SUMMARY OF FINANCIAL PERFORMANCE

Net Worth

Common shareholders' equity ("Book Value") decreased $2.8 million during the three months ended June 30, 2021, to $277.4 million. This decline was driven by $2.8 million of comprehensive loss.

Book Value per share decreased $0.48, or 1.0%, during the three months ended June 30, 2021, to $47.64.

Book Value adjusted to exclude the carrying value of our net DTAs ("Adjusted Book Value") decreased $3.8 million during the three months ended June 30, 2021, to $213.6 million. This change was driven by $4.0 million of other comprehensive losses, before income tax benefit, partially offset by $0.2 million of "Net income (loss) before income taxes."

Adjusted Book Value per share decreased $0.66, or 1.8%, during the three months ended June 30, 2021, to $36.68.

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 $2.8 million during the three months ended June 30, 2021, which consisted of $0.1 million of net income and $2.9 million of other comprehensive loss. In comparison, we recognized $3.3 million of comprehensive loss for the three months ended June 30, 2020, which consisted of $3.5 million of net loss and $0.2 million of other comprehensive income.

The $0.1 million of net income recognized during the three months ended June 30, 2021, was primarily driven by the sale of the Company's multifamily tax-exempt bond and equity in income of the Solar Ventures. Refer to "Consolidated Results of Operations," for more information.

Net income before income taxes for the three months ended June 30, 2021, was $0.2 million, or $0.03 per share, as compared to $1.5 million of net loss, or $(0.27) per share, for the three months ended June 30, 2020.

Other comprehensive loss of $2.9 million that we reported for the three months ended June 30, 2021, was primarily attributable to the realization of fair value gains stemming from the sale 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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