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v3.22.2.2

Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 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 September 30, 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 | $ | — |  |  | $ | 356,759 |  |  | $ | — |  |  | $ | 356,759 |
Obligations of state and political subdivisions | — |  |  | 49,301 |  |  | — |  |  | 49,301 |
Obligations of foreign governments | — |  |  | 2,349 |  |  | — |  |  | 2,349 |
Certificates of deposit | 1,357 |  |  | — |  |  | — |  |  | 1,357 |
Asset backed securities | — |  |  | 15,982 |  |  | 220 |  |  | 16,202 |
Corporate securities | — |  |  | 158,113 |  |  | — |  |  | 158,113 |
Total available for sale securities, at fair value | 1,357 |  |  | 582,504 |  |  | 220 |  |  | 584,081 |
Loans, at fair value: |  |  |  |  |  |  |
Corporate loans | — |  |  | 2,455 |  |  | 10,129 |  |  | 12,584 |
Mortgage loans held for sale | — |  |  | 58,200 |  |  | — |  |  | 58,200 |
Total loans, at fair value | — |  |  | 60,655 |  |  | 10,129 |  |  | 70,784 |
Equity securities: |  |  |  |  |  |  |
Invesque | 19,190 |  |  | — |  |  | — |  |  | 19,190 |
Fixed income ETFs | 52,078 |  |  | — |  |  | — |  |  | 52,078 |
Other equity securities | 7,238 |  |  | — |  |  | 6,597 |  |  | 13,835 |
Total equity securities | 78,506 |  |  | — |  |  | 6,597 |  |  | 85,103 |
Other investments, at fair value: |  |  |  |  |  |  |
Corporate bonds | — |  |  | 41,494 |  |  | — |  |  | 41,494 |
Derivative assets | 17 |  |  | 6,232 |  |  | 1,505 |  |  | 7,754 |
Other | — |  |  | — |  |  | 324 |  |  | 324 |
Total other investments, at fair value | 17 |  |  | 47,726 |  |  | 1,829 |  |  | 49,572 |
Mortgage servicing rights (1) | — |  |  | — |  |  | 41,912 |  |  | 41,912 |
Total | $ | 79,880 |  |  | $ | 690,885 |  |  | $ | 60,687 |  |  | $ | 831,452 |
Liabilities: (2) |  |  |  |  |  |  |
Securities sold, not yet purchased | $ | 14,578 |  |  | $ | 36,660 |  |  | $ | — |  |  | $ | 51,238 |
Derivative liabilities | — |  |  | 7,715 |  |  | — |  |  | 7,715 |
Fortegra Additional Warrants (Warburg) | — |  |  | — |  |  | 6,230 |  |  | 6,230 |
Contingent consideration payable | — |  |  | — |  |  | 2,871 |  |  | 2,871 |
Total | $ | 14,578 |  |  | $ | 44,375 |  |  | $ | 9,101 |  |  | $ | 68,054 |
(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 Nine Months Ended September 30,
| 2022 |  | 2021
Balance at January 1, | $ | 61,443 |  |  | $ | 33,455 |
Net realized and unrealized gains or losses included in: |  |  |
Earnings | 8,572 |  |  | 12,664 |
OCI | 305 |  |  | (178) |
Origination of IRLCs | 42,722 |  |  | 84,034 |
Purchases | — |  |  | 15,336 |
Sales and repayments | (3,802) |  |  | (11,382) |
Conversions to mortgage loans held for sale | (48,731) |  |  | (83,976) |
Settlement of trade claims | (19,169) |  |  | — |
Exchange of bonds for term loans | 12,243 |  |  | — |
Exchange of trade receivables for equity securities | 7,104 |  |  | — |
Balance at September 30, | $ | 60,687 |  |  | $ | 49,953 |
Changes in unrealized gains (losses) included in earnings related to assets still held at period end | (5,171) |  |  | $ | 2,298 |
Changes in unrealized gains (losses) included in OCI related to assets still held at period end | $ | (395) |  |  | $ | (178) |
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, 2022 |  | December 31, 2021 |  | Valuation technique |  | Unobservable input(s) |  | September 30, 2022 |  | December 31, 2021
Assets | Fair value |  |  |  | Range |  | WA (1) |  | Range |  | WA (1)
IRLCs | $ | 1,505 |  |  | $ | 7,514 |  |  | Internal model |  | Pull through rate |  | 55% | to | 95% |  | 66% |  | 55% | to | 95% |  | 66%
Mortgage servicing rights | 41,912 |  |  | 29,833 |  |  | External model |  | Discount rate |  | 9% | to | 14% |  | 9% |  | 10% | to | 12% |  | 9%
| Cost to service |  | $65 | to | $80 |  | $71 |  | $65 | to | $80 |  | $71
| Prepayment speed |  | 5% | to | 84% |  | 9% |  | 5% | to | 100% |  | 15%
Trade claims | — |  |  | 19,737 |  |  | Internal model |  | Plan projected recovery rate |  | N/A |  | 15% | to | 18% |  | 17%
Equity securities | 6,549 |  |  | — |  |  | Internal model |  | Forecast EBITDAR |  | $728,000 | to | $1,039,000 |  | N/A |  | N/A
Corporate loans and related receivables | 10,129 |  |  | — |  |  | Internal model |  | EBITDA |  | $188,000 |  | N/A |  | N/A
Total | $ | 60,095 |  |  | $ | 57,084 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fortegra Additional Warrants (Warburg) | $ | 6,230 |  |  | $ | — |  |  | External model |  | Discount rate |  | 3% | to | 5% |  | 3.3% |  | N/A
|  |  | Implied Equity Volatility |  | 40% | to | 50% |  | 45% |
Contingent consideration payable - ITC | 2,671 |  |  | — |  |  | Cash Flow model |  | Forecast Cash EBITDA |  | $2,500 | to | $4,000 |  | N/A |  | N/A
|  | Cash Flow model |  | Forecast Underwriting EBITDA |  | $— | to | $2,000 |  | N/A |  | N/A
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 | $ | 9,101 |  |  | $ | 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, 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 |  | $ | 24,961 |  |  | $ | 24,961 |  |  | 2 |  | $ | 21,057 |  |  | $ | 21,057 |
Notes receivable, net | 2 |  | 114,091 |  |  | 114,091 |  |  | 2 |  | 89,788 |  |  | 89,788 |
Total assets |  |  | $ | 139,052 |  |  | $ | 139,052 |  |  |  |  | $ | 110,845 |  |  | $ | 110,845 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Debt, net | 3 |  | $ | 270,731 |  |  | $ | 273,856 |  |  | 3 |  | $ | 419,599 |  |  | $ | 403,193 |
Total liabilities |  |  | $ | 270,731 |  |  | $ | 273,856 |  |  |  |  | $ | 419,599 |  |  | $ | 403,193 |
(1) Included in other investments.

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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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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