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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of fair values and carrying values of assets and liabilities and the fair value level(s) associated with them

The following tables present the Company’s fair value hierarchies for financial assets and liabilities, measured on a recurring basis:

			As of September 30, 2021
			Quoted prices in active markets Level 1						Other significant  observable inputs  Level 2						Significant unobservable inputs Level 3						Fair value
Assets:
Available for sale securities, at fair value:
U.S. Treasury securities and obligations of U.S. government authorities and agencies			$	—					$	305,247					$	—					$	305,247
Obligations of state and political subdivisions			—						55,618						—						55,618
Obligations of foreign governments			—						2,622						—						2,622
Certificates of deposit			856						—						—						856
Asset backed securities			—						33,562						680						34,242
Corporate securities			—						142,536						—						142,536
Total available for sale securities, at fair value			856						539,585						680						541,121
Loans, at fair value:
Corporate loans			—						—						2,099						2,099
Mortgage loans held for sale			—						87,227						—						87,227
Total loans, at fair value			—						87,227						2,099						89,326
Equity securities:
Invesque			35,323						—						—						35,323
Fixed income ETFs			39,694						—						—						39,694
Other equity securities			64,366						—						35						64,401
Total equity securities			139,383						—						35						139,418
Other investments, at fair value:
Corporate bonds			—						44,217						—						44,217
Derivative assets			222						1,379						9,265						10,866
Trade claims			—						—						10,974						10,974
CLOs			—						—						539						539
Total other investments, at fair value			222						45,596						20,778						66,596
Mortgage servicing rights (1)			—						—						26,361						26,361
Total			$	140,461					$	672,408					$	49,953					$	862,822
Liabilities: (2)
Securities sold, not yet purchased			$	6,266					$	—					$	—					$	6,266
Derivative liabilities									2,907						—						2,907
Contingent consideration payable			—						—						200						200
Total			$	6,266					$	2,907					$	200					$	9,373

(1)    Included in other assets.

(2)    Included in other liabilities and accrued expenses.

			As of December 31, 2020
			Quoted prices in active markets Level 1						Other significant  observable inputs  Level 2						Significant unobservable inputs Level 3						Fair value
Assets:
Available for sale securities, at fair value:
U.S. Treasury securities and obligations of U.S. government authorities and agencies			$	—					$	196,303					$	—					$	196,303
Obligations of state and political subdivisions			—						44,350						—						44,350
Obligations of foreign governments			—						3,992						—						3,992
Certificates of deposit			1,355						—						—						1,355
Asset backed securities			—						35,334						858						36,192
Corporate securities			—						94,941						—						94,941
Total available for sale securities, at fair value			1,355						374,920						858						377,133
Loans, at fair value:
Corporate loans			—						—						7,795						7,795
Mortgage loans held for sale			—						82,937						—						82,937
Total loans, at fair value			—						82,937						7,795						90,732
Equity securities:
Invesque			31,078						—						—						31,078
Fixed income ETFs			63,875						—						—						63,875
Other equity securities			28,850						—						35						28,885
Total equity securities			123,803						—						35						123,838
Other investments, at fair value:
Corporate bonds			—						105,777						—						105,777
Derivative assets			2,090						232						9,207						11,529
CLOs			—						—						802						802
Total other investments, at fair value			2,090						106,009						10,009						118,108
Mortgage servicing rights (1)			—						—						14,758						14,758
Total			$	127,248					$	563,866					$	33,455					$	724,569
Liabilities: (2)
Securities sold, not yet purchased			$	16,479					$	30,158					$	—					$	46,637
Derivative liabilities			—						2,090						—						2,090
Contingent consideration payable			—						—						200						200
Total			$	16,479					$	32,248					$	200					$	48,927
(1) Included in other assets. (2) Included in other liabilities and accrued expenses.

Schedule of additional information about assets that are measured at fair value on a recurring basis for which the company utilized Level 3 inputs to determine fair value

The following table presents additional information about assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value for the following periods:    

			For the Nine Months Ended September 30,
			2021						2020
Balance at January 1,			$	33,455					$	32,470
Net realized and unrealized gains or losses included in:
Earnings			12,664						(500)
OCI			(178)						(683)
Origination of IRLCs			84,034						90,474
Purchases			15,336						684
Sales			(11,382)						(4,960)
Conversions to mortgage loans held for sale			(83,976)						(86,325)
Balance at September 30,			$	49,953					$	31,160
Changes in unrealized gains (losses) included in earnings related to assets still held at period end			$	2,298					$	(7,056)
Changes in unrealized gains (losses) included in OCI related to assets still held at period end			$	(178)					$	(683)

Schedule of quantitative information of Level 3 significant unobservable inputs used in fair valuation of liabilities

The following table presents the range and weighted average (WA) used to develop significant unobservable inputs for the fair value measurements of Level 3 assets and liabilities.

			As of																								As of
			September 30, 2021						December 31, 2020																		September 30, 2021																		December 31, 2020
															Valuation technique						Unobservable input(s) (1)
Assets			Fair Value																								Range												WA						Range												WA
IRLCs			$	9,265					$	9,207					Internal model						Pull through rate						55%			to			95%						67%						50%			to			95%						68%
Mortgage servicing rights			26,361						14,758						External model						Discount rate						10%			to			13%						10%						10%			to			13%						11%
																					Cost to service						$75			to			$90						$81						$75			to			$90						$82
																					Prepayment speed						4%			to			69%						15%						8%			to			60%						22%
Total			$	35,626					$	23,965
Liabilities
Contingent consideration payable - Smart AutoCare			$	200					$	200					Cash Flow Model						Forecast Cash EBITDA						$20,000			to			$30,000						N/A						$20,000			to			$30,000						N/A
															Actuarial Analysis						Assumed Claim Liabilities						$55,000																		$55,000
Total			$	200					$	200

(1)    Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of fair values and carrying values of financial assets and liabilities, and fair value hierarchy

The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value and their respective levels within the fair value hierarchy:

			As of September 30, 2021																		As of December 31, 2020
			Level within fair value hierarchy						Fair value						Carrying value						Level within fair value hierarchy						Fair value						Carrying value
Assets:
Debentures (1)			2						$	20,753					$	20,753					2						$	17,703					$	17,703
Notes receivable, net			2						75,448						75,448						2						62,075						62,075
Total assets									$	96,201					$	96,201											$	79,778					$	79,778
Liabilities:
Debt, net			3						$	404,564					$	385,064					3						$	392,951					$	377,582
Total liabilities									$	404,564					$	385,064											$	392,951					$	377,582

(1)    Included in other investments.

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- 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 of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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).

+ References

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