Fair Value Measurements |
Fair Value Measurements The book value and estimated fair value of the Company's financial instruments were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | September 26, 2020 | | March 28, 2020 | | Book Value | | Estimated Fair Value | | Book Value | | Estimated Fair Value | Available-for-sale debt securities | $ | 12,676 | | | $ | 12,676 | | | $ | 14,774 | | | $ | 14,774 | | Marketable equity securities | 12,791 | | | 12,791 | | | 9,829 | | | 9,829 | | Non-marketable equity investments | 21,400 | | | 21,400 | | | 21,536 | | | 21,536 | | Consumer loans receivable | 81,840 | | | 98,045 | | | 82,304 | | | 97,395 | | Interest rate lock commitment derivatives | 21 | | | 21 | | | 164 | | | 164 | | Forward loan sale commitment derivatives | 123 | | | 123 | | | (1,011) | | | (1,011) | | Commercial loans receivable | 41,478 | | | 41,144 | | | 46,565 | | | 46,819 | | Securitized financings and other | (14,051) | | | (13,638) | | | (14,953) | | | (15,592) | | | | | | | | | |
See Note 19, Fair Value Measurements and the Fair Value of Financial Instruments caption in Note 1, Summary of Significant Accounting Policies in the Form 10-K for more information on the methodologies the Company uses in determining fair value. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | September 26, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | | | | | | | | | Residential mortgage-backed securities (1) | $ | 3,641 | | | $ | — | | | $ | 3,641 | | | $ | — | | State and political subdivision debt securities (1) | 4,278 | | | — | | | 4,278 | | | — | | Corporate debt securities (1) | 4,757 | | | — | | | 4,757 | | | — | | Marketable equity securities (2) | 12,791 | | | 12,791 | | | — | | | — | | Interest rate lock commitment derivatives (3) | 21 | | | — | | | — | | | 21 | | Forward loan sale commitment derivatives (3) | 123 | | | — | | | — | | | 123 | | Mortgage servicing rights (4) | 1,058 | | | — | | | — | | | 1,058 | |
| | | | | | | | | | | | | | | | | | | | | | | | | March 28, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Residential mortgage-backed securities (1) | $ | 5,443 | | | $ | — | | | $ | 5,443 | | | $ | — | | State and political subdivision debt securities (1) | 4,370 | | | — | | | 4,370 | | | — | | Corporate debt securities (1) | 4,961 | | | — | | | 4,961 | | | — | | Marketable equity securities (2) | 9,829 | | | 9,829 | | | — | | | — | | Interest rate lock commitment derivatives (3) | 164 | | | — | | | — | | | 164 | | Forward loan sale commitment derivatives (3) | (1,011) | | | — | | | — | | | (1,011) | | Mortgage servicing rights (4) | 1,225 | | | — | | | — | | | 1,225 | |
(1)Unrealized gains or losses on investments are recorded in Accumulated other comprehensive income 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 recorded in earnings through Cost of sales. (4)Changes in the fair value of mortgage servicing rights are recorded in earnings through Net revenue. No transfers between Level 1, Level 2 or Level 3 occurred during the six months ended September 26, 2020. 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): | | | | | | | | | | | | | | | | | | | | | | | | | September 26, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Loans held for investment | $ | 64,043 | | | $ | — | | | $ | — | | | $ | 64,043 | | Loans held for sale | 19,939 | | | — | | | — | | | 19,939 | | Construction advances | 14,063 | | | — | | | — | | | 14,063 | | Commercial loans receivable | 41,144 | | | — | | | — | | | 41,144 | | Securitized financings and other | (13,638) | | | — | | | (13,638) | | | — | | Non-marketable equity investments | 21,400 | | | — | | | — | | | 21,400 | |
| | | | | | | | | | | | | | | | | | | | | | | | | March 28, 2020 | | Total | | Level 1 | | Level 2 | | Level 3 | Loans held for investment | $ | 68,503 | | | $ | — | | | $ | — | | | $ | 68,503 | | Loans held for sale | 15,492 | | | — | | | — | | | 15,492 | | Construction advances | 13,400 | | | — | | | — | | | 13,400 | | Commercial loans receivable | 46,819 | | | — | | | — | | | 46,819 | | Securitized financings and other | (15,592) | | | — | | | (15,592) | | | — | | Non-marketable equity investments | 21,536 | | | — | | | — | | | 21,536 | |
No impairment charges were recorded during the six months ended September 26, 2020. Mortgage Servicing. Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in earnings. | | | | | | | | | | | | | September 26, 2020 | | March 28, 2020 | Number of loans serviced with MSRs | 4,671 | | | 4,688 | | Weighted average servicing fee (basis points) | 31.81 | | | 31.12 | | Capitalized servicing multiple | 56.49 | % | | 67.19 | % | Capitalized servicing rate (basis points) | 17.97 | | | 20.91 | | Serviced portfolio with MSRs (in thousands) | $ | 588,955 | | | $ | 585,777 | | Mortgage servicing rights (in thousands) | $ | 1,058 | | | $ | 1,225 | |
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