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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (dollars in thousands):
| As of June 30, 2022
| Fair Value Measured and Recorded Using |  |
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |
Available for sale debt securities: |  |  |  |  |  |  |
U.S. treasury securities | $ | 6,585 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,585 |
Debt securities issued by U.S. federal agencies | — |  |  | 9,178 |  |  | — |  |  | 9,178 |
Corporate debt securities | — |  |  | 46,774 |  |  | — |  |  | 46,774 |
Asset-backed securities | — |  |  | 2,941 |  |  | — |  |  | 2,941 |
Collateralized mortgage obligations | — |  |  | 163 |  |  | — |  |  | 163 |
Total available for sale debt securities | 6,585 |  |  | 59,056 |  |  | — |  |  | 65,641 |
Equity securities | 35,484 |  |  | — |  |  | — |  |  | 35,484 |
Investments in unconsolidated subsidiaries | 138,818 |  |  | 12,009 |  |  | 441,626 |  |  | 592,453 |
Warehouse receivables | — |  |  | 1,034,025 |  |  | — |  |  | 1,034,025 |
Other assets | — |  |  | — |  |  | 1,867 |  |  | 1,867 |
Total assets at fair value | $ | 180,887 |  |  | $ | 1,105,090 |  |  | $ | 443,493 |  |  | $ | 1,729,470 |
There were no liabilities measured at fair value on a recurring basis as of June 30, 2022.
| As of December 31, 2021
| Fair Value Measured and Recorded Using |  |
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |
Available for sale debt securities: |  |  |  |  |  |  |
U.S. treasury securities | $ | 7,002 |  |  | $ | — |  |  | $ | — |  |  | $ | 7,002 |
Debt securities issued by U.S. federal agencies | — |  |  | 9,276 |  |  | — |  |  | 9,276 |
Corporate debt securities | — |  |  | 50,897 |  |  | — |  |  | 50,897 |
Asset-backed securities | — |  |  | 3,428 |  |  | — |  |  | 3,428 |
Collateralized mortgage obligations | — |  |  | 725 |  |  | — |  |  | 725 |
Total available for sale debt securities | 7,002 |  |  | 64,326 |  |  | — |  |  | 71,328 |
Equity securities | 69,880 |  |  | — |  |  | — |  |  | 69,880 |
Investments in unconsolidated subsidiaries | 229,900 |  |  | 23,741 |  |  | 406,690 |  |  | 660,331 |
Warehouse receivables | — |  |  | 1,303,717 |  |  | — |  |  | 1,303,717 |
Total assets at fair value | $ | 306,782 |  |  | $ | 1,391,784 |  |  | $ | 406,690 |  |  | $ | 2,105,256 |
Liabilities |  |  |  |  |  |  |
Other liabilities | — |  |  | — |  |  | $ | 10,700 |  |  | $ | 10,700 |
Total liabilities at fair value | $ | — |  |  | $ | — |  |  | $ | 10,700 |  |  | $ | 10,700 |
Schedule of Reconciliation for Assets Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands):
| Investment in Unconsolidated Subsidiaries |  | Other assets (liabilities)
Balance as of March 31, 2022 | $ | 367,855 |  |  | $ | (1,322) |
Transfer in | — |  |  | — |
Net change in fair value | (26,229) |  |  | — |
Purchases / Additions | 100,000 |  |  | 3,189 |
Balance as of June 30, 2022 | $ | 441,626 |  |  | $ | 1,867 |
Balance as of December 31, 2021 | $ | 406,690 |  |  | $ | (10,700) |
Transfer in | — |  |  | — |
Net change in fair value | (65,064) |  |  | — |
Purchases / Additions | 100,000 |  |  | 12,567 |
Balance as of June 30, 2022 | $ | 441,626 |  |  | $ | 1,867 |
Net change in fair value, included in the table above, is reported in Net income as follows:
Category of Assets/Liabilities using Unobservable Inputs |  | Consolidated Statements of Operations
Investments in unconsolidated subsidiaries |  | Equity income from unconsolidated subsidiaries
Other assets (liabilities) |  | Other (loss) income
Schedule of Reconciliation for Liabilities Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands):
| Investment in Unconsolidated Subsidiaries |  | Other assets (liabilities)
Balance as of March 31, 2022 | $ | 367,855 |  |  | $ | (1,322) |
Transfer in | — |  |  | — |
Net change in fair value | (26,229) |  |  | — |
Purchases / Additions | 100,000 |  |  | 3,189 |
Balance as of June 30, 2022 | $ | 441,626 |  |  | $ | 1,867 |
Balance as of December 31, 2021 | $ | 406,690 |  |  | $ | (10,700) |
Transfer in | — |  |  | — |
Net change in fair value | (65,064) |  |  | — |
Purchases / Additions | 100,000 |  |  | 12,567 |
Balance as of June 30, 2022 | $ | 441,626 |  |  | $ | 1,867 |
Net change in fair value, included in the table above, is reported in Net income as follows:
Category of Assets/Liabilities using Unobservable Inputs |  | Consolidated Statements of Operations
Investments in unconsolidated subsidiaries |  | Equity income from unconsolidated subsidiaries
Other assets (liabilities) |  | Other (loss) income
Fair Value Measurement Inputs and Valuation Techniques | The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments:
| Valuation Technique |  | Unobservable Input |  | Range
Investment in unconsolidated subsidiaries | Discounted cash flow |  | Discount rate |  | 14.5% - 26.0%
| Monte Carlo |  | Volatility |  | 69.0 | %
|  |  | Risk free interest rate |  | 3.02 | %
Other assets (liabilities) | Discounted cash flow |  | Discount rate |  | 26.0 | %

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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