Annual report pursuant to Section 13 and 15(d)

Discontinued Operations (Tables)

v3.24.0.1
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2023 and December 31, 2022 (in thousands):

December 31, 2023 December 31, 2022
Assets
Cash and cash equivalents $ —  $ 36,212 
Restricted cash —  311 
Loans held for sale, at fair value —  141,994 
Intangible assets, net —  77,436 
Other assets, net 6,721  57,407 
Assets of discontinued operations $ 6,721  $ 313,360 
Liabilities
Other financing lines of credit $ —  $ 127,735 
Payables and other liabilities 18,304  99,379 
Liabilities of discontinued operations $ 18,304  $ 227,114 
The following table summarizes the major components of net loss from discontinued operations (in thousands):

For the year ended December 31, 2023 For the year ended December 31, 2022
Revenues
Net fair value gains on loans and related obligations $ 308  $ 14,705 
Fee income 68,138  280,315 
Gain (loss) on sale and other income from loans held for sale, net (2,222) 216,949 
Net interest income:
Interest income 824  41,598 
Interest expense (966) (33,088)
Net interest income (expense) (142) 8,510 
Total revenues 66,082  520,479 
Expenses
Salaries, benefits, and related expenses 51,780  456,382 
Loan production and portfolio related expenses 1,224  42,957 
Marketing and advertising expenses 1,042  21,144 
Depreciation and amortization 5,176  22,963 
General and administrative expenses 54,070  186,943 
Total expenses 113,292  730,389 
Impairment of intangibles and other assets(1)
(4,455) (182,981)
Other, net(2)
(1,444) 3,839 
Net loss from discontinued operations before income taxes (53,109) (389,052)
Provision (benefit) for income taxes from discontinued operations (1,200) 608 
Net loss from discontinued operations (51,909) (389,660)
Net loss from discontinued operations attributable to noncontrolling interest (33,108) (263,396)
Net loss from discontinued operations attributable to controlling interest $ (18,801) $ (126,264)
(1) The Company evaluates the carrying value of long-lived assets, including intangible assets, fixed assets, leasehold improvements as well as ROU assets in operating leases when indicators of impairment exist in accordance with ASC 360. Based on the analyses, the Company recognized impairment charges for the year ended December 31, 2023 related to the sales of the previously reported Lender Services and Commercial Originations segments.
For the year ended December 31, 2022, the Company recognized impairment of intangibles and other assets in the previously reported Mortgage Originations, Commercial Originations, and Lender Services segments due to the length and magnitude of the downturn in mortgage demand.
(2) Amount includes gains on disposals of $0.3 million for the year ended December 31, 2023. The gains on disposals consist of a $12.8 million gain on the sale of the remaining assets of the Lender Services segment, a $11.7 million loss on the sale of our commercial originations operational assets, and a $0.8 million loss on the sale of ANTIC and BNT.

The Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 included the following material activities related to discontinued operations (in thousands):
For the year ended December 31, 2023 For the year ended December 31, 2022
Gain (loss) on sale and other income from loans held for sale, net $ (2,222) $ 221,121 
Unrealized fair value changes on loans, related obligations, and derivatives 308  14,705 
Impairment of intangibles and other assets 4,455  182,981 
Depreciation and amortization 5,176  22,963 
Acquisition of fixed assets 1,815  5,787