Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.23.1
Discontinued Operations (Tables)
3 Months Ended
Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of March 31, 2023 and December 31, 2022 (in thousands):
March 31, 2023 December 31, 2022
Assets
Cash and cash equivalents $ 33,828  $ 36,212 
Restricted cash 311  311 
Loans held for sale, at fair value   141,994 
Derivative assets 11  676 
Fixed assets and leasehold improvements, net 9,649  9,884 
Intangible assets, net 63,580  77,436 
Other assets, net 44,071  46,847 
Assets of discontinued operations $ 151,450  $ 313,360 
Liabilities
Other financing lines of credit $   $ 127,735 
Payables and other liabilities 66,302  99,379 
Liabilities of discontinued operations $ 66,302  $ 227,114 
The following table summarizes the major components of net loss from discontinued operations for the three months ended March 31, 2023 and 2022 (in thousands):
For the three months ended March 31, 2023 For the three months ended March 31, 2022
Revenues
Gain on sale and other income from loans held for sale, net $ 396  $ 112,131 
Net fair value gains on loans and related obligations 308  3,475 
Fee income 32,628  102,431 
Net interest income (expense):
Interest income 517  12,689 
Interest expense (820) (9,350)
Net interest income (expense) (303) 3,339 
Total revenues 33,029  221,376 
Expenses
Salaries, benefits, and related expenses 30,851  149,977 
Occupancy, equipment rentals, and other office related expenses 972  5,648 
General and administrative expenses 28,533  86,508 
Total expenses 60,356  242,133 
Impairment of other assets(1)
(1,055) — 
Other, net(2)
(9,089) 1,788 
Net loss from discontinued operations before income taxes (37,471) (18,969)
Provision (benefit) for income taxes from discontinued operations 3,419  (5,613)
Net loss from discontinued operations (40,890) (13,356)
Net loss attributable to noncontrolling interest from discontinued operations (25,217) (14,299)
Net income (loss) from discontinued operations attributable to controlling interest $ (15,673) $ 943 
(1) The Company evaluates the carrying value of long-lived assets, including the fixed assets, leasehold improvements as well as right-of-use assets in operating leases when indicators of impairment exist in accordance with ASC 360, Property, Plant, and Equipment. Based on the analysis, the Company recognized an impairment charge following the sale of commercial originations segment.
(2)Amount includes a loss on disposal of $10.2 million for the three months ended March 31, 2023.
The Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2023 and 2022 included the following material activities related to discontinued operations (in thousands):
For the three months ended March 31, 2023 For the three months ended March 31, 2022
Gain on sale and other income from loans held for sale, net $ 396  $ 112,131 
Unrealized fair value changes on loans, related obligations, and derivatives 308  3,475 
Impairment of intangibles and other assets 1,055  — 
Depreciation and amortization 2,778  6,466 
Acquisition of fixed assets (1,815) (2,612)