing of resolution/payoff 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 years indicated (in thousands): December 31, 2022 2021 2020 Beginning balance $ 1,359 $ 1,539 $ 2,960 Originations 267,278 — — Repurchase 1,048 — — Loans liquidated ( 765 ) ( 163 ) ( 1,808 ) Principal paydowns ( 261 ) ( 46 ) ( 55 ) Total unrealized gain (loss) included in net income 7,436 29 442 Ending balance $ 276,095 $ 1,359 $ 1,539 The following is a rollforward of interest-only strips that are measured at estimated fair value on a recurring basis for the years indicated (in thousands): December 31, 2022 2021 2020 Beginning balance $ — $ 238 $ 894 Interest-only strip additions — — 1,820 Interest-only strip write-offs — ( 238 ) ( 2,469 ) Total unrealized loss included in net income — — ( 7 ) Ending balance $ — $ — $ 238 |
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): December 31, 2022 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 45,248 $ 45,248 $ — $ — $ 45,248 Restricted cash 16,808 16,808 — — 16,808 Loans held for sale, net — — — — — Loans held for investment, net 3,272,390 — — 3,201,850 3,201,850 Loans held for investment, at fair value 276,095 — — 276,095 276,095 Accrued interest receivables 20,463 20,463 — — 20,463 Mortgage servicing rights 9,238 — — 9,238 9,238 Liabilities: Secured financing, net $ 209,846 $ — $ — $ 211,854 $ 211,854 Warehouse and repurchase facilities, net 330,814 — 330,814 — 330,814 Securitizations, net 2,736,290 — — 2,522,010 2,522,010 Accrued interest payable 16,369 16,369 — — 16,369 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 |
Select Quarterly Financial Da_2
Select Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Results | The following tables set forth the Company's unaudited quarterly results for the periods indicated: Three Months Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (in thousands) Interest income $ 65,632 $ 63,419 $ 59,243 $ 52,049 $ 49,360 $ 46,923 $ 44,978 $ 40,707 Interest expense - portfolio related 40,854 34,561 28,752 23,556 23,666 20,321 20,566 20,832 Net interest income - portfolio related 24,778 28,858 30,491 28,493 25,694 26,602 24,412 19,875 Interest expense - corporate debt 4,139 4,011 4,182 17,140 4,462 4,488 4,309 7,350 Net interest income 20,639 24,847 26,309 11,353 21,232 22,114 20,103 12,525 Provision for (reversal of) loan losses ( 437 ) 580 279 730 377 228 ( 1,000 ) 105 Net interest income after provision 21,076 24,267 26,030 10,623 20,855 21,886 21,103 12,420 Other operating income 11,029 2,509 3,039 5,648 2,617 339 2,432 2,801 Operating expenses 20,413 12,727 14,279 12,250 12,095 11,298 10,650 10,617 Income before income taxes 11,692 14,049 14,790 4,021 11,377 10,927 12,885 4,604 Income tax expense 3,465 3,759 4,019 790 3,024 2,905 3,432 1,208 Net income 8,227 10,290 10,771 3,231 8,353 8,022 9,453 3,396 Less income (loss) attributable to noncontrolling interest ( 235 ) 307 126 110 — — — — Net income attributable to Velocity Financial, Inc. $ 8,462 $ 9,983 $ 10,645 $ 3,121 $ 8,353 $ 8,022 $ 9,453 $ 3,396 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) - USD ($) | 12 Months Ended | |||||||
Jan. 28, 2020 | Jan. 22, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 28, 2021 | Oct. 08, 2021 | 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] | ||||||||
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 | 11,688,310 | 11,749,994 | ||||||
Issuance of common stock, shares | 1,087,500 | 7,250,000 | 74,009 | 11,699,037 | 20,087,494 | |||
Stock price | $ 13 | $ 13 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Off-balance-sheet assets or liabilities | $ 0 |
ESPP, employees purchase shares of common stock price percentage | 85% |
Employee Stock [Member] | |
Percentage of purchase price | 85% |
Long-Term Loans | |
Loan period applicable for CPR curve | 30 years |
Maximum | |
Quick Fix loans, maturity period | 2 years |
Non-Quick Fix loans, maturity period | 30 years |
Property, plant and equipment, useful life | 7 years |
Maximum | Software Development | |
Property, plant and equipment, useful life | 10 years |
Maximum | Short-Term Loans | |
Loan period applicable for CPR curve | 2 years |
Minimum | |
Quick Fix loans, maturity period | 1 year |
Property, plant and equipment, useful life | 3 years |
Minimum | Software Development | |
Property, plant and equipment, useful life | 3 years |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Cash and Cash Equivalents [Abstract] | |
Escrow balances payable | $ 68.5 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 45,248 | $ 35,965 | $ 13,273 | |
Restricted cash | 16,808 | 11,639 | 7,020 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 62,056 | $ 47,604 | $ 20,293 | $ 27,552 |
Loans Held for Sale, Net - Summ
Loans Held for Sale, Net - Summary of Loans Held for Sale (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Loans Held For Sale [Abstract] | |
Unpaid principal balance | $ 87,422 |
Deferred loan origination costs | 486 |
Ending balance | $ 87,908 |
Loans Held for Sale, Net - Addi
Loans Held for Sale, Net - Additional Information (Details) | Dec. 31, 2022 USD ($) |
Unusual Risk Or Uncertainty [Line Items] | |
Loans held for sale other | $ 0 |
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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | |||
Allowance for loan losses | $ (4,893) | $ (4,262) | $ (5,845) |
Net Loans Held For Investment | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid principal balance | 3,243,854 | 2,498,466 | |
Deferred loan origination costs | 33,429 | 33,360 | |
Total loans held for investment and loans held for investment at fair value, gross | 3,277,283 | 2,531,826 | |
Allowance for loan losses | (4,893) | (4,262) | |
Total loans held for investment, net | 3,272,390 | 2,527,564 | |
Loans At Fair Value Held For Investment | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid principal balance | 268,632 | 1,332 | |
Valuation adjustments on FVO loans | 7,463 | 27 | |
Total loans held for investment and loans held for investment at fair value, gross | 276,095 | 1,359 | |
Total loans held for investment, net | 276,095 | 1,359 | |
Total Loans Held For Investment | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid principal balance | 3,512,486 | 2,499,798 | |
Valuation adjustments on FVO loans | 7,463 | 27 | |
Deferred loan origination costs | 33,429 | 33,360 | |
Total loans held for investment and loans held for investment at fair value, gross | 3,553,378 | 2,533,185 | |
Allowance for loan losses | (4,893) | (4,262) | |
Total loans held for investment, net | $ 3,548,485 | $ 2,528,923 |
Loans Held for Investment and_4
Loans Held for Investment and Loans Held for Investment at Fair Value - Additional Information (Details) - USD ($) | 12 Months Ended | 33 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Accrued interest income recognized on nonaccrual loans | $ 0 | $ 0 | ||
Cash basis interest income recognized on nonaccrual loans | 27,300,000 | 31,200,000 | ||
Average recorded investment of individually evaluated loans, computed using month-end balances | $ 269,400,000 | $ 311,200,000 | ||
Recovery rate on long-term nonperforming assets | 106.70% | 104.20% | 103.10% | |
Recovery rate on short-term nonperforming assets | 107% | 102.70% | ||
COVID-19 | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans | $ 203,300,000 | $ 296,000,000 | $ 203,300,000 | |
90+days | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Annualized charge rate of non performing loans | 0.20% | 0.42% | 0.65% | |
COVID 19 Forbearance Program | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 292,400,000 | 292,400,000 | ||
Loans held for investment forbearance period | 90 days | |||
Amount of loan granted for unusual risk forbearance | $ 215,800,000 | $ 409,600,000 | $ 215,800,000 | |
Loans held for investment unpaid principal balance performing and accruing, percentage | 80.30% | 79.80% | 80.30% | |
Loans held for investment unpaid principal balance nonperforming and nonaccrual percentage | 19.70% | 20.20% | 19.70% | |
Accrued interest income recognized on nonaccrual loans | $ 4,300,000 | $ 11,500,000 |
Loans Held for Investment and_5
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Notes And Loans Receivable [Line Items] | ||
UPB Beginning balance | $ 292,429 | $ 392,073 |
UPB Additions | 2,616 | |
UPB Foreclosures | (3,593) | (402) |
UPB Repayments | (87,831) | (101,858) |
UPB Ending balance | 201,005 | 292,429 |
UPB Performing/Accruing, Amount | 161,455 | 233,307 |
UPB Nonperforming/Nonaccrual, Amount | $ 39,550 | $ 59,122 |
UPB Performing/Accruing, Percentage | 80.30% | 79.80% |
UPB Nonperforming/Nonaccrual, Percentage | 19.70% | 20.20% |
Amortized Cost Beginning balance | $ 295,990 | $ 396,918 |
Amortized Cost Additions | 2,615 | |
Amortized Cost Foreclosures | (3,620) | (408) |
Amortized Cost Repayments | (89,024) | (103,135) |
Amortized Cost Ending balance | 203,346 | 295,990 |
Amortized Cost Performing/Accruing, Amount | 163,346 | 236,076 |
Amortized Cost Nonperforming/Nonaccrual, Amount | $ 40,000 | $ 59,914 |
Amortized Cost Performing/Accruing, Percentage | 80.30% | 79.80% |
Amortized Cost Nonperforming/Nonaccrual, Percentage | 19.70% | 20.20% |
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 Facility Agreements and Securitizations Issued (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 3,075,047 | $ 2,172,766 |
Asset Pledged as Collateral without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 418,749 | 400,759 |
2013 Repurchase Agreement | Asset Pledged as Collateral without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 170,185 | 202,511 |
2021 Repurchase Agreement | Asset Pledged as Collateral without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 101,024 | 114,072 |
Bank Credit Agreement | Asset Pledged as Collateral without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 39,087 | 30,959 |
2021 Term Repurchase Agreement | Asset Pledged as Collateral without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 104,594 | 53,217 |
July 2021 Term Repurchase Agreement | Asset Pledged as Collateral without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 3,859 | |
2015-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 31,931 | |
2016-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 39,720 | 52,623 |
2017-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 67,048 | 94,809 |
2018-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 48,139 | 71,051 |
2018-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 104,791 | 154,974 |
2019-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 104,249 | 144,727 |
2019-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 91,025 | 132,358 |
2019-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 75,618 | 103,266 |
2020-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 144,913 | 189,547 |
2020-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 81,259 | 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 | 208,875 | 249,396 |
2021-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 172,144 | 198,039 |
2021-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 178,861 | 202,138 |
2021-4 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 275,741 | $ 314,547 |
2022-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 262,526 | |
2022-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 245,339 | |
2022-MC1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 97,246 | |
2022-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 299,638 | |
2022-4 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 326,627 | |
2022-5 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 251,288 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | $ 295,339 | $ 276,418 |
Nonaccrual with No Allowance for Loan Loss | 282,777 | 263,026 |
Nonaccrual with Allowance for Loan Loss | 12,562 | 13,392 |
Allowance for Loans Individually Evaluated | $ 1,096 | $ 1,406 |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 8.70% | 10.50% |
Troubled debt restructuring included in nonaccrual loans: | $ 165 | |
Commercial - Purchase | ||
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | $ 22,571 | 17,260 |
Nonaccrual with No Allowance for Loan Loss | 22,437 | 16,501 |
Nonaccrual with Allowance for Loan Loss | 134 | 759 |
Allowance for Loans Individually Evaluated | $ 28 | $ 9 |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 0.20% | 0.10% |
Commercial - Refinance | ||
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | $ 87,133 | $ 85,935 |
Nonaccrual with No Allowance for Loan Loss | 82,330 | 79,131 |
Nonaccrual with Allowance for Loan Loss | 4,803 | 6,804 |
Allowance for Loans Individually Evaluated | $ 517 | $ 826 |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 4.10% | 6.20% |
Residential 1-4 Unit - Purchase | ||
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | $ 27,984 | $ 17,385 |
Nonaccrual with No Allowance for Loan Loss | 27,516 | 17,128 |
Nonaccrual with Allowance for Loan Loss | 468 | 257 |
Allowance for Loans Individually Evaluated | $ 118 | $ 96 |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 0.90% | 0.70% |
Residential 1-4 Unit - Refinance | ||
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | $ 113,909 | $ 107,552 |
Nonaccrual with No Allowance for Loan Loss | 111,742 | 105,515 |
Nonaccrual with Allowance for Loan Loss | 2,167 | 2,037 |
Allowance for Loans Individually Evaluated | $ 175 | $ 138 |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 1.40% | 1% |
Short Term 1-4 Unit - Purchase | ||
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | $ 8,140 | $ 2,986 |
Nonaccrual with No Allowance for Loan Loss | 8,140 | 2,881 |
Nonaccrual with Allowance for Loan Loss | 105 | |
Allowance for Loans Individually Evaluated | $ 31 | |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 0.20% | |
Short Term 1-4 Unit - Refinance | ||
Financing Receivable Impaired [Line Items] | ||
Total Nonaccrual | 35,602 | $ 45,300 |
Nonaccrual with No Allowance for Loan Loss | 30,612 | 41,870 |
Nonaccrual with Allowance for Loan Loss | 4,990 | 3,430 |
Allowance for Loans Individually Evaluated | $ 258 | $ 306 |
Percentage of Allowance to Total Nonaccrual/ Impaired Loans | 2.10% | 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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | $ 3,277,284 | $ 2,531,826 |
Financing Receivable, Accrued Interest, Writeoff | (4,872) | (4,679) |
Commercial - Purchase | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | 701,408 | 509,421 |
Financing Receivable, Accrued Interest, Writeoff | (640) | (346) |
Commercial - Refinance | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | 907,097 | 783,260 |
Financing Receivable, Accrued Interest, Writeoff | (1,343) | (1,176) |
Residential 1-4 Unit - Purchase | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | 588,433 | 408,770 |
Financing Receivable, Accrued Interest, Writeoff | (596) | (209) |
Residential 1-4 Unit - Refinance | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | 939,305 | 730,321 |
Financing Receivable, Accrued Interest, Writeoff | (1,602) | (1,474) |
Short Term 1-4 Unit - Purchase | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | 69,884 | 28,989 |
Financing Receivable, Accrued Interest, Writeoff | (189) | (821) |
Short Term 1-4 Unit - Refinance | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Amortized Cost Basis | 71,157 | 71,065 |
Financing Receivable, Accrued Interest, Writeoff | $ (502) | $ (653) |
Loans Held for Investment and_9
Loans Held for Investment and Loans Held for Investment at Fair Value - Activity in Allowance for loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for credit losses: | |||||||||||
Beginning balance | $ 4,262 | $ 5,845 | $ 4,262 | $ 5,845 | |||||||
Provision for loan losses | $ (437) | $ 580 | $ 279 | 730 | $ 377 | $ 228 | $ (1,000) | 105 | 1,152 | (292) | $ 5,068 |
Charge-offs | (521) | (1,291) | |||||||||
Ending balance | 4,893 | 4,262 | 4,893 | 4,262 | 5,845 | ||||||
Allowance for Loans Individually Evaluated | 1,096 | 1,406 | 1,096 | 1,406 | |||||||
Allowance related to Loans collectively evaluated | 3,797 | 2,856 | 3,797 | 2,856 | |||||||
Amortized cost related to Loans individually evaluated | 295,339 | 276,418 | 295,339 | 276,418 | |||||||
Amortized cost related to Loans collectively evaluated | 2,981,945 | 2,255,408 | 2,981,945 | 2,255,408 | |||||||
Commercial - Purchase | |||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | 385 | 373 | 385 | 373 | |||||||
Provision for loan losses | 401 | 154 | |||||||||
Charge-offs | (147) | (142) | |||||||||
Ending balance | 639 | 385 | 639 | 385 | 373 | ||||||
Allowance for Loans Individually Evaluated | 28 | 9 | 28 | 9 | |||||||
Allowance related to Loans collectively evaluated | 611 | 376 | 611 | 376 | |||||||
Amortized cost related to Loans individually evaluated | 22,571 | 17,260 | 22,571 | 17,260 | |||||||
Amortized cost related to Loans collectively evaluated | 678,837 | 492,161 | 678,837 | 492,161 | |||||||
Commercial - Refinance | |||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | 2,144 | 2,093 | 2,144 | 2,093 | |||||||
Provision for loan losses | (88) | 164 | |||||||||
Charge-offs | (25) | (113) | |||||||||
Ending balance | 2,031 | 2,144 | 2,031 | 2,144 | 2,093 | ||||||
Allowance for Loans Individually Evaluated | 517 | 826 | 517 | 826 | |||||||
Allowance related to Loans collectively evaluated | 1,514 | 1,318 | 1,514 | 1,318 | |||||||
Amortized cost related to Loans individually evaluated | 87,133 | 85,935 | 87,133 | 85,935 | |||||||
Amortized cost related to Loans collectively evaluated | 819,964 | 697,326 | 819,964 | 697,326 | |||||||
Residential 1-4 Unit - Purchase | |||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | 400 | 333 | 400 | 333 | |||||||
Provision for loan losses | 149 | 104 | |||||||||
Charge-offs | (7) | (37) | |||||||||
Ending balance | 542 | 400 | 542 | 400 | 333 | ||||||
Allowance for Loans Individually Evaluated | 118 | 96 | 118 | 96 | |||||||
Allowance related to Loans collectively evaluated | 424 | 305 | 424 | 305 | |||||||
Amortized cost related to Loans individually evaluated | 27,984 | 17,385 | 27,984 | 17,385 | |||||||
Amortized cost related to Loans collectively evaluated | 560,449 | 391,385 | 560,449 | 391,385 | |||||||
Residential 1-4 Unit - Refinance | |||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | 948 | 1,216 | 948 | 1,216 | |||||||
Provision for loan losses | 429 | (60) | |||||||||
Charge-offs | (105) | (208) | |||||||||
Ending balance | 1,272 | 948 | 1,272 | 948 | 1,216 | ||||||
Allowance for Loans Individually Evaluated | 175 | 138 | 175 | 138 | |||||||
Allowance related to Loans collectively evaluated | 1,097 | 811 | 1,097 | 811 | |||||||
Amortized cost related to Loans individually evaluated | 113,909 | 107,552 | 113,909 | 107,552 | |||||||
Amortized cost related to Loans collectively evaluated | 825,396 | 622,768 | 825,396 | 622,768 | |||||||
Short Term 1-4 Unit - Purchase | |||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | 43 | 595 | 43 | 595 | |||||||
Provision for loan losses | (22) | (538) | |||||||||
Charge-offs | (14) | ||||||||||
Ending balance | 21 | 43 | 21 | 43 | 595 | ||||||
Allowance for Loans Individually Evaluated | 31 | 31 | |||||||||
Allowance related to Loans collectively evaluated | 21 | 10 | 21 | 10 | |||||||
Amortized cost related to Loans individually evaluated | 8,140 | 2,986 | 8,140 | 2,986 | |||||||
Amortized cost related to Loans collectively evaluated | 61,744 | 26,003 | 61,744 | 26,003 | |||||||
Short Term 1-4 Unit - Refinance | |||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | $ 342 | $ 1,235 | 342 | 1,235 | |||||||
Provision for loan losses | 283 | (116) | |||||||||
Charge-offs | (237) | (777) | |||||||||
Ending balance | 388 | 342 | 388 | 342 | $ 1,235 | ||||||
Allowance for Loans Individually Evaluated | 258 | 306 | 258 | 306 | |||||||
Allowance related to Loans collectively evaluated | 130 | 36 | 130 | 36 | |||||||
Amortized cost related to Loans individually evaluated | 35,602 | 45,300 | 35,602 | 45,300 | |||||||
Amortized cost related to Loans collectively evaluated | $ 35,555 | $ 25,765 | $ 35,555 | $ 25,765 |
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 - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 203,346 | $ 295,990 |
Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 3,277,284 | 2,531,826 |
Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 40,000 | 59,914 |
Loans Individually Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 295,339 | 276,418 |
Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 2,880 | 6,044 |
Loans Individually Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 22,571 | 17,260 |
Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 17,147 | 21,340 |
Loans Individually Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 87,133 | 85,935 |
Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 1,116 | 3,045 |
Loans Individually Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 27,984 | 17,385 |
Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 10,039 | 22,670 |
Loans Individually Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 113,909 | 107,552 |
Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 279 | 279 |
Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 8,140 | 2,986 |
Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 8,539 | 6,536 |
Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 35,602 | 45,300 |
Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 163,346 | 236,076 |
Loans Collectively Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 2,981,945 | 2,255,408 |
Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 24,661 | 34,271 |
Loans Collectively Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 678,837 | 492,161 |
Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 72,359 | 100,793 |
Loans Collectively Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 819,964 | 697,326 |
Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 10,659 | 18,867 |
Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 560,449 | 391,385 |
Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 35,835 | 52,719 |
Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 825,396 | 622,768 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 19,832 | 21,630 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 61,744 | 26,003 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 7,796 | |
Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 35,555 | 25,765 |
30–59 days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 34,799 | 37,396 |
30–59 days | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 189,616 | 136,320 |
30–59 days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 947 | 666 |
30–59 days | Loans Individually Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 8,418 | 7,810 |
30–59 days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 163 | |
30–59 days | Loans Individually Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 865 | 700 |
30–59 days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 767 | |
30–59 days | Loans Individually Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 4,415 | 4,464 |
30–59 days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 590 | |
30–59 days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,715 | 807 |
30–59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 99 | |
30–59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 176 | 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 | 180 | 404 |
30–59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 657 | 615 |
30–59 days | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 33,852 | 36,730 |
30–59 days | Loans Collectively Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 181,198 | 128,510 |
30–59 days | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,682 | 2,209 |
30–59 days | Loans Collectively Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 24,899 | 17,319 |
30–59 days | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,874 | 8,309 |
30–59 days | Loans Collectively Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 41,711 | 31,769 |
30–59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,346 | 315 |
30–59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 22,840 | 14,905 |
30–59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 4,118 | 4,086 |
30–59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 64,925 | 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 | 19,832 | 20,869 |
30–59 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 21,273 | 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 | 942 | |
30–59 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,550 | 4,060 |
60–89 days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,203 | 13,042 |
60–89 days | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 73,577 | 43,877 |
60–89 days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 186 | 4,741 |
60–89 days | Loans Individually Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 9,263 | 11,912 |
60–89 days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,622 | |
60–89 days | Loans Individually Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,314 | |
60–89 days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 186 | 2,820 |
60–89 days | Loans Individually Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,943 | 6,818 |
60–89 days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 592 | 682 |
60–89 days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,728 | 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 | 299 | |
60–89 days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,010 | |
60–89 days | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,017 | 8,301 |
60–89 days | Loans Collectively Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 64,314 | 31,965 |
60–89 days | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 656 | 1,158 |
60–89 days | Loans Collectively Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,096 | 4,034 |
60–89 days | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,786 | 2,444 |
60–89 days | Loans Collectively Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 20,561 | 7,025 |
60–89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,036 | 231 |
60–89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 13,948 | 5,580 |
60–89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,539 | 319 |
60–89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 23,224 | 9,548 |
60–89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 294 | 217 |
60–89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 4,149 | |
60–89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,191 | 5,561 |
90+days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 38,867 | 54,507 |
90+days | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 277,502 | 256,531 |
90+days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 38,867 | 54,507 |
90+days | Loans Individually Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 277,502 | 256,531 |
90+days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,880 | 4,259 |
90+days | Loans Individually Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 21,706 | 14,246 |
90+days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 16,194 | 18,520 |
90+days | Loans Individually Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 76,619 | 74,488 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,116 | 3,045 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 26,802 | 16,703 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 10,039 | 22,670 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 109,466 | 105,657 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 279 | 180 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,964 | 1,762 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 8,359 | 5,833 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 34,945 | 43,675 |
Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 80,869 | 104,945 |
Past Due | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 540,695 | 436,728 |
Past Due | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 40,000 | 59,914 |
Past Due | Loans Individually Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 295,183 | 276,253 |
Past Due | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,880 | 6,044 |
Past Due | Loans Individually Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 22,571 | 17,260 |
Past Due | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 17,147 | 21,340 |
Past Due | Loans Individually Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 86,977 | 85,770 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,116 | 3,045 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 27,984 | 17,385 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 10,039 | 22,670 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 113,909 | 107,552 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 279 | 279 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 8,140 | 2,986 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 8,539 | 6,536 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 35,602 | 45,300 |
Past Due | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 40,869 | 45,031 |
Past Due | Loans Collectively Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 245,512 | 160,475 |
Past Due | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,338 | 3,367 |
Past Due | Loans Collectively Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 29,995 | 21,353 |
Past Due | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 9,660 | 10,753 |
Past Due | Loans Collectively Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 62,272 | 38,794 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,382 | 546 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 36,788 | 20,485 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,657 | 4,405 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 88,149 | 48,593 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 19,832 | 20,869 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 21,567 | 21,629 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 5,091 | |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 6,741 | 9,621 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 122,477 | 191,045 |
Current | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,736,589 | 2,095,098 |
Current | Loans Individually Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 156 | 165 |
Current | Loans Individually Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 156 | 165 |
Current | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 122,477 | 191,045 |
Current | Loans Collectively Evaluated | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,736,433 | 2,094,933 |
Current | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 22,323 | 30,904 |
Current | Loans Collectively Evaluated | Commercial - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 648,842 | 470,808 |
Current | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 62,699 | 90,040 |
Current | Loans Collectively Evaluated | Commercial - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 757,692 | 658,532 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,277 | 18,321 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 523,661 | 370,900 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 30,178 | 48,314 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 737,247 | 574,175 |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 761 | |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 40,177 | 4,374 |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,705 | |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | Aging Status and Accrual Status | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | $ 28,814 | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | $ 1,243,841 | $ 1,143,849 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,033,695 | 214,490 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 168,977 | 500,689 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 358,100 | 326,082 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 231,024 | 171,370 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 241,647 | 175,345 |
Total | 3,277,284 | 2,531,825 |
Commercial - Purchase | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 275,224 | 277,906 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 256,059 | 47,617 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 37,643 | 87,082 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 62,131 | 50,817 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 36,398 | 27,703 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 33,953 | 18,296 |
Total | 701,408 | 509,421 |
Commercial - Purchase | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 273,950 | 277,618 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 249,100 | 45,836 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 36,064 | 81,541 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 56,322 | 46,637 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 33,193 | 24,164 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 30,208 | 16,365 |
Total | 678,837 | 492,161 |
Commercial - Purchase | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 1,274 | 288 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,959 | 1,781 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,579 | 5,541 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 5,809 | 4,180 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 3,205 | 3,539 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 3,745 | 1,931 |
Total | 22,571 | 17,260 |
Commercial - Refinance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 272,766 | 242,170 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 222,699 | 68,915 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 59,650 | 170,029 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 127,056 | 145,604 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 113,569 | 78,866 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 111,357 | 77,676 |
Total | 907,097 | 783,260 |
Commercial - Refinance | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 263,754 | 239,688 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 210,898 | 64,966 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 55,795 | 144,017 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 103,633 | 118,735 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 93,161 | 62,374 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 92,723 | 67,545 |
Total | 819,964 | 697,325 |
Commercial - Refinance | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 9,012 | 2,482 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 11,801 | 3,949 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 3,855 | 26,012 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 23,423 | 26,869 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 20,408 | 16,492 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 18,634 | 10,131 |
Total | 87,133 | 85,935 |
Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 256,906 | 264,552 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 237,342 | 15,627 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 12,875 | 52,826 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 33,998 | 33,280 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 20,444 | 16,350 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 26,868 | 26,135 |
Total | 588,433 | 408,770 |
Residential 1-4 Unit - Purchase | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 249,625 | 263,180 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 227,235 | 12,878 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 10,710 | 48,930 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 31,685 | 29,544 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 18,891 | 12,863 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 22,303 | 23,990 |
Total | 560,449 | 391,385 |
Residential 1-4 Unit - Purchase | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 7,281 | 1,372 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 10,107 | 2,749 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,165 | 3,896 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,313 | 3,736 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,553 | 3,487 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 4,565 | 2,145 |
Total | 27,984 | 17,385 |
Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 360,350 | 354,845 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 310,218 | 37,374 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 31,610 | 145,961 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 111,954 | 90,451 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 55,704 | 48,451 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 69,469 | 53,238 |
Total | 939,305 | 730,320 |
Residential 1-4 Unit - Refinance | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 338,959 | 343,199 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 285,195 | 31,334 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 24,703 | 114,145 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 84,208 | 59,825 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 39,870 | 31,774 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 52,461 | 42,491 |
Total | 825,396 | 622,768 |
Residential 1-4 Unit - Refinance | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 21,391 | 11,646 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 25,023 | 6,040 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 6,907 | 31,816 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 27,746 | 30,626 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 15,834 | 16,677 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2018 | 17,008 | 10,747 |
Total | 113,909 | 107,552 |
Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 42,254 | 1,890 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,156 | 17,147 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 16,654 | 9,847 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,716 | 105 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 104 | |
Total | 69,884 | 28,989 |
Short Term 1-4 Unit - Purchase | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 40,967 | 1,890 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 944 | 15,582 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 15,659 | 8,531 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,174 | |
Total | 61,744 | 26,003 |
Short Term 1-4 Unit - Purchase | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 1,287 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 5,212 | 1,565 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 995 | 1,316 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 542 | 105 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 104 | |
Total | 8,140 | 2,986 |
Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 36,341 | 2,486 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,221 | 27,810 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 10,545 | 34,944 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 18,245 | 5,825 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,805 | |
Total | 71,157 | 71,065 |
Short Term 1-4 Unit - Refinance | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 35,555 | 1,448 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 11,991 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 12,326 | |
Total | 35,555 | 25,765 |
Short Term 1-4 Unit - Refinance | Nonperforming | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 786 | 1,038 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,221 | 15,819 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 10,545 | 22,618 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 18,245 | 5,825 |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,805 | |
Total | $ 35,602 | $ 45,300 |
Mortgage Loans on Real Estate -
Mortgage Loans on Real Estate - Schedule of Loans (UPB) Collateralized by Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Residential Real Estate | |||||
Debt Instrument [Line Items] | |||||
Unpaid Principal Balance | [1],[2] | $ 1,851,539 | [3] | $ 1,312,094 | [4] |
Nonaccrual Unpaid Principal Balance | $ 184,633 | [3] | $ 171,640 | [4] | |
Residential Real Estate | Less Than One Million | |||||
Debt Instrument [Line Items] | |||||
Final Maturity Date | [3] | Jan. 01, 2053 | Jan. 01, 2052 | ||
Unpaid Principal Balance | [1],[2],[3] | $ 1,374,726 | $ 987,069 | ||
Nonaccrual Unpaid Principal Balance | [3] | $ 127,125 | $ 127,214 | ||
Residential Real Estate | Less Than One Million | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4% | 4% | ||
Residential Real Estate | Less Than One Million | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 13.50% | 13.50% | ||
Residential Real Estate | One Million And More | |||||
Debt Instrument [Line Items] | |||||
Final Maturity Date | [3] | Jan. 01, 2053 | Jan. 01, 2052 | ||
Unpaid Principal Balance | [1],[2],[3] | $ 476,813 | $ 325,025 | ||
Nonaccrual Unpaid Principal Balance | [3] | $ 57,508 | $ 44,426 | ||
Residential Real Estate | One Million And More | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 4% | 4% | ||
Residential Real Estate | One Million And More | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [3] | 11.50% | 11.50% | ||
Commercial Real Estate | |||||
Debt Instrument [Line Items] | |||||
Unpaid Principal Balance | [1],[2] | $ 1,660,947 | [4] | $ 1,275,127 | [3] |
Nonaccrual Unpaid Principal Balance | $ 108,156 | [4] | $ 101,460 | [3] | |
Commercial Real Estate | Less Than One Million | |||||
Debt Instrument [Line Items] | |||||
Final Maturity Date | [4] | Jan. 01, 2053 | Jan. 01, 2052 | ||
Unpaid Principal Balance | [1],[2],[4] | $ 1,196,378 | $ 969,599 | ||
Nonaccrual Unpaid Principal Balance | [4] | $ 69,763 | $ 73,039 | ||
Commercial Real Estate | Less Than One Million | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [4] | 4% | 3.10% | ||
Commercial Real Estate | Less Than One Million | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [4] | 13.70% | 13% | ||
Commercial Real Estate | One Million And More | |||||
Debt Instrument [Line Items] | |||||
Final Maturity Date | [4] | Jan. 01, 2053 | Jan. 01, 2052 | ||
Unpaid Principal Balance | [1],[2],[4] | $ 464,569 | $ 305,528 | ||
Nonaccrual Unpaid Principal Balance | [4] | $ 38,393 | $ 28,421 | ||
Commercial Real Estate | One Million And More | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [4] | 4% | 4% | ||
Commercial Real Estate | One Million And More | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | [4] | 11.70% | 10.20% | ||
Real Estate | |||||
Debt Instrument [Line Items] | |||||
Unpaid Principal Balance | [1],[2] | $ 3,512,486 | $ 2,587,221 | ||
Nonaccrual Unpaid Principal Balance | $ 292,789 | $ 273,100 | |||
[1] As of December 31, 2022 and 2021, $ 168.4 million and $ 155.1 million, respectively, of the total UPB were interest-only loans with interest payable monthly and the principal payable at maturity. The aggregate cost of the Company’s loan portfolio for Federal income tax purposes was $ 3,553,379 and $ 2,621,093 as of December 31, 2022 and 2021, respectively. The principal and interest on the 1-4 unit residential mortgage loans is payable monthly over the life of the loan to maturity. These loans generally contain a 3 % prepayment penalty provision if the loan is prepaid within the first 3 years. The principal and interest on the traditional commercial mortgage loans is payable monthly over the life of the loan to maturity. These loans generally contain a 5 % prepayment penalty provision if the loan is prepaid within the first 3 years. |
Mortgage Loans on Real Estate_2
Mortgage Loans on Real Estate - Loans (UPB) Collateralized by Real Estate - Additional Informaiton (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Aggregate Cost of Mortgage loans, Federal Income tax | $ 3,553,379 | $ 2,621,093 |
Interest Expense, Debt | $ 168,400 | $ 155,100 |
Residential Real Estate | ||
Debt Instrument [Line Items] | ||
Provision for prepayment penalty rate | 3% | |
Commercial Real Estate | ||
Debt Instrument [Line Items] | ||
Provision for prepayment penalty rate | 5% |
Mortgage Loans on Real Estate_3
Mortgage Loans on Real Estate - Schedule of Reconciliation of the UPB Mortgage Loans (Details) - UPB - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Balance at beginning of period | $ 2,587,220 | $ 1,944,804 | $ 2,059,344 |
New mortgage loans | 1,761,853 | 1,326,275 | 435,037 |
Acquisition | 17,657 | 22,437 | 4,643 |
Capitalized Interest | 1,604 | 2,045 | 7,814 |
Collection of principal | (525,986) | (568,081) | (374,576) |
Collection of capitalized interest | (2,155) | (2,163) | |
Foreclosures | (10,031) | (11,603) | (10,781) |
Mortgages sold | (317,676) | (126,494) | (176,677) |
Balance at end of period | $ 3,512,486 | $ 2,587,220 | $ 1,944,804 |
Receivables Due From Servicer_2
Receivables Due From Servicers - Summary of Receivables Due From Servicers (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | $ 25,064 | $ 43,509 |
Other loan servicing receivables | 15,616 | 11,448 |
Loan servicing receivables | 40,680 | 54,957 |
Corporate and escrow advances receivable | 24,964 | 19,373 |
Total receivables due from servicers | 65,644 | 74,330 |
Securitizations | ||
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | 24,400 | 42,344 |
Other loan servicing receivables | 13,095 | 10,718 |
Loan servicing receivables | 37,495 | 53,062 |
Corporate and escrow advances receivable | 21,995 | 17,884 |
Total receivables due from servicers | 59,490 | 70,946 |
Warehouse and Repurchase Facilities and Other | ||
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | 664 | 1,165 |
Other loan servicing receivables | 2,521 | 730 |
Loan servicing receivables | 3,185 | 1,895 |
Corporate and escrow advances receivable | 2,969 | 1,489 |
Total receivables due from servicers | $ 6,154 | $ 3,384 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 10,256 | $ 11,282 |
Accumulated depreciation and amortization | (6,900) | (7,452) |
Property, Plant and Equipment, Net | 3,356 | 3,830 |
Furniture | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 927 | 885 |
Computer equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 986 | 1,222 |
Office equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 409 | 278 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 578 | 578 |
Capitalized software | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,671 | 7,634 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 685 | $ 685 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $ 796 | $ 1,119 | $ 1,219 |
Accumulated depreciation and amortization | 6,900 | 7,452 | |
Data Warehouse and Loan Origination Systems (LOS) | |||
Property Plant And Equipment [Line Items] | |||
Total capitalized costs | 5,700 | 5,700 | |
Accumulated depreciation and amortization | 4,100 | $ 3,700 | |
Capitalized software | |||
Property Plant And Equipment [Line Items] | |||
Estimated amortization expense, 2023 | 400 | ||
Estimated amortization expense, 2024 | 400 | ||
Estimated amortization expense, 2025 | 400 | ||
Estimated amortization expense, 2026 | 400 | ||
Estimated amortization expense, 2027 | $ 200 |
Real Estate Owned, Net - Summar
Real Estate Owned, Net - Summary of Activity in Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate [Roll Forward] | |||
Beginning balance | $ 17,557 | $ 15,767 | |
Additions | 13,439 | 12,583 | |
Capitalized improvements | 194 | ||
Sales | (19,558) | (9,228) | |
Other adjustments | 2,250 | ||
Valuation adjustments | (363) | (1,759) | $ (1,734) |
Ending balance | $ 13,325 | $ 17,557 | $ 15,767 |
Real Estate Owned, Net - Sale o
Real Estate Owned, Net - Sale of Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |||
Operating income | $ 275 | $ 451 | $ 444 |
Operating expenses | (2,781) | (2,251) | (2,010) |
Valuation adjustments | (363) | (1,759) | (1,734) |
Net gain on sales of real estate | 2,939 | 409 | 644 |
Total | $ 70 | $ (3,150) | $ (2,656) |
Real Estate Owned, Net - Gross
Real Estate Owned, Net - Gross Gains and Losses And Number of Properties Sold (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Property | Dec. 31, 2021 USD ($) Property | Dec. 31, 2020 USD ($) Property | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |||
Sales resulting in gains, properties sold | Property | 31 | 23 | 14 |
Sales resulting in losses, properties sold | Property | 12 | 14 | 9 |
Total, properties sold | Property | 43 | 37 | 23 |
Sales resulting in gains | $ | $ 3,401 | $ 972 | $ 837 |
Sales resulting in losses | $ | (462) | (563) | (193) |
Total | $ | $ 2,939 | $ 409 | $ 644 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Unpaid principal balance of mortgage loans serviced for others, amount | $ 491.9 | $ 520.6 |
Fair value of servicing rights, weighted average discount rate | 8.10% | 8% |
Fair value of servicing rights, weighted average constant prepayment rate | 6.30% | 3.20% |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Balance at the beginning of year | $ 7,152 | |
Mortgage servicing rights acquired | $ 7,152 | |
Fair value adjustments | 2,086 | |
Balance at end of year | $ 9,238 | $ 7,152 |
Business Combination - Addition
Business Combination - Additional Information (Details) | Dec. 28, 2021 |
Century | |
Business Acquisition [Line Items] | |
Percentage of voting interests acquired | 80% |
Business Combination - Summary
Business Combination - Summary of Fair Value of Assets Received and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities | ||
Goodwill | $ 6,775 | $ 6,775 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Goodwill -Schedule of Activity
Goodwill -Schedule of Activity for Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance at the beginning of year | $ 6,775 | |
Goodwill acquired | 0 | $ 6,775 |
Balance at end of year | $ 6,775 | $ 6,775 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Prepaid expenses | $ 1,843 | $ 1,628 |
Interest-only strips and deposits | 176 | 166 |
Deferred costs | 501 | 502 |
Income tax receivable | 8,301 | |
Operating leases - right of use assets, net | 2,424 | 3,744 |
Appraisal fees for loans in process | (58) | 479 |
Other assets | 338 | 305 |
Total other assets | $ 13,525 | $ 6,824 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Weighted average borrowing rate | 5.88% | 5.86% | 6.01% |
Operating lease weighted average remaining lease term | 2 years | ||
Operating leases - right of use assets, net | $ 2,424 | $ 3,744 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | |
Operating lease rent expense | $ 1,700 | $ 1,800 | $ 1,500 |
Operating lease liabilities | $ 2,650 | $ 4,000 | |
Operating Lease Liability Statement Of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Operating lease remaining lease term | 2 years | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Operating lease remaining lease term | 5 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 1,632 | $ 1,626 | $ 1,524 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | $ 26 | $ 256 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 1,514 | |
2024 | 1,209 | |
2025 | 170 | |
2026 | 105 | |
2027 | 53 | |
Thereafter | 290 | |
Total lease payments | 3,341 | |
Less: Imputed interest | (691) | |
Operating lease liabilities | $ 2,650 | $ 4,000 |
Securitizations, Net - Addition
Securitizations, Net - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Securities redemption when principal balance is less than a certain percentage | 10% |
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% |
Securitizations, Net - Summary
Securitizations, Net - Summary of Investor Real Estate Loans Securitized, and Securities Issued, Ownership Retained by the Company (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Securities issued | $ 4,820,036 | |
Securities retained as of issuance date | 468,076 | |
Securities retained | 236,515 | $ 206,515 |
2015-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | 285,457 | |
Securities retained as of issuance date | $ 27,372 | |
Securities retained | 15,526 | |
Stated maturity date | 2045-07 | |
2016-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 319,809 | |
Securities retained as of issuance date | 38,792 | |
Securities retained | $ 17,541 | 17,633 |
Stated maturity date | 2046-04 | |
2017-2 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 245,601 | |
Securities retained as of issuance date | 12,927 | |
Securities retained | $ 2,697 | 4,064 |
Stated maturity date | 2047-10 | |
2018-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 176,816 | |
Securities retained as of issuance date | 9,308 | |
Securities retained | $ 2,065 | 2,849 |
Stated maturity date | 2048-04 | |
2018-2 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 307,988 | |
Securities retained as of issuance date | 16,210 | |
Securities retained | $ 4,352 | 6,608 |
Stated maturity date | 2048-10 | |
2019-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 235,580 | |
Securities retained as of issuance date | 12,399 | |
Securities retained | $ 4,178 | 6,180 |
Stated maturity date | 2049-03 | |
2019-2 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 207,020 | |
Securities retained as of issuance date | 10,901 | |
Securities retained | $ 4,007 | 5,922 |
Stated maturity date | 2049-07 | |
2019-3 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 154,419 | |
Securities retained as of issuance date | 8,127 | |
Securities retained | $ 3,281 | 4,799 |
Stated maturity date | 2049-10 | |
2020-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 248,700 | |
Securities retained as of issuance date | 13,159 | |
Securities retained | $ 6,746 | 8,678 |
Stated maturity date | 2050-02 | |
2020-2 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 96,352 | |
Securities retained as of issuance date | 32,118 | |
Securities retained | $ 12,847 | 12,847 |
Stated maturity date | 2050-06 | |
2020-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 179,371 | |
Securities retained as of issuance date | $ 96,585 | |
Securities retained | 108,891 | |
Stated maturity date | 2050-07 | |
2021-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 251,301 | |
Securities retained as of issuance date | 13,227 | |
Securities retained | $ 10,120 | $ 12,518 |
Stated maturity date | 2051-05 | |
2021-2 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 194,918 | |
Securities retained as of issuance date | $ 10,260 | |
Stated maturity date | 2051-08 | |
2021-3 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 204,205 | |
Stated maturity date | 2051-10 | |
2021-4 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 319,116 | |
Stated maturity date | 2051-12 | |
2022-1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 273,594 | |
Securities retained as of issuance date | 5,015 | |
Securities retained | $ 4,718 | |
Stated maturity date | 2052-02 | |
2022-2 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 241,388 | |
Securities retained as of issuance date | 11,202 | |
Securities retained | $ 11,170 | |
Stated maturity date | 2052-03 | |
2022-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 84,967 | |
Securities retained as of issuance date | 40,911 | |
Securities retained | $ 44,038 | |
Stated maturity date | 2047-05 | |
2022-3 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 296,323 | |
Securities retained as of issuance date | 18,914 | |
Securities retained | $ 18,587 | |
Stated maturity date | 2052-05 | |
2022-4 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 308,357 | |
Securities retained as of issuance date | 25,190 | |
Securities retained | $ 25,027 | |
Stated maturity date | 2052-07 | |
2022-5 Trust | ||
Debt Instrument [Line Items] | ||
Securities issued | $ 188,754 | |
Securities retained as of issuance date | 65,459 | |
Securities retained | $ 65,141 | |
Stated maturity date | 2052-10 |
Securitizations, Net - Summar_2
Securitizations, Net - Summary of Outstanding Bond Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Outstanding bond balance | $ 2,788,909 | $ 1,939,146 |
2015-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 17,536 | |
2016-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 22,369 | 36,401 |
2017-2 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 59,183 | 86,497 |
2018-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 43,596 | 62,375 |
2018-2 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 93,792 | 143,152 |
2019-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 91,167 | 132,306 |
2019-2 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 82,508 | 122,205 |
2019-3 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 67,899 | 95,521 |
2020-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 136,643 | 174,550 |
2020-2 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 60,445 | 80,676 |
2020-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 35,711 | |
2021-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 196,969 | 236,190 |
2021-2 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 170,072 | 197,744 |
2021-3 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 178,038 | 202,793 |
2021-4 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 273,489 | $ 315,489 |
2022-1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 256,667 | |
2022-2 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 233,045 | |
2022-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 54,528 | |
2022-3 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 280,066 | |
2022-4 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | 301,856 | |
2022-5 Trust | ||
Debt Instrument [Line Items] | ||
Outstanding bond balance | $ 186,577 |
Securitizations, Net - Summar_3
Securitizations, Net - Summary of Unamortized Discounts or Premiums (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | $ 21,527 | $ 4,273 |
2015-1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 35 | |
2016-1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | (150) | 84 |
2017-2 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 8 | 12 |
2018-1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 6 | 10 |
2018-2 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 11 | 16 |
2019-1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 9 | 19 |
2019-2 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 6 | 10 |
2019-3 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 4 | 7 |
2020-1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 3 | 5 |
2020-2 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 786 | 1,692 |
2020-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 385 | |
2021-Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 15 | 21 |
2021-2 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 162 | 214 |
2021-3 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 660 | 925 |
2021-4 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 642 | $ 838 |
2022-1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 3,546 | |
2022-2 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 3,665 | |
2022-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 388 | |
2022-3 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 6,161 | |
2022-4 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | 4,878 | |
2022-5 Trust | ||
Debt Instrument [Line Items] | ||
Unamortized discounts (premiums) | $ 727 |
Securitizations, Net - Summar_4
Securitizations, Net - Summary of Capitalized Issuance Costs Associated with Trusts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Capitalized issuance costs | $ 31,092 | $ 22,994 |
2015-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 32 | |
2016-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 8 | 52 |
2017-2 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 535 | 808 |
2018-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 303 | 561 |
2018-2 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 908 | 1,371 |
2019-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 687 | 1,385 |
2019-2 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 866 | 1,325 |
2019-3 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 675 | 1,042 |
2020-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 1,351 | 2,032 |
2020-2 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 369 | 847 |
2020-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 380 | |
2021-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 1,978 | 2,897 |
2021-2 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 1,924 | 2,757 |
2021-3 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 2,178 | 3,055 |
2021-4 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 3,177 | $ 4,449 |
2022-1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 3,045 | |
2022-2 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 2,880 | |
2022-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 877 | |
2022-3 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 3,679 | |
2022-4 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | 3,303 | |
2022-5 Trust | ||
Debt Instrument [Line Items] | ||
Capitalized issuance costs | $ 2,349 |
Securitizations, Net - Summar_5
Securitizations, Net - Summary of Weighted Average Rate on Securities and Certificates Sold (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
2015-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 7.22% | |
2016-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 8.59% | 8.22% |
2017-2 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 3.92% | 3.37% |
2018-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 4.05% | 4.04% |
2018-2 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 4.46% | 4.39% |
2019-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 4.06% | 4.02% |
2019-2 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 3.46% | 3.44% |
2019-3 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 3.25% | 3.26% |
2020-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 2.89% | 2.82% |
2020-2 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 4.60% | 4.45% |
2020-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 4.42% | |
2021-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 1.73% | 1.73% |
2021-2 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 2.02% | 2.28% |
2021-3 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 2.44% | 2.45% |
2021-4 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 3.20% | 3.11% |
2022-1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 3.93% | |
2022-2 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 5.07% | |
2022-MC1 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 6.91% | |
2022-3 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 5.67% | |
2022-4 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 6.23% | |
2022-5 Trust | ||
Debt Instrument [Line Items] | ||
Weighted average rate on securities and certificates sold | 7.10% |
Other Debt - Additional Informa
Other Debt - Additional Information (Details) - USD ($) | 12 Months Ended | |||||||||||
Oct. 07, 2022 | Mar. 15, 2022 | Jul. 29, 2021 | Apr. 16, 2021 | Feb. 05, 2021 | Jan. 29, 2021 | Dec. 26, 2019 | Sep. 12, 2018 | Aug. 08, 2016 | Jan. 04, 2011 | Dec. 31, 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 | $ 831,818,000 | $ 653,000,000 | ||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, term | 3 years | |||||||||||
Debt instrument, description | SFOR | |||||||||||
Agreement entered date | Sep. 12, 2018 | |||||||||||
Debt instrument, maturity date | Nov. 10, 2025 | |||||||||||
Line of credit, maximum capacity | $ 50,000,000 | |||||||||||
Debt Instrument, effective interest rate | 5.80% | 7.30% | ||||||||||
Revolving Credit Line | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Agreement entered date | Aug. 08, 2016 | |||||||||||
Debt instrument, maturity date | Jul. 31, 2023 | |||||||||||
Line of credit, maximum capacity | $ 3,000,000 | |||||||||||
Revolving Credit Line | Short-Term Unsecured Borrowing | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit, maximum capacity | $ 3,000,000 | |||||||||||
SOFR | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, floor rate | 4.25% | |||||||||||
Debt instrument, spread rate | 3.61% | |||||||||||
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 | |||||||||||
2019 Term Loan | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 3,000,000 | |||||||||||
Agreement entered date | Dec. 26, 2019 | |||||||||||
Debt instrument, maturity date | Jun. 01, 2022 | |||||||||||
Debt Instrument, effective interest rate | 10.50% | 10.50% | ||||||||||
Debt instrument, fixed interest rate | 9.50% | |||||||||||
2021 Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issuance costs, net | $ 8,000,000 | |||||||||||
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 | $ 5,200,000 | |||||||||||
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 | |||||||||||
Term loans, balance | 170,800,000 | |||||||||||
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% | |||||||||||
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 | |||||||||||
Debt Instrument, effective interest rate | 5.60% | |||||||||||
Facility Agreement | SOFR | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, floor rate | 0.25% | |||||||||||
Debt instrument, spread rate | 1.60% | |||||||||||
2013 Repurchase Agreement | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, spread rate | 3.50% | |||||||||||
Agreement entered date | May 17, 2013 | |||||||||||
Debt instrument, maturity date | Sep. 29, 2023 | |||||||||||
Line of credit, maximum capacity | $ 300,000,000 | $ 200,000,000 | ||||||||||
Debt Instrument, effective interest rate | 5.70% | 4.20% | ||||||||||
2021 Repurchase Agreement | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Agreement entered date | Jan. 29, 2021 | |||||||||||
Debt instrument, maturity date | Apr. 14, 2023 | |||||||||||
Line of credit, maximum capacity | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||||
Debt Instrument, effective interest rate | 6.40% | 5.90% | ||||||||||
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 | |||||||||||
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 | |||||||||
Debt Instrument, effective interest rate | 5.60% | 3.50% | ||||||||||
Outstanding balance | $ 0 | |||||||||||
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 | |||||||||||
Agreement entered date | Jul. 29, 2021 | |||||||||||
Debt instrument, maturity date | Jul. 29, 2024 | |||||||||||
Debt Instrument, effective interest rate | 10% | 3.50% | ||||||||||
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. | |||||||||||
Interest rate description | 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. | |||||||||||
July 2021 Term Repurchase Agreement | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit, maximum capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||||
July 2021 Term Repurchase Agreement | LIBOR | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, floor rate | 4.50% | |||||||||||
Debt instrument, spread rate | 0.50% | |||||||||||
October 2022 Repurchase Agreement | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 10,200,000 | |||||||||||
Debt instrument, description | SOFR | |||||||||||
Agreement entered date | Oct. 07, 2022 | |||||||||||
Debt instrument, maturity date | Jan. 05, 2023 | Mar. 31, 2023 | ||||||||||
Borrowing amount increased | $ 15,000,000 | |||||||||||
Line of credit, maximum capacity | $ 18,818,000 | |||||||||||
Debt Instrument, effective interest rate | 6.10% | |||||||||||
Line of credit facility, description | The October Repurchase Agreement had a maturity date of January 5, 2023 and bore interest at SOFR plus 1.58%. The maturity date has been extended to March 31, 2023 | |||||||||||
October 2022 Repurchase Agreement | SOFR | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, spread rate | 1.58% |
Other Debt - Summary of Maximum
Other Debt - Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 29, 2021 | Apr. 16, 2021 | Jan. 29, 2021 | Sep. 12, 2018 |
Debt Instrument [Line Items] | ||||||
Period end balance | $ 331,740,000 | $ 302,800,000 | ||||
Maximum borrowing capacity | 831,818,000 | 653,000,000 | ||||
Revolving Credit Line | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 3,000,000 | |||||
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 | 74,334,000 | 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 | 79,504,000 | 82,580,000 | ||||
Maximum borrowing capacity | 200,000,000 | 200,000,000 | $ 200,000,000 | |||
July 2021 Term Repurchase Agreement | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Period end balance | 2,185,000 | |||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | $ 100,000,000 | |||
2013 Repurchase Agreement | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Period end balance | 136,165,000 | 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 | 29,495,000 | 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 | |||||
October 2022 Repurchase Agreement | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Period end balance | 10,057,000 | |||||
Maximum borrowing capacity | 18,818,000 | |||||
September 2022 Term Repurchase Agreement | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 60,000,000 |
Other Debt - Summary of Maxim_2
Other Debt - Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Warehouse Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 0.9 | $ 1.7 |
Other Debt - Schedule of Activi
Other Debt - Schedule of Activity and Effective Interest Rate (Details) - Warehouse and Repurchase Facilities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Average outstanding balance | $ 299,060 | $ 183,663 | $ 168,098 |
Highest outstanding balance at any month-end | $ 426,959 | $ 336,775 | $ 439,547 |
Effective interest rate | 5.84% | 5.28% | 4.97% |
Other Debt - Schedule of Acti_2
Other Debt - Schedule of Activity and Effective Interest Rate (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Debt Instrument, average rate | 5.22% | 4.23% | 4.31% |
Debt issue cost amortization percentage | 0.62% | 1.05% | 0.66% |
Other Debt - Summary of Interes
Other Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||||||
Interest expense — portfolio related | $ 40,854 | $ 34,561 | $ 28,752 | $ 23,556 | $ 23,666 | $ 20,321 | $ 20,566 | $ 20,832 | $ 127,723 | $ 85,386 | $ 87,826 |
Interest expense — corporate debt | $ 4,139 | $ 4,011 | $ 4,182 | $ 17,140 | $ 4,462 | $ 4,488 | $ 4,309 | $ 7,350 | 29,472 | 20,609 | 12,049 |
Total interest expense | 157,195 | 105,995 | 99,875 | ||||||||
Warehouse and Repurchase Facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense — portfolio related | 17,454 | 9,706 | 8,352 | ||||||||
Securitizations | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense — portfolio related | $ 110,269 | $ 75,680 | $ 79,474 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax examination, increase (decrease) in liability from prior year | $ 5,500,000 | |||
Valuation allowance | $ 0 | $ 0 | ||
Gross unrecognized tax benefits | 1,940,000 | 1,911,000 | $ 1,860,000 | |
Unrecognized tax benefits that would impact effective tax rate | 1,500,000 | |||
Accrued interest and penalties | 100,000 | 100,000 | $ (500,000) | |
Interest and penalties | 600,000 | $ 600,000 | ||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 6,400,000 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 2,000,000 | |||
Operating loss carryforwards expiration year | 2027 | |||
Maximum | State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards period | 20 years | |||
Minimum | State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards period | 5 years |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense (benefit): | |||||||||||
Federal | $ (90) | $ 15,042 | $ 4,454 | ||||||||
State | 552 | 5,477 | (769) | ||||||||
Total current tax expense | 462 | 20,519 | 3,685 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | 8,553 | (7,362) | 564 | ||||||||
State | 3,018 | (2,588) | 1,103 | ||||||||
Total deferred tax expense (benefit) | 11,571 | (9,950) | 1,667 | ||||||||
Total income tax expense | $ 3,465 | $ 3,759 | $ 4,019 | $ 790 | $ 3,024 | $ 2,905 | $ 3,432 | $ 1,208 | $ 12,033 | $ 10,569 | $ 5,352 |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Company's Reconciliation of the Company's Provision for Income Taxes at Federal Statutory Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision at statutory rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 6.30% | 5.60% | 8.60% |
Permanent items | 0.20% | 0.10% | 0.10% |
Federal true-ups | 0.50% | ||
Tax credits | (0.30%) | (0.20%) | (0.40%) |
Change in unrecognized tax benefit | (7.90%) | ||
Other | 0.10% | 1.20% | |
Effective tax rate | 27.20% | 26.60% | 23.10% |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
REMIC book-tax basis difference | $ 10,433 | |
Net operating loss | $ 8,451 | |
Mark-to-market on loans | 355 | 7,066 |
Lease liability | 783 | 1,151 |
Stock compensation | 1,485 | 888 |
Accrued vacation | 283 | 226 |
Intangibles | 5 | 7 |
REO | 225 | |
Deferred state taxes | 696 | |
Other | 154 | 82 |
Gross deferred tax assets | 12,212 | 20,078 |
Deferred tax liabilities: | ||
REMIC book-tax basis difference | (4,941) | |
Right-of-use assets | (717) | (1,064) |
Deferred origination costs | (138) | (1,306) |
Property and equipment | (595) | (710) |
REO | (30) | |
Deferred state taxes | (394) | |
MSR valuation | (758) | |
Gross deferred tax liabilities | (7,179) | (3,474) |
Total net deferred tax asset | $ 5,033 | $ 16,604 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the Company's Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 1,911 | $ 1,860 |
Changes related to current year tax positions | 68 | 49 |
Changes related to prior year tax positions | 19 | 2 |
Decreases due to lapsed statutes of limitations | (58) | |
Ending balance | $ 1,940 | $ 1,911 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 24, 2020 | Jan. 31, 2020 | May 31, 2022 | Feb. 28, 2022 | May 31, 2021 | Jan. 31, 2021 | Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 stock options 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 the outstanding stock options granted | $ 3,100,000 | $ 2,100,000 | ||||||||
Amount of unrecognized compensation expense related to unvested stock options | $ 52,000 | |||||||||
Weighted average period of unrecognized compensation expense related to unvested stock options | 2 months 4 days | |||||||||
Number of shares of unvested stock options outstanding | 261,667 | 523,333 | ||||||||
Exercise price of unvested stock options | $ 12.89 | |||||||||
Restricted stock awarded and earned stock compensation, shares | 125,250 | 480,000 | ||||||||
Shares granted | 102,750 | |||||||||
Shares issued pursuant to ESPP | 74,009 | |||||||||
Treasury shares purchased | 33,647 | 0 | ||||||||
Treasury shares, average price per share | $ 13.61 | |||||||||
Restricted Stock Awards | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Awards granted requisite service period | 3 years | |||||||||
Amount of unrecognized compensation expense related to unvested stock options | $ 2,700,000 | |||||||||
Weighted average period of unrecognized compensation expense related to unvested stock options | 1 year 7 months 17 days | |||||||||
Shares granted | 156,465 | 506,511 | ||||||||
Performance Stock Unit | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares issued | 102,750 | |||||||||
Shares granted | 102,750 | |||||||||
Number of share issued based on vesting eligibility based on performance range percentage original target | 100% | |||||||||
Minimum | Performance Stock Unit | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of share issued based on vesting eligibility based on performance range percentage | 0% | |||||||||
Maximum | Performance Stock Unit | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of share issued based on vesting eligibility based on performance range percentage | 200% | |||||||||
Employee Stock Purchase Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Amount of unrecognized compensation expense related to unvested stock options | $ 3,600,000 | $ 3,600,000 | ||||||||
Percentage of purchase price | 85% | |||||||||
Employee Stock Purchase Plan | Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Percentage of payroll deduction | 15% | |||||||||
Non-Employee Directors [Member] | ||||||||||
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 of authorized to grant | 2,770,000 | |||||||||
Stock options granted | 12,500 | 782,500 | ||||||||
Exercise price of unvested stock options | $ 6.28 | |||||||||
2020 Omnibus Incentive Plan | Performance Stock Unit | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares granted | 102,750 | |||||||||
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 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions to Estimate Fair Value of Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Employee Stock Purchase Plan | ||
Assumptions: | ||
Risk-free interest rate | 2.50% | |
Expected term (in years) | 6 months | |
Expected volatility | 49.93% | |
Grant date fair value per share | $ 11.31 | |
Stock Options [Member] | ||
Assumptions: | ||
Risk-free interest rate | 1.50% | |
Expected volatility | 0.28% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Payment Arrangement [Abstract] | |||
Options, Outstanding at beginning of year | 785,000 | 785,000 | |
Options, Outstanding at end of year | 785,000 | 785,000 | |
Options, Exercisable at end of year | 523,333 | 261,667 | |
Options, Expected to vest | [1] | 261,667 | 523,333 |
Weighted Average Exercise Price, Outstanding at beginning of year | $ 12.89 | $ 12.89 | |
Weighted Average Exercise Price, Outstanding at end of year | 12.89 | 12.89 | |
Weighted Average Exercise Price, Exercisable at end of year | 12.89 | 12.89 | |
Weighted Average Exercise Price, Expected to vest | [1] | $ 12.89 | $ 12.89 |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 1 month 6 days | 8 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Exercisable at end of year | 7 years 1 month 6 days | 8 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Expected to vest | [1] | 7 years 1 month 6 days | 8 years 1 month 6 days |
Aggregate Intrinsic Value, Outstanding at end of year | $ 42 | $ 93 | |
Aggregate Intrinsic Value, Exercisable at end of year | 28 | 31 | |
Aggregate Intrinsic Value, Expected to vest | [1] | $ 14 | $ 62 |
[1] The number of options expected to vest reflects no expected forfeiture . |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Award and Performance Stock Units Activities (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 102,750 | ||
Restricted Stock Awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Nonvested at beginning of year | 506,511 | ||
Shares granted | 156,465 | 506,511 | |
Vested | (168,837) | ||
Nonvested at end of year | 494,139 | 506,511 | |
Weighted Average Grant Date Fair Value, Nonvested beginning | $ 7.23 | ||
Weighted Average Grant Date Fair Value, Granted | 11.93 | $ 7.23 | |
Weighted Average Grant Date Fair Value, Vested | 7.23 | ||
Weighted Average Grant Date Fair Value, Nonvested ending | $ 8.72 | $ 7.23 | |
Restricted Stock Awards | Employee | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Nonvested at beginning of year | 480,000 | ||
Shares granted | 125,250 | 480,000 | |
Vested | (160,000) | ||
Nonvested at end of year | 445,250 | 480,000 | |
Weighted Average Grant Date Fair Value, Nonvested beginning | $ 7.04 | ||
Weighted Average Grant Date Fair Value, Granted | 12.63 | $ 7.04 | |
Weighted Average Grant Date Fair Value, Vested | 7.04 | ||
Weighted Average Grant Date Fair Value, Nonvested ending | $ 8.61 | $ 7.04 | |
Restricted Stock Awards | Non-Employee Director | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Nonvested at beginning of year | 26,511 | ||
Shares granted | 31,215 | 26,511 | |
Vested | (8,837) | ||
Nonvested at end of year | 48,889 | 26,511 | |
Weighted Average Grant Date Fair Value, Nonvested beginning | $ 10.75 | ||
Weighted Average Grant Date Fair Value, Granted | 9.13 | $ 10.75 | |
Weighted Average Grant Date Fair Value, Vested | 10.75 | ||
Weighted Average Grant Date Fair Value, Nonvested ending | $ 9.72 | $ 10.75 | |
Performance Stock Unit | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 102,750 | ||
Performance Stock Unit | 2020 Omnibus Incentive Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares granted | 102,750 | ||
Nonvested at end of year | 102,750 | ||
Weighted Average Grant Date Fair Value, Granted | $ 12.63 | ||
Weighted Average Grant Date Fair Value, Nonvested ending | $ 12.63 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Basic and Diluted income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic EPS: | |||||||||||
Net income | $ 8,462 | $ 9,983 | $ 10,645 | $ 3,121 | $ 8,353 | $ 8,022 | $ 9,453 | $ 3,396 | $ 32,211 | $ 29,224 | $ 17,777 |
Less: deemed dividends on preferred stock | 48,955 | ||||||||||
Net income (loss) attributable to common shareholders | 32,211 | 29,224 | (31,178) | ||||||||
Less: earnings attributable to participating securities | 491 | 8,589 | |||||||||
Net earnings attributable to common shareholders | $ 31,720 | $ 20,635 | $ (31,178) | ||||||||
Weighted average common shares outstanding | 31,913 | 22,813 | 20,087 | ||||||||
Basic income (loss) per common share | $ 0.99 | $ 0.90 | $ (1.55) | ||||||||
Diluted EPS: | |||||||||||
Net income (loss) attributable to common shareholders | $ 32,211 | $ 20,635 | $ (31,178) | ||||||||
Weighted average common shares outstanding | 31,913 | 22,813 | 20,087 | ||||||||
Add dilutive effects for assumed conversion of Series A preferred stock | 8,989 | ||||||||||
Add dilutive effects for warrants | 2,025 | 1,974 | |||||||||
Add dilutive effects for stock options | 5 | 3 | |||||||||
Add dilutive effects of unvested restricted stock awards | 188 | 203 | |||||||||
Weighted average diluted common shares outstanding | 34,131 | 33,982 | 20,087 | ||||||||
Diluted income (loss) per common share | $ 0.94 | $ 0.86 | $ (1.55) |
Earnings (Loss) Per Share - S_2
Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Share equivalents excluded from EPS | 773 | 773 | 15,486 |
Series A Convertible Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Share equivalents excluded from EPS | 11,688 | ||
Shares underlying warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Share equivalents excluded from EPS | 3,013 | ||
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Share equivalents excluded from EPS | 773 | 773 | 785 |
Convertible Redeemable Prefer_2
Convertible Redeemable Preferred Stock - Additional Information (Details) - $ / shares | Dec. 31, 2022 | Oct. 08, 2021 | Apr. 07, 2020 | Jan. 16, 2020 |
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 | $ 2.96 | |||
Warrants to purchase an aggregate shares | 2,008,750 | |||
Exercise Price of $4.94 per Share of Common Stock | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Exercise price per share | $ 4.94 | |||
Warrants to purchase an aggregate shares | 1,004,375 | |||
Shares underlying warrants | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Exercise price per share | $ 1,000 | |||
Warrants to purchase an aggregate shares | 3,013,125 | |||
Common Stock | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Convertible preferred shares outstanding into common stock | 11,688,310 | 11,749,994 | ||
Series A Convertible Preferred Stock | ||||
Convertible Redeemable Preferred Stock [Line Items] | ||||
Convertible preferred shares outstanding | 45,000 |
Concentration of Risk - Concent
Concentration of Risk - Concentrations of Loans Unpaid Principal Balance (Details) - Commercial Property - Originates and Purchases Loans Secured | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Geographic Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Property Type Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Property Type Concentration | Investor 1-4 | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 52.70% | 50.70% |
Property Type Concentration | Mixed use | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.60% | 12.80% |
Property Type Concentration | Retail | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 8.70% | 9.10% |
Property Type Concentration | Multifamily | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 8.60% | 8.80% |
Property Type Concentration | Office | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.70% | 6.10% |
Property Type Concentration | Warehouse | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 6.40% | 6.70% |
Property Type Concentration | Other (individually less than 5.0%) | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.30% | 5.80% |
California | Geographic Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22.80% | 23.30% |
New York | Geographic Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 19.90% | 21.40% |
Florida | Geographic Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.30% | 13.50% |
New Jersey | Geographic Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.50% | 7.70% |
Other states (individually less than 5.0%) | Geographic Concentration | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 36.50% | 34.10% |
Concentration of Risk - Additio
Concentration of Risk - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Transfer of loans held for investment to real estate owned | $ 10,031 | $ 11,466 | $ 9,747 |
Real Estate Owned, Net | Geographic Concentration | |||
Concentration Risk [Line Items] | |||
Transfer of loans held for investment to real estate owned | $ 13,300 | $ 17,600 |
Concentration of Risk - Summary
Concentration of Risk - Summary of Real Estate Owned, Net (Details) - Real Estate Owned, Net - Number of Loans Held in Real Estate Owned - Geographic Concentration | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Maryland | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.80% | 21.40% |
Connecticut | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 6.10% | |
Ohio | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 1.40% | 11.90% |
California | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 24.90% | |
North Carolina | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 1.10% | |
New Jersey | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.20% | 10.70% |
Florida | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.10% | |
Massachusetts | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 21.30% | |
New York | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.70% | |
Texas | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.10% | |
Other states (individually less than 5.0%) | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.40% | 23.90% |
Commitments and Contingencies (
Commitments and Contingencies (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Repurchase liability | $ 124 | $ 141 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Discretionary employer matching contribution amount | $ 794 | $ 579 | $ 476 |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Expenses [Abstract] | |||
Travel, marketing and business development | $ 1,421 | $ 661 | $ 578 |
Data processing and telecommunications | 3,022 | 2,476 | 2,150 |
Office expenses | 1,161 | 1,396 | 1,579 |
Insurance, taxes, and licenses | 2,452 | 2,457 | 2,179 |
Other | 3,000 | 1,498 | 1,914 |
Total other operating expenses | $ 11,056 | $ 8,488 | $ 8,400 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - $ / shares | 12 Months Ended | |||||||
Apr. 07, 2020 | Jan. 28, 2020 | Jan. 22, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 08, 2021 | Jan. 16, 2020 | |
Shares underlying warrants | ||||||||
Related Party Transaction [Line Items] | ||||||||
Exercise price per share | $ 1,000 | |||||||
Warrants to purchase an aggregate shares | 3,013,125 | |||||||
Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Issuance of common stock, shares | 1,087,500 | 7,250,000 | 74,009 | 11,699,037 | 20,087,494 | |||
Convertible preferred shares outstanding into common stock | 11,688,310 | 11,749,994 | ||||||
Series A Convertible Preferred Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Convertible preferred shares outstanding | 45,000 | |||||||
Series A Preferred Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Convertible preferred shares outstanding | 45,000 | |||||||
Private Placement | Series A Convertible Preferred Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Issuance of common stock, shares | 45,000 | |||||||
Preferred stock, par or stated value per share | $ 0.01 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Information on Assets Measured and Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | $ 276,095 | $ 1,359 |
Mortgage servicing rights | 9,238 | 7,152 |
Total assets | 310,124 | 125,477 |
Real estate owned, net | 13,325 | 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 | 276,095 | 1,359 |
Mortgage servicing rights | 9,238 | 7,152 |
Total assets | 285,333 | 8,511 |
Nonrecurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | 87,422 | |
Total assets | 24,791 | 116,966 |
Real estate owned, net | 13,325 | 17,557 |
Individually evaluated/Impaired loans requiring specific allowance, net | 11,466 | 11,987 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 310,124 | 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 | 276,095 | 1,359 |
Mortgage servicing rights | 9,238 | 7,152 |
Total assets | 285,333 | 8,511 |
Level 3 | Nonrecurring Fair Value Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for sale, at fair value | 87,422 | |
Total assets | 24,791 | 116,966 |
Real estate owned, net | 13,325 | 17,557 |
Individually evaluated/Impaired loans requiring specific allowance, net | $ 11,466 | $ 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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total net loss | $ (53) | $ (480) | $ (3,161) |
Loans Held for Sale, Net | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total net loss | 17 | 328 | |
Real Estate Held For Sale, Net | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total net loss | (363) | (1,759) | (1,734) |
Individually Evaluated Loans Requiring Specific Allowance, Net | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total net loss | $ 310 | $ 1,262 | $ (1,755) |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Unobservable Inputs Related to Level 3 Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 310,124 | $ 125,477 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 310,124 | $ 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 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 | |
Loans held for sale | 0.058 | |
Level 3 | 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 | 0.195 | |
Level 3 | Minimum | 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 | 0.0835 | |
Mortgage servicing rights, at fair value | 0.080 | 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 | 0.8847 | 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 | |
Mortgage servicing rights, at fair value | 0.024 | |
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 | 0.056 | |
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 | 0.0012 | 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] | ||
Loans held for investment, at fair value | 0.0935 | |
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 | 1.035 | 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 | 49 months | 38 months |
Loans held for sale | 37 months | |
Mortgage servicing rights, at fair value | 0.035 | |
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 | 0.168 | |
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 | 0.0699 | 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 | 0.1845 | 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 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 | 0.089 | 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 | 0.991 | 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 | 36 months 27 days | 34 months 24 days |
Loans held for sale | 13 months | |
Mortgage servicing rights, at fair value | 0.032 | |
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 | 0.151 | |
Mortgage servicing rights, at fair value | 0.063 | |
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 | 0.035 | 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 | $ 11,466 | $ 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 | 13,325 | 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 | 276,095 | 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 | 87,442 | |
Level 3 | Mortgage Servicing Rights | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 9,238 | $ 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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Beginning balance | $ 1,359 | $ 1,539 | $ 2,960 |
Originations | 267,278 | ||
Repurchase | 1,048 | ||
Loans liquidated | (765) | (163) | (1,808) |
Principal paydowns | (261) | (46) | (55) |
Total unrealized gain (loss) included in netincome | $ 7,436 | $ 29 | $ 442 |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Unrealized Gain Loss On Fair Value Loans | Unrealized Gain Loss On Fair Value Loans | Unrealized Gain Loss On Fair Value Loans |
Ending balance | $ 276,095 | $ 1,359 | $ 1,539 |
Interest-only Strips | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Beginning balance | 238 | 894 | |
Interest-only strip additions | 1,820 | ||
Interest-only strip write-offs | $ (238) | (2,469) | |
Total unrealized gain (loss) included in netincome | (7) | ||
Ending balance | $ 238 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Loans individually evaluated for allowance | $ 11,500 | $ 12,000 |
Allowance for loan losses | $ 1,096 | $ 1,406 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | |||
Restricted cash | $ 16,808 | $ 11,639 | $ 7,020 |
Loans held for investment, net | 3,272,390 | 2,527,564 | |
Loans held for investment, at fair value | 276,095 | 1,359 | |
Mortgage servicing rights | 9,238 | 7,152 | |
Liabilities: | |||
Secured financing, net | 209,846 | 162,845 | |
Securitizations, net | 2,736,290 | 1,911,879 | |
Carrying Value | |||
Assets: | |||
Cash | 45,248 | 35,965 | |
Restricted cash | 16,808 | 11,639 | |
Loans held for sale, at fair value | 87,908 | ||
Loans held for investment, net | 3,272,390 | 2,527,564 | |
Loans held for investment, at fair value | 276,095 | 1,359 | |
Accrued interest receivables | 20,463 | 13,159 | |
Mortgage servicing rights | 9,238 | 7,152 | |
Liabilities: | |||
Secured financing, net | 209,846 | 162,845 | |
Warehouse and repurchase facilities, net | 330,814 | 301,069 | |
Securitizations, net | 2,736,290 | 1,911,879 | |
Accrued interest payable | 16,369 | 6,254 | |
Estimate of Fair Value Measurement | |||
Assets: | |||
Cash | 45,248 | 35,965 | |
Restricted cash | 16,808 | 11,639 | |
Loans held for sale, at fair value | 87,908 | ||
Loans held for investment, net | 3,201,850 | 2,655,357 | |
Loans held for investment, at fair value | 276,095 | 1,359 | |
Accrued interest receivables | 20,463 | 13,159 | |
Mortgage servicing rights | 9,238 | 7,152 | |
Liabilities: | |||
Secured financing, net | 211,854 | 170,843 | |
Warehouse and repurchase facilities, net | 330,814 | 301,069 | |
Securitizations, net | 2,522,010 | 1,931,002 | |
Accrued interest payable | 16,369 | 6,254 | |
Level 1 | Estimate of Fair Value Measurement | |||
Assets: | |||
Cash | 45,248 | 35,965 | |
Restricted cash | 16,808 | 11,639 | |
Accrued interest receivables | 20,463 | 13,159 | |
Liabilities: | |||
Accrued interest payable | 16,369 | 6,254 | |
Level 2 | Estimate of Fair Value Measurement | |||
Liabilities: | |||
Warehouse and repurchase facilities, net | 301,069 | ||
Level 3 | Estimate of Fair Value Measurement | |||
Assets: | |||
Loans held for sale, at fair value | 87,908 | ||
Loans held for investment, net | 3,201,850 | 2,655,357 | |
Loans held for investment, at fair value | 276,095 | 1,359 | |
Mortgage servicing rights | 9,238 | 7,152 | |
Liabilities: | |||
Secured financing, net | 211,854 | 170,843 | |
Securitizations, net | $ 2,522,010 | $ 1,931,002 |
Select Quarterly Financial Da_3
Select Quarterly Financial Data (Unaudited) - Schedule of Unaudited Quarterly Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 65,632 | $ 63,419 | $ 59,243 | $ 52,049 | $ 49,360 | $ 46,923 | $ 44,978 | $ 40,707 | $ 240,343 | $ 181,968 | $ 167,322 |
Interest expense — portfolio related | 40,854 | 34,561 | 28,752 | 23,556 | 23,666 | 20,321 | 20,566 | 20,832 | 127,723 | 85,386 | 87,826 |
Net interest income — portfolio related | 24,778 | 28,858 | 30,491 | 28,493 | 25,694 | 26,602 | 24,412 | 19,875 | 112,620 | 96,582 | 79,496 |
Interest expense — corporate debt | 4,139 | 4,011 | 4,182 | 17,140 | 4,462 | 4,488 | 4,309 | 7,350 | 29,472 | 20,609 | 12,049 |
Net interest income | 20,639 | 24,847 | 26,309 | 11,353 | 21,232 | 22,114 | 20,103 | 12,525 | 83,148 | 75,973 | 67,447 |
Provision for (reversal of) loan losses | (437) | 580 | 279 | 730 | 377 | 228 | (1,000) | 105 | 1,152 | (292) | 5,068 |
Net interest income after provision for loan losses | 21,076 | 24,267 | 26,030 | 10,623 | 20,855 | 21,886 | 21,103 | 12,420 | 81,996 | 76,265 | 62,379 |
Other operating income | 11,029 | 2,509 | 3,039 | 5,648 | 2,617 | 339 | 2,432 | 2,801 | 22,225 | 8,188 | 6,320 |
Operating expenses | 20,413 | 12,727 | 14,279 | 12,250 | 12,095 | 11,298 | 10,650 | 10,617 | 59,669 | 44,660 | 45,570 |
Income before income taxes | 11,692 | 14,049 | 14,790 | 4,021 | 11,377 | 10,927 | 12,885 | 4,604 | 44,552 | 39,793 | 23,129 |
Income tax expense | 3,465 | 3,759 | 4,019 | 790 | 3,024 | 2,905 | 3,432 | 1,208 | 12,033 | 10,569 | 5,352 |
Net income | 8,227 | 10,290 | 10,771 | 3,231 | 8,353 | 8,022 | 9,453 | 3,396 | 32,519 | 29,224 | 17,777 |
Less income (loss) attributable to noncontrolling interest | (235) | 307 | 126 | 110 | 308 | ||||||
Net income attributable to Velocity Financial, Inc. | $ 8,462 | $ 9,983 | $ 10,645 | $ 3,121 | $ 8,353 | $ 8,022 | $ 9,453 | $ 3,396 | $ 32,211 | $ 29,224 | $ 17,777 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Jan. 10, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Securitization loans | $ 240.3 |