| Summary of components of other financing lines of credit |
The following summarizes the components of other financing lines of credit relating to continuing operations (in thousands):
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Outstanding borrowings at |
| Maturity Date |
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Interest Rate |
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Collateral Pledged |
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Total Capacity(1)
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June 30, 2023 |
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December 31, 2022 |
| Mortgage Lines: |
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| October 2023 |
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Bloomberg short-term
bank yield ("BSBY") index + applicable margin |
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First Lien Mortgages |
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$ |
14,000 |
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$ |
3,757
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$ |
83,814 |
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| November 2023 |
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Secured Overnight Financing Rate ("SOFR") + applicable margin |
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Home Improvement Consumer Loans |
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75,000 |
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28,129
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7,495 |
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| N/A |
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Bond accrual rate + applicable margin |
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Mortgage Related Assets |
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37,559 |
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37,559
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37,604 |
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| N/A |
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N/A |
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MSR |
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— |
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—
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10,312 |
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| Subtotal mortgage lines of credit |
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$ |
126,559 |
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$ |
69,445
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$ |
139,225 |
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| Reverse Lines: |
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| July 2023 - June 2024 |
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BSBY/SOFR + applicable margin |
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First Lien Mortgages |
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$ |
1,085,000 |
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$ |
507,480
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$ |
584,658 |
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| N/A |
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Bond accrual rate/SOFR + applicable margin |
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Mortgage Related Assets |
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368,991 |
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348,991
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320,715 |
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| October 2027 |
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SOFR + applicable margin |
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MSR |
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70,000 |
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69,231
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33,036 |
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| September 2023 |
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Prime + .50%; 6% floor |
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Unsecuritized Tails |
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45,000 |
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44,874
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45,001 |
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| Subtotal reverse lines of credit |
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$ |
1,568,991 |
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$ |
970,576
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$ |
983,410 |
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| Commercial Lines: |
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| July 2023 - October 2023 |
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SOFR/BSBY + applicable margin |
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First Lien Mortgages |
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$ |
51,000 |
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$ |
12,092
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$ |
159,938 |
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| January 2024 |
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SOFR + applicable margin |
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Mortgage Related Assets |
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20,000 |
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20,000
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12,500 |
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| N/A |
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N/A |
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Encumbered Agricultural Loans |
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— |
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—
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7,561 |
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| N/A |
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N/A |
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Second Lien Mortgages |
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— |
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—
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25,000 |
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| Subtotal commercial lines of credit |
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$ |
71,000 |
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$ |
32,092
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$ |
204,999 |
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| Total other financing lines of credit |
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$ |
1,766,550 |
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$ |
1,072,113
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$ |
1,327,634 |
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(1)Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions, and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of June 30, 2023. The lines of credit with no capacity are terminated as of June 30, 2023.
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| Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios |
As of June 30, 2023, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):
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| Financial Covenants |
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Requirement |
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June 30, 2023 |
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Maximum Allowable Distribution(1)
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| FAM |
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Adjusted Tangible Net Worth(2)
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$ |
10,000
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$ |
53,876
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$ |
43,876
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| Liquidity |
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1,000
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13,751
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12,751
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| FAR |
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Adjusted Tangible Net Worth(2)
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$ |
250,000
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$ |
276,458
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$ |
26,458
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| Liquidity |
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36,731
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38,949
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2,218
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| Leverage Ratio |
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6:1 |
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4.9:1 |
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51,680
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| FAH |
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Adjusted Tangible Net Worth(2)
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$ |
300,000
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$ |
300,498
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$ |
498
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| Liquidity |
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40,000
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52,225
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12,225
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| Leverage Ratio |
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10:1 |
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5.6:1 |
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131,413
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(1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary.
(2) This amount is based on the most restrictive financing line of credit covenant.
As of December 31, 2022, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):
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| Financial Covenants |
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Requirement |
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December 31, 2022 |
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Maximum Allowable Distribution(1)
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| FAM |
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Adjusted Tangible Net Worth(2)
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$ |
100,000 |
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$ |
100,907 |
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$ |
907 |
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| Liquidity |
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20,000 |
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23,368 |
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3,368 |
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| Leverage Ratio |
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13:1 |
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9.3:1 |
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28,732 |
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| FAR |
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Adjusted Tangible Net Worth(2)
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$ |
250,000 |
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$ |
267,067 |
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$ |
17,067 |
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| Liquidity |
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24,724 |
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28,718 |
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3,994 |
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| Leverage Ratio |
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6:1 |
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5.29:1 |
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31,808 |
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| FAH |
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Adjusted Tangible Net Worth(2)
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$ |
300,000 |
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$ |
310,850 |
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$ |
10,850 |
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| Liquidity |
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45,000 |
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52,270 |
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7,270 |
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| Leverage Ratio |
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10:1 |
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6.55:1 |
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107,292 |
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(1) The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary.
(2) This amount is based on the most restrictive financing line of credit covenant.
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