XML 22 R13.htm IDEA: XBRL DOCUMENT
v3.23.3

DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended
--- | ---
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses forward commitments in hedging the interest rate risk exposure on its fixed and adjustable rate commitments. The Company’s derivative instruments are not designated as hedging instruments for accounting purposes; therefore, changes in fair value are recognized in current period earnings. Realized and unrealized gains and losses from the Company's non-designated derivative instruments are included in loan origination fees and gain on sale of loans, net in the Condensed Consolidated Statements of Income. Changes in the fair value of the Company's derivative financial instruments are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Unrealized hedging gains | $ | 10,699 |  |  | $ | 29,290 |  |  | $ | 26,454 |  |  | $ | 22,366 |
Notional and Fair Value The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows at September 30, 2023 and December 31, 2022:
|  |  | Fair Value
| Notional Value |  | Derivative Asset |  | Derivative Liability
Balance at September 30, 2023 |  |  |  |  |
IRLCs | $ | 1,212,847 |  |  | $ | 12,219 |  |  | $ | — |
Forward delivery commitments and best efforts sales commitments | $ | 1,387,849 |  |  | $ | 12,182 |  |  | $ | — |
Balance at December 31, 2022 |  |  |  |  |
IRLCs | $ | 810,514 |  |  | $ | 1,518 |  |  | $ | — |
Forward delivery commitments and best efforts sales commitments | $ | 1,127,154 |  |  | $ | 1,602 |  |  | $ | 5,173 |
The Company had an additional $233.0 million and $256.3 million of outstanding forward contracts and mandatory sell commitments, comprised of closed loans with equal and offsetting UPB amounts allocated to them, at September 30, 2023 and December 31, 2022, respectively. The Company also had $375.0 million and $470.8 million in closed hedge instruments not yet settled at September 30, 2023 and December 31, 2022, respectively. See Note 2 for fair value disclosure of the derivative instruments. The following table presents the quantitative information about IRLCs and the fair value measurements:
|  | September 30, 2023 |  | December 31, 2022
Unobservable Input |  | Range (Weighted Average)
Loan funding probability (“pull-through”) |  | 0% -100% (84.3%) |  | 0% - 100% (93.4%)
Counterparty agreements for forward commitments contain master netting agreements. The master netting agreements contain a legal right to offset amounts due to and from the same counterparty. The Company incurred no credit losses due to nonperformance of any of its counterparties during the three and nine months ended September 30, 2023 and 2022. The table below represents financial assets and liabilities that are subject to master netting arrangements categorized by financial instrument:
| Gross Amounts of Recognized Assets (Liabilities) |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts of Recognized Assets (Liabilities) in the Balance Sheet
September 30, 2023 |  |  |  |  |
Forward delivery commitments and best efforts sales commitments | $ | 12,609 |  |  | $ | (427) |  |  | $ | 12,182 |
Total assets | $ | 12,609 |  |  | $ | (427) |  |  | $ | 12,182 |
December 31, 2022 |  |  |  |  |
Forward delivery commitments | $ | 1,887 |  |  | $ | (285) |  |  | $ | 1,602 |
Total assets | $ | 1,887 |  |  | $ | (285) |  |  | $ | 1,602 |
Forward delivery commitments and best efforts sales commitments | $ | (11,399) |  |  | $ | 4,959 |  |  | $ | (6,440) |
Margin calls | 1,267 |  |  | — |  |  | 1,267 |
Total liabilities | $ | (10,132) |  |  | $ | 4,959 |  |  | $ | (5,173) |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration