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Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2022 and December 31, 2021 (dollars in thousands):

			As of September 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			$	6,262					$	—					$	—					$	6,262
Debt securities issued by U.S. federal agencies			—						8,824						—						8,824
Corporate debt securities			—						45,542						—						45,542
Asset-backed securities			—						3,360						—						3,360
Collateralized mortgage obligations			—						28						—						28
Total available for sale debt securities			6,262						57,754						—						64,016
Equity securities			34,669						—						—						34,669
Investments in unconsolidated subsidiaries			270,342						—						503,935						774,277
Warehouse receivables			—						1,190,964						—						1,190,964
Other assets			—						—						1,867						1,867
Total assets at fair value			$	311,273					$	1,248,718					$	505,802					$	2,065,793

There were no liabilities measured at fair value on a recurring basis as of September 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 as of September 30, 2022 using significant unobservable inputs (Level 3) (dollars in thousands):

			Investment in Unconsolidated Subsidiaries						Other assets (liabilities)
Balance as of June 30, 2022			$	441,626					$	1,867
Transfer in			—						—
Net change in fair value			62,309						—
Purchases / Additions			—						—
Balance as of September 30, 2022			$	503,935					$	1,867
Balance as of December 31, 2021			$	406,690					$	(10,700)
Transfer in			—						—
Net change in fair value			(2,755)						—
Purchases / Additions			100,000						12,567
Balance as of September 30, 2022			$	503,935					$	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 income (loss)

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 as of September 30, 2022 using significant unobservable inputs (Level 3) (dollars in thousands):

			Investment in Unconsolidated Subsidiaries						Other assets (liabilities)
Balance as of June 30, 2022			$	441,626					$	1,867
Transfer in			—						—
Net change in fair value			62,309						—
Purchases / Additions			—						—
Balance as of September 30, 2022			$	503,935					$	1,867
Balance as of December 31, 2021			$	406,690					$	(10,700)
Transfer in			—						—
Net change in fair value			(2,755)						—
Purchases / Additions			100,000						12,567
Balance as of September 30, 2022			$	503,935					$	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 income (loss)

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 as of September 30, 2022:

Valuation Technique

Unobservable Input

Range

Investment in unconsolidated subsidiaries

Discounted cash flow

Discount rate

14.5% - 27.0%

Monte Carlo

Volatility

70.0

%

Risk free interest rate

4.04

%

Other assets (liabilities)

Discounted cash flow

Discount rate

27.0

%

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References

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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).

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