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Fair Value Measurements (Tables)

9 Months Ended

Dec. 28, 2019

Summary of the Fair Value and Carrying Value of Financial Instruments

The book value and estimated fair value of the Company's financial instruments were as follows (in thousands):



	December 28, 2019						March 30, 2019
	Book Value			Estimated Fair Value			Book Value			Estimated Fair Value
Available-for-sale debt securities ⁽¹⁾	$	10,391		$	10,391		$	13,408		$	13,408
Marketable equity securities ⁽¹⁾	13,473			13,473			11,073			11,073
Non-marketable equity investments ⁽²⁾	21,310			21,310			20,276			20,276
Consumer loans receivable ⁽³⁾	89,992			103,141			86,785			101,001
Interest rate lock commitment derivatives ⁽⁴⁾	3			3			11			11
Forward loan sale commitment derivatives ⁽⁴⁾	104			104			(59		)	(59		)
Commercial loans receivable ⁽⁵⁾	44,357			44,313			43,006			43,582
Securitized financings and other ⁽⁶⁾	(15,987		)	(19,448		)	(34,140		)	(38,101		)


(1)	For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below.


(2)	The fair value approximates book value based on the non-marketable nature of the investments.

(3)

Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale is estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans.


(4)	The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates.


(5)	The fair value is estimated using market interest rates of comparable loans.

(6)

The fair value is estimated using recent public transactions of similar asset-backed securities.

Summary of Assets Measured at Fair Value on a Recurring Basis

measured at fair value on a recurring basis are summarized below (in thousands):



	December 28, 2019
	Total		Level 1		Level 2		Level 3
Residential mortgage-backed securities ⁽¹⁾	$	5,236	$	—	$	5,236	$	—
State and political subdivision debt securities ⁽¹⁾	3,831		—		3,831		—
Corporate debt securities ⁽¹⁾	1,324		—		1,324		—
Marketable equity securities ⁽²⁾	13,473		13,473		—		—
Interest rate lock commitment derivatives ⁽³⁾	3		—		—		3
Forward loan sale commitment derivatives ⁽³⁾	104		—		—		104
Mortgage servicing rights ⁽⁴⁾	1,263		—		—		1,263



	March 30, 2019
	Total			Level 1		Level 2		Level 3
U.S Treasury and government debt securities⁽¹⁾	$	297		$	—	$	297	$	—
Residential mortgage-backed securities ⁽¹⁾	6,509			—		6,509		—
State and political subdivision debt securities ⁽¹⁾	4,983			—		4,983		—
Corporate debt securities ⁽¹⁾	1,619			—		1,619		—
Marketable equity securities ⁽²⁾	11,073			11,073		—		—
Interest rate lock commitment derivatives ⁽³⁾	11			—		—		11
Forward loan sale commitment derivatives ⁽³⁾	(59		)	—		—		(59		)
Mortgage servicing rights ⁽⁴⁾	1,372			—		—		1,372


(1)	Unrealized gains or losses on investments are recorded in Accumulated other comprehensive income (loss) at each measurement date.


(2)	Unrealized gains or losses on investments are recorded in earnings at each measurement date.


(3)	Gains or losses on derivatives are recognized in current period earnings through Cost of sales.

(4)

Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through Net revenue.

Summary of Assets and Liabilities Measured at Fair Value for Disclosure

Financial instruments for which fair value is disclosed but not required to be recognized in the balance sheet on a recurring basis are summarized below (in thousands):



	December 28, 2019
	Total			Level 1		Level 2			Level 3
Loans held for investment	$	69,932		$	—	$	—		$	69,932
Loans held for sale	20,583			—		—			20,583
Loans held—construction advances	12,626			—		—			12,626
Commercial loans receivable	44,313			—		—			44,313
Securitized financings and other	(19,448		)	—		(19,448		)	—
Non-marketable equity investments	21,310			—		—			21,310

Assumptions for Mortgage Servicing Rights



	December 28, 2019			March 30, 2019
Number of loans serviced with MSRs	4,632			4,557
Weighted average servicing fee (basis points)	31.12			31.59
Capitalized servicing multiple	70.53		%	77.97		%
Capitalized servicing rate (basis points)	21.95			24.63
Serviced portfolio with MSRs (in thousands)	$	575,313		$	556,934
Mortgage servicing rights (in thousands)	$	1,263		$	1,372