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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022
			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			$	—					$	339,181					$	—					$	339,181
Obligations of state and political subdivisions			—						53,171						—						53,171
Obligations of foreign governments			—						2,475						—						2,475
Certificates of deposit			2,696						—						—						2,696
Asset backed securities			—						17,082						442						17,524
Corporate securities			—						153,413						—						153,413
Total available for sale securities, at fair value			2,696						565,322						442						568,460
Loans, at fair value:
Corporate loans			—						5,060						14,053						19,113
Mortgage loans held for sale			—						77,131						—						77,131
Total loans, at fair value			—						82,191						14,053						96,244
Equity securities:
Invesque			24,116						—						—						24,116
Fixed income ETFs			51,718						—						—						51,718
Other equity securities			37,653						—						7,408						45,061
Total equity securities			113,487						—						7,408						120,895
Other investments, at fair value:
Corporate bonds			—						34,700						—						34,700
Derivative assets			41						5,587						3,569						9,197
Other			—						—						896						896
Total other investments, at fair value			41						40,287						4,465						44,793
Mortgage servicing rights (1)			—						—						37,870						37,870
Total			$	116,224					$	687,800					$	64,238					$	868,262
Liabilities: (2)
Securities sold, not yet purchased			$	3,199					$	—					$	—					$	3,199
Derivative liabilities			—						2,427						—						2,427
Contingent consideration payable			—						—						200						200
Total			$	3,199					$	2,427					$	200					$	5,826

(1)    Included in other assets.

(2)    Included in other liabilities and accrued expenses.

			As of December 31, 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			$	—					$	351,178					$	—					$	351,178
Obligations of state and political subdivisions			—						58,660						—						58,660
Obligations of foreign governments			—						2,590						—						2,590
Certificates of deposit			2,696						—						—						2,696
Asset backed securities			—						16,832						615						17,447
Corporate securities			—						144,877						—						144,877
Total available for sale securities, at fair value			2,696						574,137						615						577,448
Loans, at fair value:
Corporate loans			—						5,002						2,097						7,099
Mortgage loans held for sale			—						98,484						—						98,484
Total loans, at fair value			—						103,486						2,097						105,583
Equity securities:
Invesque			34,814						—						—						34,814
Fixed income ETFs			53,154						—						—						53,154
Other equity securities			49,309						—						1,206						50,515
Total equity securities			137,277						—						1,206						138,483
Other investments, at fair value:
Corporate bonds			—						38,965						—						38,965
Derivative assets			113						569						7,514						8,196
Trade claims			—						—						19,737						19,737
Other			—						—						441						441
Total other investments, at fair value			113						39,534						27,692						67,339
Mortgage servicing rights (1)			—						—						29,833						29,833
Total			$	140,086					$	717,157					$	61,443					$	918,686
Liabilities: (2)
Securities sold, not yet purchased			$	242					$	—					$	—					$	242
Derivative liabilities			—						2,141						—						2,141
Contingent consideration payable			—						—						200						200
Total			$	242					$	2,141					$	200					$	2,583
(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 Three Months Ended March 31,
			2022						2021
Balance at January 1,			$	61,443					$	33,455
Net realized and unrealized gains or losses included in:
Earnings			7,009						7,015
OCI			(173)						20
Origination of IRLCs			15,613						26,347
Purchases			—						568
Sales and repayments			(1,233)						(1,743)
Conversions to mortgage loans held for sale			(19,558)						(27,270)
Settlement of trade claims			(18,709)						—
Issuance of term loans			12,486						—
Issuance of equity securities			7,360						—
Balance at March 31,			$	64,238					$	38,392
Changes in unrealized gains (losses) included in earnings related to assets still held at period end			$	(159)					$	2,390
Changes in unrealized gains (losses) included in OCI related to assets still held at period end			$	(173)					$	20

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
			March 31, 2022						December 31, 2021						Valuation technique						Unobservable input(s) (1)						March 31, 2022																		December 31, 2021
Assets			Fair Value																								Range												WA						Range												WA
IRLCs			$	3,569					$	7,514					Internal model						Pull through rate						55%			to			95%						65%						55%			to			95%						66%
Mortgage servicing rights			37,870						29,833						External model						Discount rate						9%			to			12%						9%						10%			to			12%						9%
																					Cost to service						$65			to			$80						$71						$65			to			$80						$71
																					Prepayment speed						5%			to			80%						10%						5%			to			100%						15%
Trade claims			—						19,737						Internal model						Plan projected recovery rate						N/A																		15%			to			18%						17%
Equity securities			7,360						—						Internal model						Projected recovery rate						15%			to			17%						16%						N/A
Corporate loans and related receivables			12,486						—						Internal model						Discount rate						18%			to			20%						19%						N/A
Total			$	61,285					$	57,084
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 March 31, 2022																		As of December 31, 2021
			Level within fair value hierarchy						Fair value						Carrying value						Level within fair value hierarchy						Fair value						Carrying value
Assets:
Debentures (1)			2						$	21,783					$	21,783					2						$	21,057					$	21,057
Notes receivable, net			2						99,264						99,264						2						89,788						89,788
Total assets									$	121,047					$	121,047											$	110,845					$	110,845
Liabilities:
Debt, net			3						$	409,518					$	400,768					3						$	419,599					$	403,193
Total liabilities									$	409,518					$	400,768											$	419,599					$	403,193

(1)    Included in other investments.

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 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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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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