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Financing Receivables (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Financing receivables and changes thereto The following tables summarize Sunlight’s financing receivables and changes thereto:
Advances(a)
Loans and Loan Participations(b)
Total
June 30, 2022 (Successor)
Amounts outstanding$95,265 $4,289 $99,554 
Unamortized discount— (349)(349)
Allowance for credit losses(3,487)(146)(3,633)
Carrying value$91,778 $3,794 $95,572 
December 31, 2021 (Successor)
Amounts outstanding$67,077 $4,875 $71,952 
Unamortized discount— (414)(414)
Allowance for credit losses(238)(148)(386)
Carrying value$66,839 $4,313 $71,152 
a.Represents advance payments made by Sunlight to certain contractors, generally on a short-term basis, in anticipation of a project’s substantial completion, including advances of $6.6 million and $9.0 million, net of allowances of $2.5 million and $0.0 million, to Sunlight contractors not associated with specific installation projects at June 30, 2022 and December 31, 2021, respectively.
b.Represents (i) Sunlight’s 5.0% participation interest in a pool of residential solar loans with an aggregate UPB of $4.0 million and $4.6 million at June 30, 2022 and December 31, 2021, respectively, and (ii) Indirect Channel Loans purchased by Sunlight with an aggregate UPB of $0.3 million and $0.3 million at June 30, 2022 and December 31, 2021, respectively. No loans or loan participations were individually evaluated for impairment at June 30, 2022 or December 31, 2021.

SuccessorPredecessorSuccessorPredecessor
For the Three Months Ended June 30,For the Three Months Ended June 30,For the Six Months Ended June 30,For the Six Months Ended June 30,
2022202120222021
Allowance for Credit Losses — Advances
Beginning Balance$505 $101 $238 $121 
Provision for credit losses2,982 110 3,249 90 
Ending Balance$3,487 $211 $3,487 $211 
Allowance for Credit Losses — Loans and Loan Participations
Beginning Balance$73 $114 $148 $125 
Provision for credit losses1,060 326 1,431 1,082 
Realized losses(987)(329)(1,433)(1,096)
Ending Balance$146 $111 $146 $111 
Changes in Carrying Value — Loans and Loan Participations
Beginning Balance$4,126 $5,065 $4,313 $5,333 
Purchases, net(a)
990 328 1,438 1,170 
Proceeds from principal repayments, net(279)(413)(586)(832)
Accretion of loan discount17 53 60 118 
Provision for credit losses(1,060)(326)(1,431)(1,082)
Ending Balance$3,794 $4,707 $3,794 $4,707 
a.During the three and six months ended June 30, 2021, Sunlight purchased (i) 5.0% participation interests in 0 and 54 loans with an aggregate UPB of $0.0 million and $0.1 million, respectively, as well as (ii) 17 and 51 Indirect Channel Loans with an aggregate UPB of $0.3 million and $1.1 million, respectively. During three and six months ended June 30, 2022, Sunlight purchased 24 and 48 Indirect Channel Loans with an aggregate UPB of $0.6 million and $1.1 million, respectively.
Allocation of advance amount based on internal risk ratings The following table allocates the advance amount outstanding based on Sunlight’s internal risk ratings:
Total
Risk Tier(a)
ContractorsAmount Outstanding% of Amount Outstanding
June 30, 2022 (Successor)
1Low risk96 $16,525 17.3 %
2Low-to-medium risk108 33,018 34.7 
3Medium risk66 34,784 36.5 
4Medium-to-high risk2 10,938 11.5 
5Higher risk— — — 
272 $95,265 100.0 %
December 31, 2021 (Successor)
1Low risk76 $14,575 21.7 %
2Low-to-medium risk77 38,955 58.1 
3Medium risk17 13,547 20.2 
4Medium-to-high risk— — — 
5Higher risk— — — 
170 $67,077 100.0 %
a.At June 30, 2022 and December 31, 2021, the average risk rating of Sunlight’s advances was 2.4 (“low-to-medium”) and 2.0 (“low-to-medium risk”), weighted by total advance amounts outstanding.
Payment status The following table presents the payment status of advances held by Sunlight:
Payment Delinquency
Amount Outstanding(a)
% of Amount Outstanding
June 30, 2022 (Successor)
Current$71,892 81.0 %
Less than 30 days6,659 7.5 
30 days4,770 5.4 
60 days1,239 1.4 
90+ days(b)
4,150 4.7 
$88,710 100.0 %
December 31, 2021 (Successor)
Current$54,586 94.0 %
Less than 30 days1,956 3.4 
30 days534 0.9 
60 days361 0.6 
90+ days(b)
640 1.1 
$58,077 100.0 %
a.Excludes advances of $6.6 million and $9.0 million to Sunlight contractors not associated with specific installation projects and was not delinquent at June 30, 2022 and December 31, 2021, respectively.
b.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 various other factors 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 $1.0 million and $0.2 million at June 30, 2022 and December 31, 2021, respectively.
The following table presents the payment status of loans and loan participations held by Sunlight:
Payment Delinquency(a)
Loan ParticipationsBank Partner LoansTotal
LoansUPBLoansUPBLoansUPB% of UPB
June 30, 2022 (Successor)
Current3,503 $3,897 15 $274 3,518 $4,171 97.2 %
Less than 30 days69 85 1 10 70 95 2.2 
30 days11 13 — — 11 13 0.3 
60 days5 5 — — 5 5 0.1 
90+ days5 5 — — 5 5 0.2 
3,593 $4,005 16 $284 3,609 $4,289 100.0 %
December 31, 2021 (Successor)
Current3,780 $4,442 14 $268 3,794 $4,710 96.6 %
Less than 30 days73 96 1 11 74 107 2.2 
30 days15 23 — — 15 23 0.5 
60 days10 14 — — 10 14 0.3 
90+ days7 9 1 12 8 21 0.4 
3,885 $4,584 16 $291 3,901 $4,875 100.0 %
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 June 30, 2022 and December 31, 2021, respectively. Sunlight does not consider the average carrying values and interest income recognized (including interest income recognized using a cash-basis method) material.
Risk concentration The following table presents the concentration of advances, by counterparty:
Successor
June 30, 2022December 31, 2021
ContractorAmount Outstanding% of TotalAmount Outstanding% of Total
1$30,518 32.0 %$12,470 18.6 %
210,901 11.4 20,894 31.1 
310,407 10.9 9,496 14.2 
46,072 6.4 1,745 2.6 
54,966 5.2 2,093 3.1 
63,515 3.7 2,610 3.9 
72,758 2.9 2,571 3.8 
81,601 1.7 — — 
91,354 1.4 855 1.3 
101,027 1.1 486 0.7 
Other(a)
22,146 23.3 13,857 20.7 
$95,265 100.0 %$67,077 100.0 %
a.At June 30, 2022 and December 31, 2021, Sunlight recorded advances receivable from 262 and 160 counterparties not individually listed in the table above with average balances of $0.1 million and $0.1 million, respectively. At December 31, 2021, Sunlight recorded advances receivable from individual counterparties of $0.6 million, $0.6 million, $0.5 million, $0.4 million, and $0.4 million that represent the largest advance concentrations included in “Other,” based on the amount outstanding.
The following table presents the UPB of Balance Sheet Loans, including Sunlight’s relevant participation percentage of the Indirect Channel Loans underlying the participation interests held by Sunlight, based upon the state in which the borrower lived at the time of loan origination:
Successor
June 30, 2022December 31, 2021
StateUPB% of TotalUPB% of Total
Texas$813 19.0 %$930 19.1 %
California767 17.9 867 17.8 
Florida366 8.5 423 8.7 
New York289 6.7 325 6.7 
New Jersey272 6.3 302 6.2 
Arizona194 4.5 220 4.5 
Massachusetts185 4.3 201 4.1 
Pennsylvania179 4.2 202 4.1 
South Carolina154 3.6 178 3.7 
Missouri126 2.9 135 2.8 
Other(a)
944 22.1 1,092 22.3 
$4,289 100.0 %$4,875 100.0 %
a.Sunlight only participates in residential solar loans originated within the United States, including 31 and 31 states not individually listed in the table above, none of which individually amount to more than 2.6% and 2.6% of the UPB at June 30, 2022 and December 31, 2021, respectively.