| Disposal Groups, Including Discontinued Operations |
The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of March 31, 2024 and December 31, 2023 (in thousands):
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March 31, 2024 |
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December 31, 2023 |
| Assets |
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| Other assets, net |
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$ |
7,290
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|
|
$ |
6,721 |
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| Liabilities |
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|
|
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| Payables and other liabilities |
|
20,647
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|
|
18,304 |
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The following table summarizes the major components of net loss from discontinued operations (in thousands):
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For the three months ended March 31, 2024 |
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For the three months ended March 31, 2023 |
| Revenues |
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|
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| Net fair value gains on loans and related obligations |
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|
|
|
$ |
—
|
|
|
$ |
308 |
|
| Fee income |
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|
|
|
—
|
|
|
32,628 |
|
| Gain on sale and other income from loans held for sale, net |
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|
|
|
—
|
|
|
396 |
|
| Net interest expense: |
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|
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| Interest income |
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|
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—
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|
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517 |
|
| Interest expense |
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|
|
—
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|
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(820) |
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| Net interest expense |
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|
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—
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|
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(303) |
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| Total revenues |
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|
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—
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33,029 |
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|
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| Expenses |
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| Salaries, benefits, and related expenses |
|
|
|
|
—
|
|
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30,851 |
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| Loan production and portfolio related expenses |
|
|
|
|
—
|
|
|
1,037 |
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| Marketing and advertising expenses |
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|
|
|
—
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|
540 |
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| Depreciation and amortization |
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|
|
|
—
|
|
|
2,778 |
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| General and administrative expenses |
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|
|
|
1,524
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|
25,150 |
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| Total expenses |
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1,524
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60,356 |
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Impairment of other assets(1)
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|
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—
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(1,055) |
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Other, net(2)
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|
|
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(3,000) |
|
|
(9,089) |
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| Net loss from discontinued operations before income taxes |
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|
|
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(4,524) |
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(37,471) |
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| Provision for income taxes from discontinued operations |
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|
|
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—
|
|
|
3,419 |
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| Net loss from discontinued operations |
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|
|
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(4,524) |
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|
(40,890) |
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| Net loss from discontinued operations attributable to noncontrolling interest |
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|
|
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(2,621) |
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(25,217) |
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| Net loss from discontinued operations attributable to controlling interest |
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|
|
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$ |
(1,903) |
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|
$ |
(15,673) |
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(1) The Company evaluates the carrying value of long-lived assets, including fixed assets, leasehold improvements as well as right-of-use assets in operating leases when indicators of impairment exist in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment. Based on the analysis, the Company recognized an impairment
charge in the three months ended March 31, 2023, related to the sale of the previously reported Commercial Originations segment.
(2) Includes a $3.0 million contingent liability related to our discontinued operations for the three months ended March 31, 2024 and a $10.2 million loss on the sale of our commercial originations operational assets for the three months ended March 31, 2023.
The Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 included the following material activities related to discontinued operations (in thousands):
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For the three months ended March 31, 2024 |
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For the three months ended March 31, 2023 |
| Gain on sale and other income from loans held for sale, net |
$ |
—
|
|
|
$ |
396 |
|
| Unrealized fair value changes on loans, related obligations, and derivatives |
—
|
|
|
308 |
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| Impairment of other assets |
—
|
|
|
1,055 |
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| Depreciation and amortization |
—
|
|
|
2,778 |
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| Acquisition of fixed assets |
—
|
|
|
1,815 |
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