Quarterly report pursuant to Section 13 or 15(d)

Derivatives (Tables)

v3.23.2
Derivatives (Tables)
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Assets and Income (Loss) Related To Derivatives
Sunlight’s contract derivatives are recorded at fair value in the accompanying Unaudited Condensed Consolidated Balance Sheets as follows:
Balance Sheet Location June 30, 2023 December 31, 2022
Contract derivative 1(a)
Affiliate contract derivative, at fair value $ 12,902  n.a.
Contract derivative 2 Other assets 164  $ 449 
a.The agreement did not include embedded derivative features under GAAP between December 2022 and April 2023.
The following table summarizes all income (loss) recorded in relation to derivatives:

For the Three Months Ended June 30, For the Six Months Ended June 30,
2023 2022 2023 2022
Change in fair value of contract derivatives, net
Contract derivative 1 $ (670) $ 214  $ (670) $ (207)
Contract derivative 2 (129) 106  (285) 300 
$ (799) $ 320  $ (955) $ 93 
Realized gains (losses) on contract derivatives, net
Contract derivative 1 $ (12,319) $ 1,976  $ (12,319) $ 3,807 
Contract derivative 2 76  79  199  157 
$ (12,243) $ 2,055  $ (12,120) $ 3,964 
Summary of Notional Amounts of Derivatives
The following table summarizes notional amounts related to derivatives:

June 30, 2023 December 31, 2022
Contract derivative 1(a)
$ 520,530  n.a.
Contract derivative 2(b)
14,484  $ 38,805 
a.Represents the carrying value of Indirect Channel Loans held by Sunlight’s Bank Partner. The agreement did not include embedded derivative features under GAAP between December 2022 and April 2023.
b.Represents the unpaid principal balance of the Loans at time of sale to the Indirect Channel Loan Purchaser for which Sunlight is entitled to income in the event of prepayment of the Indirect Channel Loans.