Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.24.3
Discontinued Operations
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
4. Discontinued Operations
During the fourth quarter of 2022 and calendar year 2023, the Company entered into a series of transactions, discontinuing certain business lines while enhancing our reverse mortgage loan business, in order to transform our business from a vertically integrated lending and complementary services platform to a modern retirement solutions platform. This transformation included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lender Services segments. This constitutes a strategic shift that has or will have a major effect on our operations and financial results.
The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of September 30, 2024 and December 31, 2023 (in thousands):

September 30, 2024 December 31, 2023
Assets
Other assets, net $ 3,827  $ 6,721 
Liabilities
Payables and other liabilities 13,585  18,304 
The following table summarizes the major components of net loss from discontinued operations (in thousands):

For the three months ended September 30, 2024 For the three months ended September 30, 2023 For the nine months ended September 30, 2024 For the nine months ended September 30, 2023
Portfolio interest income
Interest income $ —  $ —  $ —  $ 828 
Interest expense —  —  —  (970)
Net portfolio interest income (expense) —  —  —  (142)
Other income (expense)
Net origination gains —  —  —  308 
Net fair value changes on loans and related obligations —  —  —  308 
Fee income —  3  —  68,128 
Gain on sale and other income from loans held for sale, net —  —  —  278 
Net other income (expense) —  3  —  68,714 
Total revenues —  3  —  68,572 
Expenses
Salaries, benefits, and related expenses —  962  —  51,664 
Loan production and portfolio related expenses —  36  —  1,223 
Marketing and advertising expenses —  74  —  962 
Depreciation and amortization —  —  —  2,778 
General and administrative expenses —  1,122  1,622  55,454 
Total expenses —  2,194  1,622  112,081 
Impairment of intangibles and other assets(1)
—  —  —  (4,455)
Other, net(2)
—  (261) (3,105) 1,660 
Net loss from discontinued operations before income taxes —  (2,452) (4,727) (46,304)
Provision (benefit) for income taxes from discontinued operations —  12  —  (1,093)
Net loss from discontinued operations —  (2,464) (4,727) (45,211)
Net loss from discontinued operations attributable to noncontrolling interest —  (1,629) (2,719) (29,182)
Net loss from discontinued operations attributable to controlling interest $ —  $ (835) $ (2,008) $ (16,029)
(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 Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment. Based on the analyses, the Company recognized impairment charges in the nine months ended September 30, 2023, related to the sales of the previously reported Lender Services and Commercial Originations segments.
(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, 2024 and 2023 included the following material activities related to discontinued operations (in thousands):
For the nine months ended September 30, 2024 For the nine months ended September 30, 2023
Gain on sale and other income from loans held for sale, net $ —  $ 278 
Unrealized fair value changes on loans, related obligations, and derivatives —  308 
Impairment of intangibles and other assets —  4,455 
Depreciation and amortization —  2,778 
Acquisition of fixed assets —  1,815