Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.23.3
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2023 and December 31, 2022 (in thousands):

September 30, 2023 December 31, 2022
Assets
Cash and cash equivalents $ —  $ 36,212 
Restricted cash —  311 
Loans held for sale, at fair value —  141,994 
Derivative assets —  676 
Fixed assets and leasehold improvements, net 81  9,884 
Intangible assets, net —  77,436 
Other assets, net 8,275  46,847 
Assets of discontinued operations $ 8,356  $ 313,360 
Liabilities
Other financing lines of credit $ —  $ 127,735 
Payables and other liabilities 18,360  99,379 
Liabilities of discontinued operations $ 18,360  $ 227,114 
The following table summarizes the major components of net loss from discontinued operations (in thousands):

For the three months ended September 30, 2023 For the three months ended September 30, 2022 For the nine months ended September 30, 2023 For the nine months ended September 30, 2022
Revenues
Gain on sale and other income from loans held for sale, net $ —  $ 42,687  $ 278  $ 226,578 
Net fair value gains on loans and related obligations —  3,868  308  10,781 
Fee income 3  60,300  68,128  244,572 
Net interest income:
Interest income —  9,495  828  36,428 
Interest expense —  (7,702) (970) (26,861)
Net interest income —  1,793  (142) 9,567 
Total revenues 3  108,648  68,572  491,498 
Expenses
Salaries, benefits, and related expenses 962  100,597  51,664  386,064 
Occupancy, equipment rentals, and other office related expenses 126  5,427  1,977  16,637 
General and administrative expenses 1,106  60,546  58,440  213,571 
Total expenses 2,194  166,570  112,081  616,272 
Impairment of intangibles and other assets(1)
—  (134,384) (4,455) (134,384)
Other, net(2)
(261) 862  1,660  3,628 
Net loss from discontinued operations before income taxes (2,452) (191,444) (46,304) (255,530)
Provision (benefit) for income taxes from discontinued operations 12  5,517  (1,093) 1,165 
Net loss from discontinued operations (2,464) (196,961) (45,211) (256,695)
Net loss attributable to noncontrolling interest from discontinued operations (1,629) (128,066) (29,182) (173,087)
Net loss from discontinued operations attributable to controlling interest $ (835) $ (68,895) $ (16,029) $ (83,608)
(1) The Company evaluates the carrying value of long-lived assets, including intangible assets, 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 analyses, the Company recognized impairment charges for the nine months ended September 30, 2023 related to the sales of the previously reported Lender Services and Commercial Originations segments.
For the three and nine months ended September 30, 2022, the Company recognized impairment of intangibles and other assets in the previously reported Mortgage Originations and Commercial Originations segments due to the length and magnitude of the downturn in mortgage demand.
(2) Amounts include gains on disposals of $0.2 million and $2.2 million for the three and nine months ended September 30, 2023, respectively. The gains on disposals consist of a $0.2 million gain on the sale of ANTIC and BNT, a $12.2 million gain on the sale of the remaining assets of the Lender Services segment, and a $10.2 million loss on the sale of our commercial originations operational assets.
The Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 included the following material activities related to discontinued operations (in thousands):
For the nine months ended September 30, 2023 For the nine months ended September 30, 2022
Gain on sale and other income from loans held for sale, net $ 278  $ 226,578 
Unrealized fair value changes on loans, related obligations, and derivatives 308  10,781 
Impairment of intangibles and other assets 4,455  134,384 
Depreciation and amortization 2,778  18,797 
Acquisition of fixed assets (1,815) (5,971)