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Other Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Summary of Maximum Borrowing Capacity and Current Gross Balances Outstanding

The following table summarizes the maximum borrowing capacity and current gross balances outstanding of the Company’s warehouse facilities and loan agreements as of September 30, 2021 and December 31, 2020 (in thousands):

		September 30, 2021								December 31, 2020
		Period end balance (1)				Maximum borrowing capacity				Period end balance (1)				Maximum borrowing capacity
The 2021 term repurchase agreement		$	21,205			$	100,000				—				—
The 2021 repurchase agreement			127,898				200,000				—				—
The July 2021 term repurchase agreement			—				100,000				—				—
The 2013 repurchase agreement			77,209				200,000				73,502				100,000
The Bank credit agreement			30,732				50,000				—				—
The 2019 loan agreement			2,700				3,000				2,700				3,000

⁽¹⁾ Warehouse repurchase facilities amounts in the consolidated balance sheets are net of debt issuance costs amounting to $1.3 million and $0.3 million as of September 30, 2021 and December 31, 2020, respectively.

Schedule of Activity and Effective Interest Rate

The following table provides an overview of the activity and effective interest rate for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
Warehouse and repurchase facilities:		2021				2020				2021				2020
Average outstanding balance		$	182,383			$	22,306			$	154,297			$	204,110
Highest outstanding balance at any month-end			259,744				19,823				281,690				450,194
Effective interest rate (1)			5.19	%			12.61	%			5.56	%			4.99	%

⁽¹⁾ Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 4.00% and debt issuance cost amortization of 1.19%, and average rate of 5.54% and debt issuance cost amortization of 7.07%, for the three months ended September 30, 2021 and 2020, respectively. The effective interest rate includes average rate of 4.35% and debt issuance cost amortization of 1.21%, and average rate 4.34% and debt issuance cost amortization 0.65% for the nine months ended September 30, 2021 and 2020 respectively. The average rate for the three months ended September 30, 2021 was lower compared to the same period in 2020 due to the much lower average outstanding borrowing balance in 2020, but the debt issuance cost amortization remained relatively constant. The increase in average rate for the nine months ended September 30, 2021 was primarily attributable to the higher non-usage fees paid to a lender.

Summary of Interest Expense

The following table provides a summary of interest expense that includes debt issuance cost amortization, interest, amortization of discount, and deal cost amortization for the three and nine months ended September 30, 2021 and 2020 (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Warehouse and repurchase facilities		$	2,365			$	703			$	6,433			$	7,635
Securitizations			17,956				21,644				55,287				58,749
Interest expense — portfolio related			20,321				22,347				61,720				66,384
Interest expense — corporate debt			4,488				1,913				16,147		(1)		10,149		(2)
Total interest expense		$	24,809			$	24,260			$	77,867			$	76,533

⁽¹⁾ Included in the $16.1 million of interest expense – corporate debt for the nine months ended September 30, 2021 was the one-time debt issuance costs write-off of $2.9 million and prepayment fee of $1.6 million associated with the payoff of $78.0 million in outstanding principal amount in February 2021.

⁽²⁾ Included in the $10.1 million of interest expense – corporate debt for the nine months ended September 30, 2020 was the one-time debt issuance costs write-off of $3.5 million and prepayment fee of $0.3 million associated with the repayment of $75.0 million in outstanding principal amount in January 2020.

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