Financing Receivables (Tables) - SUNLIGHT FINANCIAL LLC

12 Months Ended

Dec. 31, 2020

Accounts, Notes, Loans and Financing Receivable [Line Items]

Summary of financing receivables and changes thereto

			Loans
			and Loan
	Advances(a)		Participations(b)		Total
December 31, 2020
Amounts outstanding	$	35,401	$	6,351	$	41,752
Unamortized discount		—		(893)		(893)
Allowance for credit losses		(121)		(125)		(246)
Carrying value	$	35,280	$	5,333	$	40,613
December 31, 2019
Amounts outstanding	$	17,523	$	6,064	$	23,587
Unamortized discount		—		(838)		(838)
Allowance for credit losses		(215)		(96)		(311)
Carrying value	$	17,308	$	5,130	$	22,438
Allowance for Credit Losses
Balance ‒ December 31, 2018	$	284	$	90	$	374
Provision for credit losses		(69)		794		725
Realized losses		—		(788)		(788)
Balance ‒ December 31, 2019		215		96		311
Provision for credit losses		(94)		1,444		1,350
Realized losses		—		(1,415)		(1,415)
Balance ‒ December 31, 2020	$	121	$	125	$	246
Changes in Carrying Value
Balance ‒ December 31, 2018			$	3,679	$	3,679
Purchases, net(c)				3,019		3,019
Proceeds from principal repayments, net				(913)		(913)
Accretion of loan discount				139		139
Provision for credit losses				(794)		(794)
Balance ‒ December 31, 2019				5,130		5,130
Purchases, net(d)				2,839		2,839
Proceeds from principal repayments, net				(1,316)		(1,316)
Accretion of loan discount				124		124
Provision for credit losses				(1,444)		(1,444)
Balance ‒ December 31, 2020			$	5,333	$	5,333

(a) Represents short-term, advance payments made by Sunlight to certain contractors in anticipation of a project’s substantial completion.

(b) Represents (i) Sunlight’s 5.0% participation interest in a pool of residential solar loans with an aggregate UPB of $6.0 million and $5.7 million at December 31, 2020 and 2019, respectively, and (ii) Indirect Channel Loans purchased by Sunlight with an aggregate UPB of $0.4 million and $0.4 million at December 31, 2020 and 2019, respectively. No loans or loan participations were individually evaluated for impairment at December 31, 2020 or 2019.

(c) During the year ended December 31, 2019, Sunlight purchased (i) 5.0% participation interests in 1,838 loans with an aggregate UPB of $2.9 million as well as 42 Indirect Channel Loans with an aggregate UPB of $0.7 million.

(d) During the year ended December 31, 2020, Sunlight purchased 5.0% participation interests in 1,007 loans with an aggregate UPB of $1.6 million as well as 49 Indirect Channel Loans with an aggregate UPB of $1.2 million.

Advance.

Accounts, Notes, Loans and Financing Receivable [Line Items]

Summary of allocation of advance amount outstanding based on internal risk ratings

	Total
		Amount		% of Amount
Risk Tier(a)	Contractors	Outstanding		Outstanding
December 31, 2020
1 Low risk	78	$	18,072	51.0	%
2 Low-to-medium risk	56		16,700	47.2
3 Medium risk	4		604	1.7
4 Medium-to-high risk	—		—	—
5 Higher risk	3		25	0.1
	141	$	35,401	100.0	%
December 31, 2019
1 Low risk	50	$	11,021	62.9	%
2 Low-to-medium risk	31		5,803	33.1
3 Medium risk	4		663	3.8
4 Medium-to-high risk	—		—	—
5 Higher risk	1		36	0.2
	86	$	17,523	100.0	%

(a) At December 31, 2020 and 2019, the average risk rating of Sunlight’s advances was 1.5 (“low-to-medium risk”) and 1.4 (“low risk”), weighted by total advance amounts outstanding.

Summary of payment status of advances held

	Total
	Amount		% of Amount
Payment Delinquency	Outstanding		Outstanding
December 31, 2020
Current	$	29,132	82.3	%
Less than 30 days		3,137	8.9
30 days		1,424	4.0
60 days		672	1.9
90+ days(a)		1,036	2.9
	$	35,401	100.0	%
December 31, 2019
Current	$	15,703	89.6	%
Less than 30 days		1,228	7.0
30 days		268	1.5
60 days		64	0.4
90+ days(a)		260	1.5
	$	17,523	100.0	%

(a) As further discussed in Note 2, Sunlight generally evaluates amounts delinquent for 90 days or more for impairment. Advances to contractors may remain outstanding as a result of operational and other reasons that are unrelated to the contractor’s creditworthiness. Sunlight assessed advances 90 days or more, along with other factors that included the contractor’s risk tier and historical loss experience, and established loss allowances of $0.1 million and $0.2 million at December 31, 2020 and 2019, respectively.

Summary of concentration of advances, by counterparty

	At December 31,
	2020				2019
	Amount				Amount
Contractor	Outstanding		% of Total		Outstanding		% of Total
1	$	10,429	29.5	%	$	7,041	40.2	%
2		6,425	18.1			2,548	14.5
3		2,615	7.4			49	0.3
4		1,812	5.1			—	—
5		712	2.0			58	0.3
6		644	1.8			46	0.3
7		574	1.6			20	0.1
8		545	1.5			351	2.0
9		514	1.5			423	2.4
10		477	1.3			—	—
Other(a)		10,654	30.2			6,987	39.9
	$	35,401	100.0	%	$	17,523	100.0	%

(a) At December 31, 2020 and 2019, Sunlight recorded advances receivable from 131 and 76 counterparties not individually listed in the table above with average balances of $0.1 million and $0.1 million, respectively. At December 31, 2019, Sunlight recorded advances receivable from individual counterparties of $1.1 million, $0.9 million, $0.5 million, $0.4 million, and $0.3 million that represent the largest advance concentrations included in “Other,” based on the amount outstanding.

Loans and Loan Participations

Accounts, Notes, Loans and Financing Receivable [Line Items]

Summary of payment status of advances held

				Bank Partner
	Loan Participations			Loans			Total
Payment Delinquency(a)	Loans	UPB		Loans	UPB		Loans	UPB		% of UPB
December 31, 2020
Current	4,409	$	5,760	16	$	319	4,425	$	6,079	95.7	%
Less than 30 days	116		174	—		—	116		174	2.7
30 days	22		38	1		23	23		61	1.0
60 days	7		11	—		—	7		11	0.2
90+ days	10		14	1		12	11		26	0.4
	4,564	$	5,997	18	$	354	4,582	$	6,351	100.0	%
December 31, 2019
Current	3,921	$	5,462	12	$	223	3,933	$	5,685	93.8	%
Less than 30 days	101		158	4		91	105		249	4.1
30 days	21		27	—		—	21		27	0.4
60 days	9		12	2		64	11		76	1.3
90+ days	9		15	1		12	10		27	0.4
	4,061	$	5,674	19	$	390	4,080	$	6,064	100.0	%

(a) As further described in Note 2, Sunlight places loans delinquent greater than 90 days on nonaccrual status. Such Loans had carrying values of $0.0 million and $0.0 million at December 31, 2020 and 2019, respectively. Sunlight does not consider the average carrying values and interest income recognized (including interest income recognized using a cash-basis method) material for the years ended December 31, 2020 and 2019.

Summary of concentration of advances, by counterparty

	At December 31,
	2020					2019
State	UPB		% of Total		UPB		% of Total
Texas	$	1,203	18.9	%	$	1,189	19.6	%
California		1,111	17.5			1,153	19.0
Florida		555	8.7			520	8.6
New York		403	6.3			451	7.4
New Jersey		376	5.9			329	5.4
Arizona		312	4.9			297	4.9
Pennsylvania		274	4.3			292	4.8
South Carolina		234	3.7			235	3.9
Missouri		228	3.6			211	3.5
Massachusetts		223	3.5			184	3.0
Other(a)		1,432	22.7			1,203	19.9
	$	6,351	100.0	%	$	6,064	100.0	%

(a) Sunlight only participates in residential solar loans originated within the United States, including 31 and 27 states not individually listed in the table above, none of which individually amount to more than 2.7% and 2.5% of the UPB at December 31, 2020 and 2019, respectively.