Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VEL | |
Entity Registrant Name | Velocity Financial, Inc. | |
Entity Central Index Key | 0001692376 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 32,764,110 | |
Entity File Number | 001-39183 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0659719 | |
Entity Address, Address Line One | 30699 Russell Ranch Road | |
Entity Address, Address Line Two | Suite 295 | |
Entity Address, City or Town | Westlake Village | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91362 | |
City Area Code | 818 | |
Local Phone Number | 532-3700 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 33,987 | $ 45,248 |
Restricted cash | 16,786 | 16,808 |
Loans held for investment, net | 3,057,940 | 3,272,390 |
Loans held for investment, at fair value | 705,330 | 276,095 |
Total loans, net | 3,763,270 | 3,548,485 |
Accrued interest receivables | 22,602 | 20,463 |
Receivables due from servicers | 63,896 | 65,644 |
Other receivables | 1,306 | 1,075 |
Real estate owned, net | 20,388 | 13,325 |
Property and equipment, net | 3,023 | 3,356 |
Deferred tax asset | 1,878 | 5,033 |
Mortgage servicing rights, at fair value | 9,445 | 9,238 |
Goodwill | 6,775 | 6,775 |
Other assets | 7,789 | 13,525 |
Total assets | 3,951,145 | 3,748,975 |
LIABILITIES | ||
Accounts payable and accrued expenses | 95,344 | 91,525 |
Secured financing, net | 210,464 | 209,846 |
Securitized debt, net | 2,622,547 | 2,736,290 |
Securitized debt, at fair value | 381,799 | |
Warehouse and repurchase facilities, net | 235,749 | 330,814 |
Total liabilities | 3,545,903 | 3,368,475 |
Commitments and contingencies | ||
EQUITY | ||
Common stock ($0.01 par value, 100,000,000 shares authorized; 32,860,849 and 32,523,516 shares issued, 32,741,628 and 32,489,869 shares outstanding at June 30, 2023 and December 31, 2022, respectively) | 329 | 326 |
Treasury stock, at cost (119,221 and 33,647 common shares at June 30, 2023 and December 31, 2022, respectively) | (1,294) | (458) |
Additional paid-in capital | 303,207 | 300,310 |
Retained earnings | 99,465 | 76,633 |
Total Velocity Financial Inc. stockholders' equity | 401,707 | 376,811 |
Noncontrolling interest in subsidiary | 3,535 | 3,689 |
Total equity | 405,242 | 380,500 |
Total liabilities and equity | $ 3,951,145 | $ 3,748,975 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 32,860,849 | 32,523,516 |
Common stock, shares, outstanding | 32,741,628 | 32,489,869 |
Treasury stock, common shares | 119,221 | 33,647 |
ASSETS | ||
Restricted cash | $ 16,786 | $ 16,808 |
Loans held for investment, net | 3,057,940 | 3,272,390 |
Real estate owned, net | 20,388 | 13,325 |
Other assets | 7,789 | 13,525 |
Total assets | 3,951,145 | 3,748,975 |
LIABILITIES | ||
Accounts payable and accrued expenses | 95,344 | 91,525 |
Total liabilities | 3,545,903 | 3,368,475 |
Variable Interest Entity Primary Beneficiary | ||
ASSETS | ||
Restricted cash | 2,980 | 2,968 |
Loans held for investment, net | 3,384,981 | 3,108,316 |
Accrued interest and other receivables | 81,272 | 77,191 |
Real estate owned, net | 17,443 | 10,380 |
Other assets | 13 | 15 |
Total assets | 3,486,689 | 3,198,870 |
LIABILITIES | ||
Accounts payable and accrued expenses | 55,507 | 50,169 |
Securitized debt | 3,004,346 | 2,736,290 |
Total liabilities | $ 3,059,853 | $ 2,786,459 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Interest income | $ 74,897 | $ 59,243 | $ 145,418 | $ 111,292 |
Interest expense — portfolio related | 45,451 | 28,752 | 87,480 | 52,308 |
Net interest income — portfolio related | 29,446 | 30,491 | 57,938 | 58,984 |
Interest expense — corporate debt | 4,139 | 4,182 | 8,278 | 21,322 |
Net interest income | 25,307 | 26,309 | 49,660 | 37,662 |
Provision for loan losses | 298 | 279 | 933 | 1,009 |
Net interest income after provision for loan losses | 25,009 | 26,030 | 48,727 | 36,653 |
Other operating income | ||||
Gain on disposition of loans | 1,237 | 1,776 | 3,149 | 6,317 |
Unrealized gain on fair value loans | 2,413 | 6 | 9,767 | 16 |
Unrealized gain on fair value securitized debt | 5,560 | 5,391 | ||
Origination income | 2,735 | 554 | 5,145 | 1,187 |
Bank interest income | 1,189 | 2,136 | ||
Other income | 903 | 1,256 | 1,290 | 2,353 |
Total other operating income | 14,037 | 3,592 | 26,878 | 9,873 |
Operating expenses | ||||
Compensation and employee benefits | 10,670 | 6,553 | 20,678 | 11,876 |
Origination (income) expenses | 123 | 1,504 | 72 | 2,447 |
Securitization expenses | 2,699 | 5,284 | ||
Loan servicing | 4,267 | 3,290 | 8,095 | 5,741 |
Professional fees | 1,056 | 1,062 | 2,011 | 2,423 |
Rent and occupancy | 458 | 426 | 905 | 868 |
Real estate owned, net | 1,018 | (251) | 2,846 | (426) |
Other operating expenses | 1,931 | 2,248 | 4,133 | 4,786 |
Total operating expenses | 22,222 | 14,832 | 44,024 | 27,715 |
Income before income taxes | 16,824 | 14,790 | 31,581 | 18,811 |
Income tax expense | 4,602 | 4,019 | 8,623 | 4,809 |
Net income | 12,222 | 10,771 | 22,958 | 14,002 |
Net income attributable to noncontrolling interest | 39 | 126 | 126 | 236 |
Net income attributable to Velocity Financial, Inc. | 12,183 | 10,645 | 22,832 | 13,766 |
Less undistributed earnings attributable to unvested restricted stock awards | 185 | 164 | 347 | 212 |
Net earnings attributable to common shareholders | $ 11,998 | $ 10,481 | $ 22,485 | $ 13,554 |
Earnings per common share | ||||
Basic | $ 0.37 | $ 0.33 | $ 0.70 | $ 0.42 |
Diluted | $ 0.36 | $ 0.31 | $ 0.67 | $ 0.40 |
Weighted average common shares outstanding | ||||
Basic | 32,122 | 31,917 | 32,111 | 31,904 |
Diluted | 34,140 | 34,057 | 34,095 | 34,130 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Parent | Noncontrolling Interest |
Beginning balance at Dec. 31, 2021 | $ 344,490 | $ 323 | $ 296,364 | $ 44,422 | $ 341,109 | $ 3,381 | |
Beginning balance, shares at Dec. 31, 2021 | 32,293,042 | ||||||
Purchase of treasury stock, at cost | (458) | $ (458) | (458) | ||||
Purchase of treasury stock, at cost, shares | (33,647) | ||||||
Restricted stock awarded and earned stock compensation | 418 | $ 2 | 416 | 418 | |||
Restricted stock awarded and earned stock compensation, shares | 125,250 | ||||||
Stock-based compensation | 251 | 251 | 251 | ||||
Net income | 3,231 | 3,121 | 3,121 | 110 | |||
Ending balance at Mar. 31, 2022 | 347,932 | $ 325 | 297,031 | 47,543 | $ (458) | 344,441 | 3,491 |
Ending balance, shares at Mar. 31, 2022 | 32,418,292 | (33,647) | |||||
Beginning balance at Dec. 31, 2021 | 344,490 | $ 323 | 296,364 | 44,422 | 341,109 | 3,381 | |
Beginning balance, shares at Dec. 31, 2021 | 32,293,042 | ||||||
Net income | 14,002 | ||||||
Ending balance at Jun. 30, 2022 | 359,512 | $ 325 | 297,840 | 58,188 | $ (458) | 355,895 | 3,617 |
Ending balance, shares at Jun. 30, 2022 | 32,449,507 | (33,647) | |||||
Beginning balance at Mar. 31, 2022 | 347,932 | $ 325 | 297,031 | 47,543 | $ (458) | 344,441 | 3,491 |
Beginning balance, shares at Mar. 31, 2022 | 32,418,292 | (33,647) | |||||
Restricted stock awarded and earned stock compensation | 555 | 555 | 10,645 | 555 | |||
Restricted stock awarded and earned stock compensation, shares | 31,215 | ||||||
Stock-based compensation | 254 | 254 | 254 | ||||
Net income | 10,771 | 10,645 | 126 | ||||
Ending balance at Jun. 30, 2022 | 359,512 | $ 325 | 297,840 | 58,188 | $ (458) | 355,895 | 3,617 |
Ending balance, shares at Jun. 30, 2022 | 32,449,507 | (33,647) | |||||
Beginning balance at Dec. 31, 2022 | 380,500 | $ 326 | 300,310 | 76,633 | $ (458) | 376,811 | 3,689 |
Beginning balance, shares at Dec. 31, 2022 | 32,523,516 | (33,647) | |||||
Purchase of treasury stock, at cost | (836) | $ (836) | (836) | ||||
Purchase of treasury stock, at cost, shares | (85,574) | ||||||
Restricted stock awarded and earned stock compensation | 1,000 | $ 2 | 998 | 1,000 | |||
Restricted stock awarded and earned stock compensation, shares | 198,137 | ||||||
Distribution to non-controlling interest | (160) | (160) | |||||
Net income | 10,736 | 10,649 | 10,649 | 87 | |||
Ending balance at Mar. 31, 2023 | 391,240 | $ 328 | 301,308 | 87,282 | $ (1,294) | 387,624 | 3,616 |
Ending balance, shares at Mar. 31, 2023 | 32,721,653 | (119,221) | |||||
Beginning balance at Dec. 31, 2022 | 380,500 | $ 326 | 300,310 | 76,633 | $ (458) | 376,811 | 3,689 |
Beginning balance, shares at Dec. 31, 2022 | 32,523,516 | (33,647) | |||||
Net income | 22,958 | ||||||
Ending balance at Jun. 30, 2023 | 405,242 | $ 329 | 303,207 | 99,465 | $ (1,294) | 401,707 | 3,535 |
Ending balance, shares at Jun. 30, 2023 | 32,860,849 | (119,221) | |||||
Beginning balance at Mar. 31, 2023 | 391,240 | $ 328 | 301,308 | 87,282 | $ (1,294) | 387,624 | 3,616 |
Beginning balance, shares at Mar. 31, 2023 | 32,721,653 | (119,221) | |||||
Issuance of common stocks | 875 | $ 1 | 874 | 875 | |||
Issuance of common stocks, shares | 107,567 | ||||||
Restricted stock awarded and earned stock compensation | 1,025 | 1,025 | 1,025 | ||||
Restricted stock awarded and earned stock compensation, shares | 31,629 | ||||||
Distribution to non-controlling interest | (120) | (120) | |||||
Net income | 12,222 | 12,183 | 12,183 | 39 | |||
Ending balance at Jun. 30, 2023 | $ 405,242 | $ 329 | $ 303,207 | $ 99,465 | $ (1,294) | $ 401,707 | $ 3,535 |
Ending balance, shares at Jun. 30, 2023 | 32,860,849 | (119,221) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 22,958 | $ 14,002 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 381 | 401 |
Amortization of right-of-use assets | 642 | 664 |
Provision for loan losses | 933 | 1,009 |
(Reversal of) provision for repurchase of loans | (76) | 235 |
Origination of loans held for sale | (19,088) | |
Proceeds from sales of loans held for sale | 19,816 | |
Net accretion of discount on purchased loans and amortization of deferred loan origination costs | 2,446 | 3,981 |
Provision for (reversal of) uncollectible borrower advances | 505 | (14) |
Gain on disposition of loans | (902) | (4,809) |
Real estate acquired through foreclosure in excess of recorded investment | (2,248) | (1,508) |
Amortization of debt issuance discount and costs | 10,614 | 16,956 |
Loss on disposal of property and equipment | 14 | |
Change in valuation of real estate owned | 1,670 | (93) |
Change in valuation of fair value loans | (10,494) | (16) |
Change in valuation of mortgage servicing rights | (207) | (1,286) |
Change in valuation of fair value securitized debt | (5,391) | |
Loss (gain) on sale of real estate owned | 39 | (1,620) |
Stock-based compensation | 2,026 | 1,479 |
Deferred tax expense | 3,154 | 1,408 |
Change in operating assets and liabilities: | ||
Accrued interest and other receivables | (3,247) | (1,680) |
Other assets | 5,094 | (4,882) |
Accounts payable and accrued expenses | 3,804 | (11,141) |
Net cash provided by operating activities | 32,429 | 13,100 |
Cash flows from investing activities: | ||
Purchase of loans held for investment | (8,546) | (5,021) |
Origination of loans held for investment | (456,534) | (1,033,277) |
Proceeds from sales of loans originally classified as held for investment | 21,489 | 224,060 |
Payoffs of loans held for investment and loans at fair value | 221,423 | 302,098 |
Purchase of real estate owned | (2,250) | |
Proceeds from sale of real estate owned | 9,411 | 9,294 |
Change in advances | 858 | 1,338 |
Change in impounds and deposits | (662) | (3,904) |
Purchase of property and equipment | (48) | (217) |
Net cash used in investing activities | (212,609) | (507,879) |
Cash flows from financing activities: | ||
Warehouse repurchase facilities advances | 463,038 | 951,071 |
Warehouse repurchase facilities repayments | (557,753) | (1,043,666) |
Proceeds from secured financing | 215,000 | |
Repayment of secured financing | (170,844) | |
Proceeds of securitized debt, net | 461,684 | 879,136 |
Repayment of securitized debt | (196,457) | (308,298) |
Debt issuance costs | (1,373) | (19,299) |
Proceeds from issuance of common stocks, net | 875 | |
Purchase of treasury stock | (837) | (458) |
Distribution to non-controlling interest | (280) | |
Net cash provided by financing activities | 168,897 | 502,642 |
Net decrease in cash, cash equivalents, and restricted cash | (11,283) | 7,863 |
Cash, cash equivalents, and restricted cash at beginning of period | 62,056 | 47,604 |
Cash, cash equivalents, and restricted cash at end of period | 50,773 | 55,467 |
Supplemental cash flow information: | ||
Cash paid during the period for interest | 83,445 | 49,779 |
Cash (received) paid during the period for income taxes, net | (844) | 21,579 |
Noncash transactions from investing and financing activities: | ||
Transfer of loans held for investment to held for sale | 25,075 | 206,319 |
Transfer of loans held for investment to real estate owned | 15,935 | 5,485 |
Transfer of accrued interest to loans held for investment | 878 | 816 |
Discount on issuance of securitized debt | 17,136 | |
Transfer of loans held for sale to held for investment | 4,218 | $ 73,598 |
Recognition of new leases in exchange for lease obligations | $ 656 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization And Description of Business | Note 1 — Organization and Description of Business Velocity Financial, LLC (VF or the Company) was a Delaware limited liability company formed on July 9, 2012 for the purpose of acquiring all membership units in Velocity Commercial Capital, LLC (VCC). On January 16, 2020, Velocity Financial, LLC converted from a Delaware limited liability company to a Delaware corporation and changed its name to Velocity Financial, Inc. Upon completion of the conversion, Velocity Financial, LLC’s Class A equity units of 97,513,533 and Class D equity units of 60,193,989 were converted to 11,749,994 shares of Velocity Financial, Inc. common stock. On January 22, 2020, the Company completed its initial public offering of 7,250,000 shares of common stock at a price to the public of $ 13.00 per share. On January 28, 2020, the Company completed the sale of an additional 1,087,500 shares of its common stock, representing the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $ 13.00 per share. The Company’s stock trades on The New York Stock Exchange under the symbol “VEL”. VCC, a California LLC formed on June 2, 2004, is a mortgage lender that originates and acquires residential and commercial investor real estate loans, providing capital to the investor real estate loan market. The Company is licensed as a California Finance Lender and, as such, is required to maintain a minimum net worth of $ 250 thousand. The Company does not believe there is any potential risk of not being able to meet this regulatory requirement. The Company uses its equity capital and borrowed funds to originate and invest in investor real estate loans and seeks to generate income based primarily on the difference between the yield on its investor real estate loan portfolio and the cost of its borrowings. The Company may also sell loans from time to time. The Company does not originate or acquire investments outside of the United States of America. The Company, through its wholly owned subsidiaries, is the sole beneficial owner of the Velocity Commercial Capital Loan Trusts, from the 2016-1 Trust through and including the 2023-2 Trust, all of which are New York common law trusts, with the exception of the 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 June 30, 2023 . |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 — Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited Consolidated Financial Statements as of and for the three and six months ended June 30, 2023 and 2022 have been prepared on a basis that is substantially consistent with the accounting principles applied to the Company’s audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal, recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter for the full year. The interim financial information should be read in conjunction with the Company’s audited Consolidated Financial Statements. (a) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of consolidated income and expenses during the reporting period. (b) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies , of its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission. There have been no significant changes to the Company’s significant accounting policies as described in its 2022 Annual Report, other than the election of fair value option accounting on securitized debt issued effective January 1, 2023. Certain amounts previously reported have been reclassified to conform to the current presentation. (c) Principles of Consolidation The principles of consolidation require management to determine and reassess the requirement to consolidate VIEs each reporting period, and therefore, the determination may change based on new facts and circumstances pertaining to each VIE. This could result in a material impact to the Company’s consolidated financial statements in subsequent reporting periods. The Company consolidates the assets, liabilities, and remainder interests of the Trusts as management determined that VCC is the primary beneficiary of these entities. The Company’s ongoing asset management responsibilities provide the Company with the power to direct the activities that most significantly impact the VIE’s economic performance, and the remainder interests provide the Company with the right to receive benefits and the obligation to absorb losses, limited to its investment in the remainder interest of the Trusts. The consolidated financial statements as of June 30, 2023 and December 31, 2022 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. (d) Fair Value Option Accounting The Company has elected to apply fair value option ("FVO") accounting to securitized debt issued effective January 1, 2023 when the underlying collateral is also carried at fair value. The fair value option securitized debt is presented on a separate line item in the consolidated balance sheet. The Company reflects interest expense on the fair value option securitized debt as “interest” in the consolidated statements of income and presents the other fair value changes of these securitized debt separately in the consolidated financial statements. |
Current Accounting Developments
Current Accounting Developments | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Current Accounting Developments | Note 3 — Current Accounting Developments (a) Recently Adopted 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. The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis. The adoption of ASU 2022-02 did not have a significant impact on the Company’s consolidated financial statements. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 4 — Cash, Cash Equivalents, and Restricted Cash The Company is required to hold cash for potential future advances due to certain borrowers. 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 $ 83.5 million at June 30, 2023. This amount is not reflected on the consolidated balance sheet of the Company at June 30, 2023. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows for the six months ended June 30, 2023 and 2022 (in thousands): Six Months Ended June 30, 2023 2022 Cash and cash equivalents $ 33,987 $ 46,250 Restricted cash 16,786 9,217 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 50,773 $ 55,467 |
Loans Held for Investment and L
Loans Held for Investment and Loans Held for Investment at Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment and Loans Held for Investment at Fair Value | Note 5 — Loans Held for Investment and Loans Held for Investment at Fair Value The following tables summarize loans held for investment as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 3,031,725 $ 688,100 $ 3,719,825 Valuation adjustments on FVO loans — 17,230 17,230 Deferred loan origination costs 30,841 — 30,841 3,062,566 705,330 3,767,896 Allowance for loan losses ( 4,626 ) — ( 4,626 ) Total loans held for investment and loans held for investment at $ 3,057,940 $ 705,330 $ 3,763,270 December 31, 2022 Loans held for investment, net Loans held for investment, at fair value Total loans held for 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 and loans held for investment at $ 3,272,390 $ 276,095 $ 3,548,485 The following tables summarize the Unpaid Principal Balance (“UPB”) and amortized cost basis of loans in the Company's COVID-19 forbearance program for the three and six months ended June 30, 2023 and the year ended December 31, 2022 ($ in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 UPB % Amortized Cost % UPB % Amortized Cost % Beginning balance $ 195,114 $ 197,350 $ 201,005 $ 203,346 Foreclosures — — ( 99 ) ( 99 ) Repayments ( 13,175 ) ( 13,343 ) ( 18,967 ) ( 19,240 ) Ending balance $ 181,939 $ 184,007 $ 181,939 $ 184,007 Performing/Accruing $ 138,419 76.1 % $ 139,941 76.1 % $ 138,419 76.1 % $ 139,941 76.1 % Nonperforming/Nonaccrual $ 43,520 23.9 % $ 44,066 23.9 % $ 43,520 23.9 % $ 44,066 23.9 % 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 % Since April 1, 2020, the inception of the COVID-19 forbearance program, the Company has modified $ 410.5 million in UPB of loans, which includes capitalized interest of $ 12.3 million. As of June 30, 2023, $ 234.7 million in UPB of modified loans has been paid down, which includes $ 4.7 million of capitalized interest received. T he Company has not forgiven any capitalized interest. Approximately 76.1 % and 80.3 % of the COVID forbearance loans in UPB were performing, and 23.9 % and 19.7 % were on nonaccrual status as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, the gross unpaid principal balances of loans held for investment pledged as collateral for the Company’s warehouse facilities and securitized debt issued were as follows (in thousands): June 30, 2023 December 31, 2022 The 2013 repurchase agreement $ 86,225 $ 170,185 The 2021 repurchase agreement 69,728 101,024 The Bank credit agreement 42,317 39,087 The 2021 term repurchase agreement 108,840 104,594 The July 2021 term repurchase agreement 14,878 3,859 Total pledged loans $ 321,988 $ 418,749 2016-1 Trust $ 35,195 $ 39,720 2017-2 Trust 57,059 67,048 2018-1 Trust 41,983 48,139 2018-2 Trust 94,530 104,791 2019-1 Trust 94,839 104,249 2019-2 Trust 82,180 91,025 2019-3 Trust 70,193 75,618 2020-1 Trust 129,485 144,913 2020-2 Trust 75,123 81,259 2021-1 Trust 195,114 208,875 2021-2 Trust 160,867 172,144 2021-3 Trust 168,487 178,861 2021-4 Trust 264,406 275,741 2022-1 Trust 253,457 262,526 2022-2 Trust 237,924 245,339 2022-MC1 Trust 81,071 97,246 2022-3 Trust 287,694 299,638 2022-4 Trust 316,472 326,627 2022-5 Trust 242,400 251,288 2023-1 Trust 232,332 — 2023-2 Trust 222,551 — Total $ 3,343,362 $ 3,075,047 (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 June 30, 2023 and December 31, 2022. There were no loans accruing interest that were greater than 90 days past due as of June 30, 2023 and December 31, 2022. June 30, 2023 Total Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans with Allowance ($ in thousands) Commercial - Purchase $ 21,239 $ 20,304 $ 935 $ 137 1.0 % Commercial - Refinance 93,176 86,467 6,709 552 3.9 Residential 1-4 Unit - Purchase 49,826 49,826 — — — Residential 1-4 Unit - Refinance 139,356 134,942 4,414 246 1.7 Short Term 1-4 Unit - Purchase 3,587 3,587 — — — Short Term 1-4 Unit - Refinance 47,603 45,521 2,082 108 0.8 Total $ 354,787 $ 340,647 $ 14,140 $ 1,043 7.4 % 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 Loans with Allowance ($ in thousands) 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 % Troubled Debt Restructuring included $ — $ — $ — $ 25 — The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables. The Company has also made the accounting policy election to write off accrued interest receivables by reversing interest income when loans are placed on nonaccrual status, or 90 days or more past due. The Company will continue to evaluate the COVID-19 forbearance-granted loans on an individual basis to determine if a reserve should be established on the collectability of the accrued interest and whether any loans should be placed on nonaccrual status at a future date. The following tables present the amortized cost basis in the loans held for investment, excluding loans held for investment at fair value, as of June 30, 2023 and 2022, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 2022 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 664,482 $ 136 $ 677,491 $ 77 Commercial - Refinance 854,048 667 912,774 335 Residential 1-4 Unit - Purchase 553,269 476 529,796 61 Residential 1-4 Unit - Refinance 882,020 881 887,720 269 Short Term 1-4 Unit - Purchase 49,242 7 57,973 4 Short Term 1-4 Unit - Refinance 59,505 347 57,950 132 Total $ 3,062,566 $ 2,514 $ 3,123,704 $ 878 Six Months Ended June 30, 2023 2022 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 664,482 $ 268 $ 677,491 $ 192 Commercial - Refinance 854,048 1,183 912,774 587 Residential 1-4 Unit - Purchase 553,269 773 529,796 281 Residential 1-4 Unit - Refinance 882,020 1,597 887,720 566 Short Term 1-4 Unit - Purchase 49,242 31 57,973 25 Short Term 1-4 Unit - Refinance 59,505 443 57,950 371 Total $ 3,062,566 $ 4,295 $ 3,123,704 $ 2,022 The cash basis interest income recognized on nonaccrual loans was $ 8.0 million and $ 8.7 million for the three months ended June 30, 2023 and 2022, respectively. No accrued interest income was recognized on nonaccrual loans for the six months ended June 30, 2023. The average recorded investment of individually evaluated loans, computed using month-end balances, was $ 331.4 million and $ 260.8 million f or the three months ended June 30, 2023 and 2022 , and $ 316.9 million and $ 271.3 million for the six months ended June 30, 2023 and 2022, respectively. There were no commitments to lend additional funds to debtors whose loans have been modified in troubled debt restructuring as of June 30, 2023 and 2022. (b) Allowance for Credit Losses The following tables present the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2023 $ 796 $ 2,060 $ 468 $ 1,363 $ 24 $ 334 $ 5,045 Provision for loan losses ( 64 ) ( 34 ) ( 65 ) ( 99 ) 752 ( 192 ) 298 Charge-offs — — — — ( 717 ) — ( 717 ) Ending balance $ 732 $ 2,026 $ 403 $ 1,264 $ 59 $ 142 $ 4,626 Allowance related to: Loans individually evaluated $ 137 $ 552 $ — $ 246 $ — $ 108 $ 1,043 Loans collectively evaluated $ 595 $ 1,474 $ 403 $ 1,018 $ 59 $ 34 $ 3,583 Amortized cost related to: Loans individually evaluated $ 21,239 $ 93,176 $ 49,826 $ 139,356 $ 3,587 $ 47,603 $ 354,787 Loans collectively evaluated $ 643,243 $ 760,872 $ 503,443 $ 742,664 $ 45,655 $ 11,902 $ 2,707,779 Three Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2022 $ 518 $ 2,140 $ 389 $ 1,029 $ 50 $ 537 $ 4,663 Provision for loan losses 94 ( 125 ) 51 241 ( 16 ) 34 279 Charge-offs — ( 19 ) — — — ( 18 ) ( 37 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated $ 606 $ 1,562 $ 388 $ 1,074 $ 34 $ 77 $ 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated $ 662,580 $ 832,332 $ 506,911 $ 791,071 $ 55,671 $ 19,937 $ 2,868,502 Six Months Ended June 30, 2023 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2023 $ 639 $ 2,031 $ 542 $ 1,272 $ 21 $ 388 $ 4,893 Provision for loan losses 93 74 ( 112 ) 3 816 59 933 Charge-offs — ( 79 ) ( 27 ) ( 11 ) ( 778 ) ( 305 ) ( 1,200 ) Ending balance $ 732 $ 2,026 $ 403 $ 1,264 $ 59 $ 142 $ 4,626 Allowance related to: Loans individually evaluated $ 137 $ 552 $ — $ 246 $ — $ 108 $ 1,043 Loans collectively evaluated $ 595 $ 1,474 $ 403 $ 1,018 $ 59 $ 34 $ 3,583 Amortized cost related to: Loans individually evaluated $ 21,239 $ 93,176 $ 49,826 $ 139,356 $ 3,587 $ 47,603 $ 354,787 Loans collectively evaluated $ 643,243 $ 760,872 $ 503,443 $ 742,664 $ 45,655 $ 11,902 $ 2,707,779 Six Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2022 $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Provision for loan losses 374 ( 123 ) 40 427 ( 9 ) 300 1,009 Charge-offs ( 147 ) ( 25 ) — ( 105 ) — ( 89 ) ( 366 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated $ 606 $ 1,562 $ 388 $ 1,074 $ 34 $ 77 $ 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated $ 662,580 $ 832,332 $ 506,911 $ 791,071 $ 55,671 $ 19,937 $ 2,868,502 (c) Credit Quality Indicator A credit quality indicator is a statistic used by the Company to monitor and assess the credit quality of loans held for investment, excluding loans held for investment at fair value. The Company monitors its charge-off rate in relation to its nonperforming loans as a credit quality indicator. Nonperforming loans are loans that are 90 or more days past due, in bankruptcy, in foreclosure, or not accruing interest. Past due status is based on the contractual terms of the loan. The annualized charge-off rates were 0.77 % and 0.27 % of average nonperforming loans for the six months ended June 30, 2023 and 2022, respectively. Other credit quality indicators include aging status and accrual status. The following table presents the aging status of the amortized cost basis in the loans held for investment portfolio, which include $ 184.0 million and $ 203.3 million loans in the Company’s COVID-19 forbearance program, excluding loans held for investment at fair value, as of June 30, 2023 and December 31, 2022, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total June 30, 2023 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 961 $ 2,658 $ 17,620 $ 21,239 $ — $ 21,239 Commercial - Refinance 4,647 7,047 81,482 93,176 93,176 Residential 1-4 Unit - Purchase 656 1,869 47,301 49,826 — 49,826 Residential 1-4 Unit - Refinance 2,077 1,653 135,626 139,356 — 139,356 Short Term 1-4 Unit - Purchase 176 — 3,411 3,587 — 3,587 Short Term 1-4 Unit - Refinance — 205 47,398 47,603 — 47,603 Total loans individually evaluated $ 8,517 $ 13,432 $ 332,838 $ 354,787 $ — $ 354,787 Loans collectively evaluated Commercial - Purchase $ 28,861 $ 7,744 $ — $ 36,605 $ 606,638 $ 643,243 Commercial - Refinance 38,895 17,841 — 56,736 704,136 760,872 Residential 1-4 Unit - Purchase 24,371 7,171 — 31,542 471,901 503,443 Residential 1-4 Unit - Refinance 40,966 21,836 — 62,802 679,862 742,664 Short Term 1-4 Unit - Purchase 823 3,336 — 4,159 41,496 45,655 Short Term 1-4 Unit - Refinance 1,082 745 — 1,827 10,075 11,902 Total loans collectively evaluated $ 134,998 $ 58,673 $ — $ 193,671 $ 2,514,108 $ 2,707,779 Ending balance $ 143,515 $ 72,105 $ 332,838 $ 548,458 $ 2,514,108 $ 3,062,566 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. In addition to the aging status, the Company also evaluates credit quality by accrual status. The following tables present the amortized cost in loans held for investment, excluding loans held for investment at fair value, based on accrual status and by loan origination year as of June 30, 2023 and December 31, 2022 (in thousands). Term Loans Amortized Cost Basis by Origination Year June 30, 2023: 2022 2021 2020 2019 Pre-2019 Total Commercial - Purchase Payment performance Performing $ 263,561 $ 236,653 $ 33,956 $ 51,053 $ 58,020 $ 643,243 Nonperforming 4,536 4,956 533 4,166 7,048 21,239 Total Commercial - Purchase $ 268,097 $ 241,609 $ 34,489 $ 55,219 $ 65,068 $ 664,482 Commercial - Refinance Payment performance Performing $ 246,580 $ 199,498 $ 52,015 $ 92,882 $ 169,897 $ 760,872 Nonperforming 22,102 13,323 5,139 21,205 31,407 93,176 Total Commercial - Refinance $ 268,682 $ 212,821 $ 57,154 $ 114,087 $ 201,304 $ 854,048 Residential 1-4 Unit - Purchase Payment performance Performing $ 224,109 $ 205,756 $ 9,145 $ 27,854 $ 36,579 $ 503,443 Nonperforming 19,331 20,310 1,969 2,147 6,069 49,826 Total Residential 1-4 $ 243,440 $ 226,066 $ 11,114 $ 30,001 $ 42,648 $ 553,269 Residential 1-4 Unit - Refinance Payment performance Performing $ 304,498 $ 260,317 $ 20,897 $ 72,047 $ 84,905 $ 742,664 Nonperforming 40,691 33,740 8,632 28,998 27,295 139,356 Total Residential 1-4 $ 345,189 $ 294,057 $ 29,529 $ 101,045 $ 112,200 $ 882,020 Short Term 1-4 Unit - Purchase Payment performance Performing $ 23,733 $ 710 $ 16,857 $ 4,355 $ — $ 45,655 Nonperforming 2,412 — 995 180 — 3,587 Total Short Term 1-4 $ 26,145 $ 710 $ 17,852 $ 4,535 $ — $ 49,242 Short Term 1-4 Unit - Refinance Payment performance Performing $ 11,902 $ — $ — $ — $ — $ 11,902 Nonperforming 17,886 1,023 9,210 14,974 4,510 47,603 Total Short Term 1-4 $ 29,788 $ 1,023 $ 9,210 $ 14,974 $ 4,510 $ 59,505 Total Portfolio $ 1,181,341 $ 976,286 $ 159,348 $ 319,861 $ 425,730 $ 3,062,566 Gross charge-offs - quarter-ended June 30, 2023 $ — $ 717 $ — $ — $ — $ 717 Gross charge-offs - year-to-date June 30, 2023 $ 11 $ 743 $ — $ 446 $ — $ 1,200 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 (d) Nonaccrual Loans - Loans Held for Investment at Fair Value The following table presents the aggregate fair value of loans held for investment and held at fair value that are 90 days or more past due and/or in nonaccrual status, and the difference between the aggregate fair value and the aggregate unpaid principal balance as of June 30, 2023 by loan segments (in thousands): Fair Value Unpaid Principal Balance Difference Current–89 days 90+days past due Current–89 days 90+days past due 90+days past due June 30, 2023 past due or nonaccrual Total past due or nonaccrual Total or nonaccrual Commercial - Purchase $ 100,143 $ 462 $ 100,605 $ 94,622 $ 592 $ 95,214 $ ( 130 ) Commercial - Refinance 111,599 1,276 112,875 104,676 1,429 106,105 ( 153 ) Residential 1-4 Unit - Purchase 156,032 3,224 159,256 154,132 4,133 158,265 ( 909 ) Residential 1-4 Unit - Refinance 265,388 9,300 274,688 257,677 11,631 269,308 ( 2,331 ) Short Term 1-4 Unit - Purchase 26,701 1,012 27,713 27,072 1,298 28,370 ( 286 ) Short Term 1-4 Unit - Refinance 29,530 663 30,193 29,988 850 30,838 ( 187 ) Ending balance $ 689,393 $ 15,937 $ 705,330 $ 668,167 $ 19,933 $ 688,100 $ ( 3,996 ) |
Receivables Due From Servicers
Receivables Due From Servicers | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Receivables Due From Servicers | Note 6 — Receivables Due From Servicers The following tables summarize receivables due from servicers as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Securitized debt Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 25,996 $ 455 $ 26,451 Other loan servicing receivables 11,518 2,326 13,844 Loan servicing receivables 37,514 2,781 40,295 Corporate and escrow advances receivable 23,220 381 23,601 Total receivables due from servicers $ 60,734 $ 3,162 $ 63,896 December 31, 2022 Securitized debt 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 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Note 7 — Mortgage Servicing Rights Mortgage loans serviced are related to the Century business and not included in the consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others amounted to $ 500.7 million and $ 491.9 million as of June 30, 2023 and December 31, 2022, respectively. The Company has elected to record its mortgage servicing rights using the fair value measurement method. Significant assumptions used in determining the fair value of servicing rights as of June 30, 2023 and December 31, 2022 include: 1) Weighted average discount rate of 8.0 % and 8.1 %. 2) Weighted average conditional prepayment rate of 6.9 % and 6.3 %. The following table presents the Company's mortgage servicing rights as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Balance at the beginning of year $ 9,238 $ 7,152 Mortgage servicing rights acquired, at fair value — — Additions 250 — Fair value adjustments ( 43 ) 2,086 Balance at end of period $ 9,445 $ 9,238 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 8 — Goodwill The following table presents the activity for goodwill as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Balance at the beginning of period $ 6,775 $ 6,775 Goodwill acquired — — Balance at end of period $ 6,775 $ 6,775 |
Securitized Debt and Securitize
Securitized Debt and Securitized Debt at Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Securitized Debt and Securitized Debt at Fair Value | Note 9 — Securitized Debt and Securitized Debt at Fair Value As of June 30, 2023, the Company is the sole beneficial interest holder of twenty-two 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, ranging from July 2045 through April 2053 . The following tables summarize securitized debt and securitized debt at fair value as of June 30, 2023 and December 31, 2022 ($ in thousands): June 30, 2023 (in thousands) Securitized debt, net Securitized debt at fair value Total securitized debt Securitized debt $ 2,668,582 $ 389,628 $ 3,058,210 Valuation adjustments on FVO securitized debt — ( 7,829 ) ( 7,829 ) Deferred issuance costs and discounts ( 46,035 ) — ( 46,035 ) Total securitized debt and securitized debt at fair value $ 2,622,547 $ 381,799 $ 3,004,346 December 31, 2022 (in thousands) Securitized debt, net Securitized debt at fair value Total securitized debt Unpaid principal balance $ 2,788,908 $ — $ 2,788,908 Valuation adjustments on FVO securitized debt — — — Deferred issuance costs and discounts ( 52,618 ) — ( 52,618 ) Total securitized debt and securitized debt at fair value $ 2,736,290 $ — $ 2,736,290 The following table presents the effective interest rate of securitized debt and securitized debt at fair value for the six months ended June 30, 2023 and 2022 ($ in thousands): Six Months Ended June 30, Securitized debt: 2023 2022 Interest expense $ 76,737 $ 44,428 Average outstanding unpaid principal balance 2,973,388 2,175,263 Effective interest rate (1) 5.16 % 4.08 % (1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance, which includes average rates of 4.54 % and 3.38 %, and debt issuance cost amortization of 0.62 % and 0.70 % for the six months ended June 30, 2023 and 2022 , respectively. |
Other Debt
Other Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Other Debt | Note 10 — Other Debt Secured financings 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. Most of these lines of credit fund less than 100 % of the principal balance of the mortgage loans originated and purchased, requiring the use of working capital to fund the remaining portion. (a) Secured Financing, Net (Corporate Debt) On March 15, 2022, the Company entered into a five-year $ 215.0 million syndicated corporate debt agreement, the (“the 2022 Term Loan”). The 2022 Term Loan bears interest at a fixed rate of 7.125 % and matures on March 15, 2027 . Interest on the 2022 Term Loan is paid every six months . A portion of the net proceeds from the 2022 Term Loan was used to redeem all the amounts owed pursuant to a term loan previously entered into during 2021 (the "2021 Term Loan"). The remaining portion of the net proceeds from the 2022 Term Loan is used for loan originations and general corporate purposes. As of June 30, 2023, the balance of the 2022 Term Loan was $ 215.0 m illion. The balance in the consolidated balance sheets is net of debt issuance costs of $ 4.5 million as of June 30, 2023. The 2022 Term Loan is secured by substantially all assets of the Company not otherwise pledged under a securitized debt or warehouse facility and contains certain reporting and financial covenants. Should the Company fail to adhere to those covenants, the lenders have the right to demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of June 30, 2023, 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 September 2022 Term Repurchase Agreement”). The Facility Agreement has a current extended maturity date of July 31, 2024 , 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 7.2 % at June 30, 2023 . There was no outstanding balance at December 31, 2022. On August 8, 2016 , Century entered a Promissory Note Revolving Credit Line with a bank (“Revolving Credit Line”). The Revolving Credit Line matured on July 31, 2023 , and was 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. There were no outstanding balances at June 30, 2023 and December 31, 2022. 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 10.1 % and 5.7 % at June 30, 2023 and December 31, 2022, 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 capacity under this facility is $ 50.0 million. The effective interest rates were 8.9 % and 5.8 % at June 30, 2023 and December 31, 2022, respectively. 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 May 15, 2024 , and is a short-term borrowing facility, collateralized by a pool of loans, with a maximum capacity of $ 200.0 million, and bears interest at SOFR plus a margin of 3.00 % during the availability period and 4.00 % 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 10.4 % and 6.4 % at June 30, 2023 and December 31, 2022, 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, 2026 , with a borrowing period through April 14, 2025. During the borrowing period, the Company can take loan advances from time to time subject to availability. Each loan advance bears interest at SOFR plus a margin of 3.10 %. The maximum capacity under this facility is $ 100.0 million. The effective interest rates were 8.3 % and 5.6 % at June 30, 2023 and December 31, 2022, 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 American Interbank Offered Rate ("AMERIBOR") with a 0.5 % floor plus 4.50 % per annum. The maximum capacity under this facility is $ 100.0 million. The effective interest rates were 21.1 % and 10.0 % at June 30, 2023 and December 31, 2022, respectively. On October 7, 2022, the Company entered into a $ 10.2 million short-term repurchase agreement ("the October 2022 Repurchase Agreement) and bore interest at SOFR plus 1.58 %. The repurchase agreement was paid off in April 2023. The effective interest rates were 6.6 % and 6.1 % at June 30, 2023 and December 31, 2022, respectively. Certain loans are pledged as security under the warehouse repurchase facilities and the revolving loan facility, which contain covenants. Should the Company fail to adhere to those covenants or otherwise default under the facilities, the lenders have the right to terminate the facilities and demand immediate repayment that may require the Company to sell the collateral at less than the carrying amounts. As of June 30, 2023 and December 31, 2022, the Company was in compliance with all covenants. The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Period end (1) Maximum Period end (1) Maximum The 2021 term repurchase agreement $ 73,097 $ 100,000 $ 74,334 $ 100,000 The 2021 repurchase agreement 54,482 200,000 79,504 200,000 The July 2021 term repurchase agreement 8,534 100,000 2,185 100,000 The 2013 repurchase agreement 69,436 300,000 136,165 300,000 The bank credit agreement 31,476 50,000 29,495 50,000 The October 2022 repurchase agreement — — 10,057 18,818 The September 2022 term repurchase agreement — 60,000 — 60,000 Revolving credit line — 3,000 — 3,000 Total $ 237,025 $ 813,000 $ 331,740 $ 831,818 (1) Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $ 1.3 million and $ 0.9 million as of June 30, 2023 and December 31, 2022 , respectively. The following table provides an overview of the activity and effective interest rate for the three and six months ended June 30, 2023 and 2022 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Warehouse and repurchase facilities: Average outstanding balance $ 238,027 $ 318,960 $ 231,762 $ 328,603 Highest outstanding balance at any month-end 320,544 379,169 320,544 426,959 Effective interest rate (1) 9.93 % 5.16 % 9.27 % 4.80 % (1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance. The rate includes average rate of 9.12 % and 4.59 %, and debt issuance cost amortization of 0.81 % and 0.57 %, for the three months ended June 30, 2023 and 2022 , respectively, and includes average rate of 8.61 % and 4.23 %, and debt issuance cost amortization of 0.66 % and 0.57 %, for the six months ended June 30, 2023 and 2022 , respectively. The following table provides a summary of interest expense that includes interest, amortization of discount, and deal cost amortization for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Warehouse and repurchase facilities $ 5,910 $ 4,115 $ 10,743 $ 7,880 Securitized debt 39,541 24,637 76,737 44,428 Interest expense — portfolio related 45,451 28,752 87,480 52,308 Interest expense — corporate debt 4,139 4,182 8,278 21,322 Total interest expense $ 49,590 $ 32,934 $ 95,758 $ 73,630 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies (a) Repurchase Liability When the Company sells loans, it is required to make normal and customary representations and warranties about the loans to the purchaser. The loan sale agreements generally require the Company to repurchase loans if the Company breaches a representation or warranty given to the loan purchaser. In addition, the Company may be required to repurchase loans as a result of borrower fraud or if a payment default occurs on a loan shortly after its sale. The Company records a repurchase liability relating to representations and warranties and early payment defaults. The method used to estimate the liability for repurchase is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults. The Company establishes a liability at the time loans are sold and continually updates the estimated repurchase liability. The level of the repurchase liability for representations and warranties and early payment default requires considerable management judgment. As of June 30, 2023 and December 31, 2022, the balance of repurchase liabili ty was $ 48 thousand and $ 124 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. (c) Employee Retention Credit Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020 and the subsequent extension of the CARES Act, the Company, with the guidance from a third-party specialist, determined it was eligible for a refundable employee retention credit (“ERC”) subject to certain criteria. The Company applied for ERC for the first three quarters’ wages paid in calendar year 2021. During the second quarter of 2023, the Company received approximately $ 4.2 million of ERC. Due to the subjectivity of the credit, the Company elected to account for the ERC as a gain analogizing to ASC 450-30, Gain Contingencies. Accordingly, the $ 4.2 million ERC, net of the third-party specialist fees of $ 0.6 million , are deferred until the uncertainty surrounding them is resolved. The net amount is included in accounts payable and accrued expenses on the consolidated balance sheets for the quarter ended June 30, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 12 — Stock-Based Compensation The Company’s Amended and Restated 2020 Omnibus Incentive Plan, or the 2020 Plan, authorizes grants of stock‑based compensation instruments to purchase or issue up to 2,770,000 shares of Company common stock. In connection with its IPO in January 2020, the Company granted stock options to non-employee directors and certain employees, including named executive officers to purchase approximately 782,500 shares of common stock with an exercise price per share equal to the initial public offering price of $ 13.00 . On December 24, 2020, the Company granted stock options to a non-employee director to purchase 12,500 shares of common stock with an exercise price per share equal to the grant date market price of $ 6.28 . In January 2021, the Company issued 480,000 shares of restricted stock awards to certain employees, including named executive officers at no cost to employees. In May 2021, the Company issued 26,511 shares of restricted stock awards to certain non-employee directors. In February 2022, the Company issued 125,250 shares of restricted stock awards and 102,750 shares of performance stock unit awards to certain employees, including named executive officers at no cost to employees. In May 2022, the Company issued 31,215 shares of restricted stock awards to certain non-employee directors. In January 2023, the Company issued 198,137 shares of restricted stock awards and 153,637 shares of performance stock unit awards to certain employees, including named executive officers at no cost to employees. In May 2023, the Company issued 31,629 shares of restricted stock awards to certain non-employee directors. Restricted stock-based awards vest ratably over a service period of three years from the date of the grant. Performance-based stock unit awards are linked to the average core net income annual growth over the three-year period from the year of grant. Settlement of vested performance-based stock units will be made on the date that the Compensation Committee certifies the average core net income annual growth for the three-year period. Compensation expense related to restricted stock-based awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. Compensation expense related to performance-based stock unit awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using an estimate of the probability of achieving the performance target. The estimates will be reviewed quarterly, and the expense adjusted accordingly. The Company has an Employee Stock Purchase Plan ("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 beginning July 2022. 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. Compensation expense 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 Company recognized a total of $ 1.0 million and $ 0.8 million compensation expense related to the outstanding stock options, unvested restricted stock awards, ESPP, and unvested performance-based stock unit awards granted to employees for the three months ended June 30, 2023 and 2022, respectively. Such amount is included in “Compensation and employee benefits” on the Consolidated Statement of Income. The amount of unrecognized compensation expense related to unvested restricted stock awards, ESPP, and performance-based stock unit awards totaled $ 5.7 millio n and $ 5.3 million as of June 30, 2023 and 2022, respectively. Treasury share purchases represent shares surrendered to the Company approximately equal in value to the statutory payroll tax withholding obligations and other estimated tax obligations arising from the vesting of employee restricted stock awards. During the three months ended March 31, 2023, the Company purchased 85,574 treasury shares at an average price of $ 9.78 per share . No shares were purchased during the three months ended June 30, 2023. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 — Earnings Per Share The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock and resulted in the issuance of common stock that shared in earnings. The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands, except per share data) (In thousands, except per share data) Basic EPS: Net income attributable to common shareholders $ 12,183 $ 10,645 $ 22,832 $ 13,766 Less: earnings attributable to participating securities 185 164 347 212 Net earnings attributable to common shareholders $ 11,998 $ 10,481 $ 22,485 $ 13,554 Weighted average common shares outstanding 32,122 31,917 32,111 31,904 Basic earnings per common share $ 0.37 $ 0.33 $ 0.70 $ 0.42 Diluted EPS: Net income attributable to common stockholders $ 12,183 $ 10,645 $ 22,832 $ 13,766 Weighted average common shares outstanding 32,122 31,917 32,111 31,904 Add dilutive effects for warrants 1,883 1,986 1,877 2,057 Add dilutive effects for stock options 4 4 5 4 Add dilutive effects of unvested restricted stock awards 95 150 78 165 Add dilutive effects of unvested performance-based stock units 36 — 24 — Weighted average diluted common shares outstanding 34,140 34,057 34,095 34,130 Diluted earnings per common share $ 0.36 $ 0.31 $ 0.67 $ 0.40 The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock options 773 773 773 773 Unvested restricted stock awards 84 125 84 125 Unvested performance-based stock units — 103 — 103 Share equivalents excluded from EPS 857 1,001 857 1,001 |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Note 14 — Warrants On April 7, 2020, the Company issued and sold in a private placement 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. The Warrants are exercisable at the warrant holder’s option at any time and from time to time, in whole or in part, until April 7, 2025 at an exercise price of $ 2.96 per share of common stock, with respect to 2,008,749 of the Warrants, and at an exercise price of $ 4.94 per share of common stock, with respect to 1,004,375 of the Warrants. The exercise price and the number of shares of common stock issuable upon exercise of the Warrants are subject to customary antidilution adjustments and certain issuances of common stock (or securities convertible into or exercisable for common stock) at a price (or having a conversion or exercise price) that is less than the then current exercise price. The Company is not required to affect an exercise of Warrants, if after giving effect to the issuance of common stock upon exercise of such Warrants such warrant holder together with its affiliates would beneficially own 49 % or more of the Company’s outstanding common stock. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 15 — Fair Value Measurements Fair Value Determination ASC Topic 820, “ Fair Value Measurement ,” defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and requires disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: o Level 1 - Valuation is based on quoted prices for identical instruments traded in active markets. o Level 2 - Valuation is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. o Level 3 - Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. Given the nature of some of the Company’s assets and liabilities, clearly determinable market-based valuation inputs are often not available; therefore, these assets and liabilities are valued using internal estimates. As subjectivity exists with respect to the valuation estimates used, the fair values disclosed may not equal prices that can ultimately be realized if the assets are sold or the liabilities are settled with third parties. Below is a description of the valuation methods for the assets and liabilities recorded at fair value on either a recurring or nonrecurring basis and for estimating fair value of financial instruments not recorded at fair value for disclosure purposes. While management believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the measurement date. Cash and Cash Equivalents and Restricted Cash Cash and restricted cash are recorded at historical cost. The carrying amount is a reasonable estimate of fair value as these instruments have short-term maturities and interest rates that approximate market, a Level 1 measurement. Loans Held for Investment, Net, and Loans Held for Investment, at Fair Value The Company uses a third-party loan valuation model to estimate the fair value of its nonperforming mortgage loans, a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company’s nonperforming mortgage loans are yield, voluntary prepayments, severity, and foreclosure frequency. The Company uses an in-house loan valuation model to estimate the fair value of its performing mortgage loans, a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company’s performing mortgage loans are discount rate, constant prepayment rate, and constant default rate. Significant changes in any of those inputs in isolation could result in a significant change to the mortgage loans’ fair value measurement. Collateral Dependent or Loans Individually Evaluated Nonaccrual loans held for investment are evaluated individually and are adjusted to the fair value of the collateral when the fair value of the collateral is below the carrying value of the loan. To the extent a loan is collateral dependent, the Company determines the allowance for credit losses based on the estimated fair value of the underlying collateral. The fair value of each loan’s collateral is generally based on appraisals or broker price opinions obtained, less estimated costs to sell, a Level 3 measurement. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value, with fair value adjustments recorded on a nonrecurring basis. The Company uses a discounted cash flow model to estimate the fair value of loans held for sale, a Level 3 measurement. Loans Held for Sale, at Fair Value The Company has elected to account for certain loans originated with the intent to sell to Ginnie Mae at fair value (the FVO Loans held for sale) using FASB ASC Topic 825, Financial Instruments (ASC 825). The FVO loans held for sale 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. Real Estate Owned, Net (REO) Real estate owned, net is initially recorded at the property’s estimated fair value, based on appraisals or broker price opinions obtained, less estimated costs to sell, at the acquisition date, a Level 3 measurement. From time to time, nonrecurring fair value adjustments are made to real estate owned, net based on the current updated appraised value of the property, or management’s judgment and estimation of value based on recent market trends or negotiated sales prices with potential buyers. Mortgage Servicing Rights The Company determined the fair values based on a third-party valuation model that calculates the present value of estimated future net servicing income, a Level 3 measurement. Secured Financing, Net (Corporate Debt) The Company determined the fair values estimate of the secured financing using the estimated cash flows discounted at an appropriate market rate, a Level 3 measurement. Warehouse Repurchase Facilities, Net Warehouse repurchase facilities are recorded at historical cost. The carrying amount is a reasonable estimate of fair value as these instruments have short-term maturities of one-year or less and interest rates that approximate market plus a spread, a Level 2 measurement. Securitized Debt, Net, and Securitized Debt, at Fair Value The Company obtains the fair value estimates at instrument level from a third-party broker dealer based on trader input on benchmark securities, bond structure and collateral characteristics and performance and pricing factors such as yield, spread, average life, prepayment speeds, default rate and severities, a Level 2 measurement. Significant changes in any of those inputs in isolation could result in a significant change to securitized debt’s fair value measurement. Accrued Interest Receivable and Accrued Interest Payable The carrying amounts of accrued interest receivable and accrued interest payable approximate fair value due to the short-term nature of these instruments, a Level 1 measurement. The Company does not have any off-balance sheet financial instruments. Receivables Due From Servicers The carrying amounts of receivables due from servicers approximate fair value due to the short-term nature of these instruments, a Level 1 measurement. Fair Value Disclosures The following tables present information on assets and liabilities measured and recorded at fair value as of June 30, 2023 and December 31, 2022, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at June 30, 2023 Level 1 Level 2 Level 3 fair value Assets: Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 705,330 $ 705,330 Mortgage servicing rights — — 9,445 9,445 Total recurring fair value measurements — — 714,775 714,775 Nonrecurring fair value measurements: Real estate owned, net — — 20,388 20,388 Individually evaluated loans requiring specific allowance, net — — 13,097 13,097 Total nonrecurring fair value measurements — — 33,485 33,485 Total assets $ — $ — $ 748,260 $ 748,260 Liabilities: Recurring fair value measurements: Securitized debt, at fair value $ — $ 381,799 $ — $ 381,799 Total recurring fair value measurements — 381,799 — 381,799 Total liabilities $ — $ 381,799 $ — $ 381,799 Fair value measurements using Total at December 31, 2022 Level 1 Level 2 Level 3 fair value Assets: 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: 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 The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on assets measured on a nonrecurring basis 2023 2022 2023 2022 Real estate held for sale, net $ ( 492 ) $ ( 143 ) $ ( 1,670 ) $ 93 Individually evaluated loans requiring specific allowance, net ( 48 ) 434 53 242 Total net gain (loss) $ ( 540 ) $ 291 $ ( 1,617 ) $ 335 The following table presents the primary valuation techniques and unobservable inputs related to Level 3 assets that are recorded on a recurring and nonrecurring basis as of June 30, 2023 ($ in thousands): June 30, 2023 Asset category Fair value Primary Unobservable Range Weighted Recurring: Loans held for investment, $ 705,330 Discounted cash flow Discount rate 9.5 % to 11.0 % 9.7 % Prepayment rate 0.0 % to 50.0 % 26.7 % Default rate 0.3 % to 94.9 % 9.7 % Loss severity rate 0.0 % to 24.8 % 2.9 % Recovery lag (performing loans, in months) 17 17 Mortgage servicing rights 9,445 Discounted cash flow Discount rate 8.0 % 8.0 % Prepayment rate 5.6 % to 16.9 % 6.9 % Nonrecurring: Individually evaluated $ 13,097 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 20,388 Market comparables Selling costs 8.0 % 8.0 % The following table presents the primary valuation techniques and unobservable inputs related to Level 3 assets as of December 31, 2022 ($ 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 investment, 276,095 Discounted cash flow Discount rate 8.35 % to 9.35 % 8.9 % Prepayment rate 1.0 % to 30.0 % 15.1 % Default rate 0.12 % to 6.99 % 0.6 % Loss severity rate 0.00 % 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 % The following is a roll-forward of loans held for investment that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 450,732 $ — $ 276,095 $ — Originations 258,646 — 456,534 — Loans liquidated ( 13,464 ) — ( 21,485 ) — Principal paydowns ( 1,764 ) — ( 2,796 ) — Total unrealized gain included in net income 3,108 — 9,767 — Loans transferred to held for sale — — ( 20,857 ) — Loans repurchased 8,072 — 8,072 — Ending balance $ 705,330 $ — $ 705,330 $ — The following is a roll-forward of loans held for sale that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 18,080 $ 77,502 $ — $ 87,908 Originations — — 19,088 — Loans liquidated ( 17,385 ) $ ( 77,502 ) ( 39,945 ) $ ( 223,788 ) Total unrealized loss included in net income ( 695 ) — — — Loans transferred from (to) held for investment — ( 390 ) 20,857 135,490 Loans repurchased — 390 — 390 Ending balance $ — $ — $ — $ — The following is a roll-forward of securitized debt that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 194,941 $ — $ — $ — Securitized debt additions 201,000 — 398,487 — Securitized debt paydowns ( 8,582 ) — ( 11,297 ) — Total unrealized gain included in net income ( 5,560 ) — ( 5,391 ) — Ending balance $ 381,799 $ — $ 381,799 $ — The Company estimates the fair value of certain financial instruments on a quarterly basis. These instruments are recorded at fair value through the use of a valuation allowance only if they are individually evaluated. As described above, these adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. As of June 30, 2023 and December 31, 2022, the only financial assets measured at fair value, or lower of cost or fair value, were certain individually evaluated loans held for investment, loans held for sale, mortgage servicing rights, REO, FVO loans, and securitized debt at fair value, which were measured using unobservable inputs, including appraisals and broker price opinions on the values of the underlying collateral. Individually evaluated loans requiring an allowance were carried at approximatel y $ 13.1 million and $ 11.5 million as of June 30, 2023 and December 31, 2022, net of specific allowance for credit losses of approximately $ 1.0 million and $ 1.1 million, respectively. A financial instrument is cash, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from a second entity on potentially favorable terms. The methods and assumptions used in estimating the fair values of the Company’s financial instruments are described above. The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated (in thousands): June 30, 2023 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 33,987 $ 33,987 $ — $ — $ 33,987 Restricted cash 16,786 16,786 — — 16,786 Loans held for investment, net 3,057,940 — — 2,879,626 2,879,626 Loans held for investment, at fair value 705,330 — — 705,330 705,330 Accrued interest receivables 22,602 22,602 — — 22,602 Mortgage servicing rights 9,445 — — 9,445 9,445 Liabilities: Secured financing, net $ 210,464 $ — $ — $ 211,634 $ 211,634 Warehouse repurchase facilities, net 235,749 — 235,749 — 235,749 Securitized debt, net 2,622,547 — 2,335,949 — 2,335,949 Securitized debt, at fair value 381,799 — 381,799 — 381,799 Accrued interest payable 18,068 18,068 — — 18,068 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 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 receivable 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 repurchase facilities, net 330,814 — 330,814 — 330,814 Securitized debt net 2,736,290 — — 2,522,010 2,522,010 Accrued interest payable 16,369 16,369 — — 16,369 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent Events On August 2, 2023, the Company completed the securitization of $ 85.9 million of investor real estate loans, which will be accounted for as a secured borrowing during the quarter ended September 30, 2023. The Company has evaluated events that have occurred subsequent to June 30, 2023 through the issuance of the accompanying consolidated financial statements and has concluded there are no other subsequent events that would require recognition or disclosure in the accompanying consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | (a) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of consolidated income and expenses during the reporting period. |
Significant Accounting Policies | (b) Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 — Basis of Presentation and Summary of Significant Accounting Policies , of its audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission. There have been no significant changes to the Company’s significant accounting policies as described in its 2022 Annual Report, other than the election of fair value option accounting on securitized debt issued effective January 1, 2023. Certain amounts previously reported have been reclassified to conform to the current presentation. |
Principles of Consolidation | (c) Principles of Consolidation The principles of consolidation require management to determine and reassess the requirement to consolidate VIEs each reporting period, and therefore, the determination may change based on new facts and circumstances pertaining to each VIE. This could result in a material impact to the Company’s consolidated financial statements in subsequent reporting periods. The Company consolidates the assets, liabilities, and remainder interests of the Trusts as management determined that VCC is the primary beneficiary of these entities. The Company’s ongoing asset management responsibilities provide the Company with the power to direct the activities that most significantly impact the VIE’s economic performance, and the remainder interests provide the Company with the right to receive benefits and the obligation to absorb losses, limited to its investment in the remainder interest of the Trusts. The consolidated financial statements as of June 30, 2023 and December 31, 2022 include only those assets, liabilities, and results of operations related to the business of the Company, its subsidiaries, and VIEs. |
Fair Value Option Accounting | (d) Fair Value Option Accounting The Company has elected to apply fair value option ("FVO") accounting to securitized debt issued effective January 1, 2023 when the underlying collateral is also carried at fair value. The fair value option securitized debt is presented on a separate line item in the consolidated balance sheet. The Company reflects interest expense on the fair value option securitized debt as “interest” in the consolidated statements of income and presents the other fair value changes of these securitized debt separately in the consolidated financial statements. |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows for the six months ended June 30, 2023 and 2022 (in thousands): Six Months Ended June 30, 2023 2022 Cash and cash equivalents $ 33,987 $ 46,250 Restricted cash 16,786 9,217 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 50,773 $ 55,467 |
Loans Held for Investment and_2
Loans Held for Investment and Loans Held for Investment at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Summary of Loans Held for Investment | The following tables summarize loans held for investment as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Loans held for investment, net Loans held for investment, at fair value Total loans held for investment Unpaid principal balance $ 3,031,725 $ 688,100 $ 3,719,825 Valuation adjustments on FVO loans — 17,230 17,230 Deferred loan origination costs 30,841 — 30,841 3,062,566 705,330 3,767,896 Allowance for loan losses ( 4,626 ) — ( 4,626 ) Total loans held for investment and loans held for investment at $ 3,057,940 $ 705,330 $ 3,763,270 December 31, 2022 Loans held for investment, net Loans held for investment, at fair value Total loans held for 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 and loans held for investment at $ 3,272,390 $ 276,095 $ 3,548,485 |
Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program | The following tables summarize the Unpaid Principal Balance (“UPB”) and amortized cost basis of loans in the Company's COVID-19 forbearance program for the three and six months ended June 30, 2023 and the year ended December 31, 2022 ($ in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 UPB % Amortized Cost % UPB % Amortized Cost % Beginning balance $ 195,114 $ 197,350 $ 201,005 $ 203,346 Foreclosures — — ( 99 ) ( 99 ) Repayments ( 13,175 ) ( 13,343 ) ( 18,967 ) ( 19,240 ) Ending balance $ 181,939 $ 184,007 $ 181,939 $ 184,007 Performing/Accruing $ 138,419 76.1 % $ 139,941 76.1 % $ 138,419 76.1 % $ 139,941 76.1 % Nonperforming/Nonaccrual $ 43,520 23.9 % $ 44,066 23.9 % $ 43,520 23.9 % $ 44,066 23.9 % 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 % |
Schedule of Loans Held for Investment Pledged as Collateral for Warehouse Facilities and Securitizations Issued | As of June 30, 2023 and December 31, 2022, the gross unpaid principal balances of loans held for investment pledged as collateral for the Company’s warehouse facilities and securitized debt issued were as follows (in thousands): June 30, 2023 December 31, 2022 The 2013 repurchase agreement $ 86,225 $ 170,185 The 2021 repurchase agreement 69,728 101,024 The Bank credit agreement 42,317 39,087 The 2021 term repurchase agreement 108,840 104,594 The July 2021 term repurchase agreement 14,878 3,859 Total pledged loans $ 321,988 $ 418,749 2016-1 Trust $ 35,195 $ 39,720 2017-2 Trust 57,059 67,048 2018-1 Trust 41,983 48,139 2018-2 Trust 94,530 104,791 2019-1 Trust 94,839 104,249 2019-2 Trust 82,180 91,025 2019-3 Trust 70,193 75,618 2020-1 Trust 129,485 144,913 2020-2 Trust 75,123 81,259 2021-1 Trust 195,114 208,875 2021-2 Trust 160,867 172,144 2021-3 Trust 168,487 178,861 2021-4 Trust 264,406 275,741 2022-1 Trust 253,457 262,526 2022-2 Trust 237,924 245,339 2022-MC1 Trust 81,071 97,246 2022-3 Trust 287,694 299,638 2022-4 Trust 316,472 326,627 2022-5 Trust 242,400 251,288 2023-1 Trust 232,332 — 2023-2 Trust 222,551 — Total $ 3,343,362 $ 3,075,047 |
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 June 30, 2023 and December 31, 2022. There were no loans accruing interest that were greater than 90 days past due as of June 30, 2023 and December 31, 2022. June 30, 2023 Total Nonaccrual with No Allowance for Loan Loss Nonaccrual with Allowance for Loan Loss Allowance for Loans Individually Evaluated % of Allowance to Total Nonaccrual Loans with Allowance ($ in thousands) Commercial - Purchase $ 21,239 $ 20,304 $ 935 $ 137 1.0 % Commercial - Refinance 93,176 86,467 6,709 552 3.9 Residential 1-4 Unit - Purchase 49,826 49,826 — — — Residential 1-4 Unit - Refinance 139,356 134,942 4,414 246 1.7 Short Term 1-4 Unit - Purchase 3,587 3,587 — — — Short Term 1-4 Unit - Refinance 47,603 45,521 2,082 108 0.8 Total $ 354,787 $ 340,647 $ 14,140 $ 1,043 7.4 % 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 Loans with Allowance ($ in thousands) 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 % Troubled Debt Restructuring included $ — $ — $ — $ 25 — |
Schedule of Accrued Interest Receivables Written Off by Reversing Interest Income by Portfolio Segment | The following tables present the amortized cost basis in the loans held for investment, excluding loans held for investment at fair value, as of June 30, 2023 and 2022, and the amount of accrued interest receivables written off by reversing interest income by portfolio segment for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 2022 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 664,482 $ 136 $ 677,491 $ 77 Commercial - Refinance 854,048 667 912,774 335 Residential 1-4 Unit - Purchase 553,269 476 529,796 61 Residential 1-4 Unit - Refinance 882,020 881 887,720 269 Short Term 1-4 Unit - Purchase 49,242 7 57,973 4 Short Term 1-4 Unit - Refinance 59,505 347 57,950 132 Total $ 3,062,566 $ 2,514 $ 3,123,704 $ 878 Six Months Ended June 30, 2023 2022 Amortized Cost Interest Reversal Amortized Cost Interest Reversal Commercial - Purchase $ 664,482 $ 268 $ 677,491 $ 192 Commercial - Refinance 854,048 1,183 912,774 587 Residential 1-4 Unit - Purchase 553,269 773 529,796 281 Residential 1-4 Unit - Refinance 882,020 1,597 887,720 566 Short Term 1-4 Unit - Purchase 49,242 31 57,973 25 Short Term 1-4 Unit - Refinance 59,505 443 57,950 371 Total $ 3,062,566 $ 4,295 $ 3,123,704 $ 2,022 |
Schedule of Activity in Allowance for Credit Losses | The following tables present the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2023 $ 796 $ 2,060 $ 468 $ 1,363 $ 24 $ 334 $ 5,045 Provision for loan losses ( 64 ) ( 34 ) ( 65 ) ( 99 ) 752 ( 192 ) 298 Charge-offs — — — — ( 717 ) — ( 717 ) Ending balance $ 732 $ 2,026 $ 403 $ 1,264 $ 59 $ 142 $ 4,626 Allowance related to: Loans individually evaluated $ 137 $ 552 $ — $ 246 $ — $ 108 $ 1,043 Loans collectively evaluated $ 595 $ 1,474 $ 403 $ 1,018 $ 59 $ 34 $ 3,583 Amortized cost related to: Loans individually evaluated $ 21,239 $ 93,176 $ 49,826 $ 139,356 $ 3,587 $ 47,603 $ 354,787 Loans collectively evaluated $ 643,243 $ 760,872 $ 503,443 $ 742,664 $ 45,655 $ 11,902 $ 2,707,779 Three Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - April 1, 2022 $ 518 $ 2,140 $ 389 $ 1,029 $ 50 $ 537 $ 4,663 Provision for loan losses 94 ( 125 ) 51 241 ( 16 ) 34 279 Charge-offs — ( 19 ) — — — ( 18 ) ( 37 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated $ 606 $ 1,562 $ 388 $ 1,074 $ 34 $ 77 $ 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated $ 662,580 $ 832,332 $ 506,911 $ 791,071 $ 55,671 $ 19,937 $ 2,868,502 Six Months Ended June 30, 2023 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2023 $ 639 $ 2,031 $ 542 $ 1,272 $ 21 $ 388 $ 4,893 Provision for loan losses 93 74 ( 112 ) 3 816 59 933 Charge-offs — ( 79 ) ( 27 ) ( 11 ) ( 778 ) ( 305 ) ( 1,200 ) Ending balance $ 732 $ 2,026 $ 403 $ 1,264 $ 59 $ 142 $ 4,626 Allowance related to: Loans individually evaluated $ 137 $ 552 $ — $ 246 $ — $ 108 $ 1,043 Loans collectively evaluated $ 595 $ 1,474 $ 403 $ 1,018 $ 59 $ 34 $ 3,583 Amortized cost related to: Loans individually evaluated $ 21,239 $ 93,176 $ 49,826 $ 139,356 $ 3,587 $ 47,603 $ 354,787 Loans collectively evaluated $ 643,243 $ 760,872 $ 503,443 $ 742,664 $ 45,655 $ 11,902 $ 2,707,779 Six Months Ended June 30, 2022 Residential Residential Short Term Short Term Commercial Commercial 1-4 Unit 1-4 Unit 1-4 Unit 1-4 Unit Purchase Refinance Purchase Refinance Purchase Refinance Total Allowance for credit losses: Beginning Balance - January 1, 2022 $ 385 $ 2,144 $ 400 $ 948 $ 43 $ 342 $ 4,262 Provision for loan losses 374 ( 123 ) 40 427 ( 9 ) 300 1,009 Charge-offs ( 147 ) ( 25 ) — ( 105 ) — ( 89 ) ( 366 ) Ending balance $ 612 $ 1,996 $ 440 $ 1,270 $ 34 $ 553 $ 4,905 Allowance related to: Loans individually evaluated $ 6 $ 434 $ 52 $ 196 $ — $ 476 $ 1,164 Loans collectively evaluated $ 606 $ 1,562 $ 388 $ 1,074 $ 34 $ 77 $ 3,741 Amortized cost related to: Loans individually evaluated $ 14,911 $ 80,442 $ 22,885 $ 96,649 $ 2,302 $ 38,013 $ 255,202 Loans collectively evaluated $ 662,580 $ 832,332 $ 506,911 $ 791,071 $ 55,671 $ 19,937 $ 2,868,502 |
Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio | The following table presents the aging status of the amortized cost basis in the loans held for investment portfolio, which include $ 184.0 million and $ 203.3 million loans in the Company’s COVID-19 forbearance program, excluding loans held for investment at fair value, as of June 30, 2023 and December 31, 2022, respectively (in thousands): 30–59 days 60–89 days 90+days Total Total June 30, 2023 past due past due past due (1) past due Current loans Loans individually evaluated Commercial - Purchase $ 961 $ 2,658 $ 17,620 $ 21,239 $ — $ 21,239 Commercial - Refinance 4,647 7,047 81,482 93,176 93,176 Residential 1-4 Unit - Purchase 656 1,869 47,301 49,826 — 49,826 Residential 1-4 Unit - Refinance 2,077 1,653 135,626 139,356 — 139,356 Short Term 1-4 Unit - Purchase 176 — 3,411 3,587 — 3,587 Short Term 1-4 Unit - Refinance — 205 47,398 47,603 — 47,603 Total loans individually evaluated $ 8,517 $ 13,432 $ 332,838 $ 354,787 $ — $ 354,787 Loans collectively evaluated Commercial - Purchase $ 28,861 $ 7,744 $ — $ 36,605 $ 606,638 $ 643,243 Commercial - Refinance 38,895 17,841 — 56,736 704,136 760,872 Residential 1-4 Unit - Purchase 24,371 7,171 — 31,542 471,901 503,443 Residential 1-4 Unit - Refinance 40,966 21,836 — 62,802 679,862 742,664 Short Term 1-4 Unit - Purchase 823 3,336 — 4,159 41,496 45,655 Short Term 1-4 Unit - Refinance 1,082 745 — 1,827 10,075 11,902 Total loans collectively evaluated $ 134,998 $ 58,673 $ — $ 193,671 $ 2,514,108 $ 2,707,779 Ending balance $ 143,515 $ 72,105 $ 332,838 $ 548,458 $ 2,514,108 $ 3,062,566 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. |
Schedule of Amortized Cost in Loans Held for Investment based on Accrual Status and by Loan Origination Year | The following tables present the amortized cost in loans held for investment, excluding loans held for investment at fair value, based on accrual status and by loan origination year as of June 30, 2023 and December 31, 2022 (in thousands). Term Loans Amortized Cost Basis by Origination Year June 30, 2023: 2022 2021 2020 2019 Pre-2019 Total Commercial - Purchase Payment performance Performing $ 263,561 $ 236,653 $ 33,956 $ 51,053 $ 58,020 $ 643,243 Nonperforming 4,536 4,956 533 4,166 7,048 21,239 Total Commercial - Purchase $ 268,097 $ 241,609 $ 34,489 $ 55,219 $ 65,068 $ 664,482 Commercial - Refinance Payment performance Performing $ 246,580 $ 199,498 $ 52,015 $ 92,882 $ 169,897 $ 760,872 Nonperforming 22,102 13,323 5,139 21,205 31,407 93,176 Total Commercial - Refinance $ 268,682 $ 212,821 $ 57,154 $ 114,087 $ 201,304 $ 854,048 Residential 1-4 Unit - Purchase Payment performance Performing $ 224,109 $ 205,756 $ 9,145 $ 27,854 $ 36,579 $ 503,443 Nonperforming 19,331 20,310 1,969 2,147 6,069 49,826 Total Residential 1-4 $ 243,440 $ 226,066 $ 11,114 $ 30,001 $ 42,648 $ 553,269 Residential 1-4 Unit - Refinance Payment performance Performing $ 304,498 $ 260,317 $ 20,897 $ 72,047 $ 84,905 $ 742,664 Nonperforming 40,691 33,740 8,632 28,998 27,295 139,356 Total Residential 1-4 $ 345,189 $ 294,057 $ 29,529 $ 101,045 $ 112,200 $ 882,020 Short Term 1-4 Unit - Purchase Payment performance Performing $ 23,733 $ 710 $ 16,857 $ 4,355 $ — $ 45,655 Nonperforming 2,412 — 995 180 — 3,587 Total Short Term 1-4 $ 26,145 $ 710 $ 17,852 $ 4,535 $ — $ 49,242 Short Term 1-4 Unit - Refinance Payment performance Performing $ 11,902 $ — $ — $ — $ — $ 11,902 Nonperforming 17,886 1,023 9,210 14,974 4,510 47,603 Total Short Term 1-4 $ 29,788 $ 1,023 $ 9,210 $ 14,974 $ 4,510 $ 59,505 Total Portfolio $ 1,181,341 $ 976,286 $ 159,348 $ 319,861 $ 425,730 $ 3,062,566 Gross charge-offs - quarter-ended June 30, 2023 $ — $ 717 $ — $ — $ — $ 717 Gross charge-offs - year-to-date June 30, 2023 $ 11 $ 743 $ — $ 446 $ — $ 1,200 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 |
Summary of Difference Between Aggregate Fair Value and Aggregate Unpaid Principal Balance by Loan Segments | The following table presents the aggregate fair value of loans held for investment and held at fair value that are 90 days or more past due and/or in nonaccrual status, and the difference between the aggregate fair value and the aggregate unpaid principal balance as of June 30, 2023 by loan segments (in thousands): Fair Value Unpaid Principal Balance Difference Current–89 days 90+days past due Current–89 days 90+days past due 90+days past due June 30, 2023 past due or nonaccrual Total past due or nonaccrual Total or nonaccrual Commercial - Purchase $ 100,143 $ 462 $ 100,605 $ 94,622 $ 592 $ 95,214 $ ( 130 ) Commercial - Refinance 111,599 1,276 112,875 104,676 1,429 106,105 ( 153 ) Residential 1-4 Unit - Purchase 156,032 3,224 159,256 154,132 4,133 158,265 ( 909 ) Residential 1-4 Unit - Refinance 265,388 9,300 274,688 257,677 11,631 269,308 ( 2,331 ) Short Term 1-4 Unit - Purchase 26,701 1,012 27,713 27,072 1,298 28,370 ( 286 ) Short Term 1-4 Unit - Refinance 29,530 663 30,193 29,988 850 30,838 ( 187 ) Ending balance $ 689,393 $ 15,937 $ 705,330 $ 668,167 $ 19,933 $ 688,100 $ ( 3,996 ) |
Receivables Due From Servicers
Receivables Due From Servicers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Summary of Receivables Due from Servicers | The following tables summarize receivables due from servicers as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Securitized debt Warehouse and repurchase facilities and other Total Loan principal payments due from servicers $ 25,996 $ 455 $ 26,451 Other loan servicing receivables 11,518 2,326 13,844 Loan servicing receivables 37,514 2,781 40,295 Corporate and escrow advances receivable 23,220 381 23,601 Total receivables due from servicers $ 60,734 $ 3,162 $ 63,896 December 31, 2022 Securitized debt 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 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Mortgage Servicing Rights | The following table presents the Company's mortgage servicing rights as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Balance at the beginning of year $ 9,238 $ 7,152 Mortgage servicing rights acquired, at fair value — — Additions 250 — Fair value adjustments ( 43 ) 2,086 Balance at end of period $ 9,445 $ 9,238 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Activity for Goodwill | The following table presents the activity for goodwill as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Balance at the beginning of period $ 6,775 $ 6,775 Goodwill acquired — — Balance at end of period $ 6,775 $ 6,775 |
Securitized Debt and Securiti_2
Securitized Debt and Securitized Debt at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Securitized Debt and Securitized Debt at Fair Value | The following tables summarize securitized debt and securitized debt at fair value as of June 30, 2023 and December 31, 2022 ($ in thousands): June 30, 2023 (in thousands) Securitized debt, net Securitized debt at fair value Total securitized debt Securitized debt $ 2,668,582 $ 389,628 $ 3,058,210 Valuation adjustments on FVO securitized debt — ( 7,829 ) ( 7,829 ) Deferred issuance costs and discounts ( 46,035 ) — ( 46,035 ) Total securitized debt and securitized debt at fair value $ 2,622,547 $ 381,799 $ 3,004,346 December 31, 2022 (in thousands) Securitized debt, net Securitized debt at fair value Total securitized debt Unpaid principal balance $ 2,788,908 $ — $ 2,788,908 Valuation adjustments on FVO securitized debt — — — Deferred issuance costs and discounts ( 52,618 ) — ( 52,618 ) Total securitized debt and securitized debt at fair value $ 2,736,290 $ — $ 2,736,290 |
Summary of Effective Interest Rate of Securitized Debt and Securitized Debt at Fair Value | The following table presents the effective interest rate of securitized debt and securitized debt at fair value for the six months ended June 30, 2023 and 2022 ($ in thousands): Six Months Ended June 30, Securitized debt: 2023 2022 Interest expense $ 76,737 $ 44,428 Average outstanding unpaid principal balance 2,973,388 2,175,263 Effective interest rate (1) 5.16 % 4.08 % (1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance, which includes average rates of 4.54 % and 3.38 %, and debt issuance cost amortization of 0.62 % and 0.70 % for the six months ended June 30, 2023 and 2022 , respectively. |
Other Debt (Tables)
Other Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding | The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Period end (1) Maximum Period end (1) Maximum The 2021 term repurchase agreement $ 73,097 $ 100,000 $ 74,334 $ 100,000 The 2021 repurchase agreement 54,482 200,000 79,504 200,000 The July 2021 term repurchase agreement 8,534 100,000 2,185 100,000 The 2013 repurchase agreement 69,436 300,000 136,165 300,000 The bank credit agreement 31,476 50,000 29,495 50,000 The October 2022 repurchase agreement — — 10,057 18,818 The September 2022 term repurchase agreement — 60,000 — 60,000 Revolving credit line — 3,000 — 3,000 Total $ 237,025 $ 813,000 $ 331,740 $ 831,818 (1) Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $ 1.3 million and $ 0.9 million as of June 30, 2023 and December 31, 2022 , respectively. |
Schedule of Activity and Effective Interest Rate | The following table provides an overview of the activity and effective interest rate for the three and six months ended June 30, 2023 and 2022 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Warehouse and repurchase facilities: Average outstanding balance $ 238,027 $ 318,960 $ 231,762 $ 328,603 Highest outstanding balance at any month-end 320,544 379,169 320,544 426,959 Effective interest rate (1) 9.93 % 5.16 % 9.27 % 4.80 % (1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance. The rate includes average rate of 9.12 % and 4.59 %, and debt issuance cost amortization of 0.81 % and 0.57 %, for the three months ended June 30, 2023 and 2022 , respectively, and includes average rate of 8.61 % and 4.23 %, and debt issuance cost amortization of 0.66 % and 0.57 %, for the six months ended June 30, 2023 and 2022 , respectively. |
Summary of Interest Expense | The following table provides a summary of interest expense that includes interest, amortization of discount, and deal cost amortization for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Warehouse and repurchase facilities $ 5,910 $ 4,115 $ 10,743 $ 7,880 Securitized debt 39,541 24,637 76,737 44,428 Interest expense — portfolio related 45,451 28,752 87,480 52,308 Interest expense — corporate debt 4,139 4,182 8,278 21,322 Total interest expense $ 49,590 $ 32,934 $ 95,758 $ 73,630 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share Calculations | The following table presents the basic and diluted earnings per share calculations for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands, except per share data) (In thousands, except per share data) Basic EPS: Net income attributable to common shareholders $ 12,183 $ 10,645 $ 22,832 $ 13,766 Less: earnings attributable to participating securities 185 164 347 212 Net earnings attributable to common shareholders $ 11,998 $ 10,481 $ 22,485 $ 13,554 Weighted average common shares outstanding 32,122 31,917 32,111 31,904 Basic earnings per common share $ 0.37 $ 0.33 $ 0.70 $ 0.42 Diluted EPS: Net income attributable to common stockholders $ 12,183 $ 10,645 $ 22,832 $ 13,766 Weighted average common shares outstanding 32,122 31,917 32,111 31,904 Add dilutive effects for warrants 1,883 1,986 1,877 2,057 Add dilutive effects for stock options 4 4 5 4 Add dilutive effects of unvested restricted stock awards 95 150 78 165 Add dilutive effects of unvested performance-based stock units 36 — 24 — Weighted average diluted common shares outstanding 34,140 34,057 34,095 34,130 Diluted earnings per common share $ 0.36 $ 0.31 $ 0.67 $ 0.40 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would have been anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock options 773 773 773 773 Unvested restricted stock awards 84 125 84 125 Unvested performance-based stock units — 103 — 103 Share equivalents excluded from EPS 857 1,001 857 1,001 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Information on Assets and Liabilities Measured and Recorded at Fair Value | The following tables present information on assets and liabilities measured and recorded at fair value as of June 30, 2023 and December 31, 2022, by level, in the fair value hierarchy (in thousands): Fair value measurements using Total at June 30, 2023 Level 1 Level 2 Level 3 fair value Assets: Recurring fair value measurements: Loans held for investment, at fair value $ — $ — $ 705,330 $ 705,330 Mortgage servicing rights — — 9,445 9,445 Total recurring fair value measurements — — 714,775 714,775 Nonrecurring fair value measurements: Real estate owned, net — — 20,388 20,388 Individually evaluated loans requiring specific allowance, net — — 13,097 13,097 Total nonrecurring fair value measurements — — 33,485 33,485 Total assets $ — $ — $ 748,260 $ 748,260 Liabilities: Recurring fair value measurements: Securitized debt, at fair value $ — $ 381,799 $ — $ 381,799 Total recurring fair value measurements — 381,799 — 381,799 Total liabilities $ — $ 381,799 $ — $ 381,799 Fair value measurements using Total at December 31, 2022 Level 1 Level 2 Level 3 fair value Assets: 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: 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 |
Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis | The following table presents gains and losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on assets measured on a nonrecurring basis 2023 2022 2023 2022 Real estate held for sale, net $ ( 492 ) $ ( 143 ) $ ( 1,670 ) $ 93 Individually evaluated loans requiring specific allowance, net ( 48 ) 434 53 242 Total net gain (loss) $ ( 540 ) $ 291 $ ( 1,617 ) $ 335 |
Valuation Techniques and Unobservable Inputs Related to Level 3 Assets | The following table presents the primary valuation techniques and unobservable inputs related to Level 3 assets that are recorded on a recurring and nonrecurring basis as of June 30, 2023 ($ in thousands): June 30, 2023 Asset category Fair value Primary Unobservable Range Weighted Recurring: Loans held for investment, $ 705,330 Discounted cash flow Discount rate 9.5 % to 11.0 % 9.7 % Prepayment rate 0.0 % to 50.0 % 26.7 % Default rate 0.3 % to 94.9 % 9.7 % Loss severity rate 0.0 % to 24.8 % 2.9 % Recovery lag (performing loans, in months) 17 17 Mortgage servicing rights 9,445 Discounted cash flow Discount rate 8.0 % 8.0 % Prepayment rate 5.6 % to 16.9 % 6.9 % Nonrecurring: Individually evaluated $ 13,097 Market comparables Selling costs 8.0 % 8.0 % Real estate owned, net 20,388 Market comparables Selling costs 8.0 % 8.0 % The following table presents the primary valuation techniques and unobservable inputs related to Level 3 assets as of December 31, 2022 ($ 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 investment, 276,095 Discounted cash flow Discount rate 8.35 % to 9.35 % 8.9 % Prepayment rate 1.0 % to 30.0 % 15.1 % Default rate 0.12 % to 6.99 % 0.6 % Loss severity rate 0.00 % 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 % |
Rollforward of Loans held for investment and held for sale and Securitized Debt Measured at Estimated Fair Value on Recurring Basis | The following is a roll-forward of loans held for investment that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 450,732 $ — $ 276,095 $ — Originations 258,646 — 456,534 — Loans liquidated ( 13,464 ) — ( 21,485 ) — Principal paydowns ( 1,764 ) — ( 2,796 ) — Total unrealized gain included in net income 3,108 — 9,767 — Loans transferred to held for sale — — ( 20,857 ) — Loans repurchased 8,072 — 8,072 — Ending balance $ 705,330 $ — $ 705,330 $ — The following is a roll-forward of loans held for sale that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 18,080 $ 77,502 $ — $ 87,908 Originations — — 19,088 — Loans liquidated ( 17,385 ) $ ( 77,502 ) ( 39,945 ) $ ( 223,788 ) Total unrealized loss included in net income ( 695 ) — — — Loans transferred from (to) held for investment — ( 390 ) 20,857 135,490 Loans repurchased — 390 — 390 Ending balance $ — $ — $ — $ — The following is a roll-forward of securitized debt that are measured at estimated fair value on a recurring basis for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 194,941 $ — $ — $ — Securitized debt additions 201,000 — 398,487 — Securitized debt paydowns ( 8,582 ) — ( 11,297 ) — Total unrealized gain included in net income ( 5,560 ) — ( 5,391 ) — Ending balance $ 381,799 $ — $ 381,799 $ — |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated (in thousands): June 30, 2023 Carrying Estimated Asset category Value Level 1 Level 2 Level 3 Fair Value Assets: Cash $ 33,987 $ 33,987 $ — $ — $ 33,987 Restricted cash 16,786 16,786 — — 16,786 Loans held for investment, net 3,057,940 — — 2,879,626 2,879,626 Loans held for investment, at fair value 705,330 — — 705,330 705,330 Accrued interest receivables 22,602 22,602 — — 22,602 Mortgage servicing rights 9,445 — — 9,445 9,445 Liabilities: Secured financing, net $ 210,464 $ — $ — $ 211,634 $ 211,634 Warehouse repurchase facilities, net 235,749 — 235,749 — 235,749 Securitized debt, net 2,622,547 — 2,335,949 — 2,335,949 Securitized debt, at fair value 381,799 — 381,799 — 381,799 Accrued interest payable 18,068 18,068 — — 18,068 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 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 receivable 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 repurchase facilities, net 330,814 — 330,814 — 330,814 Securitized debt net 2,736,290 — — 2,522,010 2,522,010 Accrued interest payable 16,369 16,369 — — 16,369 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jan. 28, 2020 | Jan. 22, 2020 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 28, 2021 | Jan. 16, 2020 | |
Class Of Stock [Line Items] | ||||||
Date of incorporation | Jul. 09, 2012 | |||||
Minimum net worth required | $ 250,000 | $ 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 | 11,749,994 | |||||
Issuance of common stock, shares | 1,087,500 | 7,250,000 | 107,567 | |||
Stock price | $ 13 | $ 13 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Additional Information (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Cash and Cash Equivalents [Abstract] | |
Escrow balances payable | $ 83.5 |
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 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 33,987 | $ 45,248 | $ 46,250 | |
Restricted cash | 16,786 | 16,808 | 9,217 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 50,773 | $ 62,056 | $ 55,467 | $ 47,604 |
Loans Held for Investment and_3
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Allowance for loan losses | $ (4,626) | $ (5,045) | $ (4,893) | $ (4,905) | $ (4,663) | $ (4,262) |
Net Loans Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 3,031,725 | 3,243,854 | ||||
Deferred loan origination costs | 30,841 | 33,429 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 3,062,566 | 3,277,283 | ||||
Allowance for loan losses | (4,626) | (4,893) | ||||
Total loans held for investment and loans held for investment at fair value, net | 3,057,940 | 3,272,390 | ||||
Loans At Fair Value Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 688,100 | 268,632 | ||||
Valuation adjustments on FVO loans | (17,230) | 7,463 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 705,330 | 276,095 | ||||
Total loans held for investment and loans held for investment at fair value, net | 705,330 | 276,095 | ||||
Total Loans Held For Investment | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balance | 3,719,825 | 3,512,486 | ||||
Valuation adjustments on FVO loans | 17,230 | 7,463 | ||||
Deferred loan origination costs | 30,841 | 33,429 | ||||
Total loans held for investment and loans held for investment at fair value, gross | 3,767,896 | 3,553,378 | ||||
Allowance for loan losses | (4,626) | (4,893) | ||||
Total loans held for investment and loans held for investment at fair value, net | $ 3,763,270 | $ 3,548,485 |
Loans Held for Investment and_4
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of UPB and Amortized Cost Basis of Loans in COVID-19 Forbearance Program (Details) - COVID 19 Forbearance Program - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | |||
UPB Beginning balance | $ 195,114 | $ 201,005 | $ 292,429 |
UPB Foreclosures | (99) | (3,593) | |
UPB Repayments | (13,175) | (18,967) | (87,831) |
UPB Ending balance | 181,939 | 181,939 | 201,005 |
UPB Performing/Accruing, Amount | 138,419 | 138,419 | 161,455 |
UPB Nonperforming/Nonaccrual, Amount | $ 43,520 | $ 43,520 | $ 39,550 |
UPB Performing/Accruing, Percentage | 76.10% | 76.10% | 80.30% |
UPB Nonperforming/Nonaccrual, Percentage | 23.90% | 23.90% | 19.70% |
Amortized Cost Beginning balance | $ 197,350 | $ 203,346 | $ 295,990 |
Amortized Cost Foreclosures | (99) | (3,620) | |
Amortized Cost Repayments | (13,343) | (19,240) | (89,024) |
Amortized Cost Ending balance | 184,007 | 184,007 | 203,346 |
Amortized Cost Performing/Accruing, Amount | 139,941 | 139,941 | 163,346 |
Amortized Cost Nonperforming/Nonaccrual, Amount | $ 44,066 | $ 44,066 | $ 40,000 |
Amortized Cost Performing/Accruing, Percentage | 76.10% | 76.10% | 80.30% |
Amortized Cost Nonperforming/Nonaccrual, Percentage | 23.90% | 23.90% | 19.70% |
Loans Held for Investment and_5
Loans Held for Investment and Loans Held for Investment at Fair Value - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 39 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Accrued interest income recognized on nonaccrual loans | $ 0 | ||||||
Cash basis interest income recognized on nonaccrual loans | $ 8,000,000 | $ 8,700,000 | |||||
Average recorded investment of individually evaluated loans, computed using month-end balances | 331,400,000 | $ 260,800,000 | 316,900,000 | $ 271,300,000 | |||
COVID-19 | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans | 184,000,000 | $ 184,000,000 | $ 184,000,000 | $ 203,300,000 | |||
90+days | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Annualized charge rate of non performing loans | 0.77% | 0.27% | |||||
COVID 19 Forbearance Program | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Amount of loan granted for unusual risk forbearance | $ 234,700,000 | $ 234,700,000 | 234,700,000 | $ 410,500,000 | |||
Accrued interest income recognized on nonaccrual loans | $ 4,700,000 | $ 12,300,000 | |||||
Loans held for investment unpaid principal balance performing and accruing, percentage | 76.10% | 76.10% | 76.10% | 80.30% | |||
Loans held for investment unpaid principal balance nonperforming and nonaccrual percentage | 23.90% | 23.90% | 23.90% | 19.70% |
Loans Held for Investment and_6
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Loans Held for Investment Pledged as Collateral for Warehouse Facilities and Securitizations Issued (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 3,343,362 | $ 3,075,047 |
Asset Pledged as Collateral Without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 321,988 | 418,749 |
2013 Repurchase Agreement | Asset Pledged as Collateral Without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 86,225 | 170,185 |
2021 Repurchase Agreement | Asset Pledged as Collateral Without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 69,728 | 101,024 |
Bank Credit Agreement | Asset Pledged as Collateral Without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 42,317 | 39,087 |
2021 Term Repurchase Agreement | Asset Pledged as Collateral Without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 108,840 | 104,594 |
July 2021 Term Repurchase Agreement | Asset Pledged as Collateral Without Right | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total pledged loans | 14,878 | 3,859 |
2016-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 35,195 | 39,720 |
2017-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 57,059 | 67,048 |
2018-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 41,983 | 48,139 |
2018-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 94,530 | 104,791 |
2019-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 94,839 | 104,249 |
2019-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 82,180 | 91,025 |
2019-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 70,193 | 75,618 |
2020-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 129,485 | 144,913 |
2020-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 75,123 | 81,259 |
2021-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 195,114 | 208,875 |
2021-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 160,867 | 172,144 |
2021-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 168,487 | 178,861 |
2021-4 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 264,406 | 275,741 |
2022-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 253,457 | 262,526 |
2022-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 237,924 | 245,339 |
2022-MC1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 81,071 | 97,246 |
2022-3 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 287,694 | 299,638 |
2022-4 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 316,472 | 326,627 |
2022-5 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 242,400 | $ 251,288 |
2023-1 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 232,332 | |
2023-2 Trust | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 222,551 |
Loans Held for Investment and_7
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Nonaccrual With No Allowance for Loan Loss and Total Nonaccrual of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 354,787 | $ 295,339 | |
Nonaccrual with No Allowance for Loan Loss | 340,647 | 282,777 | |
Nonaccrual with Allowance for Loan Loss | 14,140 | 12,562 | |
Allowance for Loans Individually Evaluated | $ 1,043 | $ 1,096 | $ 1,164 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 7.40% | 8.70% | |
Commercial - Purchase | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 21,239 | $ 22,571 | |
Nonaccrual with No Allowance for Loan Loss | 20,304 | 22,437 | |
Nonaccrual with Allowance for Loan Loss | 935 | 134 | |
Allowance for Loans Individually Evaluated | $ 137 | $ 28 | 6 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 1% | 0.20% | |
Commercial - Refinance | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 93,176 | $ 87,133 | |
Nonaccrual with No Allowance for Loan Loss | 86,467 | 82,330 | |
Nonaccrual with Allowance for Loan Loss | 6,709 | 4,803 | |
Allowance for Loans Individually Evaluated | $ 552 | $ 517 | 434 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 3.90% | 4.10% | |
Residential 1-4 Unit - Purchase | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 49,826 | $ 27,984 | |
Nonaccrual with No Allowance for Loan Loss | 49,826 | 27,516 | |
Nonaccrual with Allowance for Loan Loss | 468 | ||
Allowance for Loans Individually Evaluated | $ 118 | 52 | |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 0.90% | ||
Residential 1-4 Unit - Refinance | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | 139,356 | $ 113,909 | |
Nonaccrual with No Allowance for Loan Loss | 134,942 | 111,742 | |
Nonaccrual with Allowance for Loan Loss | 4,414 | 2,167 | |
Allowance for Loans Individually Evaluated | $ 246 | $ 175 | 196 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 1.70% | 1.40% | |
Short Term 1-4 Unit - Purchase | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | $ 3,587 | $ 8,140 | |
Nonaccrual with No Allowance for Loan Loss | 3,587 | 8,140 | |
Short Term 1-4 Unit - Refinance | |||
Financing Receivable Impaired [Line Items] | |||
Total Nonaccrual | 47,603 | 35,602 | |
Nonaccrual with No Allowance for Loan Loss | 45,521 | 30,612 | |
Nonaccrual with Allowance for Loan Loss | 2,082 | 4,990 | |
Allowance for Loans Individually Evaluated | $ 108 | $ 258 | $ 476 |
Percentage of Allowance to Total Nonaccrual Loans with Allowance | 0.80% | 2.10% | |
Individual Loan Evaluation | |||
Financing Receivable Impaired [Line Items] | |||
Troubled Debt Restructuring included in nonaccrual loans: | $ 25 |
Loans Held for Investment and_8
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Accrued Interest Receivables Written Off by Reversing Interest Income by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | $ 3,062,566 | $ 3,123,704 | $ 3,062,566 | $ 3,123,704 |
Financing Receivable, Accrued Interest, Writeoff | 2,514 | 878 | 4,295 | 2,022 |
Commercial - Purchase | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 664,482 | 677,491 | 664,482 | 677,491 |
Financing Receivable, Accrued Interest, Writeoff | 136 | 77 | 268 | 192 |
Commercial - Refinance | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 854,048 | 912,774 | 854,048 | 912,774 |
Financing Receivable, Accrued Interest, Writeoff | 667 | 335 | 1,183 | 587 |
Residential 1-4 Unit - Purchase | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 553,269 | 529,796 | 553,269 | 529,796 |
Financing Receivable, Accrued Interest, Writeoff | 476 | 61 | 773 | 281 |
Residential 1-4 Unit - Refinance | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 882,020 | 887,720 | 882,020 | 887,720 |
Financing Receivable, Accrued Interest, Writeoff | 881 | 269 | 1,597 | 566 |
Short Term 1-4 Unit - Purchase | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 49,242 | 57,973 | 49,242 | 57,973 |
Financing Receivable, Accrued Interest, Writeoff | 7 | 4 | 31 | 25 |
Short Term 1-4 Unit - Refinance | ||||
Financing Receivable Impaired [Line Items] | ||||
Financing Receivable, Amortized Cost Basis | 59,505 | 57,950 | 59,505 | 57,950 |
Financing Receivable, Accrued Interest, Writeoff | $ 347 | $ 132 | $ 443 | $ 371 |
Loans Held for Investment and_9
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Allowance for credit losses: | |||||
Beginning balance | $ 5,045 | $ 4,663 | $ 4,893 | $ 4,262 | |
Provision for loan losses | 298 | 279 | 933 | 1,009 | |
Charge-offs | (717) | (37) | (1,200) | (366) | |
Ending balance | 4,626 | 4,905 | 4,626 | 4,905 | |
Allowance for Loans Individually Evaluated | 1,043 | 1,164 | 1,043 | 1,164 | $ 1,096 |
Allowance related to Loans collectively evaluated | 3,583 | 3,741 | 3,583 | 3,741 | |
Amortized cost related to Loans individually evaluated | 354,787 | 255,202 | 354,787 | 255,202 | |
Amortized cost related to Loans collectively evaluated | 2,707,779 | 2,868,502 | 2,707,779 | 2,868,502 | |
Commercial - Purchase | |||||
Allowance for credit losses: | |||||
Beginning balance | 796 | 518 | 639 | 385 | |
Provision for loan losses | (64) | 94 | 93 | 374 | |
Charge-offs | (147) | ||||
Ending balance | 732 | 612 | 732 | 612 | |
Allowance for Loans Individually Evaluated | 137 | 6 | 137 | 6 | 28 |
Allowance related to Loans collectively evaluated | 595 | 606 | 595 | 606 | |
Amortized cost related to Loans individually evaluated | 21,239 | 14,911 | 21,239 | 14,911 | |
Amortized cost related to Loans collectively evaluated | 643,243 | 662,580 | 643,243 | 662,580 | |
Commercial - Refinance | |||||
Allowance for credit losses: | |||||
Beginning balance | 2,060 | 2,140 | 2,031 | 2,144 | |
Provision for loan losses | (34) | (125) | 74 | (123) | |
Charge-offs | (19) | (79) | (25) | ||
Ending balance | 2,026 | 1,996 | 2,026 | 1,996 | |
Allowance for Loans Individually Evaluated | 552 | 434 | 552 | 434 | 517 |
Allowance related to Loans collectively evaluated | 1,474 | 1,562 | 1,474 | 1,562 | |
Amortized cost related to Loans individually evaluated | 93,176 | 80,442 | 93,176 | 80,442 | |
Amortized cost related to Loans collectively evaluated | 760,872 | 832,332 | 760,872 | 832,332 | |
Residential 1-4 Unit - Purchase | |||||
Allowance for credit losses: | |||||
Beginning balance | 468 | 389 | 542 | 400 | |
Provision for loan losses | (65) | 51 | (112) | 40 | |
Charge-offs | (27) | ||||
Ending balance | 403 | 440 | 403 | 440 | |
Allowance for Loans Individually Evaluated | 52 | 52 | 118 | ||
Allowance related to Loans collectively evaluated | 403 | 388 | 403 | 388 | |
Amortized cost related to Loans individually evaluated | 49,826 | 22,885 | 49,826 | 22,885 | |
Amortized cost related to Loans collectively evaluated | 503,443 | 506,911 | 503,443 | 506,911 | |
Residential 1-4 Unit - Refinance | |||||
Allowance for credit losses: | |||||
Beginning balance | 1,363 | 1,029 | 1,272 | 948 | |
Provision for loan losses | (99) | 241 | 3 | 427 | |
Charge-offs | (11) | (105) | |||
Ending balance | 1,264 | 1,270 | 1,264 | 1,270 | |
Allowance for Loans Individually Evaluated | 246 | 196 | 246 | 196 | 175 |
Allowance related to Loans collectively evaluated | 1,018 | 1,074 | 1,018 | 1,074 | |
Amortized cost related to Loans individually evaluated | 139,356 | 96,649 | 139,356 | 96,649 | |
Amortized cost related to Loans collectively evaluated | 742,664 | 791,071 | 742,664 | 791,071 | |
Short Term 1-4 Unit - Purchase | |||||
Allowance for credit losses: | |||||
Beginning balance | 24 | 50 | 21 | 43 | |
Provision for loan losses | 752 | (16) | 816 | (9) | |
Charge-offs | (717) | (778) | |||
Ending balance | 59 | 34 | 59 | 34 | |
Allowance related to Loans collectively evaluated | 59 | 34 | 59 | 34 | |
Amortized cost related to Loans individually evaluated | 3,587 | 2,302 | 3,587 | 2,302 | |
Amortized cost related to Loans collectively evaluated | 45,655 | 55,671 | 45,655 | 55,671 | |
Short Term 1-4 Unit - Refinance | |||||
Allowance for credit losses: | |||||
Beginning balance | 334 | 537 | 388 | 342 | |
Provision for loan losses | (192) | 34 | 59 | 300 | |
Charge-offs | (18) | (305) | (89) | ||
Ending balance | 142 | 553 | 142 | 553 | |
Allowance for Loans Individually Evaluated | 108 | 476 | 108 | 476 | $ 258 |
Allowance related to Loans collectively evaluated | 34 | 77 | 34 | 77 | |
Amortized cost related to Loans individually evaluated | 47,603 | 38,013 | 47,603 | 38,013 | |
Amortized cost related to Loans collectively evaluated | $ 11,902 | $ 19,937 | $ 11,902 | $ 19,937 |
Loans Held for Investment an_10
Loans Held for Investment and Loans Held for Investment at Fair Value - Schedule of Aging Status of Amortized Cost Basis in Loans Held for Investment Portfolio (Details) - COVID19 Pandemic - Aging Status and Accrual Status - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | $ 3,062,566 | $ 3,277,284 |
Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 354,787 | 295,339 |
Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 21,239 | 22,571 |
Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 93,176 | 87,133 |
Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 49,826 | 27,984 |
Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 139,356 | 113,909 |
Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 3,587 | 8,140 |
Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 47,603 | 35,602 |
Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 2,707,779 | 2,981,945 |
Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 643,243 | 678,837 |
Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 760,872 | 819,964 |
Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 503,443 | 560,449 |
Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 742,664 | 825,396 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 45,655 | 61,744 |
Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 11,902 | 35,555 |
30-59 days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 143,515 | 189,616 |
30-59 days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 8,517 | 8,418 |
30-59 days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 961 | 865 |
30-59 days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 4,647 | 4,415 |
30-59 days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 656 | 590 |
30-59 days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,077 | 1,715 |
30-59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 176 | 176 |
30-59 days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 657 | |
30-59 days | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 134,998 | 181,198 |
30-59 days | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 28,861 | 24,899 |
30-59 days | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 38,895 | 41,711 |
30-59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 24,371 | 22,840 |
30-59 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 40,966 | 64,925 |
30-59 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 823 | 21,273 |
30-59 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,082 | 5,550 |
60-89 days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 72,105 | 73,577 |
60-89 days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 13,432 | 9,263 |
60-89 days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,658 | |
60-89 days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,047 | 5,943 |
60-89 days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,869 | 592 |
60-89 days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,653 | 2,728 |
60-89 days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 205 | |
60-89 days | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 58,673 | 64,314 |
60-89 days | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,744 | 5,096 |
60-89 days | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 17,841 | 20,561 |
60-89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 7,171 | 13,948 |
60-89 days | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 21,836 | 23,224 |
60-89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,336 | 294 |
60-89 days | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 745 | 1,191 |
90+days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 332,838 | 277,502 |
90+days | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 332,838 | 277,502 |
90+days | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 17,620 | 21,706 |
90+days | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 81,482 | 76,619 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 47,301 | 26,802 |
90+days | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 135,626 | 109,466 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,411 | 7,964 |
90+days | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 47,398 | 34,945 |
Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 548,458 | 540,695 |
Past Due | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 354,787 | 295,183 |
Past Due | Loans Individually Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 21,239 | 22,571 |
Past Due | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 93,176 | 86,977 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 49,826 | 27,984 |
Past Due | Loans Individually Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 139,356 | 113,909 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 3,587 | 8,140 |
Past Due | Loans Individually Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 47,603 | 35,602 |
Past Due | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 193,671 | 245,512 |
Past Due | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 36,605 | 29,995 |
Past Due | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 56,736 | 62,272 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 31,542 | 36,788 |
Past Due | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 62,802 | 88,149 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 4,159 | 21,567 |
Past Due | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 1,827 | 6,741 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,514,108 | 2,736,589 |
Current | Loans Individually Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 156 | |
Current | Loans Individually Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 156 | |
Current | Loans Collectively Evaluated | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 2,514,108 | 2,736,433 |
Current | Loans Collectively Evaluated | Commercial - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 606,638 | 648,842 |
Current | Loans Collectively Evaluated | Commercial - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 704,136 | 757,692 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 471,901 | 523,661 |
Current | Loans Collectively Evaluated | Residential 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 679,862 | 737,247 |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Purchase | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | 41,496 | 40,177 |
Current | Loans Collectively Evaluated | Short Term 1-4 Unit - Refinance | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans, past due | $ 10,075 | $ 28,814 |
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 | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | $ 1,243,841 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | $ 1,181,341 | $ 1,181,341 | 1,033,695 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 976,286 | 976,286 | 168,977 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 159,348 | 159,348 | 358,100 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 319,861 | 319,861 | 231,024 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 425,730 | 425,730 | 241,647 |
Total | 3,062,566 | 3,062,566 | 3,277,284 |
Term Loans Amortized Cost Basis by Origination Year, 2022, Gross Charge-offs | 11 | ||
Term Loans Amortized Cost Basis by Origination Year, 2021, Gross Charge-offs | 717 | 743 | |
Term Loans Amortized Cost Basis by Origination Year, 2019, Gross Charge-offs | 446 | ||
Gross Charge-offs, Total | 717 | 1,200 | |
Commercial - Purchase | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 275,224 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 268,097 | 268,097 | 256,059 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 241,609 | 241,609 | 37,643 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 34,489 | 34,489 | 62,131 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 55,219 | 55,219 | 36,398 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 65,068 | 65,068 | 33,953 |
Total | 664,482 | 664,482 | 701,408 |
Commercial - Purchase | Performing | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 273,950 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 263,561 | 263,561 | 249,100 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 236,653 | 236,653 | 36,064 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 33,956 | 33,956 | 56,322 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 51,053 | 51,053 | 33,193 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 58,020 | 58,020 | 30,208 |
Total | 643,243 | 643,243 | 678,837 |
Commercial - Purchase | Nonperforming | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,274 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 4,536 | 4,536 | 6,959 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 4,956 | 4,956 | 1,579 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 533 | 533 | 5,809 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,166 | 4,166 | 3,205 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 7,048 | 7,048 | 3,745 |
Total | 21,239 | 21,239 | 22,571 |
Commercial - Refinance | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 272,766 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 268,682 | 268,682 | 222,699 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 212,821 | 212,821 | 59,650 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 57,154 | 57,154 | 127,056 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 114,087 | 114,087 | 113,569 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 201,304 | 201,304 | 111,357 |
Total | 854,048 | 854,048 | 907,097 |
Commercial - Refinance | Performing | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 263,754 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 246,580 | 246,580 | 210,898 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 199,498 | 199,498 | 55,795 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 52,015 | 52,015 | 103,633 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 92,882 | 92,882 | 93,161 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 169,897 | 169,897 | 92,723 |
Total | 760,872 | 760,872 | 819,964 |
Commercial - Refinance | Nonperforming | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 9,012 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 22,102 | 22,102 | 11,801 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 13,323 | 13,323 | 3,855 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 5,139 | 5,139 | 23,423 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 21,205 | 21,205 | 20,408 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 31,407 | 31,407 | 18,634 |
Total | 93,176 | 93,176 | 87,133 |
Residential 1-4 Unit - Purchase | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 256,906 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 243,440 | 243,440 | 237,342 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 226,066 | 226,066 | 12,875 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 11,114 | 11,114 | 33,998 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 30,001 | 30,001 | 20,444 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 42,648 | 42,648 | 26,868 |
Total | 553,269 | 553,269 | 588,433 |
Residential 1-4 Unit - Purchase | Performing | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 249,625 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 224,109 | 224,109 | 227,235 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 205,756 | 205,756 | 10,710 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,145 | 9,145 | 31,685 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 27,854 | 27,854 | 18,891 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 36,579 | 36,579 | 22,303 |
Total | 503,443 | 503,443 | 560,449 |
Residential 1-4 Unit - Purchase | Nonperforming | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 7,281 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 19,331 | 19,331 | 10,107 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 20,310 | 20,310 | 2,165 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,969 | 1,969 | 2,313 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,147 | 2,147 | 1,553 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 6,069 | 6,069 | 4,565 |
Total | 49,826 | 49,826 | 27,984 |
Residential 1-4 Unit - Refinance | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 360,350 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 345,189 | 345,189 | 310,218 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 294,057 | 294,057 | 31,610 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 29,529 | 29,529 | 111,954 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 101,045 | 101,045 | 55,704 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 112,200 | 112,200 | 69,469 |
Total | 882,020 | 882,020 | 939,305 |
Residential 1-4 Unit - Refinance | Performing | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 338,959 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 304,498 | 304,498 | 285,195 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 260,317 | 260,317 | 24,703 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 20,897 | 20,897 | 84,208 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 72,047 | 72,047 | 39,870 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 84,905 | 84,905 | 52,461 |
Total | 742,664 | 742,664 | 825,396 |
Residential 1-4 Unit - Refinance | Nonperforming | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 21,391 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 40,691 | 40,691 | 25,023 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 33,740 | 33,740 | 6,907 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 8,632 | 8,632 | 27,746 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 28,998 | 28,998 | 15,834 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 27,295 | 27,295 | 17,008 |
Total | 139,356 | 139,356 | 113,909 |
Short Term 1-4 Unit - Purchase | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 42,254 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 26,145 | 26,145 | 6,156 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 710 | 710 | 16,654 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 17,852 | 17,852 | 4,716 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,535 | 4,535 | 104 |
Total | 49,242 | 49,242 | 69,884 |
Short Term 1-4 Unit - Purchase | Performing | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 40,967 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 23,733 | 23,733 | 944 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 710 | 710 | 15,659 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 16,857 | 16,857 | 4,174 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,355 | 4,355 | |
Total | 45,655 | 45,655 | 61,744 |
Short Term 1-4 Unit - Purchase | Nonperforming | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,287 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 2,412 | 2,412 | 5,212 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 995 | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 995 | 995 | 542 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 180 | 180 | 104 |
Total | 3,587 | 3,587 | 8,140 |
Short Term 1-4 Unit - Refinance | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 36,341 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 29,788 | 29,788 | 1,221 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,023 | 1,023 | 10,545 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,210 | 9,210 | 18,245 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 14,974 | 14,974 | 4,805 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 4,510 | 4,510 | |
Total | 59,505 | 59,505 | 71,157 |
Short Term 1-4 Unit - Refinance | Performing | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 35,555 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 11,902 | 11,902 | |
Total | 11,902 | 11,902 | 35,555 |
Short Term 1-4 Unit - Refinance | Nonperforming | |||
Financing Receivable Recorded Investment [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 786 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 17,886 | 17,886 | 1,221 |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,023 | 1,023 | 10,545 |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,210 | 9,210 | 18,245 |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 14,974 | 14,974 | 4,805 |
Term Loans Amortized Cost Basis by Origination Year, Pre-2019 | 4,510 | 4,510 | |
Total | $ 47,603 | $ 47,603 | $ 35,602 |
Loans Held for Investment an_12
Loans Held for Investment and Loans Held for Investment at Fair Value - Summary of Difference Between Aggregate Fair Value and Aggregate Unpaid Principal Balance by Loan Segments (Details) - Nonaccrual Status $ in Thousands | Jun. 30, 2023 USD ($) |
Financing Receivable, Past Due [Line Items] | |
Fair Value | $ 705,330 |
Unpaid Principal Balance | 688,100 |
Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 689,393 |
Unpaid Principal Balance | 668,167 |
90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 15,937 |
Unpaid Principal Balance | 19,933 |
Difference | 3,996 |
Commercial - Purchase | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 100,605 |
Unpaid Principal Balance | 95,214 |
Commercial - Purchase | Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 100,143 |
Unpaid Principal Balance | 94,622 |
Commercial - Purchase | 90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 462 |
Unpaid Principal Balance | 592 |
Difference | (130) |
Commercial - Refinance | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 112,875 |
Unpaid Principal Balance | 106,105 |
Commercial - Refinance | Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 111,599 |
Unpaid Principal Balance | 104,676 |
Commercial - Refinance | 90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 1,276 |
Unpaid Principal Balance | 1,429 |
Difference | (153) |
Residential 1-4 Unit - Purchase | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 159,256 |
Unpaid Principal Balance | 158,265 |
Residential 1-4 Unit - Purchase | Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 156,032 |
Unpaid Principal Balance | 154,132 |
Residential 1-4 Unit - Purchase | 90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 3,224 |
Unpaid Principal Balance | 4,133 |
Difference | (909) |
Residential 1-4 Unit - Refinance | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 274,688 |
Unpaid Principal Balance | 269,308 |
Residential 1-4 Unit - Refinance | Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 265,388 |
Unpaid Principal Balance | 257,677 |
Residential 1-4 Unit - Refinance | 90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 9,300 |
Unpaid Principal Balance | 11,631 |
Difference | (2,331) |
Short Term 1-4 Unit - Purchase | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 27,713 |
Unpaid Principal Balance | 28,370 |
Short Term 1-4 Unit - Purchase | Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 26,701 |
Unpaid Principal Balance | 27,072 |
Short Term 1-4 Unit - Purchase | 90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 1,012 |
Unpaid Principal Balance | 1,298 |
Difference | (286) |
Short Term 1-4 Unit - Refinance | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 30,193 |
Unpaid Principal Balance | 30,838 |
Short Term 1-4 Unit - Refinance | Current to 89 Days Past Due | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 29,530 |
Unpaid Principal Balance | 29,988 |
Short Term 1-4 Unit - Refinance | 90+days Past Due or Nonaccrual | |
Financing Receivable, Past Due [Line Items] | |
Fair Value | 663 |
Unpaid Principal Balance | 850 |
Difference | $ (187) |
Receivables Due From Servicer_2
Receivables Due From Servicers - Summary of Receivables Due From Servicers (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | $ 26,451 | $ 25,064 |
Other loan servicing receivables | 13,844 | 15,616 |
Loan servicing receivables | 40,295 | 40,680 |
Corporate and escrow advances receivable | 23,601 | 24,964 |
Total receivables due from servicers | 63,896 | 65,644 |
Securitized debt | ||
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | 25,996 | 24,400 |
Other loan servicing receivables | 11,518 | 13,095 |
Loan servicing receivables | 37,514 | 37,495 |
Corporate and escrow advances receivable | 23,220 | 21,995 |
Total receivables due from servicers | 60,734 | 59,490 |
Warehouse and Repurchase Facilities and Other | ||
Related Party Transaction [Line Items] | ||
Loan principal payments due from servicers | 455 | 664 |
Other loan servicing receivables | 2,326 | 2,521 |
Loan servicing receivables | 2,781 | 3,185 |
Corporate and escrow advances receivable | 381 | 2,969 |
Total receivables due from servicers | $ 3,162 | $ 6,154 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Unpaid principal balance of mortgage loans serviced for others, amount | $ 500.7 | $ 491.9 |
Fair value of servicing rights, weighted average discount rate | 8% | 8.10% |
Fair value of servicing rights, weighted average constant prepayment rate | 6.90% | 6.30% |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Balance at the beginning of year | $ 9,238 | $ 7,152 |
Additions | 250 | |
Fair value adjustments | (43) | 2,086 |
Balance at end of year | $ 9,445 | $ 9,238 |
Goodwill - Schedule of Activity
Goodwill - Schedule of Activity for Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Balance at the beginning of period | $ 6,775 | $ 6,775 |
Goodwill acquired | 0 | 0 |
Balance at end of period | $ 6,775 | $ 6,775 |
Securitized Debt and Securiti_3
Securitized Debt and Securitized Debt at Fair Value - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 Securities | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Number of securitizations | 22 |
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% |
Maturity dates of the securities | 2045-07 |
Maximum | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |
Securities redemption when principal balance is less than a certain percentage | 30% |
Maturity dates of the securities | 2053-04 |
Securitized Debt and Securiti_4
Securitized Debt and Securitized Debt at Fair Value - Summary of Securitized Debt and Securitized Debt at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Securitized debt, net | $ 2,622,547 | $ 2,736,290 |
Securitized debt at fair value | 381,799 | |
Total securitized debt | 3,004,346 | 2,736,290 |
Securitized debt | ||
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Securitized debt, net | 2,668,582 | |
Securitized debt at fair value | 389,628 | |
Total securitized debt | 3,058,210 | |
Unpaid Principal Balance | ||
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Securitized debt, net | 2,788,908 | |
Total securitized debt | 2,788,908 | |
Valuation Adjustments on FVO Securitized Debt | ||
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Securitized debt at fair value | (7,829) | |
Total securitized debt | (7,829) | |
Deferred Issuance Costs and Discounts | ||
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Securitized debt, net | (46,035) | (52,618) |
Total securitized debt | $ (46,035) | $ (52,618) |
Securitized Debt and Securiti_5
Securitized Debt and Securitized Debt at Fair Value - Summary of Effective Interest Rate of Securitized Debt and Securitized Debt at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||
Average outstanding unpaid principal balance | $ 2,973,388 | $ 2,175,263 |
Effective interest rate | 5.16% | 4.08% |
Securitized debt | ||
Debt Instrument [Line Items] | ||
Interest expense - portfolio related | $ 76,737 | $ 44,428 |
Securitized Debt and Securiti_6
Securitized Debt and Securitized Debt at Fair Value - Summary of Effective Interest Rate of Securitized Debt and Securitized Debt at Fair Value (Parenthetical) (Details) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | ||
Average interest rate | 4.54% | 3.38% |
Debt issuance cost amortization rate | 0.62% | 0.70% |
Other Debt - Additional Informa
Other Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||
Oct. 07, 2022 | Mar. 15, 2022 | Sep. 12, 2018 | Aug. 08, 2016 | Jan. 04, 2011 | Apr. 16, 2021 | Jan. 29, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||||||
Lines of credit fund maximum percentage of principle balance of mortgage loans | 100% | ||||||||
Debt instrument, face amount | $ 10,200,000 | ||||||||
Line of credit, maximum capacity | $ 813,000,000 | $ 831,818,000 | |||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 3 years | ||||||||
Debt Instrument, effective interest rate | 8.90% | 5.80% | |||||||
Agreement entered date | Sep. 12, 2018 | ||||||||
Debt instrument, maturity date | Nov. 10, 2025 | ||||||||
Line of credit, maximum capacity | $ 50,000,000 | $ 3,000,000 | $ 3,000,000 | ||||||
Revolving Credit Line | |||||||||
Debt Instrument [Line Items] | |||||||||
Agreement entered date | Aug. 08, 2016 | ||||||||
Debt instrument, maturity date | Jul. 31, 2023 | ||||||||
Line of credit, outstanding amount | $ 0 | $ 0 | |||||||
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 | ||||||||
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 | $ 4,500,000 | ||||||||
Debt instrument, maturity date | Mar. 15, 2027 | ||||||||
Debt instrument, fixed interest rate | 7.125% | ||||||||
2013 Repurchase Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, spread rate | 3.50% | ||||||||
Debt Instrument, effective interest rate | 10.10% | 5.70% | |||||||
Agreement entered date | May 17, 2013 | ||||||||
Debt instrument, maturity date | Sep. 29, 2023 | ||||||||
Line of credit, maximum capacity | $ 300,000,000 | $ 300,000,000 | |||||||
2021 Repurchase Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, effective interest rate | 10.40% | 6.40% | |||||||
Agreement entered date | Jan. 29, 2021 | ||||||||
Debt instrument, maturity date | May 15, 2024 | ||||||||
Line of credit, maximum capacity | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | ||||||
2021 Repurchase Agreement | Minimum | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, spread rate | 3% | ||||||||
2021 Repurchase Agreement | Maximum | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, spread rate | 4% | ||||||||
2021 Term Repurchase Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, effective interest rate | 8.30% | 5.60% | |||||||
Agreement entered date | Apr. 16, 2021 | ||||||||
Debt instrument, maturity date | Apr. 16, 2026 | ||||||||
Line of credit, maximum capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||
2021 Term Repurchase Agreement | Minimum | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, spread rate | 3.10% | ||||||||
July 2021 Term Repurchase Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description | one-month American Interbank Offered Rate ("AMERIBOR") | ||||||||
Debt Instrument, effective interest rate | 21.10% | 10% | |||||||
Line of credit, maximum capacity | $ 100,000,000 | ||||||||
Interest rate description | Each loan advance bears interest at one-month American Interbank Offered Rate ("AMERIBOR") with a 0.5% floor plus 4.50% per annum. | ||||||||
Line of credit , maturity date | Jul. 29, 2024 | ||||||||
Line of credit facility, description | The July 2021 Term Repurchase Agreement has a maturity date of July 29, 2024, with an option to extend the term to July 29, 2025 | ||||||||
July 2021 Term Repurchase Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum capacity | $ 100,000,000 | $ 100,000,000 | |||||||
July 2021 Term Repurchase Agreement | LIBOR | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, floor rate | 0.50% | ||||||||
Debt instrument, spread rate | 4.50% | ||||||||
Facility Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Agreement entered date | Jan. 04, 2011 | ||||||||
Debt instrument, maturity date | Jul. 31, 2024 | ||||||||
Facility Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description | one-month Secured Overnight Financing Rate (“SOFR”) | ||||||||
Debt Instrument, effective interest rate | 7.20% | ||||||||
Line of credit, maximum capacity | $ 60,000,000 | ||||||||
Line of credit, outstanding amount | $ 0 | ||||||||
Facility Agreement | SOFR | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, floor rate | 0.25% | ||||||||
Debt instrument, spread rate | 1.60% | ||||||||
October 2022 Repurchase Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description | SOFR | ||||||||
Debt Instrument, effective interest rate | 6.60% | 6.10% | |||||||
Line of credit, maximum capacity | $ 18,818,000 | ||||||||
Line of credit facility, description | bore interest at SOFR plus 1.58%. | ||||||||
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 ($) | Jun. 30, 2023 | Dec. 31, 2022 | Apr. 16, 2021 | Jan. 29, 2021 | Sep. 12, 2018 |
Debt Instrument [Line Items] | |||||
Period end balance | $ 237,025,000 | $ 331,740,000 | |||
Maximum borrowing capacity | 813,000,000 | 831,818,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 3,000,000 | 3,000,000 | $ 50,000,000 | ||
2021 Term Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 73,097,000 | 74,334,000 | |||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | $ 100,000,000 | ||
2021 Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 54,482,000 | 79,504,000 | |||
Maximum borrowing capacity | 200,000,000 | 200,000,000 | $ 200,000,000 | ||
July 2021 Term Repurchase Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | ||||
July 2021 Term Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 8,534,000 | 2,185,000 | |||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | |||
2013 Repurchase Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 69,436,000 | 136,165,000 | |||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | |||
Bank Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Period end balance | 31,476,000 | 29,495,000 | |||
Maximum borrowing capacity | 50,000,000 | 50,000,000 | |||
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 | $ 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 | Jun. 30, 2023 | Dec. 31, 2022 |
Warehouse Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 1.3 | $ 0.9 |
Other Debt - Schedule of Activi
Other Debt - Schedule of Activity and Effective Interest Rate (Details) - Warehouse and Repurchase Facilities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Average outstanding balance | $ 238,027 | $ 318,960 | $ 231,762 | $ 328,603 |
Highest outstanding balance at any month-end | $ 320,544 | $ 379,169 | $ 320,544 | $ 426,959 |
Effective interest rate | 9.93% | 5.16% | 9.27% | 4.80% |
Other Debt - Schedule of Acti_2
Other Debt - Schedule of Activity and Effective Interest Rate (Parenthetical) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Debt Instrument, average rate | 9.12% | 4.59% | 8.61% | 4.23% |
Debt issue cost amortization percentage | 0.81% | 0.57% | 0.66% | 0.57% |
Other Debt - Summary of Interes
Other Debt - Summary of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | $ 45,451 | $ 28,752 | $ 87,480 | $ 52,308 |
Interest expense — corporate debt | 4,139 | 4,182 | 8,278 | 21,322 |
Total interest expense | 49,590 | 32,934 | 95,758 | 73,630 |
Warehouse and Repurchase Facilities | ||||
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | 5,910 | 4,115 | 10,743 | 7,880 |
Securitized debt | ||||
Debt Instrument [Line Items] | ||||
Interest expense — portfolio related | $ 39,541 | $ 24,637 | $ 76,737 | $ 44,428 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | |||
Repurchase liability | $ 48 | $ 48 | $ 124 |
Coronavirus Aid Relief And Economic Security Act | |||
Loss Contingencies [Line Items] | |||
Employee retention credit amount received | 4,200 | ||
Third Party Specialist Fees [Member] | Coronavirus Aid Relief And Economic Security Act | |||
Loss Contingencies [Line Items] | |||
Employee retention credit amount received | 4,200 | ||
Accounts Payable And Accrued Axpenses | Third Party Specialist Fees [Member] | Coronavirus Aid Relief And Economic Security Act | |||
Loss Contingencies [Line Items] | |||
Net of specialist fee amount | $ 600 | $ 600 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Dec. 24, 2020 | Jan. 31, 2020 | May 31, 2023 | Jan. 31, 2023 | May 31, 2022 | Feb. 28, 2022 | May 31, 2021 | Jan. 31, 2021 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Restricted stock awarded and earned stock compensation, shares | 125,250 | 480,000 | ||||||||||
Compensation expense | $ 1 | $ 0.8 | ||||||||||
Amount of unrecognized compensation expense | $ 5.7 | $ 5.3 | $ 5.7 | |||||||||
Treasury shares purchased | 0 | 85,574 | ||||||||||
Treasury shares, average price per share | $ 9.78 | |||||||||||
Restricted Stock-based Awards | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Awards granted requisite service period | 3 years | |||||||||||
Description of compensation expense related to stock options | Compensation expense related to restricted stock-based awards is based on the fair value of the underlying stock on the award date and is recognized over the vesting period using the straight-line method. | |||||||||||
Performance Stock Unit | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares issued | 153,637 | 102,750 | ||||||||||
Non-Employee Directors | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Restricted stock awarded and earned stock compensation, shares | 31,629 | 31,215 | 26,511 | |||||||||
Employee Directors | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Restricted stock awarded and earned stock compensation, shares | 198,137 | |||||||||||
Employee Stock Purchase Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Percentage of purchase price | 85% | 85% | ||||||||||
Employee Stock Purchase Plan | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Percentage of payroll deduction | 15% | 15% | ||||||||||
2020 Omnibus Incentive Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of shares authorized to grant | 2,770,000 | 2,770,000 | ||||||||||
Stock options granted | 12,500 | 782,500 | ||||||||||
Exercise price of unvested stock options | $ 6.28 | |||||||||||
2020 Omnibus Incentive Plan | Initial Public Offering | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Exercise price of unvested stock options | $ 13 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic EPS: | ||||
Net income attributable to common shareholders | $ 12,183 | $ 10,645 | $ 22,832 | $ 13,766 |
Less: earnings attributable to participating securities | 185 | 164 | 347 | 212 |
Net earnings attributable to common shareholders | $ 11,998 | $ 10,481 | $ 22,485 | $ 13,554 |
Weighted average common shares outstanding | 32,122 | 31,917 | 32,111 | 31,904 |
Basic earnings per common share | $ 0.37 | $ 0.33 | $ 0.70 | $ 0.42 |
Diluted EPS: | ||||
Net income attributable to common stockholders | $ 12,183 | $ 10,645 | $ 22,832 | $ 13,766 |
Weighted average common shares outstanding | 32,122 | 31,917 | 32,111 | 31,904 |
Add dilutive effects for warrants | 1,883 | 1,986 | 1,877 | 2,057 |
Add dilutive effects for stock options | 4 | 4 | 5 | 4 |
Add dilutive effects of unvested restricted stock awards | 95 | 150 | 78 | 165 |
Add dilutive effects of unvested performance-based stock units | 36 | 24 | ||
Weighted Average Number of Shares Outstanding, Diluted, Total | 34,140 | 34,057 | 34,095 | 34,130 |
Diluted earnings per common share | $ 0.36 | $ 0.31 | $ 0.67 | $ 0.40 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 857 | 1,001 | 857 | 1,001 |
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 773 | 773 | 773 | 773 |
Unvested restricted stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 84 | 125 | 84 | 125 |
Unvested performance-based stock units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Share equivalents excluded from EPS | 103 | 103 |
Warrants - Additional Informati
Warrants - Additional Information (Details) - $ / shares | Jun. 30, 2023 | Jan. 16, 2020 |
Class of Warrant or Right [Line Items] | ||
Percentage of common stock held by warrant holder and affiliates | 49% | |
Exercise Price of $2.96 per Share of Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Exercise price per share | $ 2.96 | |
Warrants to purchase an aggregate shares | 2,008,749 | |
Exercise Price of $4.94 per Share of Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Exercise price per share | $ 4.94 | |
Warrants to purchase an aggregate shares | 1,004,375 | |
Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Convertible preferred shares outstanding into common stock | 11,749,994 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Information on Assets and Liabilities Measured and Recorded at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | |||
Loans held for investment, at fair value | $ 705,330 | $ 276,095 | |
Mortgage servicing rights | 9,445 | 9,238 | $ 7,152 |
Assets | 748,260 | 310,124 | |
Real estate owned, net | 20,388 | 13,325 | |
Liabilities: | |||
Securitized debt, at fair value | 381,799 | ||
Liabilities | 381,799 | ||
Recurring Fair Value Measurements | |||
Assets: | |||
Loans held for investment, at fair value | 705,330 | 276,095 | |
Mortgage servicing rights | 9,445 | 9,238 | |
Assets | 714,775 | 285,333 | |
Liabilities: | |||
Securitized debt, at fair value | 381,799 | ||
Liabilities | 381,799 | ||
Nonrecurring Fair Value Measurements | |||
Assets: | |||
Assets | 33,485 | 24,791 | |
Real estate owned, net | 20,388 | 13,325 | |
Individually evaluated/Impaired loans requiring specific allowance, net | 13,097 | 11,466 | |
Level 2 | |||
Liabilities: | |||
Liabilities | 381,799 | ||
Level 2 | Recurring Fair Value Measurements | |||
Liabilities: | |||
Securitized debt, at fair value | 381,799 | ||
Liabilities | 381,799 | ||
Level 3 | |||
Assets: | |||
Assets | 748,260 | 310,124 | |
Level 3 | Recurring Fair Value Measurements | |||
Assets: | |||
Loans held for investment, at fair value | 705,330 | 276,095 | |
Mortgage servicing rights | 9,445 | 9,238 | |
Assets | 714,775 | 285,333 | |
Level 3 | Nonrecurring Fair Value Measurements | |||
Assets: | |||
Assets | 33,485 | 24,791 | |
Real estate owned, net | 20,388 | 13,325 | |
Individually evaluated/Impaired loans requiring specific allowance, net | $ 13,097 | $ 11,466 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Gains and Losses Recognized on Assets Measured on Nonrecurring Basis (Details) - Nonrecurring Fair Value Measurements - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | $ (540) | $ 291 | $ (1,617) | $ 335 |
Real Estate Held For Sale, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | (492) | (143) | (1,670) | 93 |
Individually Evaluated Loans Requiring Specific Allowance, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Total net gain (loss) | $ (48) | $ 434 | $ 53 | $ 242 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Techniques and Unobservable Inputs Related to Level 3 Assets (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 748,260 | $ 310,124 |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 714,775 | 285,333 |
Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 33,485 | 24,791 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 748,260 | 310,124 |
Level 3 | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 714,775 | 285,333 |
Level 3 | Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 33,485 | $ 24,791 |
Level 3 | Valuation, Market Approach | Measurement Input Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | |
Real estate owned, net | 0.080 | |
Level 3 | Valuation, Market Approach | Measurement Input Selling Cost | Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | |
Real estate owned, net | 0.080 | |
Level 3 | Discounted Cash Flow | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights, at fair value | 0.080 | |
Level 3 | Discounted Cash Flow | Recovery Lag | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.17 | |
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 | |
Level 3 | Minimum | Discounted Cash Flow | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.095 | |
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 | |
Mortgage servicing rights, at fair value | 0.056 | |
Level 3 | Minimum | Discounted Cash Flow | Measurement Input, Prepayment Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0 | |
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 | |
Level 3 | Minimum | Discounted Cash Flow | Default Rate [Member] | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.003 | |
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 | |
Level 3 | Minimum | Discounted Cash Flow | Loss Severity Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 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 | |
Level 3 | Maximum | Discounted Cash Flow | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.110 | |
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 | |
Mortgage servicing rights, at fair value | 0.168 | |
Level 3 | Maximum | Discounted Cash Flow | Measurement Input, Prepayment Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.500 | |
Mortgage servicing rights, at fair value | 0.169 | |
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 | |
Level 3 | Maximum | Discounted Cash Flow | Default Rate [Member] | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.949 | |
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 | |
Level 3 | Maximum | Discounted Cash Flow | Loss Severity Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.248 | |
Level 3 | Weighted Average | Valuation, Market Approach | Measurement Input Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | |
Real estate owned, net | 0.080 | |
Level 3 | Weighted Average | Valuation, Market Approach | Measurement Input Selling Cost | Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans requiring specific allowance, net | 0.080 | |
Real estate owned, net | 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 | |
Mortgage servicing rights, at fair value | 0.081 | |
Level 3 | Weighted Average | Discounted Cash Flow | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.097 | |
Mortgage servicing rights, at fair value | 0.080 | |
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 | Measurement Input, Prepayment Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.267 | |
Mortgage servicing rights, at fair value | 0.069 | |
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 | |
Level 3 | Weighted Average | Discounted Cash Flow | Default Rate [Member] | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.097 | |
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 | |
Level 3 | Weighted Average | Discounted Cash Flow | Loss Severity Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.029 | |
Level 3 | Weighted Average | Discounted Cash Flow | Recovery Lag | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | 0.17 | |
Level 3 | Real Estate Owned Member | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 13,325 | |
Level 3 | Real Estate Owned Member | Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 20,388 | |
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 | |
Level 3 | Individually evaluated loans requiring allowance net | Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 13,097 | |
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 | |
Level 3 | Loans Held for Investment | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | 705,330 | |
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 | |
Level 3 | Mortgage Servicing Rights | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total recurring fair value measurements | $ 9,445 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of Loans held for investment and held for sale and Securitized Debt Measured at Estimated Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Loans Held For Investment | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | $ 450,732 | $ 276,095 | ||
Originations | 258,646 | 456,534 | ||
Loans liquidated | (13,464) | (21,485) | ||
Principal paydowns | (1,764) | (2,796) | ||
Total unrealized gain (loss) included in net income | 3,108 | 9,767 | ||
Loans transfer (to held for sale) from held for investment | (20,857) | |||
Loans repurchased | 8,072 | 8,072 | ||
Ending balance | 705,330 | 705,330 | ||
Loans Held For Sale | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | 18,080 | $ 77,502 | $ 87,908 | |
Originations | 19,088 | |||
Loans liquidated | (17,385) | (77,502) | (39,945) | (223,788) |
Total unrealized gain (loss) included in net income | (695) | |||
Loans transfer (to held for sale) from held for investment | (390) | 20,857 | 135,490 | |
Loans repurchased | $ 390 | $ 390 | ||
Ending balance | 0 | 0 | ||
Securitized debt | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Beginning balance | 194,941 | |||
Securitized debt additions | 201,000 | 398,487 | ||
Securitized debt paydowns | (8,582) | (11,297) | ||
Total unrealized gain (loss) included in net income | (5,560) | (5,391) | ||
Ending balance | $ 381,799 | $ 381,799 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value Disclosures [Abstract] | |||
Loans individually evaluated for allowance | $ 13,100 | $ 11,500 | |
Allowance for loan losses | $ 1,043 | $ 1,096 | $ 1,164 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||||
Restricted cash | $ 16,786 | $ 16,808 | $ 9,217 | |
Loans held for investment, net | 3,057,940 | 3,272,390 | ||
Loans held for investment, at fair value | 705,330 | 276,095 | ||
Mortgage servicing rights | 9,445 | 9,238 | $ 7,152 | |
Liabilities: | ||||
Secured financing, net | 210,464 | 209,846 | ||
Carrying Value | ||||
Assets: | ||||
Cash | 33,987 | 45,248 | ||
Restricted cash | 16,786 | 16,808 | ||
Loans held for investment, net | 3,057,940 | 3,272,390 | ||
Loans held for investment, at fair value | 705,330 | 276,095 | ||
Accrued interest receivables | 22,602 | 20,463 | ||
Mortgage servicing rights | 9,445 | 9,238 | ||
Liabilities: | ||||
Secured financing, net | 210,464 | 209,846 | ||
Warehouse repurchase facilities, net | 235,749 | 330,814 | ||
Securitized debt, net | 2,622,547 | 2,736,290 | ||
Securitized debt, at fair value | 381,799 | |||
Accrued interest payable | 18,068 | 16,369 | ||
Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash | 33,987 | 45,248 | ||
Restricted cash | 16,786 | 16,808 | ||
Loans held for investment, net | 2,879,626 | 3,201,850 | ||
Loans held for investment, at fair value | 705,330 | 276,095 | ||
Accrued interest receivables | 22,602 | 20,463 | ||
Mortgage servicing rights | 9,445 | 9,238 | ||
Liabilities: | ||||
Secured financing, net | 211,634 | 211,854 | ||
Warehouse repurchase facilities, net | 235,749 | 330,814 | ||
Securitized debt, net | 2,335,949 | 2,522,010 | ||
Securitized debt, at fair value | 381,799 | |||
Accrued interest payable | 18,068 | 16,369 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash | 33,987 | 45,248 | ||
Restricted cash | 16,786 | 16,808 | ||
Accrued interest receivables | 22,602 | 20,463 | ||
Liabilities: | ||||
Accrued interest payable | 18,068 | 16,369 | ||
Level 2 | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Warehouse repurchase facilities, net | 235,749 | 330,814 | ||
Securitized debt, net | 2,335,949 | |||
Securitized debt, at fair value | 381,799 | |||
Level 3 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Loans held for investment, net | 2,879,626 | 3,201,850 | ||
Loans held for investment, at fair value | 705,330 | 276,095 | ||
Mortgage servicing rights | 9,445 | 9,238 | ||
Liabilities: | ||||
Secured financing, net | $ 211,634 | 211,854 | ||
Securitized debt, net | $ 2,522,010 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Aug. 02, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Securitization loans | $ 85.9 |