SUMMARY OF FINANCIAL PERFORMANCE

Net Worth

Common shareholders' equity ("Book Value") decreased $9.6 million during the three months ended March 31, 2021, to $280.3 million. This decline was driven by $9.7 million of comprehensive loss partially offset by $0.1 million of other increases in common shareholders' equity.

Book Value per share decreased $1.69, or 3.4%, during the three months ended March 31, 2021, to $48.12.

Book Value adjusted to exclude the carrying value of our net DTAs ("Adjusted Book Value") decreased $13.4 million during the three months ended March 31, 2021, to $217.5 million. This change was driven by $11.2 million of "Net loss before income taxes" and $2.3 million of other comprehensive losses, partially offset by $0.1 million of other increases in common shareholders' equity.

Adjusted Book Value per share decreased $2.32, or 5.8%, during the three months ended March 31, 2021, to $37.34.

Refer to "Use of Non-GAAP Measures" for more information regarding the reconciliation of Adjusted Book Value and Adjusted Book Value per share to our most comparable GAAP measures.

Comprehensive Loss

We recognized comprehensive losses of $9.7 million during the three months ended March 31, 2021, which consisted of $8.1 million of net loss and $1.6 million of other comprehensive loss. In comparison, we recognized $3.5 million of comprehensive loss for the three months ended March 31, 2020, which consisted of $3.1 million of net loss and $0.4 million of other comprehensive loss.

The $8.1 million of net loss recognized during the three months ended March 31, 2021, was primarily driven by equity in losses of the Solar Ventures. Refer to "Consolidated Results of Operations," for more information.

Net loss before income taxes for the three months ended March 31, 2021, was $11.2 million, or $(1.92) per share, as compared to $4.2 million of net loss, or $(0.73) per share, for the three months ended March 31, 2020.

Other comprehensive loss of $1.6 million that we reported for the three months ended March 31, 2021, was primarily attributable to the realization of fair value gains stemming from the defeasance of our tax-exempt multifamily bond investment during such reporting period. The resulting decline in accumulated other comprehensive income ("AOCI") was partially offset by the impact of an income tax benefit that was recognized during such reporting period in connection with our bond investments.





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  Table of Contents

CONSOLIDATED BALANCE SHEET ANALYSIS

This section provides an overview of changes in our assets, liabilities and equity and should be read together with our consolidated financial statements, including the accompanying notes to the financial statements.

Table 6 provides Consolidated Balance Sheets for the periods presented.

Table 6: Consolidated Balance Sheets

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