| 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):
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|
|
|
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|
|
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|
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):
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|
|
|
|
|
|
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|
|
|
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For the three months ended March 31, 2023 |
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|
|
For the three months ended March 31, 2022 |
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| Revenues |
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|
|
|
|
|
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| 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 |
|
|
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| Total revenues |
33,029
|
|
|
|
|
221,376 |
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|
|
|
|
|
|
|
|
|
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| Expenses |
|
|
|
|
|
|
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| Salaries, benefits, and related expenses |
30,851
|
|
|
|
|
149,977 |
|
|
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| Occupancy, equipment rentals, and other office related expenses |
972
|
|
|
|
|
5,648 |
|
|
|
| General and administrative expenses |
28,533
|
|
|
|
|
86,508 |
|
|
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| 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 |
|
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|
(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):
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|
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|
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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) |
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|