Annual report pursuant to Section 13 and 15(d)

Condensed Financial Information of Registrant (Parent Company Only)

v3.22.0.1
Condensed Financial Information of Registrant (Parent Company Only)
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Registrant (Parent Company Only)
37.
Condensed Financial Information of Registrant (Parent Company Only)
Finance of America Companies Inc.
(Parent Company Only)
Condensed Statements of Financial Condition
(In thousands, except share data)
 
 
 
 
 
 
 
 
 
 
    
December 31, 2021
     
December 31, 2020
  
    
Successor
     
Predecessor
  
ASSETS
       
 
         
Fixed assets and leasehold improvements, net
   
$
—  
 
    $ 23  
Investment in subsidiaries
   
 
446,517
 
      639,011  
Other assets, net
   
 
—  
 
      2,184  
    
 
 
     
 
 
  
TOTAL ASSETS
   
$
446,517
 
    $ 641,218  
    
 
 
     
 
 
  
LIABILITIES AND EQUITY
                  
Payables and other liabilities
   
$
58,538
 
    $ 13,033  
    
 
 
     
 
 
  
TOTAL LIABILITIES
   
58,538
 
   
13,033  
    
 
 
     
 
 
  
EQUITY
                  
FoA Equity member’s equity
   
 
—  
 
      628,176  
Class A Common Stock, $0.0001 par value; 6,000,000,000 shares authorized; 60,755,069 shares issued and outstanding at December 31, 2021
   
 
6
 
      —    
Additional
paid-in
capital (Successor)
   
 
831,620
 
      —    
Accumulated deficit (Successor)
   
 
(443,613
) 
      —    
Accumulated other comprehensive income (loss)
   
 
(34
) 
      9  
    
 
 
     
 
 
  
TOTAL EQUITY
   
 
387,979
 
      628,185  
    
 
 
     
 
 
  
TOTAL LIABILITIES AND EQUITY
   
$
446,517
 
    $ 641,218  
    
 
 
     
 
 
  
 
Finance of America Companies Inc.
(Parent Company Only)
Condensed Statements of Operations and Comprehensive Income
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
April 1, 2021

to

December 31, 2021
     
January 1, 2021

to

March 31, 2021
    
For the year ended
December 31, 2020
    
For the year ended
December 31, 2019
  
    
Successor
     
Predecessor
  
REVENUES
       
 
                         
Interest income
   
$
—  
 
   
$
—  
 
 
 $ 164     $ 176  
Interest expense
   
 
—  
 
   
 
 (46
) 
 
   (3,669 )    $ (3,084 ) 
    
 
 
     
 
 
 
 
 
 
    
 
 
  
Net interest expense
   
 
—  
 
   
 
 (46
) 
 
   (3,505 )      (2,908 ) 
    
 
 
     
 
 
 
 
 
 
    
 
 
  
TOTAL REVENUES
   
 
—  
 
   
 
 (46
) 
 
   (3,505 )      (2,908 ) 
    
 
 
     
 
 
 
 
 
 
    
 
 
  
EXPENSES
            
 
 
 
 
              
Salaries and benefits
   
 
—  
 
   
 
 4,041
 
 
   7,710       6,133  
Occupancy and equipment rentals
   
 
—  
 
   
 
 161
 
 
   632       475  
General and administrative
   
 
—  
 
   
 
 357
 
 
   1,292       1,779  
    
 
 
     
 
 
 
 
 
 
    
 
 
  
TOTAL EXPENSES
   
 
—  
 
   
 
 4,559
 
 
   9,634       8,387  
OTHER, NET
   
 
15,042
 
   
 
—  
 
 
   —         —    
    
 
 
     
 
 
 
 
 
 
    
 
 
  
NET INCOME (LOSS) BEFORE INCOME TAXES
   
 
15,042
 
   
 
 (4,605
) 
 
   (13,139 )      (11,295 ) 
Provision for income taxes applicable to parent
   
 
(23,748
) 
   
 
—  
 
 
   —         —    
    
 
 
     
 
 
 
 
 
 
    
 
 
  
NET INCOME (LOSS)
   
 
38,790
 
   
 
 (4,605
) 
 
   (13,139 )      (11,295 ) 
Equity (deficit) in undistributed income from subsidiaries
   
 
(410,590
) 
   
 
 124,464
 
 
   531,527       65,707  
    
 
 
     
 
 
 
 
 
 
    
 
 
  
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
   
 
(371,800
) 
   
 
 119,859
 
 
   518,388       54,412  
Other comprehensive income (loss)
   
 
(34
) 
   
 
 (11
) 
 
   60       47  
    
 
 
     
 
 
 
 
 
 
    
 
 
  
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
   
$
(371,834
) 
   
$
 119,848
 
 
 $ 518,448     $ 54,459  
    
 
 
     
 
 
    
 
 
    
 
 
  
 
As disclosed in Note 2—Summary of Significant Accounting Policies, FoA is a holding company and has a controlling interest in FoA Equity. FoA did not have any cash as of December 31, 2021 (Successor), accordingly Condensed Statements of Cash Flows have not been presented. Management determined which assets and liabilities were to be used by the operating subsidiaries, and these amounts have been appropriately excluded from the parent company Condensed Statements of Financial Condition of FoA presented above. Changes in these balances are reflected as additional contributions and distributions from FoA Equity in the period in which they occur, and had no impact on any cash balances that may have otherwise been maintained at FoA.
Basis of Presentation
The parent company financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and the accompanying notes thereto. The parent company follows the same accounting policies as disclosed in Note 2—Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements. For purposes of this condensed financial information, the Company’s consolidated subsidiaries are recorded based upon its proportionate share of the subsidiaries net assets (similar to presenting them on the equity method).
Since restricted net assets of FoA and its subsidiaries exceed 25% of the consolidated net assets of the Company and its subsidiaries, the accompanying condensed parent company financial statements have been prepared in accordance with Rule
12-04
Schedule 1 of Regulation
S-X.
Dividends from Subsidiaries
There were no cash dividends paid to the parent from the Company’s consolidated subsidiaries for the Successor period from April 1, 2021 to December 31, 2021 and $75.0 million for the Predecessor period from January 1, 2021 to March 31, 2021. There were $380.4 million and $2.8 million cash dividends paid to the parent from the Company’s consolidated subsidiaries for the years ended December 31, 2020 and 2019, respectively.