10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2017

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF 1934

Commission File Number 1-12434

M/I HOMES, INC.

(Exact name of registrant as specified in it charter)

Ohio	31-1210837
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3 Easton Oval, Suite 500, Columbus, Ohio 43219

(Address of principal executive offices) (Zip Code)

(614) 418-8000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes X No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Accelerated filer	X
Non-accelerated filer	Smaller reporting company
(Do not check if a smaller reporting company)	Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. q

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No X

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common shares, par value $.01 per share: 27,520,632 shares outstanding as of October 25, 2017.

M/I HOMES, INC.
FORM 10-Q
TABLE OF CONTENTS
PART 1.	FINANCIAL INFORMATION
	Item 1.	M/I Homes, Inc. and Subsidiaries Unaudited Condensed Consolidated Financial Statements
		Unaudited Condensed Consolidated Balance Sheets at September 30, 2017 and December 31, 2016	3
		Unaudited Condensed Consolidated Statements of Income for the Three and Nine Months ended September 30, 2017 and 2016	4
		Unaudited Condensed Consolidated Statement of Shareholders’ Equity for the Nine Months Ended September 30, 2017	5
		Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016	6
		Notes to Unaudited Condensed Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	54
	Item 4.	Controls and Procedures	56
PART II.	OTHER INFORMATION
	Item 1.	Legal Proceedings	56
	Item 1A.	Risk Factors	56
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56
	Item 3.	Defaults Upon Senior Securities	56
	Item 4.	Mine Safety Disclosures	56
	Item 5.	Other Information	56
	Item 6.	Exhibits	57
Signatures			58
Exhibit Index			59

2

M/I HOMES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par values)	September 30, 2017			December 31, 2016
	(unaudited)
ASSETS:
Cash, cash equivalents and restricted cash	$	103,636		$	34,441
Mortgage loans held for sale	91,987			154,020
Inventory	1,455,809			1,215,934
Property and equipment - net	25,320			22,299
Investment in unconsolidated joint ventures	22,981			28,016
Deferred income taxes	29,569			30,875
Other assets	55,393			62,926
TOTAL ASSETS	$	1,784,695		$	1,548,511
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	120,598		$	103,212
Customer deposits	30,583			22,156
Other liabilities	108,870			123,162
Preferred shares subject to redemption	50,420			—
Community development district obligations	5,298			476
Obligation for consolidated inventory not owned	22,203			7,528
Notes payable bank - homebuilding operations	—			40,300
Notes payable bank - financial services operations	91,275			152,895
Notes payable - other	4,057			6,415
Convertible senior subordinated notes due 2017 - net	—			57,093
Convertible senior subordinated notes due 2018 - net	85,955			85,423
Senior notes due 2021 - net	296,505			295,677
Senior notes due 2025 - net	245,958			—
TOTAL LIABILITIES	$	1,061,722		$	894,337
Commitments and contingencies (Note 6)	—			—
SHAREHOLDERS’ EQUITY:
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 shares issued at both September 30, 2017 and December 31, 2016; 2,000 shares outstanding as of December 31, 2016 (excluding the 2,000 shares subject to redemption at September 30, 2017)	$	—		$	48,163
Common shares - $.01 par value; authorized 58,000,000 shares at both September 30, 2017 and December 31, 2016; issued 29,508,626 and 27,092,723 shares at September 30, 2017 and December 31, 2016, respectively	295			271
Additional paid-in capital	304,715			246,549
Retained earnings	457,447			407,161
Treasury shares - at cost - 1,987,994 and 2,415,290 shares at September 30, 2017 and December 31, 2016, respectively	(39,484		)	(47,970		)
TOTAL SHAREHOLDERS’ EQUITY	$	722,973		$	654,174
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,784,695		$	1,548,511

See Notes to Unaudited Condensed Consolidated Financial Statements.

3

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except per share amounts)	2017			2016			2017			2016
Revenue	$	476,423		$	442,464		$	1,340,269		$	1,168,081
Costs and expenses:
Land and housing	374,673			363,635			1,062,552			943,515
General and administrative	31,337			29,160			89,209			78,249
Selling	31,136			27,663			88,666			75,462
Equity in income of unconsolidated joint ventures	(71		)	(24		)	(198		)	(413		)
Interest	4,675			3,587			13,847			13,160
Total costs and expenses	441,750			424,021			1,254,076			1,109,973
Income before income taxes	34,673			18,443			86,193			58,108
Provision for income taxes	12,346			7,501			29,994			22,061
Net income	22,327			10,942			56,199			36,047
Preferred dividends	1,218			1,218			3,656			3,656
Excess of fair value over book value of preferred shares subject to redemption	2,257			—			2,257			—
Net income to common shareholders	$	18,852		$	9,724		$	50,286		$	32,391
Earnings per common share:
Basic	$	0.74		$	0.39		$	2.00		$	1.31
Diluted	$	0.64		$	0.35		$	1.73		$	1.17
Weighted average shares outstanding:
Basic	25,581			24,669			25,106			24,665
Diluted	30,675			30,139			30,539			30,093

See Notes to Unaudited Condensed Consolidated Financial Statements.

4

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

	Nine Months Ended September 30, 2017
	Preferred Shares					Common Shares
	Shares Outstanding					Shares Outstanding			Additional Paid-in Capital			Retained Earnings			Treasury Shares			Total Shareholders’ Equity
(Dollars in thousands)			Amount				Amount
Balance at December 31, 2016	2,000		$	48,163		24,677,433	$	271	$	246,549		$	407,161		$	(47,970	)	$	654,174
Net income	—		—			—	—		—			56,199			—			56,199
Fair value over carrying value of preferred shares subject to redemption	—		2,257			—	—		—			(2,257		)	—			—
Dividends declared to preferred shareholders	—		—			—	—		—			(3,656		)	—			(3,656		)
Common share issuance for conversion of convertible notes	—		—			2,415,903	24		57,476			—			—			57,500
Reclassification of preferred shares subject to redemption	(2,000	)	(50,420		)	—	—					—			—			(50,420		)
Stock options exercised	—		—			342,661	—		(2,014		)	—			6,805			4,791
Stock-based compensation expense	—		—			—	—		4,034			—			—			4,034
Deferral of executive and director compensation	—		—			—	—		351			—			—			351
Executive and director deferred compensation distributions	—		—			84,635	—		(1,681		)	—			1,681			—
Balance at September 30, 2017	—		$	—		27,520,632	$	295	$	304,715		$	457,447		$	(39,484	)	$	722,973

See Notes to Unaudited Condensed Consolidated Financial Statements.

5

M/I HOMES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
(Dollars in thousands)	2017			2016
OPERATING ACTIVITIES:
Net income	$	56,199		$	36,047
Adjustments to reconcile net income to net cash used in operating activities:
Equity in income of joint venture arrangements	(198		)	(413		)
Mortgage loan originations	(732,587		)	(654,905		)
Proceeds from the sale of mortgage loans	798,946			687,420
Fair value adjustment of mortgage loans held for sale	(4,326		)	(1,059		)
Capitalization of originated mortgage servicing rights	(3,873		)	(4,350		)
Amortization of mortgage servicing rights	789			1,262
Depreciation	7,078			6,328
Amortization of debt discount and debt issue costs	2,632			2,552
Stock-based compensation expense	4,034			3,483
Deferred income tax expense	1,306			20,911
Change in assets and liabilities:
Inventory	(212,660		)	(96,510		)
Other assets	4,763			(16,364		)
Accounts payable	17,386			23,301
Customer deposits	8,427			6,872
Accrued compensation	(9,341		)	(6,073		)
Other liabilities	(4,600		)	18,000
Net cash (used in) provided by operating activities	(66,025		)	26,502
INVESTING ACTIVITIES:
Purchase of property and equipment	(6,017		)	(11,619		)
Return of capital from unconsolidated joint ventures	1,833			—
Investment in unconsolidated joint ventures	(8,439		)	(10,060		)
Net proceeds from sale of mortgage servicing rights	7,558			—
Net cash used in investing activities	(5,065		)	(21,679		)
FINANCING ACTIVITIES:
Net proceeds from issuance of senior notes	250,000			—
Proceeds from bank borrowings - homebuilding operations	366,500			276,800
Repayment of bank borrowings - homebuilding operations	(406,800		)	(235,600		)
Net repayment of bank borrowings - financial services operations	(61,620		)	(32,165		)
(Principal repayment of) proceeds from notes payable - other and community development district bond obligations	(2,358		)	125
Dividends paid on preferred shares	(3,656		)	(3,656		)
Debt issue costs	(6,572		)	(193		)
Proceeds from exercise of stock options	4,791			73
Net cash provided by financing activities	140,285			5,384
Net increase in cash, cash equivalents and restricted cash	69,195			10,207
Cash, cash equivalents and restricted cash balance at beginning of period	34,441			13,101
Cash, cash equivalents and restricted cash balance at end of period	$	103,636		$	23,308
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest — net of amount capitalized	$	15,386		$	8,919
Income taxes	$	27,702		$	2,073
NON-CASH TRANSACTIONS DURING THE PERIOD:
Community development district infrastructure	$	4,822		$	(467	)
Consolidated inventory not owned	$	14,675		$	(145	)
Distribution of single-family lots from joint venture arrangements	$	11,839		$	20,912
Common stock issued for conversion of convertible notes	$	57,500		$	—
Reclassification of preferred shares subject to redemption	$	50,420		$	—

See Notes to Unaudited Condensed Consolidated Financial Statements.

6

M/I HOMES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements (the “financial statements”) of M/I Homes, Inc. and its subsidiaries (the “Company”) and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The financial statements include the accounts of the Company. All intercompany transactions have been eliminated. Results for the interim period are not necessarily indicative of results for a full year. In the opinion of management, the accompanying financial statements reflect all adjustments (all of which are normal and recurring in nature) necessary for a fair presentation of financial results for the interim periods presented. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”).

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during that period. Actual results could differ from these estimates and have a significant impact on the financial condition and results of operations and cash flows. With regard to the Company, estimates and assumptions are inherent in calculations relating to valuation of inventory and investment in unconsolidated joint ventures, property and equipment depreciation, valuation of derivative financial instruments, accounts payable on inventory, accruals for costs to complete inventory, accruals for warranty claims, accruals for self-insured general liability claims, litigation, accruals for health care and workers’ compensation, accruals for guaranteed or indemnified loans, stock-based compensation expense, income taxes, and contingencies. Items that could have a significant impact on these estimates and assumptions include the risks and uncertainties listed in “Item 1A. Risk Factors” in Part I of our 2016 Form 10-K, as the same may be updated from time to time in our subsequent filings with the SEC, including the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.

Reclassifications

Certain financial statement line items reflected on the September 30, 2016 Statement of Cash Flows were affected by the Company’s early adoption of Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows: Restricted Cash (“ASU 2016-18”) during the fourth quarter of 2016 as a result of the change in accounting principle.

Recently Adopted Accounting Standards

In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted the new standard in the first quarter of 2017. Excess tax benefits or deficiencies for stock-based compensation are now reflected in the Condensed Consolidated Statements of Income as a component of income tax expense, whereas previously they were recognized in equity. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and disclosures.

Impact of New Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delayed the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended, is effective for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.

7

Subsequent to the issuance of ASU 2014-09, the FASB has issued several ASUs, such as ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. These ASUs do not change the core principle of the guidance stated in ASU 2014-09. Instead, these amendments are intended to clarify and improve the operability of certain topics addressed by ASU 2014-09. These additional ASUs will have the same effective date and transition requirements as ASU 2014-09, as amended. See below for additional explanation of each of these additional ASUs. The Company does not believe the adoption of these additional ASUs will have a material impact on our consolidated financial statements.

The new standard is effective for our fiscal year beginning January 1, 2018, and, at that time, we currently anticipate adopting the standard using the cumulative catch-up transition method. We anticipate this standard will not have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we expect the amount and timing of our housing revenue to remain substantially unchanged. Due to the complexity of certain of our land contracts, however, the actual revenue recognition treatment required under the standard for land sales will depend on contract-specific terms. We do not expect significant changes to our business processes, systems, or internal controls as a result of adopting the standard. However, we continue to evaluate the impact of the revised disclosure requirements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 will require organizations that lease assets - referred to as “lessees” - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities will expand to include qualitative and specific quantitative information. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method. The Company is currently evaluating the potential impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance stated in ASU 2014-09 on principal versus agent considerations and whether an entity reports revenue on a gross or net basis.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”).  ASU 2016-10 provides guidance on identifying performance obligations and licensing. This update clarifies the guidance in ASU 2014-09 relating to identifying performance obligations and licensing.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients (“ASU 2016-12”). ASU 2016-12 provides for amendments to ASU 2014-09 regarding transition, collectability, noncash consideration, and presentation of sales tax and other similar taxes.  Specifically, ASU 2016-12 clarifies that, for a contract to be considered completed at transition, all or substantially all of the revenue must have been recognized under legacy GAAP. In addition, ASU 2016-12 clarifies how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2016-15 will modify the Company's current disclosures and reclassifications within the condensed consolidated statement of cash flows but is not expected to have a material effect on the Company’s consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which provides a more robust framework for determining whether transactions should be accounted for as acquisitions (or dispositions) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the potential impact the adoption of ASU 2017-01 will have on the Company’s consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted for interim or annual goodwill impairment tests performed on

8

testing dates after January 1, 2017. The Company does not believe the adoption of ASU 2017-04 will have a material impact on the Company’s consolidated financial statements and disclosures.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 is intended to clarify the scope of the original guidance within Subtopic 610-20 that was issued in connection with ASU 2014-09, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 additionally added guidance for partial sales of nonfinancial assets. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are required to adopt ASU 2017-05 concurrent with the adoption of ASU 2014-09. The Company is currently evaluating the potential impact the adoption of ASU 2017-05 will have on the Company’s consolidated financial statements and disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”), which shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public entities, ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not believe the adoption of ASU 2017-08 will have a material impact on the Company’s consolidated financial statements and disclosures.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”), which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. For all entities, ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not believe the adoption of ASU 2017-09 will have a material impact on the Company’s consolidated financial statements and disclosures.

NOTE 2. Inventory and Capitalized Interest

Inventory

Inventory is recorded at cost, unless events and circumstances indicate that the carrying value of the land is impaired, at which point the inventory is written down to fair value (see Note 4 for additional details relating to our procedures for evaluating our inventories for impairment). Inventory includes the costs of land acquisition, land development and home construction, capitalized interest, real estate taxes, direct overhead costs incurred during development and home construction, and common costs that benefit the entire community, less impairments, if any.

A summary of the Company’s inventory as of September 30, 2017 and December 31, 2016 is as follows:

(In thousands)	September 30, 2017		December 31, 2016
Single-family lots, land and land development costs	$	663,170	$	602,528
Land held for sale	12,330		12,155
Homes under construction	645,816		494,664
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2017 - $12,929;    December 31, 2016 - $11,835)	75,618		68,727
Community development district infrastructure	5,298		476
Land purchase deposits	31,374		29,856
Consolidated inventory not owned	22,203		7,528
Total inventory	$	1,455,809	$	1,215,934

Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home.

Homes under construction include homes that are in various stages of construction. As of September 30, 2017 and December 31, 2016, we had 1,168 homes (with a carrying value of $238.9 million) and 996 homes (with a carrying value of $199.4 million), respectively, included in homes under construction that were not subject to a sales contract.

9

Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, which is typically three years.

We own lots in certain communities in Florida that have Community Development Districts (“CDDs”). The Company records a liability for the estimated developer obligations that are probable and estimable and user fees that are required to be paid or transferred at the time the parcel or unit is sold to an end user.  The Company reduces this liability at the time of closing and the transfer of the property.  The Company recorded a $5.3 million and $0.5 million liability related to these CDD bond obligations as of September 30, 2017 and December 31, 2016, respectively, along with the related inventory infrastructure.

Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company expenses any deposits and accumulated pre-acquisition costs relating to such agreement.

Capitalized Interest

The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to land and housing costs and expensed as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and nine months ended September 30, 2017 and 2016 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Capitalized interest, beginning of period	$	16,465		$	16,818		$	16,012		$	16,740
Interest capitalized to inventory	6,178			5,139			15,240			13,392
Capitalized interest charged to land and housing costs and expenses	(4,988		)	(4,963		)	(13,597		)	(13,138		)
Capitalized interest, end of period	$	17,655		$	16,994		$	17,655		$	16,994
Interest incurred	$	10,853		$	8,726		$	29,087		$	26,552

NOTE 3. Investment in Joint Venture Arrangements

Investment in Joint Venture Arrangements

In order to minimize our investment and risk of land exposure in a single location, we have periodically partnered with other land developers or homebuilders to share in the land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. During the nine-month period ended September 30, 2017, we decreased our total investment in such joint venture arrangements by $5.0 million from $28.0 million at December 31, 2016 to $23.0 million at September 30, 2017, which was driven primarily by our increased lot distributions from unconsolidated joint ventures of $11.8 million, offset, in part, by our cash contributions to our unconsolidated joint ventures during the first nine months of 2017 of $8.4 million.

We believe that the Company’s maximum exposure related to its investment in these joint venture arrangements as of September 30, 2017 is the amount invested of $23.0 million, which is reported as Investment in Joint Venture Arrangements on our Unaudited Condensed Consolidated Balance Sheets, although we expect to invest further amounts in these joint venture arrangements as development of the properties progresses.

We use the equity method of accounting for investments in unconsolidated joint ventures over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the unconsolidated joint ventures’ earnings or loss, if any, is included in our consolidated statement of income. The Company assesses its investments in unconsolidated joint ventures for recoverability on a quarterly basis. Refer to Note 4 for additional details relating to our procedures for evaluating our investments for impairment.

For joint venture arrangements where a special purpose entity is established to own the property, we generally enter into limited liability company or similar arrangements (“LLCs”) with the other partners. The Company’s ownership in these LLCs as of September 30, 2017 ranged from 25% to 97% and at December 31, 2016 ranged from 25% to 74%. These entities typically engage in land development activities for the purpose of distributing or selling developed lots to the Company and its partners in the LLC.

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Variable Interest Entities

With respect to our investments in these LLCs, we are required, under ASC 810-10, Consolidation (“ASC 810”), to evaluate whether or not such entities should be consolidated into our consolidated financial statements. We initially perform these evaluations when each new entity is created and upon any events that require reconsideration of the entity. See Note 1, “Summary of Significant Accounting Policies - Variable Interest Entities” in the Company’s 2016 Form 10-K for additional information regarding the Company’s methodology for evaluating entities for consolidation.

Land Option Agreements

In the ordinary course of business, the Company enters into land option or purchase agreements for which we generally pay non-refundable deposits. Pursuant to these land option agreements, the Company provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. In accordance with ASC 810, we analyze our land option or purchase agreements to determine whether the corresponding land sellers are VIEs and, if so, whether we are the primary beneficiary, as further described in Note 1, “Summary of Significant Accounting Policies - Land Option Agreements” in the Company’s 2016 Form 10-K. If we are deemed to be the primary beneficiary of the VIE, we will consolidate the VIE in our consolidated financial statements and reflect such assets and liabilities in our Consolidated Inventory not Owned in our Unaudited Condensed Consolidated Balance Sheets. At both September 30, 2017 and December 31, 2016, we concluded that we were not the primary beneficiary of any VIEs from which we are purchasing land under option or purchase agreements.

NOTE 4. Fair Value Measurements

There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Assets Measured on a Recurring Basis

The Company measures both mortgage loans held for sale and interest rate lock commitments (“IRLCs”) at fair value. Fair value measurement results in a better presentation of the changes in fair values of the loans and the derivative instruments used to economically hedge them.

In the normal course of business, our financial services segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates.  The commitments become effective when the borrowers “lock-in” a specified interest rate within established time frames.  Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to an investor.  To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers.  The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.  The Company does not engage in speculative trading or derivative activities.  Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers or investors are undesignated derivatives, and accordingly, are marked to fair value through earnings.  Changes in fair value measurements are included in earnings in the accompanying statements of income.

The fair value of mortgage loans held for sale is estimated based primarily on published prices for mortgage-backed securities with similar characteristics.  To calculate the effects of interest rate movements, the Company utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount.  The Company sells loans on a servicing released or servicing retained basis, and receives servicing compensation.  Thus, the value of the servicing rights included in the fair value measurement is based upon contractual terms with investors and depends on the loan type. The Company applies a fallout rate to IRLCs when measuring the fair value of rate lock commitments.  Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan and is based on management’s judgment and company experience.

The fair value of the Company’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date.  The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

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Interest Rate Lock Commitments. IRLCs are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a term of less than six months; however, in certain markets, the term could extend to nine months.

Some IRLCs are committed to a specific third party investor through the use of best-efforts whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings.

Forward Sales of Mortgage-Backed Securities. Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings.

Mortgage Loans Held for Sale.Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property.  Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination.  During the period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a best-efforts contract or by FMBSs.

The table below shows the notional amounts of our financial instruments at September 30, 2017 and December 31, 2016:

Description of Financial Instrument (in thousands)	September 30, 2017		December 31, 2016
Best efforts contracts and related committed IRLCs	$	2,571	$	6,607
Uncommitted IRLCs	105,104		66,875
FMBSs related to uncommitted IRLCs	105,000		66,000
Best efforts contracts and related mortgage loans held for sale	10,423		125,348
FMBSs related to mortgage loans held for sale	81,000		33,000
Mortgage loans held for sale covered by FMBSs	81,244		32,870

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2017 and December 31, 2016:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	91,987		$	—	$	91,987		$	—
Forward sales of mortgage-backed securities	471			—		471			—
Interest rate lock commitments	366			—		366			—
Best-efforts contracts	(60		)	—		(60		)	—
Total	$	92,764		$	—	$	92,764		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	154,020		$	—	$	154,020		$	—
Forward sales of mortgage-backed securities	230			—		230			—
Interest rate lock commitments	250			—		250			—
Best-efforts contracts	(90		)	—		(90		)	—
Total	$	154,410		$	—	$	154,410		$	—

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The following table sets forth the amount of gain (loss) recognized, within our revenue in the Unaudited Condensed Consolidated Statements of Income, on assets and liabilities measured on a recurring basis for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2017			2016			2017		2016
Mortgage loans held for sale	$	(64	)	$	(1,127	)	$	4,326	$	1,059
Forward sales of mortgage-backed securities	(128		)	1,443			241		(245		)
Interest rate lock commitments	22			(531		)	116		388
Best-efforts contracts	(41		)	15			30		31
Total (loss) gain recognized	$	(211	)	$	(200	)	$	4,713	$	1,233

The following tables set forth the fair value of the Company’s derivative instruments and their location within the Unaudited Condensed Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which is disclosed as a separate line item):

	Asset Derivatives			Liability Derivatives
	September 30, 2017			September 30, 2017
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	471	Other liabilities	$	—
Interest rate lock commitments	Other assets	366		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	60
Total fair value measurements		$	837		$	60

	Asset Derivatives			Liability Derivatives
	December 31, 2016			December 31, 2016
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	230	Other liabilities	$	—
Interest rate lock commitments	Other assets	250		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	90
Total fair value measurements		$	480		$	90

Assets Measured on a Non-Recurring Basis

Inventory. The Company assesses inventory for recoverability on a quarterly basis based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. Determining the fair value of a community’s inventory involves a number of variables, estimates and projections, which are Level 3 measurement inputs. See Note 1, “Summary of Significant Accounting Policies - Inventory” in the Company’s 2016 Form 10-K for additional information regarding the Company’s methodology for determining fair value.

The Company uses significant assumptions to evaluate the recoverability of its inventory, such as estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates. Changes in these assumptions could materially impact future cash flow and fair value estimates and may lead the Company to incur additional impairment charges in the future. Our analysis is conducted only if indicators of a decline in value of our inventory exist, which include, among other things, declines in gross margin on sales contracts in backlog or homes that have been delivered, slower than anticipated absorption pace, declines in average sales price or high incentive offers by management to improve absorptions, declines in margins regarding future land sales, or declines in the value of the land itself as a result of third party appraisals. If communities are not recoverable based on the estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. During the three and nine months ended September 30, 2017 and 2016, the Company did not record any impairment charges on its inventory.

Investment in Unconsolidated Joint Ventures. We evaluate our investments in unconsolidated joint ventures for impairment on a quarterly basis based on the difference in the investment’s carrying value and its fair value at the time of the evaluation. If the Company has determined that the decline in value is other than temporary, the Company would write down the value of the investment to its estimated fair value. Determining the fair value of investments in unconsolidated joint ventures involves a number

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of variables, estimates and assumptions, which are Level 3 measurement inputs. See Note 1, “Summary of Significant Accounting Policies - Investment in Unconsolidated Joint Ventures,” in the Company’s 2016 Form 10-K for additional information regarding the Company’s methodology for determining fair value. Because of the high degree of judgment involved in developing these assumptions, it is possible that changes in these assumptions could materially impact future cash flow and fair value estimates of the investments which may lead the Company to incur additional impairment charges in the future. During the nine months ended September 30, 2017 and 2016, the Company did not record any impairment charges on its investments in unconsolidated joint ventures.

Financial Instruments

Counterparty Credit Risk. To reduce the risk associated with losses that would be recognized if counterparties failed to perform as contracted, the Company limits the entities with whom management can enter into commitments. This risk of accounting loss is the difference between the market rate at the time of non-performance by the counterparty and the rate to which the Company committed.

The following table presents the carrying amounts and fair values of the Company’s financial instruments at September 30, 2017 and December 31, 2016. The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions.

	September 30, 2017				December 31, 2016
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	103,636	$	103,636	$	34,441	$	34,441
Mortgage loans held for sale	91,987		91,987		154,020		154,020
Split dollar life insurance policies	212		212		214		214
Notes receivable	—		—		763		687
Commitments to extend real estate loans	366		366		250		250
Forward sales of mortgage-backed securities	471		471		230		230
Liabilities:
Notes payable - homebuilding operations	—		—		40,300		40,300
Notes payable - financial services operations	91,275		91,275		152,895		152,895
Notes payable - other	4,057		3,867		6,415		5,999
Convertible senior subordinated notes due 2017 (a)	—		—		57,500		65,957
Convertible senior subordinated notes due 2018 (a)	86,250		86,897		86,250		88,105
Senior notes due 2021 (a)	300,000		313,125		300,000		314,250
Senior notes due 2025 (a)	250,000		255,000		—		—
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	60		60		90		90
Off-Balance Sheet Financial Instruments:
Letters of credit	—		757		—		702

(a) Our senior notes and convertible senior subordinated notes are stated at the principal amount outstanding which does not include the impact of premiums, discounts, and debt issuance costs that are amortized to interest cost over the respective terms of the notes.

The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at September 30, 2017 and December 31, 2016:

Cash, Cash Equivalents and Restricted Cash. The carrying amounts of these items approximate fair value because they are short-term by nature.

Mortgage Loans Held for Sale, Forward Sales of Mortgage-Backed Securities, Commitments to Extend Real Estate Loans, Best-Efforts Contracts for Committed IRLCs and Mortgage Loans Held for Sale, Convertible Senior Subordinated Notes due 2017, Convertible Senior Subordinated Notes due 2018, Senior Notes due 2021 and Senior Notes due 2025. The fair value of these financial instruments was determined based upon market quotes at September 30, 2017 and December 31, 2016. The market quotes used were quoted prices for similar assets or liabilities along with inputs taken from observable market data by correlation. The inputs were adjusted to account for the condition of the asset or liability.

Split Dollar Life Insurance Policy and Notes Receivable. The estimated fair value was determined by calculating the present value of the amounts based on the estimated timing of receipts using discount rates that incorporate management’s estimate of risk associated with the corresponding note receivable.

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Notes Payable - Homebuilding Operations. The interest rate available to the Company at September 30, 2017 under the Company’s $475 million unsecured revolving credit facility, dated July 18, 2013, as most recently amended on July 18, 2017 (the “Credit Facility”) fluctuated daily with the one-month LIBOR rate plus a margin of 250 basis points, and thus the carrying value is a reasonable estimate of fair value. Refer to Note 7 for additional information regarding the Credit Facility.

Notes Payable - Financial Services Operations. M/I Financial, LLC (“M/I Financial”) is a party to two credit agreements: (1) a $125 million secured mortgage warehousing agreement (which increases to $150 million during certain periods), dated June 24, 2016, as amended on June 23, 2017 (the “MIF Mortgage Warehousing Agreement”); and (2) a $35 million mortgage repurchase agreement, dated November 3, 2015, as most recently amended on May 16, 2017 (the “MIF Mortgage Repurchase Facility”). For each of these credit facilities, the interest rate is based on a variable rate index, and thus their carrying value is a reasonable estimate of fair value. The interest rate available to M/I Financial during the third quarter of 2017 fluctuated with LIBOR. Refer to Note 7 for additional information regarding the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility.

Notes Payable - Other. The estimated fair value was determined by calculating the present value of the future cash flows using the Company’s current incremental borrowing rate.

Letters of Credit. Letters of credit of $41.4 million and $37.7 million represent potential commitments at September 30, 2017 and December 31, 2016, respectively. The letters of credit generally expire within one or two years. The estimated fair value of letters of credit was determined using fees currently charged for similar agreements.

NOTE 5. Guarantees and Indemnifications

In the ordinary course of business, M/I Financial, a 100%-owned subsidiary of M/I Homes, Inc., enters into agreements that guarantee certain purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur, primarily if the mortgagor does not meet the terms of the loan within the first six months after the sale of the loan. Loans totaling approximately $36.7 million and $27.6 million were covered under these guarantees as of September 30, 2017 and December 31, 2016, respectively.  The increase in loans covered by these guarantees from December 31, 2016 is a result of a change in the mix of investors and their related purchase terms.  A portion of the revenue paid to M/I Financial for providing the guarantees on these loans was deferred at September 30, 2017, and will be recognized in income as M/I Financial is released from its obligation under the guarantees. The risk associated with the guarantees above is offset by the value of the underlying assets.

M/I Financial has received inquiries concerning underwriting matters from purchasers of its loans regarding certain loans totaling approximately $0.6 million and $0.9 million at September 30, 2017 and December 31, 2016, respectively.

M/I Financial has also guaranteed the collectability of certain loans to third party insurers (U.S. Department of Housing and Urban Development and U.S. Veterans Administration) of those loans for periods ranging from five to thirty years. As of September 30, 2017 and December 31, 2016, the total of all loans indemnified to third party insurers relating to the above agreements was $1.3 million and $1.6 million, respectively. The maximum potential amount of future payments is equal to the outstanding loan value less the value of the underlying asset plus administrative costs incurred related to foreclosure on the loans, should this event occur.

The Company recorded a liability relating to the guarantees described above totaling $0.7 million and $0.9 million at September 30, 2017 and December 31, 2016, respectively, which is management’s best estimate of the Company’s liability.

NOTE 6. Commitments and Contingencies

Warranty

We use subcontractors for nearly all aspects of home construction. Although our subcontractors are generally required to repair and replace any product or labor defects, we are, during applicable warranty periods, ultimately responsible to the homeowner for making such repairs. As such, we record warranty reserves to cover our exposure to the costs for materials and labor not expected to be covered by our subcontractors to the extent they relate to warranty-type claims. Warranty reserves are established by charging cost of sales and crediting a warranty reserve for each home delivered. Warranty reserves are recorded for warranties under our Home Builder’s Limited Warranty (“HBLW”), and our 30-year (offered on all homes sold after April 25, 1998 and on or before December 1, 2015 in all of our markets except our Texas markets), 15-year (offered on all homes sold after December 1, 2015 in all of our markets except our Texas markets) or 10-year (offered on all homes sold in our Texas markets) transferable structural warranty in Other Liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets.

The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the

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HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in quality of construction expected to impact future warranty expenditures; and (6) conditions that may affect certain projects and require a different percentage of average sales price for those specific projects. Changes in estimates for warranties occur due to changes in the historical payment experience and differences between the actual payment pattern experienced during the period and the historical payment pattern used in our evaluation of the warranty reserve balance at the end of each quarter. Actual future warranty costs could differ from our current estimated amount.

Our warranty reserves for our transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house is delivered, the sufficiency of the structural warranty per unit charge and total reserve is re-evaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors.

While we believe that our warranty reserves are sufficient to cover our projected costs, there can be no assurances that historical data and trends will accurately predict our actual warranty costs.

A summary of warranty activity for the three and nine months ended September 30, 2017 and 2016 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Warranty reserves, beginning of period	$	30,303		$	15,815		$	27,732		$	14,281
Warranty expense on homes delivered during the period	2,882			2,755			8,094			7,276
Changes in estimates for pre-existing warranties	92			526			1,154			563
Charges related to stucco-related claims (a)	—			14,500			8,500			19,409
Settlements made during the period	(6,209		)	(5,658		)	(18,412		)	(13,591		)
Warranty reserves, end of period	$	27,068		$	27,938		$	27,068		$	27,938

(a) Estimated stucco-related claim costs, as described below, have been included in warranty accruals.

We have received claims related to stucco installation from homeowners in certain of our communities in our Tampa and Orlando, Florida markets and have been named as a defendant in legal proceedings initiated by certain of such homeowners. These claims primarily relate to homes built prior to 2014 which have second story elevations with frame construction.

During 2015, we repaired certain of the identified homes and accrued for the estimated future cost of repairs for the other identified homes on which repairs had yet to be completed. The aggregate amounts of such repair costs and accruals were not material, and the reserve for identified homes in need of more than minor repair at December 31, 2015 was $0.5 million.

During 2016, based on our review of the stucco issues in our Florida communities, we recorded a $19.4 million warranty charge for stucco-related repair costs for (1) homes in our Florida communities that we had identified as needing repair but had not yet completed the repair and (2) estimated repair costs for homes in our Florida communities that we had not yet identified as needing repair but that may require repair in the future.

During 2017, we have continued our review of the stucco issues in our Florida communities. Based on an analysis of the relevant data, including additional data that we had gathered during the period since the 2016 review, in the second quarter of 2017, we determined to increase our previous estimate of the future stucco-related repair costs in our Florida communities. As a result, during the second quarter of 2017, we recorded an additional $8.5 million warranty charge for stucco-related repairs in our Florida communities, which was included as a change in estimate within our warranty reserve. The remaining reserve for both known repair costs and an estimate of future costs of stucco-related repairs at September 30, 2017 included within our warranty reserve was $11.3 million. We believe that this amount is sufficient to cover both known and estimated future repair costs as of September 30, 2017.

Our review of the stucco-related issues in our Florida communities is ongoing. Our estimate of future costs of stucco-related repairs is based on our judgment, various assumptions and internal data. Due to the degree of judgment and the potential for variability in our underlying assumptions and data, as we obtain additional information, we may revise our estimate, including to reflect additional estimated future stucco repairs costs, which revision could be material.

We also are continuing to investigate the extent to which we may be able to recover a portion of our stucco repair and claims handling costs from other sources, including our direct insurers, the subcontractors involved with the construction of the homes

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and their insurers. As of September 30, 2017, we are unable to estimate an amount, if any, that we believe is probable that we will recover from these sources and, accordingly, we have not recorded a receivable for estimated recoveries nor included an estimated amount of recoveries in determining our warranty reserves.

Performance Bonds and Letters of Credit

At September 30, 2017, the Company had outstanding approximately $167.7 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through September 2024. Included in this total are: (1) $118.8 million of performance and maintenance bonds and $32.9 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $8.5 million of financial letters of credit, of which $7.8 million represent deposits on land and lot purchase agreements; and (3) $7.5 million of financial bonds.

Land Option Contracts and Other Similar Contracts

At September 30, 2017, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $672.9 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.

Legal Matters

In addition to the legal proceedings related to stucco, the Company and certain of its subsidiaries have been named as defendants in certain other legal proceedings which are incidental to our business. While management currently believes that the ultimate resolution of these other legal proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial position, results of operations and cash flows, such legal proceedings are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these other legal proceedings. However, the possibility exists that the costs to resolve these legal proceedings could differ from the recorded estimates and, therefore, have a material effect on the Company’s net income for the periods in which they are resolved. At September 30, 2017 and December 31, 2016, we had $0.4 million and $0.3 million reserved for legal expenses, respectively.

Self-insurance Reserves.

Our general liability claims are insured by a third party, subject to a deductible. Effective for home closings occurring on or after July 1, 2017, the Company renewed its general liability insurance coverage which, among other things, changed the structure of our completed operations/construction defect deductible to $10.0 million for the entire company (for closings prior to July 1, 2017, our completed operations/construction defect deductible was $7.5 million for each of our regions), and decreased our third party claims deductible to $250,000 (a decrease from $500,000 for closings prior to July 1, 2017). The Company records a reserve for general liability claims falling below the Company’s deductible. The reserve estimate is based on an actuarial evaluation of our past history of general liability claims, other industry specific factors and specific event analysis.

NOTE 7. Debt

Notes Payable - Homebuilding

The Credit Facility provides for an aggregate commitment amount of $475 million, including a $125 million sub-facility for letters of credit. In addition, the Credit Facility has an accordion feature under which the Company may increase the aggregate commitment amount up to $500 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders. The Credit Facility expires on July 18, 2021. Interest on amounts borrowed under the Credit Facility is payable at a rate which is adjusted daily and is equal to the sum of the one-month LIBOR rate plus a margin of 250 basis points. The margin is subject to adjustment in subsequent quarterly periods based on the Company’s leverage ratio. The Credit Facility also contains certain financial covenants. At September 30, 2017, the Company was in compliance with all financial covenants of the Credit Facility.

The available amount under the Credit Facility is computed in accordance with a borrowing base, which is calculated by applying various advance rates for different categories of inventory, and totaled $512.1 million of availability for additional senior debt at September 30, 2017. As a result, the full $475 million commitment amount of the Credit Facility was available, less any borrowings and letters of credit outstanding. At September 30, 2017, there were no borrowings outstanding and $40.8 million of letters of credit outstanding, leaving net remaining borrowing availability of $434.2 million.

The Company’s obligations under the Credit Facility are guaranteed by all of the Company’s subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating

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to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries (as defined in Note 11), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility, the indenture governing the Company’s $250.0 million aggregate principal amount of 5.625% Senior Notes due 2025 (the “2025 Senior Notes”) and the indenture governing the Company’s $300.0 million aggregate principal amount of 6.75% Senior Notes due 2021 (the “2021 Senior Notes”). The guarantors for the Credit Facility (the “Guarantor Subsidiaries”) are the same subsidiaries that guarantee the 2025 Senior Notes, 2021 Senior Notes and the Company’s $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”).

The Company’s obligations under the Credit Facility are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. Our obligations under the Credit Facility are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

As of September 30, 2017, the Company was party to a secured credit facility agreement for the issuance of letters of credit (the “Letter of Credit Facility”). During the third quarter of 2017, the Company extended the maturity date of the Letter of Credit Facility for an additional year to September 30, 2018 and also reduced the maximum available amount under the facility from $2.0 million to $1.0 million. At both September 30, 2017 and December 31, 2016, there was $0.6 million of outstanding letters of credit in aggregate under the Letter of Credit Facility, which were collateralized with $0.6 million of the Company’s cash.

Notes Payable — Financial Services

The MIF Mortgage Warehousing Agreement is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Mortgage Warehousing Agreement provides for a maximum borrowing availability of $125 million which may be increased to $150 million during certain periods of expected increases in the volume of mortgage originations, specifically from September 25, 2017 to October 16, 2017 and from December 15, 2017 to February 2, 2018. The MIF Mortgage Warehousing Agreement expires on June 22, 2018. Interest on amounts borrowed under the MIF Mortgage Warehousing Agreement is payable at a per annum rate equal to the greater of (1) the floating LIBOR rate plus a spread of 237.5 basis points and (2) 2.75%. The MIF Mortgage Warehousing Agreement also contains certain financial covenants. At September 30, 2017, M/I Financial was in compliance with all financial covenants of the MIF Mortgage Warehousing Agreement.

The MIF Mortgage Repurchase Facility is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Repurchase Facility provides for a maximum borrowing availability of $35 million. The MIF Mortgage Repurchase Facility expires on October 30, 2017. M/I Financial expects to enter into an amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial can provide no assurance that it will be able to obtain such an extension. M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate equal to the floating LIBOR rate plus 250 or 275 basis points depending on the loan type. The MIF Mortgage Repurchase Facility also contains certain financial covenants. At September 30, 2017, M/I Financial was in compliance with all financial covenants of the MIF Mortgage Repurchase Facility.

At both September 30, 2017 and December 31, 2016, M/I Financial’s total combined maximum borrowing availability under the two credit facilities was $185.0 million due to the seasonal increase to the MIF Mortgage Warehousing Agreement in effect from September 25, 2017 through October 15, 2017 and December 15, 2016 through February 1, 2017. At September 30, 2017 and December 31, 2016, M/I Financial had $91.3 million and $152.9 million outstanding on a combined basis under its credit facilities, respectively.

Senior Notes

In August 2017, we issued $250.0 million of 2025 Senior Notes. The 2025 Senior Notes bear interest at a rate of 5.625% per year, payable semiannually in arrears on February 1 and August 1 of each year (commencing on February 1, 2018), and mature on August 1, 2025. We may redeem all or any portion of the 2025 Senior Notes on or after August 1, 2020 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 104.219% of the principal amount outstanding, but will decline to 102.813% of the principal amount outstanding if redeemed during the 12-month period beginning on August 1, 2021, will further decline to 101.406% of the principal amount outstanding if redeemed during the 12-month period beginning on August 1, 2022 and will further decline to 100.000% of the principal amount outstanding if redeemed on or after August 1, 2023, but prior to maturity.

As of both September 30, 2017 and December 31, 2016, we had $300.0 million of our 2021 Senior Notes outstanding. The 2021 Senior Notes bear interest at a rate of 6.75% per year, payable semiannually in arrears on January 15 and July 15 of each year, and mature on January 15, 2021. We may redeem all or any portion of the 2021 Senior Notes on or after January 15, 2018 at a stated

18

redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 103.375% of the principal amount outstanding, but will decline to 101.688% of the principal amount outstanding if redeemed during the 12-month period beginning on January 15, 2019, and will further decline to 100.000% of the principal amount outstanding if redeemed on or after January 15, 2020, but prior to maturity.

The 2025 Senior Notes and the 2021 Senior Notes contain certain covenants, as more fully described and defined in the indentures governing the 2025 Senior Notes and the 2021 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket”; make certain investments; and create or incur certain liens, consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes. As of September 30, 2017, the Company was in compliance with all terms, conditions, and covenants under the indentures.

The 2025 Senior Notes and the 2021 Senior Notes are fully and unconditionally guaranteed jointly and severally on a senior unsecured basis by the Guarantor Subsidiaries. The 2025 Senior Notes and the 2021 Senior Notes are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. The 2025 Senior Notes and the 2021 Senior Notes are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

The indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes limit our ability to pay dividends on, and repurchase, our common shares and any of our preferred shares then outstanding to the amount of the positive balance in our “restricted payments basket,” as defined in the indentures. In each case, the “restricted payments basket” is equal to $125.0 million plus (1) 50% of our aggregate consolidated net income (or minus 100% of our aggregate consolidated net loss) from October 1, 2015, excluding income or loss from Unrestricted Subsidiaries, plus (2) 100% of the net cash proceeds from either contributions to the common equity of the Company or the sale of qualified equity interests after December 1, 2015, plus other items and subject to other exceptions. The restricted payments basket was $220.4 million and $144.9 million at September 30, 2017 and December 31, 2016, respectively. The determination to pay future dividends on, or make future repurchases of, our common shares will be at the discretion of our board of directors and will depend upon our results of operations, financial condition, capital requirements and compliance with debt covenants, and other factors deemed relevant by our board of directors. Please see Note 13 for additional information related to our Series A Preferred Shares.

Convertible Senior Subordinated Notes

As of both September 30, 2017 and December 31, 2016, we had $86.3 million of our 2018 Convertible Senior Subordinated Notes outstanding. The 2018 Convertible Senior Subordinated Notes bear interest at a rate of 3.0% per year, payable semiannually in arrears on March 1 and September 1 of each year. The 2018 Convertible Senior Subordinated Notes mature on March 1, 2018. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2018 Convertible Senior Subordinated Notes into the Company’s common shares. The conversion rate initially equals 30.9478 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $32.31 per common share, which equates to approximately 2.7 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2018 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed jointly and severally on a senior subordinated unsecured basis by the Guarantor Subsidiaries. The 2018 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the Guarantor Subsidiaries, are subordinated in right of payment to our and the Guarantor Subsidiaries’ existing and future senior indebtedness and are also effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2018 Convertible Senior Subordinated Notes requires the Company to repurchase the notes (subject to certain exceptions), at a holder’s option, upon the occurrence of a fundamental change (as defined in the indenture).

The Company may redeem for cash any or all of the 2018 Convertible Senior Subordinated Notes (except for any 2018 Convertible Senior Subordinated Notes that the Company is required to repurchase in connection with a fundamental change), but only if the last reported sale price of the Company’s common shares exceeds 130% of the applicable conversion price for the notes on each of at least 20 applicable trading days. The 20 trading days do not need to be consecutive, but must occur during a period of 30 consecutive trading days that ends within 10 trading days immediately prior to the date the Company provides the notice of redemption. The redemption price for the 2018 Convertible Senior Subordinated Notes to be redeemed will equal 100% of the principal amount, plus accrued and unpaid interest, if any.

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On September 11, 2012, the Company issued $57.5 million in aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”). The 2017 Convertible Senior Subordinated Notes were scheduled to mature on September 15, 2017 and the deadline for holders to convert the 2017 Convertible Senior Subordinated Notes was September 13, 2017. As a result of conversion elections made by holders of the 2017 Convertible Senior Subordinated Notes, all $57.5 million in aggregate principal amount of the 2017 Convertible Senior Subordinated Notes were converted and settled through the issuance of our common shares. In total, we issued approximately 2.4 million common shares (at a conversion price per common share of $23.80). In accordance with the indenture governing the 2017 Convertible Senior Subordinated Notes, the Company paid interest on such Notes to but excluding September 15, 2017. On December 31, 2016, we had $57.5 million of our 2017 Convertible Senior Subordinated Notes outstanding.

Notes Payable - Other

The Company had other borrowings, which are reported in Notes Payable - Other in our Unaudited Condensed Consolidated Balance Sheets, totaling $4.1 million and $6.4 million as of September 30, 2017 and December 31, 2016, respectively.  The balance at December 31, 2016 included a mortgage note payable on our principal executive office building with a principal balance outstanding of $3.4 million, which was subsequently paid off in April of 2017. The remaining balance is made up of other notes payable incurred through the normal course of business.

NOTE 8. Preferred Shares

The Company’s Articles of Incorporation authorize the issuance of up to 2,000,000 preferred shares, par value $.01 per share.  On March 15, 2007, the Company issued 4,000,000 depositary shares, each representing 1/1000^th of a 9.75% Series A Preferred Share of the Company (the “Series A Preferred Shares”), or 4,000 Series A Preferred Shares in the aggregate.  On April 10, 2013, the Company redeemed 2,000 of its Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. On September 14, 2017, the Company announced that it will redeem the remaining 2,000 outstanding Series A Preferred Shares (and the 2,000,000 related depositary shares) on October 16, 2017 for an aggregate redemption price of approximately $50.4 million in cash. The redemption was consummated on October 16, 2017.

The Company declared and paid a quarterly dividend of $609.375 per share on its Series A Preferred Shares in both the third quarter of 2017 and 2016 for $1.2 million and has paid aggregate dividend payments of $3.7 million for the nine months ended September 30, 2017 and 2016. Please see Note 13 for additional information related to our Series A Preferred Shares.

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NOTE 9. Earnings Per Share

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2017			2016			2017			2016
NUMERATOR
Net income	$	22,327		$	10,942		$	56,199		$	36,047
Preferred stock dividends	(1,218		)	(1,218		)	(3,656		)	(3,656		)
Excess of fair value over book value of preferred shares subject to redemption	(2,257		)	—			(2,257		)	—
Net income to common shareholders	18,852			9,724			50,286			32,391
Interest on 3.25% convertible senior subordinated notes due 2017	324			378			1,106			1,152
Interest on 3.00% convertible senior subordinated notes due 2018	530			510			1,586			1,554
Diluted income available to common shareholders	$	19,706		$	10,612		$	52,978		$	35,097
DENOMINATOR
Basic weighted average shares outstanding	25,581			24,669			25,106			24,665
Effect of dilutive securities:
Stock option awards	248			231			302			200
Deferred compensation awards	237			154			207			143
3.25% convertible senior subordinated notes due 2017	1,940			2,416			2,255			2,416
3.00% convertible senior subordinated notes due 2018	2,669			2,669			2,669			2,669
Diluted weighted average shares outstanding - adjusted for assumed conversions	30,675			30,139			30,539			30,093
Earnings per common share:
Basic	$	0.74		$	0.39		$	2.00		$	1.31
Diluted	$	0.64		$	0.35		$	1.73		$	1.17
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	—			896			31			1,288

On September 14, 2017, the Company announced that it will redeem all 2,000 of its outstanding Series A Preferred Shares on October 16, 2017 and recognized a $2.3 million non-cash equity charge related to the excess of fair value over carrying value relating primarily to the original issuance costs that were paid in 2007, which reduced net income to common shareholders in the earnings per share calculation above for the three months and nine months ended September 30, 2017. On October 16, 2017, the redemption was completed. Refer to Note 8 and Note 13 of our Unaudited Condensed Consolidated Financial Statements for additional details.

For the three and nine months ended September 30, 2017 and 2016, the effect of our convertible debt outstanding was included in the diluted earnings per share calculations.

NOTE 10. Income Taxes

During the three and nine months ended September 30, 2017, the Company recorded a tax provision of $12.3 million and $30.0 million, respectively, which reflects income tax expense related to the period’s income before income taxes. The effective tax rate for the three and nine months ended September 30, 2017 was 35.6% and 34.8%, respectively, which included tax expense related to the expected tax benefits for the domestic production activities deduction and excess tax benefits from employee share-based payment transactions exercised during the first nine months of 2017 per ASU 2016-09. During the three and nine months ended September 30, 2016, the Company recorded a tax provision of $7.5 million and $22.1 million, respectively, which reflects income tax expense related to the period’s income before income taxes. The effective tax rate for the three and nine months ended September 30, 2016 was 40.7% and 38.0%, respectively, which included tax expense related to the expected tax benefits for the domestic production activities deduction and tax expense related to state tax rate changes.

During 2016, the Company fully utilized its federal NOL carryforwards and federal credit carryforwards. The Company had $4.2 million of state NOL carryforwards, net of the federal benefit, at September 30, 2017. Our state NOLs may be carried forward from one to 16 years, depending on the tax jurisdiction, with $1.2 million expiring between 2022 and 2027 and $3.0 million expiring between 2028 and 2032, absent sufficient state taxable income.

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NOTE 11. Business Segments

The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 15 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding reportable segments; and (3) our consolidated financial results.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment as each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. In accordance with the aggregation criteria defined in ASC 280, we have determined our reportable segments are as follows: Midwest homebuilding; Southern homebuilding; Mid-Atlantic homebuilding; and financial services operations.  The homebuilding operating segments that are included within each reportable segment have been aggregated because they share similar aggregation characteristics as prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.  

The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Chicago, Illinois	Orlando, Florida	Charlotte, North Carolina
Cincinnati, Ohio	Sarasota, Florida	Raleigh, North Carolina
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Indianapolis, Indiana	Austin, Texas
Minneapolis/St. Paul, Minnesota	Dallas/Fort Worth, Texas
	Houston, Texas
	San Antonio, Texas

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The following table shows, by segment: revenue, operating income and interest expense for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Revenue:
Midwest homebuilding	$	180,488		$	166,928		$	495,379		$	438,016
Southern homebuilding	176,502			143,315			504,647			414,974
Mid-Atlantic homebuilding	107,670			121,659			302,305			284,527
Financial services (a)	11,763			10,562			37,938			30,564
Total revenue	$	476,423		$	442,464		$	1,340,269		$	1,168,081
Operating income:
Midwest homebuilding	$	20,887		$	20,628		$	53,730		$	48,943
Southern homebuilding (b)	13,082			(5,249		)	26,503			8,380
Mid-Atlantic homebuilding	9,969			11,359			26,810			22,827
Financial services (a)	5,887			5,944			21,977			17,581
Less: Corporate selling, general and administrative expense	(10,548		)	(10,676		)	(29,178		)	(26,876		)
Total operating income (b)	$	39,277		$	22,006		$	99,842		$	70,855
Interest expense:
Midwest homebuilding	$	1,319		$	647		$	3,559		$	2,539
Southern homebuilding	2,143			1,788			6,311			6,118
Mid-Atlantic homebuilding	557			601			1,988			3,058
Financial services (a)	656			551			1,989			1,445
Total interest expense	$	4,675		$	3,587		$	13,847		$	13,160
Equity in income of joint venture arrangements	(71		)	(24		)	(198		)	(413		)
Income before income taxes	$	34,673		$	18,443		$	86,193		$	58,108

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of an immaterial amount of mortgage refinancing.

(b) Includes a $14.5 million charge for stucco-related repair costs in certain of our Florida communities taken during the three months ended September 30, 2016, and an $8.5 million and a $19.4 million charge for stucco-related repair costs in certain of our Florida communities taken during the nine months ended September 30, 2017 and 2016, respectively (as more fully discussed in Note 6).

The following tables show total assets by segment at September 30, 2017 and December 31, 2016:

	September 30, 2017
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,078	$	20,094		$	6,202	$	—	$	31,374
Inventory (a)	514,949		623,815			285,671		—		1,424,435
Investments in joint venture arrangements	3,798		10,493			8,690		—		22,981
Other assets	13,106		24,624		(b)	11,600		256,575		305,905
Total assets	$	536,931	$	679,026		$	312,163	$	256,575	$	1,784,695

	December 31, 2016
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,989	$	22,607		$	3,260	$	—	$	29,856
Inventory (a)	399,814		484,038			302,226		—		1,186,078
Investments in joint venture arrangements	10,155		10,630			7,231		—		28,016
Other assets	25,747		35,622		(b)	13,912		229,280		304,561
Total assets	$	439,705	$	552,897		$	326,629	$	229,280	$	1,548,511

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

(b) Includes development reimbursements from local municipalities.

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NOTE 12. Supplemental Guarantor Information

The Company’s obligations under the 2025 Senior Notes, the 2021 Senior Notes and the 2018 Convertible Senior Subordinated Notes are not guaranteed by all of the Company’s subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The Guarantor Subsidiaries of the 2025 Senior Notes, the 2021 Senior Notes and the 2018 Convertible Senior Subordinated Notes are the same.

The following condensed consolidating financial information includes balance sheets, statements of income and cash flow information for M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2025 Senior Notes on a joint and several senior unsecured basis, (b) 2021 Senior Notes on a joint and several senior unsecured basis and (c) 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis.

There are no significant restrictions on the parent company’s ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of September 30, 2017, each of the Company’s subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility, the indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes.

In the condensed financial tables presented below, the parent company presents all of its 100%-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Unrestricted Subsidiaries.

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UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
	Three Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	464,660	$	11,763		$	—		$	476,423
Costs and expenses:
Land and housing	—		374,673		—			—			374,673
General and administrative	—		25,263		6,074			—			31,337
Selling	—		31,136		—			—			31,136
Equity in income of joint venture arrangements	—		—		(71		)	—			(71		)
Interest	—		4,019		656			—			4,675
Total costs and expenses	—		435,091		6,659			—			441,750
Income before income taxes	—		29,569		5,104			—			34,673
Provision for income taxes	—		10,672		1,674			—			12,346
Equity in subsidiaries	22,327		—		—			(22,327		)	—
Net income	22,327		18,897		3,430			(22,327		)	22,327
Preferred dividends	1,218		—		—			—			1,218
Excess of fair value over book value of preferred shares subject to redemption	2,257		—		—			—			2,257
Net income to common shareholders	$	18,852	$	18,897	$	3,430		$	(22,327	)	$	18,852

	Three Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	431,903	$	10,561		$	—		$	442,464
Costs and expenses:
Land and housing	—		363,635		—			—			363,635
General and administrative	—		24,340		4,820			—			29,160
Selling	—		27,663		—			—			27,663
Equity in income of joint venture arrangements	—		—		(24		)	—			(24		)
Interest	—		3,036		551			—			3,587
Total costs and expenses	—		418,674		5,347			—			424,021
Income before income taxes	—		13,229		5,214			—			18,443
Provision for income taxes	—		5,601		1,900			—			7,501
Equity in subsidiaries	10,942		—		—			(10,942		)	—
Net income	10,942		7,628		3,314			(10,942		)	10,942
Preferred dividends	1,218		—		—			—			1,218
Net income to common shareholders	$	9,724	$	7,628	$	3,314		$	(10,942	)	$	9,724

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UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
	Nine Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	1,302,331	$	37,938		$	—		$	1,340,269
Costs and expenses:
Land and housing	—		1,062,552		—			—			1,062,552
General and administrative	—		72,638		16,571			—			89,209
Selling	—		88,666		—			—			88,666
Equity in income of joint venture arrangements	—		—		(198		)	—			(198		)
Interest	—		11,858		1,989			—			13,847
Total costs and expenses	—		1,235,714		18,362			—			1,254,076
Income before income taxes	—		66,617		19,576			—			86,193
Provision for income taxes	—		23,407		6,587			—			29,994
Equity in subsidiaries	56,199		—		—			(56,199		)	—
Net income	56,199		43,210		12,989			(56,199		)	56,199
Preferred dividends	3,656		—		—			—			3,656
Excess of fair value over book value of preferred shares subject to redemption	2,257		—		—			—			2,257
Net income to common shareholders	$	50,286	$	43,210	$	12,989		$	(56,199	)	$	50,286

	Nine Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	1,137,517	$	30,564		$	—		$	1,168,081
Costs and expenses:
Land and housing	—		943,515		—			—			943,515
General and administrative	—		64,727		13,522			—			78,249
Selling	—		75,462		—			—			75,462
Equity in income of joint venture arrangements	—		—		(413		)	—			(413		)
Interest	—		11,715		1,445			—			13,160
Total costs and expenses	—		1,095,419		14,554			—			1,109,973
Income before income taxes	—		42,098		16,010			—			58,108
Provision for income taxes	—		16,487		5,574			—			22,061
Equity in subsidiaries	36,047		—		—			(36,047		)	—
Net income	36,047		25,611		10,436			(36,047		)	36,047
Preferred dividends	3,656		—		—			—			3,656
Net income to common shareholders	$	32,391	$	25,611	$	10,436		$	(36,047	)	$	32,391

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UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	82,504	$	21,132	$	—		$	103,636
Mortgage loans held for sale	—		—		91,987		—			91,987
Inventory	—		1,455,809		—		—			1,455,809
Property and equipment - net	—		24,325		995		—			25,320
Investment in joint venture arrangements	—		15,764		7,217		—			22,981
Deferred income taxes, net of valuation allowances	—		29,461		108		—			29,569
Investment in subsidiaries	710,176		—		—		(710,176		)	—
Intercompany assets	688,260		—		—		(688,260		)	—
Other assets	3,375		42,473		9,545		—			55,393
TOTAL ASSETS	$	1,401,811	$	1,650,336	$	130,984	$	(1,398,436	)	$	1,784,695
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	120,049	$	549	$	—		$	120,598
Customer deposits	—		30,583		—		—			30,583
Intercompany liabilities	—		683,308		4,952		(688,260		)	—
Other liabilities	—		104,279		4,591		—			108,870
Preferred shares subject to redemption	50,420		—		—		—			50,420
Community development district obligations	—		5,298		—		—			5,298
Obligation for consolidated inventory not owned	—		22,203		—		—			22,203
Notes payable bank - financial services operations	—		—		91,275		—			91,275
Notes payable - other	—		4,057		—		—			4,057
Convertible senior subordinated notes due 2018 - net	85,955		—		—		—			85,955
Senior notes due 2021 - net	296,505		—		—		—			296,505
Senior notes due 2025 - net	245,958		—		—		—			245,958
TOTAL LIABILITIES	678,838		969,777		101,367		(688,260		)	1,061,722
SHAREHOLDERS’ EQUITY	722,973		680,559		29,617		(710,176		)	722,973
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,401,811	$	1,650,336	$	130,984	$	(1,398,436	)	$	1,784,695

27

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	20,927	$	13,514	$	—		$	34,441
Mortgage loans held for sale	—		—		154,020		—			154,020
Inventory	—		1,215,934		—		—			1,215,934
Property and equipment - net	—		21,242		1,057		—			22,299
Investment in joint venture arrangements	—		12,537		15,479		—			28,016
Deferred income taxes, net of valuation allowances	—		30,767		108		—			30,875
Investment in subsidiaries	666,008		—		—		(666,008		)	—
Intercompany assets	424,669		—		—		(424,669		)	—
Other assets	1,690		43,809		17,427		—			62,926
TOTAL ASSETS	$	1,092,367	$	1,345,216	$	201,605	$	(1,090,677	)	$	1,548,511
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	102,663	$	549	$	—		$	103,212
Customer deposits	—		22,156		—		—			22,156
Intercompany liabilities	—		411,196		13,473		(424,669		)	—
Other liabilities	—		117,133		6,029		—			123,162
Community development district obligations	—		476		—		—			476
Obligation for consolidated inventory not owned	—		7,528		—		—			7,528
Notes payable bank - homebuilding operations	—		40,300		—		—			40,300
Notes payable bank - financial services operations	—		—		152,895		—			152,895
Notes payable - other	—		6,415		—		—			6,415
Convertible senior subordinated notes due 2017 - net	57,093		—		—		—			57,093
Convertible senior subordinated notes due 2018 - net	85,423		—		—		—			85,423
Senior notes due 2021 - net	295,677		—		—		—			295,677
TOTAL LIABILITIES	438,193		707,867		172,946		(424,669		)	894,337
SHAREHOLDERS’ EQUITY	654,174		637,349		28,659		(666,008		)	654,174
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,092,367	$	1,345,216	$	201,605	$	(1,090,677	)	$	1,548,511

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UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	12,031		$	(152,148	)	$	86,123		$	(12,031	)	$	(66,025	)
INVESTING ACTIVITIES:
Purchase of property and equipment	—			(5,848		)	(169		)	—			(6,017		)
Intercompany investing	(13,166		)	—			—			13,166			—
Investments in and advances to joint venture arrangements	—			(3,401		)	(5,038		)	—			(8,439		)
Return of capital from unconsolidated joint ventures	—			—			1,833			—			1,833
Net proceeds from the sale of mortgage servicing rights	—			—			7,558			—			7,558
Net cash (used in) provided by investing activities	(13,166		)	(9,249		)	4,184			13,166			(5,065		)
FINANCING ACTIVITIES:
Proceeds from issuance of senior notes	—			250,000			—			—			250,000
Proceeds from bank borrowings - homebuilding operations	—			366,500			—			—			366,500
Principal repayments of bank borrowings - homebuilding operations	—			(406,800		)	—			—			(406,800		)
Net repayments of bank borrowings - financial services operations	—			—			(61,620		)	—			(61,620		)
(Principal repayment of) proceeds from notes payable - other and CDD bond obligations	—			(2,358		)	—			—			(2,358		)
Proceeds from exercise of stock options	4,791			—			—			—			4,791
Intercompany financing	—			22,141			(8,975		)	(13,166		)	—
Dividends paid	(3,656		)	—			(12,031		)	12,031			(3,656		)
Debt issue costs	—			(6,509		)	(63		)	—			(6,572		)
Net cash provided by (used in) financing activities	1,135			222,974			(82,689		)	(1,135		)	140,285
Net increase in cash, cash equivalents and restricted cash	—			61,577			7,618			—			69,195
Cash, cash equivalents and restricted cash balance at beginning of period	—			20,927			13,514			—			34,441
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	82,504		$	21,132		$	—		$	103,636

	Nine Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities (1)	$	7,138		$	(18,210	)	$	44,712		$	(7,138	)	$	26,502
INVESTING ACTIVITIES:
Purchase of property and equipment	—			(11,565		)	(54		)	—			(11,619		)
Intercompany Investing	(3,555		)	—			—			3,555			—
Investments in and advances to joint venture arrangements	—			(5,504		)	(4,556		)	—			(10,060		)
Net cash (used in) provided by investing activities (1)	(3,555		)	(17,069		)	(4,610		)	3,555			(21,679		)
FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			276,800			—			—			276,800
Principal repayments of bank borrowings - homebuilding operations	—			(235,600		)	—			—			(235,600		)
Net repayments of bank borrowings - financial services operations	—			—			(32,165		)	—			(32,165		)
Principal proceeds from notes payable - other and CDD bond obligations	—			125			—			—			125
Intercompany financing	—			(630		)	(3,766		)	4,396			—
Dividends paid	(3,656		)	—			(7,138		)	7,138			(3,656		)
Debt issue costs	—			(153		)	(40		)	—			(193		)
Proceeds from exercise of stock options	73			—			—			—			73
Net cash (used in) provided by financing activities	(3,583		)	40,542			(43,109		)	11,534			5,384
Net increase (decrease) in cash, cash equivalents and restricted cash	—			5,263			(3,007		)	7,951			10,207
Cash, cash equivalents and restricted cash balance at beginning of period	—			2,896			18,156			(7,951		)	13,101
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	8,159		$	15,149		$	—		$	23,308

(1) During the fourth quarter of 2016, we elected to early-adopt Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Certain amounts above have been adjusted to apply the new method retrospectively.

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NOTE 13. Subsequent Event

On October 16, 2017, the Company redeemed all 2,000 of its outstanding Series A Preferred Shares for $50.4 million in cash, which reduced the restricted payments basket with respect to our 2025 Senior Notes and our 2021 Senior Notes by an equal amount. Refer to Note 8 of our Unaudited Condensed Consolidated Financial Statements for additional details.

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

OVERVIEW

M/I Homes, Inc. (the “Company” or “we”) is one of the nation’s leading builders of single-family homes having sold over 104,400 homes since we commenced homebuilding activities in 1976.  The Company’s homes are marketed and sold primarily under the M/I Homes brand (M/I Homes and Showcase Collection (exclusively by M/I)) and, following our acquisition of a privately-held homebuilder in the Minneapolis/St. Paul market in December 2015, we also use the Hans Hagen brand in that market. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina; and the Virginia and Maryland suburbs of Washington, D.C.

Included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are the following topics relevant to the Company’s performance and financial condition:

• Information Relating to Forward-Looking Statements;

• Application of Critical Accounting Estimates and Policies;

• Results of Operations;

• Discussion of Our Liquidity and Capital Resources;

• Summary of Our Contractual Obligations;

• Discussion of Our Utilization of Off-Balance Sheet Arrangements; and

• Impact of Interest Rates and Inflation.

FORWARD-LOOKING STATEMENTS

Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements, including, but not limited to, statements regarding our future financial performance and financial condition.  Words such as “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements.  These statements involve a number of risks and uncertainties.  Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various risk factors.  Please see“Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”), as the same may be updated from time to time in our subsequent filings with the SEC, for more information regarding those risk factors.

Any forward-looking statement speaks only as of the date made. Except as required by applicable law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent reports on Forms 10-K, 10-Q and 8-K should be consulted.  This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

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APPLICATION OF CRITICAL ACCOUNTING ESTIMATES AND POLICIES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.  Management bases its estimates and assumptions on historical experience and on various other factors that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.  On an ongoing basis, management evaluates such estimates and assumptions and makes adjustments as deemed necessary.  Actual results could differ from these estimates using different estimates and assumptions, or if conditions are significantly different in the future.  See Note 1 (Summary of Significant Accounting Policies) to our consolidated financial statements included in our 2016 Form 10-K for additional information about our accounting policies.

We believe that there have been no significant changes to our critical accounting policies during the quarter ended September 30, 2017 as compared to those disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2016 Form 10-K, other than the change described below.

Self-insurance Reserves. Our general liability claims are insured by a third party, subject to a deductible. Effective for home closings occurring on or after July 1, 2017, the Company renewed its general liability insurance coverage which, among other things, changed the structure of our completed operations/construction defect deductible to $10.0 million for the entire company (for closings prior to July 1, 2017, our completed operations/construction defect deductible was $7.5 million for each of our regions) and decreased our third party claims deductible to $250,000 (a decrease from $500,000 for closings prior to July 1, 2017). The Company records a reserve for general liability claims falling below the Company’s deductible. The reserve estimate is based on an actuarial evaluation of our past history of general liability claims, other industry specific factors and specific event analysis.

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RESULTS OF OPERATIONS

The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 15 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding reportable segments; and (3) our consolidated financial results.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment as each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. In accordance with the aggregation criteria defined in ASC 280, we have determined our reportable segments are as follows: Midwest homebuilding; Southern homebuilding; Mid-Atlantic homebuilding; and financial services operations.  The homebuilding operating segments included in each reportable segment have been aggregated because they share similar aggregation characteristics as prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.

The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Chicago, Illinois	Orlando, Florida	Charlotte, North Carolina
Cincinnati, Ohio	Sarasota, Florida	Raleigh, North Carolina
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Indianapolis, Indiana	Austin, Texas
Minneapolis/St. Paul, Minnesota	Dallas/Fort Worth, Texas
	Houston, Texas
	San Antonio, Texas

Overview

During both the third quarter and nine months ended September 30, 2017, we achieved record levels of new contracts, homes delivered, and revenue. Conditions in most of our markets remained steady with modest improvement in demand for new homes compared with the same period in 2016, supported by favorable fundamentals, including improved levels of household formation, continued increases in employment, low interest rates, improved consumer confidence and continued mortgage availability, along with a constrained supply of both existing and new homes. These conditions, the continued execution of our strategic business initiatives and strong performance in our financial services business enabled us to achieve the following improved Company results, in comparison to the third quarter and nine months ended September 30, 2016:

• New contracts increased13% to 1,225 and 9% to 4,079, respectively

• Homes delivered increased9% to 1,256 homes and 14% to 3,505 homes, respectively

• Number of homes in backlog at September 30, 2017increased7% to 2,378

• Total sales value in backlog increased11% to $911.7 million

• Revenue increased8% to $476.4 million and 15% to $1,340.3 million, respectively

Income before income taxes for the third quarter of 2017increased88% from $18.4 million in the third quarter of 2016 to $34.7 million in the third quarter of 2017. Income before income taxes for the third quarter of 2016 was unfavorably impacted by a $14.5 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 6). Excluding the stucco-related charge for the quarter ended September 30, 2016, adjusted income before income taxes increased5% from $32.9 million in the third quarter of 2016 to $34.7 million in the third quarter of 2017. For the nine months ended September 30, 2017, income before income taxes increased48% from $58.1 million for the nine months ended September 30, 2016 to $86.2 million for the nine months ended September 30, 2017. Income before income taxes for both the nine months ended September 30, 2017 and 2016 was unfavorably impacted by an $8.5 million and a $19.4 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 6), respectively. Excluding these stucco-related charges in both periods, adjusted income before income taxes increased22% from $77.5 million in 2016's first nine months to $94.7 million in 2017's first nine months.

We believe that our results for both the three months and nine months ended September 30, 2017 were negatively impacted by separate hurricanes that occurred in Florida and Texas during the third quarter of 2017 which delayed approximately 20 home

32

deliveries in the quarter, slowed down new contracts, and resulted in approximately $0.7 million of community and model home repair costs in the quarter.

In addition, during the third quarter of 2017, we:

• issued $250 million in aggregate principal amount of 5.625% Senior Notes due 2025 (the “2025 Senior Notes”) for net proceeds of approximately $246 million;

• issued approximately 2.4 million common shares upon the conversion of all $57.5 million aggregate principal amount of our outstanding 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”) into common shares; and

• announced that we will redeem all 2,000 of our outstanding 9.75% Series A Preferred Shares (the “Series A Preferred Shares”) (and the 2,000,000 related depositary shares) on October 16, 2017, and recorded a $2.3 million non-cash charge in connection therewith. We consummated this redemption on October 16, 2017.

Each of the above actions is more fully described in the footnotes to our Unaudited Condensed Consolidated Financial Statements as well as below in the “Liquidity and Capital Resources” section.

The calculations of adjusted income before income taxes and adjusted housing gross margin (referred to below), which we believe provide a clearer measure of the ongoing performance of our business, are described and reconciled to income before income taxes and housing gross margin, the financial measures that are calculated using our GAAP results, below under “Non-GAAP Financial Measures.”

Summary of Company Financial Results

In the third quarter of 2017, we achieved net income to common shareholders of $18.9 million, or $0.64 per diluted share, which is net of a $2.3 million non-cash charge resulting from the excess of fair value over carrying value of our Series A Preferred Shares that were called for redemption in the quarter. This compares to net income to common shareholders of $9.7 million, or $0.35 per diluted share, in 2016's third quarter. Net income in each period included $1.2 million in dividend payments made to holders of our Series A Preferred Shares. In the nine months ended September 30, 2017, we achieved net income to common shareholders of $50.3 million, or $1.73 per diluted share, which is net of a $2.3 million non-cash charge resulting from the excess of fair value over carrying value of our Series A Preferred Shares that were called for redemption in the third quarter of 2017. This compares to net income to common shareholders of $32.4 million, or $1.17 per diluted share, in the nine months ended September 30, 2016. Net income in each period included $3.7 million in dividend payments made to holders of our Series A Preferred Shares.

During the quarter ended September 30, 2017, we recorded third quarter record total revenue of $476.4 million, of which $459.3 million was from homes delivered, $5.3 million was from land sales and $11.8 million was from our financial services operations. Revenue from homes delivered increased10% in 2017's third quarter compared to the same period in 2016 driven primarily by a 9%increase in the number of homes delivered (108 units) and a slight increase in the average sales price of homes delivered ($1,000 per home delivered). While our homes delivered improved when compared to 2016, we believe the separate hurricanes in our Florida and Texas markets delayed approximately 20 deliveries home deliveries in the third quarter of 2017, slowed down new contracts, and resulted in approximately $0.7 million of repair costs in the quarter. Revenue from land sales decreased$7.4 million from the third quarter of 2016 primarily due to fewer land sales in our Mid-Atlantic region in 2017’s third quarter compared to the prior year. During the nine months ended September 30, 2017, we recorded record total revenue of $1,340.3 million, of which $1,289.9 million was from homes delivered, $12.5 million was from land sales and $37.9 million was from our financial services operations. Revenue from homes delivered increased17% during the nine months ended September 30, 2017 compared to the same period in 2016 driven primarily by a 14%increase in the number of homes delivered (439 units) and a 2%increase in the average sales price of homes delivered ($7,000 per home delivered). Revenue from land sales decreased$19.4 million during 2017's first nine months primarily due to fewer land sales in our Southern and Mid-Atlantic regions in the current year period compared to the prior year. Revenue in our financial services segment increased11% to $11.8 million and 24% to $37.9 million in the three and nine months ended September 30, 2017, respectively, compared to the same periods in 2016 as a result of increases in the number of loan originations and the volume of loans sold.

Total gross margin (total revenue less total land and housing costs) increased$22.9 million in the third quarter of 2017 compared to the third quarter of 2016 as a result of a $21.7 millionimprovement in the gross margin of our homebuilding operations and a $1.2 million improvement in the gross margin of our financial services operations. With respect to our homebuilding gross margin, our gross margin on homes delivered (housing gross margin) improved$22.4 million as a result of the 9%increase in the number of homes delivered and the absence of a $14.5 million charge for additional estimated future stucco-related repair costs in certain of our Florida communities taken during 2016's third quarter. Our housing gross margin percentage improved350 basis points from 16.0% in prior year's third quarter to 19.5% in 2017's third quarter. Exclusive of the stucco-related charges taken in the third

33

quarter of 2016, our adjusted housing gross margin percentage remained flat at 19.5% in both quarters ended September 30, 2017 and 2016. Our gross margin on land sales (land sale gross margin) declined$0.7 million as a result of fewer third party land sales in the third quarter of 2017 compared to the third quarter of 2016. Total gross margin increased$53.2 million for the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 as a result of a $45.8 millionimprovement in the gross margin of our homebuilding operations and a $7.4 million improvement in the gross margin of our financial services operations. With respect to our homebuilding gross margin for the nine months ended September 30, 2017, our housing gross margin improved$48.0 million as a result of the 14%increase in the number of homes delivered and the 2%increase in the average sales price of homes delivered. We recorded $8.5 million of charges in stucco-related repair costs for the nine months ended September 30, 2017 compared to $19.4 million of such charges in the prior year period. This reduction in charges also contributed to the improvement in our housing gross margin. Our housing gross margin percentage improved120 basis points from 17.3% in the nine months ended September 30, 2016 to 18.5% in the nine months ended September 30, 2017. Exclusive of the stucco-related charges taken during the first nine months ended September 30, 2017 and 2016, our adjusted housing gross margin percentage improved20 basis points to 19.2% in the nine months ended September 30, 2017 from 19.0%, largely as a result of product mix and the mix of communities delivering homes, partially offset by higher construction and lot costs in 2017's first nine months compared to 2016's first nine months. Our gross margin on land sales declined$2.2 million as a result of fewer third party land sales in the nine months ended September 30, 2017 compared to 2016's first nine months.

We believe the increased new contract volume during the three and nine months ended September 30, 2017 compared to the three and nine months ended September 30, 2016 was driven primarily by better pricing leverage in select locations and submarkets and shifts in both product and community mix. In addition, our new contracts benefited from the opening of 6 new communities during the third quarter of 2017 and 48 new communities during the nine months ended September 30, 2017, although some of these new communities opened later than expected, and did not contribute a significant number of sales contracts in the quarter. While we cannot quantify the number, we believe that our new contracts in our Florida and Texas markets were negatively impacted by the separate hurricanes that occurred during the third quarter of 2017. We sell a variety of home types in various communities and markets, each of which yields a different gross margin. The timing of the openings of new replacement communities varies from year to year. As a result, our new contracts and housing gross margin may fluctuate up or down from quarter to quarter depending on the mix of communities delivering homes. The pricing improvements described above were partially offset by higher average lot and construction costs related to homebuilding industry conditions and normal supply and demand dynamics. During the three and nine months ended September 30, 2017 and 2016, we were able to pass a portion of the higher construction and lot costs to our homebuyers in the form of higher sales prices. However, we cannot provide any assurance that we will be able to continue to raise prices.

For the three months ended September 30, 2017, selling, general and administrative expense increased$5.7 million, which partially offset the increase in our gross margin discussed above, and increased as a percentage of revenue from 12.8% in the third quarter of 2016 to 13.1% in the third quarter of 2017. Selling expense increased$3.5 million from 2016's third quarter and increased as a percentage of revenue to 6.5% in 2017's third quarter compared to 6.3% for the same period in 2016. Variable selling expense for sales commissions contributed $2.2 million to the increase due to the higher average sales price of homes delivered and higher number of homes delivered. The increase in selling expense was also attributable to a $1.3 millionincrease in non-variable selling expense primarily related to costs associated with our sales offices and models as a result of our increased community count. General and administrative expense increased$2.2 million compared to the third quarter of 2016 but remained flat as a percentage of revenue at 6.6% in both the third quarter of 2017 and 2016. This dollar increase was primarily due to a $0.7 millionincrease in compensation expense as a result of an increase in employee count, a $1.3 millionincrease in land related expenses primarily due to our increased community count, and a $0.2 millionincrease related to start-up costs associated with our new Sarasota division. For the nine months ended September 30, 2017, selling, general and administrative expense increased$24.2 million, which partially offset the increase in our gross margin discussed above, and increased slightly as a percentage of revenue from 13.2% in the first nine months of 2016 to 13.3% in the nine months ended September 30, 2017. Selling expense increased$13.2 million from the nine months ended September 30, 2016 and increased slightly as a percentage of revenue to 6.6% in 2017's first nine months compared to 6.5% for the same period in 2016. Variable selling expense for sales commissions contributed $8.2 million to the increase due to the higher average sales price of homes delivered and higher number of homes delivered. The increase in selling expense was also attributable to a $5.0 millionincrease in non-variable selling expense primarily related to costs associated with our sales offices and models as a result of our increased community count. General and administrative expense increased$11.0 million compared to the nine months ended September 30, 2016 and remained flat as a percentage of revenue at 6.7% in both the nine months ended September 30, 2017 and 2016. This dollar increase was primarily due to a $5.1 millionincrease in compensation expense as a result of an increase in employee count as well as higher incentive compensation due to improved operating results, a $3.2 millionincrease in land related expenses primarily due to our increased community count, a $1.1 millionincrease related to start-up costs associated with our new Sarasota division, a $0.9 millionincrease in costs associated with new information systems in our financial services operation, and increases in other miscellaneous expenses.

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Outlook

We believe that housing industry fundamentals are strong, but we may face some near term challenges in certain of our markets related to hurricanes that occurred in the third quarter of 2017. We have operations in Houston, Texas and in Tampa, Orlando, and Sarasota, Florida, areas that were severely impacted by the hurricanes. While these events did not significantly affect our results for the three-month or nine-month periods ended September 30, 2017, and our communities in the affected areas only experienced minimal damage, we believe our Houston and Florida operations, and our 2017 financial results, may be adversely affected in the fourth quarter and possibly future quarters by, among other things, a decline in 2017 fourth quarter new orders; land development and home construction delays and/or elevated costs stemming from general hurricane-related recovery efforts that heighten the demand for, and constrain the supply of, building materials and available trade labor; warranty repair claims from our affected homeowners; and tempered homebuyer traffic and home sales activity. We remain focused on increasing our profitability by generating additional revenue and improving overhead operating leverage, continuing to expand our market share, and investing in attractive land opportunities.

We expect to continue to emphasize the following strategic business objectives throughout the remainder of 2017:

• profitably growing our presence in our existing markets, including opening new communities;

• reviewing new markets for investment opportunities;

• maintaining a strong balance sheet; and

• emphasizing customer service, product quality and design, and premier locations.

Consistent with these objectives, we took a number of steps during the nine months ended September 30, 2017 for continued improvement in 2017 and beyond, including investing $250.2 million in land acquisitions and $137.0 million in land development to help grow our presence in our existing markets. We currently estimate that we will spend approximately $525 million to $550 million on land purchases and land development in 2017, including the $387.2 million spent during the nine months ended September 30, 2017. However, land transactions are subject to a number of factors, including our financial condition and market conditions, as well as satisfaction of various conditions related to specific properties. We will continue to monitor market conditions and our ongoing pace of home sales and deliveries and we will adjust our land spending accordingly. We opened 48 communities and closed 47 communities in the nine months ended September 30, 2017, ending 2017's first nine months with a total of 179 communities compared to 174 communities at September 30, 2016.

Going forward, we believe our abilities to leverage our fixed costs, obtain land at desired rates of return, and open and grow our active communities provide our best opportunities for continuing to improve our financial results. However, we can provide no assurance that the positive trends reflected in our financial and operating metrics will continue in the future.

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The following table shows, by segment: revenue; gross margin; selling, general and administrative expense; operating income; and interest expense for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Revenue:
Midwest homebuilding	$	180,488		$	166,928		$	495,379		$	438,016
Southern homebuilding	176,502			143,315			504,647			414,974
Mid-Atlantic homebuilding	107,670			121,659			302,305			284,527
Financial services (a)	11,763			10,562			37,938			30,564
Total revenue	$	476,423		$	442,464		$	1,340,269		$	1,168,081
Gross margin:
Midwest homebuilding	$	37,264		$	35,437		$	100,284		$	88,104
Southern homebuilding (b)	33,159			11,525			84,638			55,489
Mid-Atlantic homebuilding	19,564			21,305			54,857			50,409
Financial services (a)	11,763			10,562			37,938			30,564
Total gross margin (b)	$	101,750		$	78,829		$	277,717		$	224,566
Selling, general and administrative expense:
Midwest homebuilding	$	16,377		$	14,809		$	46,554		$	39,161
Southern homebuilding	20,077			16,774			58,135			47,109
Mid-Atlantic homebuilding	9,595			9,946			28,047			27,582
Financial services (a)	5,876			4,618			15,961			12,983
Corporate	10,548			10,676			29,178			26,876
Total selling, general and administrative expense	$	62,473		$	56,823		$	177,875		$	153,711
Operating income:
Midwest homebuilding	$	20,887		$	20,628		$	53,730		$	48,943
Southern homebuilding (b)	13,082			(5,249		)	26,503			8,380
Mid-Atlantic homebuilding	9,969			11,359			26,810			22,827
Financial services (a)	5,887			5,944			21,977			17,581
Less: Corporate selling, general and administrative expense	(10,548		)	(10,676		)	(29,178		)	(26,876		)
Total operating income (b)	$	39,277		$	22,006		$	99,842		$	70,855
Interest expense:
Midwest homebuilding	$	1,319		$	647		$	3,559		$	2,539
Southern homebuilding	2,143			1,788			6,311			6,118
Mid-Atlantic homebuilding	557			601			1,988			3,058
Financial services (a)	656			551			1,989			1,445
Total interest expense	$	4,675		$	3,587		$	13,847		$	13,160
Equity in income of joint venture arrangements	(71		)	(24		)	(198		)	(413		)
Income before income taxes	$	34,673		$	18,443		$	86,193		$	58,108

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage refinancing.

(b) Includes a $14.5 million charge for stucco-related repair costs in certain of our Florida communities taken during the three months ended September 30, 2016 and an $8.5 million and a $19.4 million charge for stucco-related repair costs in certain of our Florida communities taken during the nine months ended September 30, 2017 and 2016, respectively (as more fully discussed in Note 6).

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The following tables show total assets by segment at September 30, 2017 and December 31, 2016:

	At September 30, 2017
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,078	$	20,094		$	6,202	$	—	$	31,374
Inventory (a)	514,949		623,815			285,671		—		1,424,435
Investments in joint venture arrangements	3,798		10,493			8,690		—		22,981
Other assets	13,106		24,624		(b)	11,600		256,575		305,905
Total assets	$	536,931	$	679,026		$	312,163	$	256,575	$	1,784,695

	At December 31, 2016
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,989	$	22,607		$	3,260	$	—	$	29,856
Inventory (a)	399,814		484,038			302,226		—		1,186,078
Investments in joint venture arrangements	10,155		10,630			7,231		—		28,016
Other assets	25,747		35,622		(b)	13,912		229,280		304,561
Total assets	$	439,705	$	552,897		$	326,629	$	229,280	$	1,548,511

(a) Inventory includes single-family lots; land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

(b) Includes development reimbursements from local municipalities.

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Reportable Segments

The following table presents, by reportable segment, selected operating and financial information as of and for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2017		2016			2017		2016
Midwest Region
Homes delivered	461		443			1,277		1,163
New contracts, net	458		407			1,545		1,409
Backlog at end of period	1,025		918			1,025		918
Average sales price of homes delivered	$	389	$	374		$	386	$	375
Average sales price of homes in backlog	$	406	$	388		$	406	$	388
Aggregate sales value of homes in backlog	$	416,029	$	355,797		$	416,029	$	355,797
Housing revenue	$	179,363	$	165,894		$	493,464	$	435,717
Land sale revenue	$	1,125	$	1,034		$	1,915	$	2,299
Operating income homes (a)	$	20,771	$	19,936		$	53,327	$	47,938
Operating income land	$	116	$	692		$	403	$	1,005
Number of average active communities	64		62			63		67
Number of active communities, end of period	62		60			62		60
Southern Region
Homes delivered	520		410			1,459		1,158
New contracts, net	583		437			1,798		1,444
Backlog at end of period	1,013		846			1,013		846
Average sales price of homes delivered	$	338	$	345		$	343	$	344
Average sales price of homes in backlog	$	355	$	350		$	355	$	350
Aggregate sales value of homes in backlog	$	359,833	$	296,145		$	359,833	$	296,145
Housing revenue	$	175,644	$	141,382		$	500,504	$	398,249
Land sale revenue	$	858	$	1,933		$	4,143	$	16,725
Operating income homes (a) (b)	$	12,924	$	(5,650	)	$	26,234	$	6,458
Operating income land	$	158	$	401		$	269	$	1,922
Number of average active communities	86		72			84		70
Number of active communities, end of period	85		74			85		74
Mid-Atlantic Region
Homes delivered	275		295			769		745
New contracts, net	184		244			736		903
Backlog at end of period	340		457			340		457
Average sales price of homes delivered	$	379	$	380		$	385	$	365
Average sales price of homes in backlog	$	399	$	371		$	399	$	371
Aggregate sales value of homes in backlog	$	135,795	$	169,552		$	135,795	$	169,552
Housing revenue	$	104,335	$	111,952		$	295,925	$	271,735
Land sale revenue	$	3,335	$	9,707		$	6,380	$	12,792
Operating income homes (a)	$	9,877	$	11,388		$	26,598	$	22,658
Operating income land	$	92	$	(29	)	$	212	$	169
Number of average active communities	33		40			35		39
Number of active communities, end of period	32		40			32		40
Total Homebuilding Regions
Homes delivered	1,256		1,148			3,505		3,066
New contracts, net	1,225		1,088			4,079		3,756
Backlog at end of period	2,378		2,221			2,378		2,221
Average sales price of homes delivered	$	366	$	365		$	368	$	361
Average sales price of homes in backlog	$	383	$	370		$	383	$	370
Aggregate sales value of homes in backlog	$	911,657	$	821,494		$	911,657	$	821,494
Housing revenue	$	459,342	$	419,228		$	1,289,893	$	1,105,701
Land sale revenue	$	5,318	$	12,674		$	12,438	$	31,816
Operating income homes (a) (b)	$	43,572	$	25,674		$	106,159	$	77,054
Operating income land	$	366	$	1,064		$	884	$	3,096
Number of average active communities	183		174			182		176
Number of active communities, end of period	179		174			179		174

(a) Includes the effect of total homebuilding selling, general and administrative expense for the region as disclosed in the first table set forth in this “Outlook” section.

(b) Includes a $14.5 million charge for stucco-related repair costs in certain of our Florida communities taken during the three months ended September 30, 2016, and an $8.5 million and a $19.4 million charge for stucco-related repair costs in certain of our Florida communities taken during the nine months ended September 30, 2017 and 2016, respectively (as more fully discussed in Note 6).

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	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2017		2016		2017		2016
Financial Services
Number of loans originated	902		848		2,467		2,213
Value of loans originated	$	263,755	$	250,306	$	732,587	$	654,905
Revenue	$	11,763	$	10,562	$	37,938	$	30,564
Less: Selling, general and administrative expense	5,876		4,618		15,961		12,983
Interest expense	656		551		1,989		1,445
Income before income taxes	$	5,231	$	5,393	$	19,988	$	16,136

A home is included in “new contracts” when our standard sales contract is executed. “Homes delivered” represents homes for which the closing of the sale has occurred. “Backlog” represents homes for which the standard sales contract has been executed, but which are not included in homes delivered because closings for these homes have not yet occurred as of the end of the period specified.

The composition of our homes delivered, new contracts, net and backlog is constantly changing and may be based on a dissimilar mix of communities between periods as new communities open and existing communities wind down. Further, home types and individual homes within a community can range significantly in price due to differing square footage, option selections, lot sizes and quality and location of lots. These variations may result in a lack of meaningful comparability between homes delivered, new contracts, net and backlog due to the changing mix between periods.

Cancellation Rates

The following table sets forth the cancellation rates for each of our homebuilding segments for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Midwest	14.1	%	14.5	%	12.3	%	12.3	%
Southern	16.7	%	16.9	%	16.7	%	16.1	%
Mid-Atlantic	12.4	%	13.2	%	11.1	%	10.1	%
Total cancellation rate	15.1	%	15.2	%	14.1	%	13.3	%

Seasonality

Typically, our homebuilding operations experience significant seasonality and quarter-to-quarter variability in homebuilding activity levels. In general, homes delivered increase substantially in the second half of the year compared to the first half of the year. We believe that this seasonality reflects the tendency of homebuyers to shop for a new home in the spring with the goal of closing in the fall or winter, as well as the scheduling of construction to accommodate seasonal weather conditions. Our financial services operations also experience seasonality because loan originations correspond with the delivery of homes in our homebuilding operations.

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Non-GAAP Financial Measures

This report contains information about our adjusted housing gross margin and adjusted income before income taxes, each of which constitutes a non-GAAP financial measure. Because adjusted housing gross margin and adjusted income before income taxes are not calculated in accordance with GAAP, these financial measures may not be completely comparable to similarly-titled measures used by other companies in the homebuilding industry and, therefore, should not be considered in isolation or as an alternative to operating performance and/or financial measures prescribed by GAAP. Rather, these non-GAAP financial measures should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations.

Adjusted housing gross margin and adjusted income before income taxes are calculated as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2017			2016			2017			2016
Housing revenue	$	459,342		$	419,228		$	1,289,893		$	1,105,701
Housing cost of sales	369,721			352,025			1,050,998			914,795
Housing gross margin	89,621			67,203			238,895			190,906
Add: Stucco-related charges (a)	—			14,500			8,500			19,409
Adjusted housing gross margin	$	89,621		$	81,703		$	247,395		$	210,315
Housing gross margin percentage	19.5		%	16.0		%	18.5		%	17.3		%
Adjusted housing gross margin percentage	19.5		%	19.5		%	19.2		%	19.0		%
Income before income taxes	$	34,673		$	18,443		$	86,193		$	58,108
Add: Stucco-related charges (a)	—			14,500			8,500			19,409
Adjusted income before income taxes	$	34,673		$	32,943		$	94,693		$	77,517

(a) Represents warranty charges for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 6).

We believe adjusted housing gross margin and adjusted income before income taxes are both relevant and useful financial measures to investors in evaluating our operating performance as they measure the gross profit and income before income taxes we generated specifically on our operations during a given period. These non-GAAP financial measures isolate the impact that the stucco-related charges have on housing gross margins and income before income taxes, and allow investors to make comparisons with our competitors that adjust housing gross margins and income before income taxes in a similar manner. We also believe investors will find adjusted housing gross margin and adjusted income before income taxes relevant and useful because they represent a profitability measure that may be compared to a prior period without regard to variability of stucco-related charges. These financial measures assist us in making strategic decisions regarding community location and product mix, product pricing and construction pace.

Year Over Year Comparison

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The calculation of adjusted housing gross margin (referred to below), which we believe provides a clearer measure of the ongoing performance of our business, is described and reconciled to housing gross margin, the financial measure that is calculated using our GAAP results, below under “Segment Non-GAAP Financial Measures.”

Midwest Region. During the three months ended September 30, 2017, homebuilding revenue in our Midwest region increased$13.6 million, from $166.9 million in the third quarter of 2016 to $180.5 million in the third quarter of 2017. This 8%increase in homebuilding revenue was the result of a 4%increase in the number of homes delivered (18 units) and a 4%increase in the average sales price of homes delivered ($15,000 per home delivered). Operating income in our Midwest region increased$0.3 million from $20.6 million in the third quarter of 2016 to $20.9 million during the quarter ended September 30, 2017. This increase in operating income was the result of a $1.8 millionimprovement in our gross margin, offset, in part, by a $1.6 millionincrease in selling, general, and administrative expense. With respect to our homebuilding gross margin, our housing gross margin improved$2.4 million, due to the 4%increase in the number of homes delivered and the 4%increase in the average sales price of homes delivered noted above. Our housing gross margin percentage declined20 basis points to 20.7% in the third quarter of 2017 compared to 20.9% in the prior year’s third quarter primarily due to a change in product type and market mix. Our land sale gross margin declined$0.6 million as a result of fewer land sales in the third quarter of 2017 compared to the same period in 2016.

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Selling, general and administrative expense increased$1.6 million, from $14.8 million for the quarter ended September 30, 2016 to $16.4 million for the quarter ended September 30, 2017, and increased as a percentage of revenue to 9.1% from 8.9% in 2016's third quarter. The increase in selling, general and administrative expense was attributable to an increase in selling expense due to (1) a $0.9 millionincrease in variable selling expenses resulting from increases in sales commissions produced by the higher average sales price of homes delivered and higher number of homes delivered and (2) a $0.7 millionincrease in non-variable selling expenses primarily related to costs associated with our additional sales offices and models.

During the three months ended September 30, 2017, we experienced a 13%increase in new contracts in our Midwest region, from 407 in the third quarter of 2016 to 458 in the third quarter of 2017, and a 12%increase in backlog from 918 homes at September 30, 2016 to 1,025 homes at September 30, 2017. The increases in new contracts and backlog were primarily due to improving demand in our newer communities compared to prior year. Average sales price in backlog increased to $406,000 at September 30, 2017 compared to $388,000 at September 30, 2016 which was primarily due to a change in product type and market mix. During the three months ended September 30, 2017, we opened one new community in our Midwest region compared to two during 2016's third quarter. Our monthly absorption rate in our Midwest region increased to 2.4 per community in the third quarter of 2017 from 2.2 per community in the third quarter of 2016.

Southern Region.During the three months ended September 30, 2017, homebuilding revenue in our Southern region increased$33.2 million, from $143.3 million in the third quarter of 2016 to $176.5 million in the third quarter of 2017. This 23%increase in homebuilding revenue was the result of a 27%increase in the number of homes delivered (110 units), offset partially by a 2%decrease in the average sales price of homes delivered ($7,000 per home delivered), primarily due to mix, and a $1.1 milliondecrease in land sale revenue. Operating income in our Southern region increased$18.3 million from an operating loss of $5.2 million in the third quarter of 2016 to $13.1 million in operating income during the quarter ended September 30, 2017. This increase in operating income was the result of a $21.6 millionimprovement in our gross margin partially offset by a $3.3 millionincrease in selling, general, and administrative expense. With respect to our homebuilding gross margin, our housing gross margin improved$21.9 million, due primarily to the 27%increase in the number of homes delivered noted above and the absence of a $14.5 million charge for stucco-related repair costs in certain of our Florida communities taken during the three months ended September 30, 2016 (as more fully discussed in Note 6). Our housing gross margin percentage improved from 7.9% in prior year’s third quarter to 18.8% in the third quarter of 2017. Exclusive of the stucco-related charges in the third quarter of 2016, our adjusted housing gross margin percentage improved70 basis points from 18.1% to 18.8%, largely due to the mix of communities delivering homes and a more favorable product mix. Our land sale gross margin declined$0.2 million as a result of fewer land sales in the third quarter of 2017 compared to the same period in 2016.

Selling, general and administrative expense increased$3.3 million from $16.8 million in the third quarter of 2016 to $20.1 million in the third quarter of 2017 and declined as a percentage of revenue to 11.4% from 11.7% in the third quarter of 2016. The increase in selling, general and administrative expense was attributable, in part, to a $2.3 millionincrease in selling expense due to (1) a $1.6 millionincrease in variable selling expenses resulting from increases in sales commissions produced by the higher number of homes delivered and (2) a $0.7 millionincrease in non-variable selling expenses primarily related to costs associated with our sales offices and models as a result of our increased community count. The increase in selling, general and administrative expense was also attributable to a $1.0 millionincrease in general and administrative expense, which was primarily related to an increase in land related expenses.

During the three months ended September 30, 2017, we experienced a 33%increase in new contracts in our Southern region, from 437 in the third quarter of 2016 to 583 for the third quarter of 2017, and a 20%increase in backlog from 846 homes at September 30, 2016 to 1,013 homes at September 30, 2017. The increases in new contracts and backlog were primarily due to an increase in our average number of communities during the period, along with a modest improvement in demand in our Florida markets. Despite these improvements, however, our new contract volume was negatively impacted by the separate hurricanes that occurred in Florida and Texas during the quarter which we believe caused delays of approximately 20 home deliveries for the quarter and resulted in approximately $0.7 million of community and model home repair costs in the quarter. Average sales price in backlog increased to $355,000 at September 30, 2017 from $350,000 at September 30, 2016 due to a change in product type and market mix. During the three months ended September 30, 2017, we opened three communities in our Southern region compared to six during 2016's third quarter. Our monthly absorption rate in our Southern region increased to 2.3 per community in the third quarter of 2017 from 2.0 per community in the third quarter of 2016.

Mid-Atlantic Region. During the three month period ended September 30, 2017, homebuilding revenue in our Mid-Atlantic region decreased$14.0 million from $121.7 million in the third quarter of 2016 to $107.7 million in the third quarter of 2017. This 12%decrease in homebuilding revenue was the result of a 7%decrease in the number of homes delivered (20 units) primarily due to a decrease in the average number of communities during the period compared to prior year. Operating income in our Mid-Atlantic region decreased$1.4 million, from $11.4 million in the third quarter of 2016 to $10.0 million during the quarter ended September 30, 2017. This decline in operating income was primarily the result of a $1.7 milliondecrease in our gross margin, offset, in part,

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by a $0.3 milliondecrease in selling, general and administrative expense. With respect to our homebuilding gross margin, our housing gross margin declined$1.8 million, due to the 7%decrease in the number of homes delivered noted above and a decline in housing gross margin percentage, partially attributable to increased competition in the region. Our housing gross margin percentage declined40 basis points from 19.1% in last year’s third quarter to 18.7% in the third quarter of 2017 due primarily to the mix of homes delivered. Our land sale gross margin improved slightly by $0.1 million during the third quarter of 2017 compared to prior year.

Selling, general and administrative expense decreased$0.3 million from $9.9 million in the third quarter of 2016 to $9.6 million in the third quarter of 2017 but increased as a percentage of revenue to 8.9% compared to 8.2% for the third quarter of 2016. The decrease in selling, general and administrative expense was primarily due to a decrease in variable selling expenses primarily as a result of decreased sales commissions produced by the lower average sales price of homes delivered and lower number of homes delivered.

During the three months ended September 30, 2017, we experienced a 25%decrease in new contracts in our Mid-Atlantic region, from 244 in the third quarter of 2016 to 184 for the third quarter of 2017, and a 26%decrease in the number of homes in backlog from 457 homes at September 30, 2016 to 340 homes at September 30, 2017. The decreases in new contracts and backlog were primarily due to a decrease in the average number of active communities during the period compared to the prior year, as a result of delays in planned new community openings. Average sales price of homes in backlog increased from $371,000 at September 30, 2016 to $399,000 at September 30, 2017 primarily due to the mix of homes delivered. During the three months ended September 30, 2017, we opened two communities in our Mid-Atlantic region compared to three during the third quarter of 2016. Our monthly absorption rate in our Mid-Atlantic region declined to 1.9 per community in the third quarter of 2017 from 2.1 per community in the third quarter of 2016.

Financial Services. Revenue from our mortgage and title operations increased$1.2 million (11%) from $10.6 million in the third quarter of 2016 to $11.8 million in the third quarter of 2017 as a result of a 6%increase in the number of loan originations, from 848 in the third quarter of 2016 to 902 in the third quarter of 2017, and an increase in the volume of loans sold. Our average loan amount decreased slightly from $295,000 in the quarter ended September 30, 2016 to $292,000 in the quarter ended September 30, 2017.

We ended our third quarter of 2017 with a $0.1 milliondecrease in operating income compared to 2016's third quarter, which was primarily due to a $1.3 millionincrease in selling, general and administrative expense compared to the third quarter of 2016 which was attributable primarily to a $0.8 millionincrease in compensation expense, $0.2 millionincrease in computer costs related to our investment in new information systems and a $0.3 millionincrease in other miscellaneous expenses, offset partially by the increase in our revenue discussed above.

At September 30, 2017, M/I Financial provided financing services in all of our markets. Approximately 80% of our homes delivered during the third quarter of 2017 were financed through M/I Financial, compared to 85% in the same period in 2016. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter.

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense decreased$0.2 million, from $10.7 million for the third quarter of 2016 to $10.5 million for the third quarter of 2017.

Interest Expense - Net. Interest expense for the Company increased$1.1 million from $3.6 million for the three months ended September 30, 2016 to $4.7 million for the three months ended September 30, 2017. This increase was primarily the result of an increase in our weighted average borrowings from $607.4 million in 2016's third quarter to $714.0 million in 2017's third quarter, in addition to an increase in our weighted average borrowing rate from 5.80% in the third quarter of 2016 to 6.12% for third quarter of 2017. The increase in our weighted average borrowings and our weighted average borrowing rate primarily related to the issuance of our $250.0 million in aggregate principal amount of 2025 Senior Notes during the third quarter of 2017, partially offset by decreased borrowings under our Credit Facility (as defined below) at September 30, 2017 compared to September 30, 2016 and the conversion of all of our outstanding $57.5 million in aggregate principal amount of 2017 Convertible Senior Subordinated Notes into common shares in September 2017.

Earnings from Unconsolidated Joint Ventures. Earnings from unconsolidated joint ventures represent our portion of pre-tax earnings from our joint ownership and development agreements, joint ventures and other similar arrangements. During both the three months ended September 30, 2017 and 2016, the Company earned less than $0.1 million in equity in income from unconsolidated joint ventures.

Income Taxes. Our overall effective tax rate was 35.6% for the three months ended September 30, 2017 and 40.7% for the same period in 2016. The decline in the effective rate from the three months ended September 30, 2016 was primarily attributable to

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an increase in the estimated impact of annual tax benefits expected for the domestic production activities deduction which was limited in 2016 due to our then NOL federal carryforward position and a decrease in tax expense related to state tax rate changes.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

Midwest Region. During the nine months ended September 30, 2017, homebuilding revenue in our Midwest region increased$57.4 million, from $438.0 million in the nine months ended September 30, 2016 to $495.4 million in the nine months ended September 30, 2017. This 13%increase in homebuilding revenue was the result of a 10%increase in the number of homes delivered (114 units) and a 3%increase in the average sales price of homes delivered ($11,000 per home delivered), offset partially by a $0.4 milliondecrease in land sale revenue. Operating income in our Midwest region increased$4.8 million, from $48.9 million during the nine months ended September 30, 2016 to $53.7 million during the nine months ended September 30, 2017. The increase in operating income was primarily the result of a $12.2 millionincrease in our gross margin, offset, in part, by a $7.4 millionincrease in selling, general, and administrative expense. With respect to our homebuilding gross margin, our housing gross margin improved$12.8 million, due to the 10%increase in the number of homes delivered and the 3%increase in the average sales price of homes delivered noted above. Our housing gross margin percentage improved20 basis points from 20.0% in prior year's first nine months to 20.2% for the same period in 2017 primarily due to a change in market mix compared to prior year. Our housing gross margin for 2016’s first nine months was unfavorably impacted by a $1.1 million charge for purchase accounting adjustments from our 2015 Minneapolis/St. Paul acquisition. Exclusive of this charge, our adjusted housing gross margin percentage remained flat at 20.2% in both periods. Our land sale gross margin declined $0.6 million as a result of fewer strategic land sales in the nine months ended September 30, 2017 compared to the same period in 2016.

Selling, general and administrative expense increased$7.4 million, from $39.2 million for the nine months ended September 30, 2016 to $46.6 million for the nine months ended September 30, 2017, and increased as a percentage of revenue to 9.4% compared to 8.9% for the same period in 2016. The increase in selling, general and administrative expense was attributable, in part, to a $5.5 millionincrease in selling expense due to (1) a $3.2 millionincrease in variable selling expenses resulting from increases in sales commissions produced by the higher average sales price of homes delivered and higher number of homes delivered, and (2) a $2.3 millionincrease in non-variable selling expenses primarily related to costs associated with our additional sales offices and models. The increase in selling, general and administrative expense was also attributable to a $1.9 millionincrease in general and administrative expense, which was primarily related to a $0.6 millionincrease in compensation expense, a $0.5 millionincrease in land-related expenses and $0.8 millionincrease in other miscellaneous expenses.

During the nine months ended September 30, 2017, we experienced a 10%increase in new contracts in our Midwest region, from 1,409 in the nine months ended September 30, 2016 to 1,545 in the first nine months of 2017, and a 12%increase in backlog from 918 homes at September 30, 2016 to 1,025 homes at September 30, 2017. The increases in new contracts and backlog were primarily due to improving demand in our newer communities. Average sales price in backlog increased to $406,000 at September 30, 2017 compared to $388,000 at September 30, 2016 which was primarily due to product type and market mix, in 2017’s first half compared to the same period last year. During the nine months ended September 30, 2017, we opened 18 new communities in our Midwest region compared to six during 2016's first nine months. Our monthly absorption rate in our Midwest region increased to 2.7 per community in the first nine months of 2017 from 2.3 per community in the nine months ended September 30, 2016.

Southern Region.During the nine months ended September 30, 2017, homebuilding revenue in our Southern region increased$89.6 million, from $415.0 million in the nine months ended September 30, 2016 to $504.6 million in the nine months ended September 30, 2017. This 22%increase in homebuilding revenue was the result of a 26%increase in the number of homes delivered (301 units), partially offset by a $12.6 milliondecrease in land sale revenue and a slight decrease in the average sales price of homes delivered ($1,000 per home delivered). Operating income in our Southern region increased$18.1 million from $8.4 million in the nine months ended September 30, 2016 to $26.5 million during the nine months ended September 30, 2017. This increase in operating income was the result of a $29.1 millionimprovement in our gross margin offset by an $11.0 millionincrease in selling, general, and administrative expense. With respect to our homebuilding gross margin, our gross margin on homes delivered improved$30.8 million, due primarily to the 26%increase in the number of homes delivered and the $10.9 million reduction in charges for stucco-related repair costs in certain of our Florida communities in 2017 compared to 2016. During the first nine months of 2017, we incurred an $8.5 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 6). 2016's first nine months included charges of $19.4 million for such repairs. Our housing gross margin percentage improved from 13.5% in prior year's first nine months to 16.9% for the same period in 2017. Exclusive of the stucco-related charges in both the nine months ended September 30, 2017 and 2016, our adjusted housing gross margin percentage improved30 basis points from 18.3% for the nine months ended September 30, 2016 to 18.6% for the nine months ended September 30, 2017, largely due to the mix of communities delivering homes and a more favorable product mix. Our land sale gross margin declined$1.7 million as a result of fewer strategic land sales in the nine months ended September 30, 2017 compared to the same period in 2016.

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Selling, general and administrative expense increased$11.0 million from $47.1 million in the nine months ended September 30, 2016 to $58.1 million in the nine months ended September 30, 2017 and increased slightly as a percentage of revenue to 11.5% compared to 11.4% for the nine months ended September 30, 2016. The increase in selling, general and administrative expense was attributable, in part, to a $7.2 millionincrease in selling expense due to (1) a $4.4 millionincrease in variable selling expenses resulting from increases in sales commissions produced by the higher number of homes delivered, and (2) a $2.8 millionincrease in non-variable selling expenses primarily related to costs associated with our sales offices and models as a result of our increased community count. The increase in selling, general and administrative expense was also attributable to a $3.8 millionincrease in general and administrative expense, which was primarily related to a $2.5 millionincrease in land related expenses, a $1.3 millionincrease in compensation related expense, $0.5 million of which related to our new Sarasota division, and a $0.6 millionincrease related to other costs associated with our new Sarasota division, offset partially by a $0.4 milliondecrease in professional fees and $0.2 milliondecrease in other miscellaneous expenses.

During the nine months ended September 30, 2017, we experienced a 25%increase in new contracts in our Southern region, from 1,444 in the nine months ended September 30, 2016 to 1,798 in the first nine months of 2017, and a 20%increase in backlog from 846 homes at September 30, 2016 to 1,013 homes at September 30, 2017. The increases in new contracts and backlog were primarily due to an increase in our average number of communities during the period, along with a modest improvement in demand in our Florida markets as well as continued growth in our Texas operations in the first nine months of 2017 compared to the nine months ended September 30, 2016. Despite these improvements, we believe our new contract volume was negatively impacted by the separate hurricanes that occurred in Florida and Texas during the third quarter of 2017, which we believe caused delays of approximately 20 home deliveries for the third quarter of 2017 and resulted in approximately $0.7 million of community and model home repair costs. Average sales price in backlog increased from $350,000 at September 30, 2016 to $355,000 at September 30, 2017 due to a change in product type and market mix. During the nine months ended September 30, 2017, we opened 23 communities in our Southern region compared to 19 during 2016's first nine months. Our monthly absorption rate in our Southern region increased to 2.4 per community in the nine months ended September 30, 2017 from 2.3 per community in the nine months ended September 30, 2016.

Mid-Atlantic Region. During the nine months ended September 30, 2017, homebuilding revenue in our Mid-Atlantic region increased$17.8 million from $284.5 million in the nine months ended September 30, 2016 to $302.3 million in 2017's first nine months. This 6%increase in homebuilding revenue was the result of a 5%increase in the average sales price of homes delivered ($20,000 per home delivered) and a 3%increase in the number of homes delivered (24 units). Operating income in our Mid-Atlantic region increased$4.0 million, from $22.8 million in 2016's first nine months to $26.8 million during the nine months ended September 30, 2017. This increase in operating income was primarily the result of a $4.4 millionincrease in our gross margin, partially offset by a $0.4 millionincrease in selling, general and administrative expense. With respect to our homebuilding gross margin, our housing gross margin improved$4.4 million, due to the 5%increase in the average sales price of homes delivered and the 3%increase in the number of homes delivered noted above. Our housing gross margin percentage remained flat at18.5% in both prior year’s and current year’s first nine months. Our land sale gross margin also remained flat in the nine months ended September 30, 2017 compared to the same period in 2016.

Selling, general and administrative expense increased$0.4 million from $27.6 million in the nine months ended September 30, 2016 to $28.0 million in 2017's first nine months but declined as a percentage of revenue to 9.3% compared to 9.7% for 2016's first nine months. The increase in selling, general and administrative expense was primarily attributable to an increase in selling expense primarily due to an increase in variable selling expenses resulting from increases in sales commissions produced by the higher average sales price of homes delivered and higher number of homes delivered.

During the nine-month period ended September 30, 2017, we experienced an 18%decrease in new contracts in our Mid-Atlantic region, from 903 in the nine months ended September 30, 2016 to 736 in the nine months ended September 30, 2017, and a 26%decrease in the number of homes in backlog from 457 homes at September 30, 2016 to 340 homes at September 30, 2017. The decreases in new contracts and backlog were primarily due to a decrease in the average number of active communities during the period compared to the prior year, and partly as a result of delays in planned new community openings in the period compared to the prior year. Average sales price of homes in backlog increased, however, from $371,000 at September 30, 2016 to $399,000 at September 30, 2017. During the nine months ended September 30, 2017, we opened seven communities in our Mid-Atlantic region compared to nine during 2016's first nine months. Our monthly absorption rate in our Mid-Atlantic region declined to 2.4 per community in the nine months ended September 30, 2017 from 2.6 per community in the nine months ended September 30, 2016.

Financial Services. Revenue from our mortgage and title operations increased$7.3 million (24%) from $30.6 million in the nine months ended September 30, 2016 to $37.9 million in the nine months ended September 30, 2017 as a result of an 11%increase in the number of loan originations, from 2,213 in the nine months ended September 30, 2016 to 2,467 in the nine months ended September 30, 2017, and a slight increase in the average loan amount from $296,000 in the nine months ended September 30,

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2016 to $297,000 in the nine months ended September 30, 2017. We also experienced an increase in the volume of loans sold, a gain from the sale of a portion of our servicing portfolio during the first quarter of 2017, and higher margins on loans sold in the period than we experienced in prior year.

Our financial service operations ended the first nine months of 2017 with a $4.4 millionincrease in operating income compared to the nine months ended September 30, 2016, which was primarily due to the increase in our revenue discussed above, offset, in part, by a $3.0 millionincrease in selling, general and administrative expense compared to 2016's first nine months, which was primarily attributable to a $1.8 millionincrease in compensation expense, a $0.6 millionincrease in computer costs related to our investment in new information systems, and a $0.6 millionincrease in other miscellaneous expenses.

At September 30, 2017, M/I Financial provided financing services in all of our markets. Approximately 80% of our homes delivered during the nine months ended September 30, 2017 were financed through M/I Financial, compared to 84% in the same period in 2016. Capture rate is influenced by financing availability and can fluctuate from quarter to quarter.

Corporate Selling, General and Administrative Expense. Corporate selling, general and administrative expense increased$2.3 million, from $26.9 million for the nine months ended September 30, 2016 to $29.2 million for the nine months ended September 30, 2017. The increase was primarily due to a $1.9 millionincrease in compensation expense, a $0.2 millionincrease related to costs associated with new information systems, and a $0.2 millionincrease in other miscellaneous expenses.

Interest Expense - Net. Interest expense for the Company increased$0.6 million, from $13.2 million in the nine months ended September 30, 2016 to $13.8 million in the nine months ended September 30, 2017. This increase was primarily the result of an increase in our weighted average borrowings from $610.8 million in the nine months ended September 30, 2016 to $665.5 million in the nine months ended September 30, 2017. The increase in our weighted average borrowings primarily related to the issuance of our $250.0 million in aggregate principal amount of 2025 Senior Notes during the third quarter of 2017 in addition to increased borrowings under our Credit Facility (as defined below) during 2017's first nine months compared to 2016's first nine months. Our weighted average borrowing rate also increased from 5.79% in the nine months ended September 30, 2016 to 5.87% for 2017's first nine months which was primarily due to the interest rate payable on our newly issued 2025 Senior Notes noted above.

Earnings from Unconsolidated Joint Ventures. Earnings from unconsolidated joint ventures represent our portion of pre-tax earnings from our joint ownership and development agreements, joint ventures and other similar arrangements. During the nine months ended September 30, 2017 and 2016, the Company earned $0.2 million and $0.4 million in equity in income from unconsolidated joint ventures, respectively.

Income Taxes. Our overall effective tax rate was 34.8% for the nine months ended September 30, 2017 and 38.0% for the same period in 2016. The effective rate decline for the nine months ended September 30, 2017 was primarily attributable to an increase in the estimated impact of annual tax benefits expected for the domestic production activities deduction which was limited in 2016 due to our then NOL federal carryforward position and the recognition of excess tax benefits from employee share-based payment transactions during the first nine months of 2017 per ASU 2016-09.

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Segment Non-GAAP Financial Measures.This report contains information about our adjusted housing gross margin, which constitutes a non-GAAP financial measure. Because adjusted housing gross margin is not calculated in accordance with GAAP, this financial measure may not be completely comparable to similarly-titled measures used by other companies in the homebuilding industry and, therefore, should not be considered in isolation or as an alternative to operating performance and/or financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations.

Adjusted housing gross margin for our Midwest and Southern regions is calculated as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2017			2016			2017			2016
Midwest region:
Housing revenue	$	179,363		$	165,894		$	493,464		$	435,717
Housing cost of sales	142,215			131,149			393,583			348,618
Housing gross margin	37,148			34,745			99,881			87,099
Add: Purchase accounting adjustments (a)	—			—			—			1,081
Adjusted housing gross margin	$	37,148		$	34,745		$	99,881		$	88,180
Housing gross margin percentage	20.7		%	20.9		%	20.2		%	20.0		%
Adjusted housing gross margin percentage	20.7		%	20.9		%	20.2		%	20.2		%
Southern region:
Housing revenue	$	175,644		$	141,382		$	500,504		$	398,249
Housing cost of sales	142,643			130,258			416,135			344,682
Housing gross margin	33,001			11,124			84,369			53,567
Add: Stucco-related charges (b)	—			14,500			8,500			19,409
Adjusted housing gross margin	$	33,001		$	25,624		$	92,869		$	72,976
Housing gross margin percentage	18.8		%	7.9		%	16.9		%	13.5		%
Adjusted housing gross margin percentage	18.8		%	18.1		%	18.6		%	18.3		%

(a) Represents purchase accounting adjustments from our 2015 Minneapolis/St. Paul acquisition.

(b) Represents warranty charges for stucco-related repair costs in certain of our Florida communities taken during the three and nine months ended September 30, 2017 and 2016. With respect to this matter, during the quarter ended September 30, 2017, we identified 60 additional homes in need of repair and completed repairs on 167 homes, and, at September 30, 2017, we have 252 homes in various stages of repair.  See Note 6 for further information.

LIQUIDITY AND CAPITAL RESOURCES

Overview of Capital Resources and Liquidity.

At September 30, 2017, we had $103.6 million of cash, cash equivalents and restricted cash, with $103.0 million of this amount comprised of unrestricted cash and cash equivalents, which represents a $69.6 millionincrease in unrestricted cash and cash equivalents from December 31, 2016. Our principal uses of cash for the nine months ended September 30, 2017 were investment in land and land development, construction of homes, mortgage loan originations, investment in joint ventures, operating expenses, and short-term working capital and debt service requirements, including the repayment of amounts outstanding under our credit facilities. In order to fund these uses of cash, we used proceeds from home deliveries, the sale of mortgage loans and the sale of mortgage servicing rights, as well as excess cash balances, borrowings under our credit facilities, and other sources of liquidity.

In addition, in August 2017, we issued $250 million in aggregate principal amount of 2025 Senior Notes, resulting in $245.9 million of cash proceeds, net of issuance costs. We used $138.0 million of the net proceeds from the issuance of the 2025 Senior Notes to repay all outstanding borrowings under the Credit Facility.

In September 2017, the holders of all of our outstanding 2017 Convertible Senior Subordinated Notes elected to convert their Notes into our common shares and we issued approximately 2.4 million common shares in connection therewith. We also announced in September 2017 that we will redeem all 2,000 of our outstanding Series A Preferred Shares. On October 16, 2017, we redeemed such shares for $50.4 million in cash.

We are actively acquiring and developing lots in our markets to replenish and grow our lot supply and active community count. We expect to continue to expand our business based on the anticipated level of demand for new homes in our markets. During

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the nine months ended September 30, 2017, we delivered 3,505 homes, started 4,205 homes, and spent $250.2 million on land purchases and $137.0 million on land development. Based upon our business activity levels, market conditions, and opportunities for land in our markets, we currently estimate that we will spend approximately $525 million to $550 million on land purchases and land development during 2017, including the $387.2 million spent during the nine months ended September 30, 2017.

We also continue to enter into land option agreements, taking into consideration current and projected market conditions, to secure land for the construction of homes in the future. Pursuant to these land option agreements, as of September 30, 2017, we had purchase agreements to acquire $672.9 million of land and lots during the remainder of 2017 through 2028.

Land transactions are subject to a number of factors, including our financial condition and market conditions, as well as satisfaction of various conditions related to specific properties. We will continue to monitor market conditions and our ongoing pace of home deliveries and adjust our land spending accordingly.

Operating Cash Flow Activities. During the nine-month period ended September 30, 2017, we used$66.0 million of cash in operating activities, compared to $26.5 million of cash provided by operating activities during the nine months ended September 30, 2016. The cash used in operating activities in the first nine months of 2017 was primarily a result of a $212.7 million increase in inventory and a decrease in accrued compensation of $9.3 million, offset partially by net income of $56.2 million, along with $66.4 million of proceeds from the sale of mortgage loans net of mortgage loan originations and an increase in accounts payable, other assets and customer deposits totaling $30.6 million. The $26.5 million of cash provided by operating activities in the first nine months of 2016 was primarily a result of net income and deferred tax expense totaling $57.0 million, along with $32.5 million of proceeds from the sale of mortgage loans net of mortgage loan originations and an increase in accounts payable and other liabilities of $41.3 million, offset partially by a $96.5 million increase in inventory and a decrease in accrued compensation of $6.1 million.

Investing Cash Flow Activities. During the nine months ended September 30, 2017, we used$5.1 million of cash from investing activities, compared to $21.7 million of cash used in investing activities during the nine months ended September 30, 2016. This decrease in cash used was primarily due to our purchase of an airplane during the first quarter of 2016, in addition to proceeds received related to the sale of mortgage servicing rights of $7.6 million that occurred during the nine months ended September 30, 2017.

Financing Cash Flow Activities. During the nine months ended September 30, 2017, we generated$140.3 million of cash from financing activities, compared to generating$5.4 million of cash during the nine months ended September 30, 2016. The $134.9 millionincrease in cash generated by financing activities was primarily due to the issuance of our $250.0 million in aggregate principal amount of 2025 Senior Notes offset, in part, by increased repayments of borrowings under our Credit Facility (as defined below) and our M/I Financial credit facilities during the period.

At September 30, 2017 and December 31, 2016, our ratio of homebuilding debt to capital was 47% and 43%, respectively, calculated as the carrying value of our outstanding homebuilding debt divided by the sum of the carrying value of our outstanding homebuilding debt plus shareholders’ equity. The increase compared to December 31, 2016 was due to a higher amount of homebuilding debt outstanding partially offset by an increase in shareholders’ equity at September 30, 2017. We believe that this ratio provides useful information for understanding our financial position and the leverage employed in our operations, and for comparing us with other homebuilders.

We fund our operations with cash flows from operating activities, including proceeds from home deliveries, land sales and the sale of mortgage loans. We believe that these sources of cash, along with our balance of unrestricted cash and borrowings available under our credit facilities, will be sufficient to fund our currently anticipated working capital needs, investment in land and land development, construction of homes, operating expenses, planned capital spending, and debt service requirements for at least the next twelve months. In addition, we routinely monitor current operational and debt service requirements, financial market conditions, and credit relationships and we may choose to seek additional capital by issuing new debt and/or equity securities to strengthen our liquidity or our long-term capital structure. For example, in August 2017, we issued $250.0 million in aggregate principal amount of 2025 Senior Notes, as discussed above. The financing needs of our homebuilding and financial services operations depend on anticipated sales volume in the current year as well as future years, inventory levels and related turnover, forecasted land and lot purchases, debt maturity dates, and other factors. If we seek such additional capital, there can be no assurance that we would be able to obtain such additional capital on terms acceptable to us, if at all, and such additional equity or debt financing could dilute the interests of our existing shareholders and/or increase our interest costs.

The Company is a party to three primary credit agreements: (1) a $475 million unsecured revolving credit facility, dated July 18, 2013, as most recently amended on July 18, 2017, with M/I Homes, Inc. as borrower and guaranteed by the Company’s wholly owned homebuilding subsidiaries (the (“Credit Facility”); (2) a $125 million secured mortgage warehousing agreement (which

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increases to $150 million during certain periods), dated June 24, 2016, as amended on June 23, 2017, with M/I Financial as borrower (the “MIF Mortgage Warehousing Agreement”); and (3) a $35 million mortgage repurchase agreement, dated November 3, 2015, as most recently amended on May 16, 2017, with M/I Financial as borrower (the “MIF Mortgage Repurchase Facility”).

Included in the table below is a summary of our available sources of cash from the Credit Facility, the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility as of September 30, 2017:

(In thousands)	Expiration Date	Outstanding Balance		Available Amount
Notes payable – homebuilding (a)	7/18/2021	$	—	$	434,188
Notes payable – financial services (b)	(b)	$	91,275	$	769

(a) The available amount under the Credit Facility was computed in accordance with a borrowing base, which was calculated by applying various advance rates for different categories of inventory and totaled $512.1 million of availability for additional senior debt at September 30, 2017. As a result, the full $475 million commitment amount of the facility was available, less any borrowings and letters of credit outstanding. There were no borrowings and $40.8 million of letters of credit outstanding at September 30, 2017, leaving $434.2 million available. The Credit Facility has an expiration date of July 18, 2021.

(b) The available amount is computed in accordance with the borrowing base calculations under the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility, each of which may be increased by pledging additional mortgage collateral.  The maximum aggregate commitment amount of M/I Financial's warehousing agreements as of September 30, 2017 was $185 million. The MIF Mortgage Warehousing Agreement has an expiration date of June 22, 2018 and the MIF Mortgage Repurchase Facility has an expiration date of October 30, 2017. M/I Financial expects to enter into an amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial can provide no assurance that it will be able to obtain such an extension.

Notes Payable - Homebuilding.

Homebuilding Credit Facility. The Credit Facility provides for an aggregate commitment amount of $475 million, including a $125 million sub-facility for letters of credit. In addition, the Credit Facility has an accordion feature under which the Company may increase the aggregate commitment amount up to $500 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders. The Credit Facility matures on July 18, 2021. Interest on amounts borrowed under the Credit Facility is payable at a rate which is adjusted daily and is equal to the sum of the one month LIBOR rate plus a margin of 250 basis points. The margin is subject to adjustment in subsequent quarterly periods based on the Company’s leverage ratio.

Borrowings under the Credit Facility constitute senior, unsecured indebtedness and availability is subject to, among other things, a borrowing base calculated using various advance rates for different categories of inventory. The Credit Facility contains various representations, warranties and covenants which require, among other things, that the Company maintain (1) a minimum level of Consolidated Tangible Net Worth of $481.1 million (subject to increase over time based on earnings and proceeds from equity offerings), (2) a leverage ratio not in excess of 60%, and (3) either a minimum Interest Coverage Ratio of 1.5 to 1.0 or a minimum amount of available liquidity. In addition, the Credit Facility contains covenants that limit the Company’s number of unsold housing units and model homes, as well as the amount of Investments in Unrestricted Subsidiaries and Joint Ventures.

The Company’s obligations under the Credit Facility are guaranteed by all of the Company’s subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries (as defined in Note 11), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries. The guarantors for the Credit Facility are the same subsidiaries that guarantee our 2025 Senior Notes, our $300.0 million aggregate principal amount of 6.75% Senior Notes due 2021 (the “2021 Senior Notes”), and our $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”).

As of September 30, 2017, the Company was in compliance with all covenants of the Credit Facility, including financial covenants. The following table summarizes the most significant restrictive covenant thresholds under the Credit Facility and our compliance with such covenants as of September 30, 2017:

Financial Covenant		Covenant Requirement		Actual
		(Dollars in millions)
Consolidated Tangible Net Worth	≥	$	481.1	$	677.2
Leverage Ratio	≤	0.60		0.46
Interest Coverage Ratio	≥	1.5 to 1.0		5.3 to 1.0
Investments in Unrestricted Subsidiaries and Joint Ventures	≤	$	203.2	$	7.6
Unsold Housing Units and Model Homes	≤	1,727		1,071

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Homebuilding Letter of Credit Facility. As of September 30, 2017, the Company was a party to one secured credit agreement for the issuance of letters of credit outside of the Credit Facility (the “Letter of Credit Facility”). During the third quarter of 2017, the Company extended the maturity date on the Letter of Credit Facility for an additional year to September 30, 2018 and reduced the amount of the remaining facility from $2.0 million to $1.0 million. Under the terms of the Letter of Credit Facility, letters of credit can be issued for maximum terms ranging from one year up to three years. The Letter of Credit Facility contains a cash collateral requirement of 101%. Upon maturity or the earlier termination of the Letter of Credit Facility, letters of credit that have been issued under the Letter of Credit Facility remain outstanding with cash collateral in place through the expiration date.

As of September 30, 2017, there was a total of $0.6 million of letters of credit issued under the Letter of Credit Facility, which was collateralized with $0.6 million of restricted cash.

Notes Payable - Financial Services.

MIF Mortgage Warehousing Agreement.The MIF Mortgage Warehousing Agreement is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Mortgage Warehousing Agreement provides for a maximum borrowing availability of $125 million which may be increased to $150 million during certain periods of expected increases in the volume of mortgage originations, specifically from September 25, 2017 to October 16, 2017 and from December 15, 2017 to February 2, 2018. The MIF Mortgage Warehousing Agreement expires on June 22, 2018. Interest on amounts borrowed under the MIF Mortgage Warehousing Agreement is payable at a per annum rate equal to the greater of (1) the floating LIBOR rate plus a spread of 237.5 basis points and (2) 2.75%.

The MIF Mortgage Warehousing Agreement is secured by certain mortgage loans originated by M/I Financial that are being “warehoused” prior to their sale to investors. The MIF Mortgage Warehousing Agreement provides for limits with respect to certain loan types that can secure outstanding borrowings. There are currently no guarantors of the MIF Mortgage Warehousing Agreement, although M/I Financial may, at its election, designate from time to time any one or more of M/I Financial’s subsidiaries as guarantors.

As of September 30, 2017, there was $63.3 million outstanding under the MIF Mortgage Warehousing Agreement and M/I Financial was in compliance with all covenants. The financial covenants, as more fully described and defined in the MIF Mortgage Warehousing Agreement, are summarized in the following table, which also sets forth M/I Financial’s compliance with such covenants as of September 30, 2017:

Financial Covenant		Covenant Requirement		Actual
		(Dollars in millions)
Leverage Ratio	≤	10.0 to 1.0		4.6 to 1.0
Liquidity	≥	$	6.25	$	19.0
Adjusted Net Income	>	$	0.0	$	12.4
Tangible Net Worth	≥	$	12.5	$	21.8

MIF Mortgage Repurchase Facility. The MIF Mortgage Repurchase Facility is used to finance eligible residential mortgage loans originated by M/I Financial and is structured as a mortgage repurchase facility. The MIF Repurchase Facility provides for a maximum borrowing availability of $35 million. The MIF Mortgage Repurchase Facility expires on October 30, 2017. M/I Financial expects to enter into an amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial can provide no assurance that it will be able to obtain such an extension. M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate equal to the floating LIBOR rate plus 250 or 275 basis points depending on the loan type. The covenants in the MIF Mortgage Repurchase Facility are substantially similar to the covenants in the MIF Mortgage Warehousing Agreement. The MIF Mortgage Repurchase Facility provides for limits with respect to certain loan types that can secure outstanding borrowings, which are substantially similar to the restrictions in the MIF Mortgage Warehousing Agreement. There are currently no guarantors of the MIF Mortgage Repurchase Facility. As of September 30, 2017, there was $28.0 million outstanding under the MIF Mortgage Repurchase Facility. M/I Financial was in compliance with all financial covenants as of September 30, 2017.

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Senior Notes and Convertible Senior Subordinated Notes.

5.625% Senior Notes. In August 2017, the Company issued $250 million aggregate principal amount of 5.625% Senior Notes due 2025. The 2025 Senior Notes contain certain covenants, as more fully described and defined in the indenture governing the 2025 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket”; make certain investments; and create or incur certain liens, consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2025 Senior Notes. As of September 30, 2017, the Company was in compliance with all terms, conditions, and covenants under the indenture. See Note 7 for more information regarding the 2025 Senior Notes.

6.75% Senior Notes. In December 2015, the Company issued $300 million aggregate principal amount of 6.75% Senior Notes due 2021. The 2021 Senior Notes contain certain covenants, as more fully described and defined in the indenture governing the 2021 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket”; make certain investments; and create or incur certain liens, consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2021 Senior Notes. As of September 30, 2017, the Company was in compliance with all terms, conditions, and covenants under the indenture. See Note 7 for more information regarding the 2021 Senior Notes.

3.0% Convertible Senior Subordinated Notes. In March 2013, the Company issued $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018. The conversion rate initially equals 30.9478 shares per $1,000 of their principal amount. This corresponds to an initial conversion price of approximately $32.31 per common share, which equates to approximately 2.7 million common shares. The 2018 Convertible Senior Subordinated Notes mature on March 1, 2018.  We may consider various alternatives for refinancing the 2018 Convertible Senior Subordinated Notes on or prior to their maturity date, including the issuance of debt and/or equity securities and other transactions and sources of capital. The timing and nature of such transactions, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors.  To the extent that any of the 2018 Convertible Senior Subordinated Notes remain outstanding at maturity and are not converted into our common shares, we expect to pay the principal amount of such outstanding notes (plus any accrued and unpaid interest that is due and payable) on the maturity date in accordance with the terms of the indenture from cash on hand, amounts available under our Credit Facility, the proceeds of any issuance of our debt and/or equity securities and/or other sources of capital. See Note 7 for more information regarding the 2018 Convertible Senior Subordinated Notes.

3.25% Convertible Senior Subordinated Notes. On September 11, 2012, the Company issued $57.5 million in aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017. The 2017 Convertible Senior Subordinated Notes were scheduled to mature on September 15, 2017 and the deadline for holders to convert the 2017 Convertible Senior Subordinated Notes was September 13, 2017. As a result of conversion elections made by holders of the 2017 Convertible Senior Subordinated Notes, all $57.5 million in aggregate principal amount of the 2017 Convertible Senior Subordinated Notes were converted and settled through the issuance of our common shares. In total we issued approximately 2.4 million common shares (at a conversion price per common share of $23.80). In accordance with the indenture governing the 2017 Convertible Senior Subordinated Notes, the Company paid interest on such Notes to but excluding September 15, 2017. On December 31, 2016, we had $57.5 million of our 2017 Convertible Senior Subordinated Notes outstanding.

Weighted Average Borrowings. For the three months ended September 30, 2017 and 2016, our weighted average borrowings outstanding were $714.0 million and $607.4 million, respectively, with a weighted average interest rate of 6.12% and 5.80%, respectively. The increase in our weighted average borrowings related to the issuance of our $250.0 million in aggregate principal amount of 2025 Senior Notes in the third quarter of 2017, partially offset by a decrease in borrowings under our Credit Facility during the third quarter of 2017 compared to the third quarter of 2016 and the conversion of all of our outstanding $57.5 million in aggregate principal amount of 2017 Convertible Senior Subordinated Notes into common shares in September 2017.

At September 30, 2017, there were no outstanding borrowings under the Credit Facility as we used a portion of the net proceeds from the offering of the 2025 Senior Notes to pay the outstanding balance under the Credit Facility. During the nine months ended September 30, 2017, the average daily amount outstanding under the Credit Facility was $100.6 million and the maximum amount outstanding under the Credit Facility was $187.7 million. Based on our current anticipated spending on home construction, land acquisition and development in the fourth quarter of 2017, as well as the redemption of all of the outstanding Series A Preferred Shares on October 16, 2017, offset by expected cash receipts from home deliveries, we expect to borrow under the Credit Facility

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during the fourth quarter of 2017, with an estimated peak amount outstanding not expected to exceed $50 million. The actual amount borrowed during the fourth quarter of 2017 (and the peak amount outstanding) and related timing are subject to numerous factors, including the timing and amount of land and house construction expenditures, payroll and other general and administrative expenses, cash receipts from home deliveries, other cash receipts and payments, any capital markets transactions or other additional financings by the Company and any repayments or redemptions of outstanding debt.  The Company may experience significant variation in cash and Credit Facility balances from week to week due to the timing of such receipts and payments.

There were $40.8 million of letters of credit issued and outstanding under the Credit Facility at September 30, 2017. During the nine months ended September 30, 2017, the average daily amount of letters of credit outstanding under the Credit Facility was $38.6 million and the maximum amount of letters of credit outstanding under the Credit Facility was $43.3 million.

At September 30, 2017, M/I Financial had $63.3 million outstanding under the MIF Mortgage Warehousing Agreement.  During the nine months ended September 30, 2017, the average daily amount outstanding under the MIF Mortgage Warehousing Agreement was $50.9 million and the maximum amount outstanding was $120.1 million, which occurred during January, while the “seasonal increase” provision was in effect and the maximum borrowing availability was $150.0 million.

At September 30, 2017, M/I Financial had $28.0 million outstanding under the MIF Mortgage Repurchase Facility.  During the nine months ended September 30, 2017, the average daily amount outstanding under the MIF Mortgage Repurchase Facility was $15.0 million and the maximum amount outstanding was $33.2 million, which occurred during January, while the “seasonal increase” provision was in effect and the maximum borrowing availability was $35.0 million.

Preferred Shares. At September 30, 2017, we had 2,000,000 depositary shares, each representing 1/1000^th of a Series A Preferred Share, or 2,000 Series A Preferred Shares in the aggregate, outstanding. On September 14, 2017, we announced that we will redeem all 2,000 outstanding Series A Preferred Shares (and the 2,000,000 related depositary shares) on October 16, 2017 for an aggregate redemption price of approximately $50.4 million. We consummated the redemption on October 16, 2017, which reduced the restricted payments basket with respect to our 2025 Senior Notes and our 2021 Senior Notes by an equal amount. Prior to redemption, dividends on the Series A Preferred Shares were non-cumulative, if declared by us, were paid at an annual rate of 9.75% and were payable quarterly in arrears on March 15, June 15, September 15 and December 15. Pursuant to the terms of the Series A Preferred Shares, we had the right to redeem the Series A Preferred Shares in whole or in part (provided, that any redemption that would reduce the aggregate liquidation preference of the Series A Preferred Shares below $25 million in the aggregate was restricted to a redemption in whole only) at any time or from time to time at a cash redemption price equal to $25 per depositary share (plus an amount equal to all accrued and unpaid dividends (whether or not earned or declared) for the then current quarterly dividend period accrued to but excluding the redemption date). Pursuant to the terms of the Series A Preferred Shares, Series A Preferred Shares that have been redeemed have the status of authorized and unissued preferred shares of the Company undesignated as to series and may be redesignated and reissued as part of any series of preferred shares.

We declared and paid a quarterly dividend of $609.375 per share on our Series A Preferred Shares in both the third quarter of 2017 and 2016 for $1.2 million and have paid aggregate dividend payments of $3.7 million for the nine months ended September 30, 2017 and 2016.

Universal Shelf Registration. In October 2016, the Company filed a $400 million universal shelf registration statement with the SEC, which registration statement became effective on November 9, 2016 and will expire in November 2019. Pursuant to the registration statement, the Company may, from time to time, offer debt securities, common shares, preferred shares, depositary shares, warrants to purchase debt securities, common shares, preferred shares, depositary shares or units of two or more of those securities, rights to purchase debt securities, common shares, preferred shares or depositary shares, stock purchase contracts and units. The timing and amount of offerings, if any, will depend on market and general business conditions.

CONTRACTUAL OBLIGATIONS

Our contractual obligations as of September 30, 2017 have not changed materially from those reported in the Contractual Obligations section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2016, except that:

• In July 2017, we entered into the Second Amendment to the Credit Facility;

• In August 2017, we issued $250 million in aggregate principal amount of 5.625% Senior Notes, and used a portion of the proceeds to repay all outstanding borrowings under the Credit Facility;

• In September 2017, all $57.5 million in aggregate principal amount of 2017 Convertible Senior Subordinated Notes converted into approximately 2.4 million common shares; and

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• As of September 30, 2017, borrowings under the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility were $63.3 million and $28.0 million, respectively.

All of the items above are further described in Note 7 of our Unaudited Condensed Consolidated Financial Statements and the “Liquidity and Capital Resources” section above.

Included in the table below is a summary of future cash requirements under the Company’s contractual obligations with regard to our long-term debt and interest commitments as of September 30, 2017:

	Payments due by period
			October 1, 2017 through		January 1, 2020 through
	Total		December 31, 2019		December 31, 2021		Thereafter
Notes payable bank – homebuilding operations (a)	$	—	$	—	$	—	$	—
Notes payable bank – financial services (b)	91,399		91,399		—		—
Senior notes (including interest)	730,766		68,547		355,969		306,250
Convertible senior subordinated notes (including interest)	87,544		87,544		—		—
Total	$	909,709	$	247,490	$	355,969	$	306,250

(a) At September 30, 2017, there were no borrowings outstanding under the Credit Facility.

(b) Borrowings under the MIF Mortgage Warehousing Agreement are at the greater of (1) the floating LIBOR rate plus a spread of 237.5 basis points and (2) 2.75%.  Borrowings under the MIF Mortgage Repurchase Facility are at the floating LIBOR rate plus 250 or 275 basis points, depending on the loan type. Total borrowings outstanding under both agreements at September 30, 2017 had a weighted average interest rate of 3.6%.  Interest payments by period will be based upon the outstanding borrowings and the applicable interest rate(s) in effect.

OFF-BALANCE SHEET ARRANGEMENTS

Notes 3, 5 and 6 discuss our off-balance sheet arrangements with respect to land acquisition contracts and option agreements, and land development joint ventures, including the nature and amounts of financial obligations relating to these items. In addition, these Notes discuss the nature and amounts of certain types of commitments that arise in the ordinary course of our land development and homebuilding operations, including commitments of land development joint ventures for which we might be obligated.

Our off-balance sheet arrangements relating to our homebuilding operations include joint venture arrangements, land option agreements, guarantees and indemnifications associated with acquiring and developing land, and the issuance of letters of credit and completion bonds. Our use of these arrangements is for the purpose of securing the most desirable lots on which to build homes for our homebuyers in a manner that we believe reduces the overall risk to the Company.  Additionally, in the ordinary course of its business, our financial services operations issue guarantees and indemnities relating to the sale of loans to third parties.

Land Option Agreements.  In the ordinary course of business, the Company enters into land option or purchase agreements for which we generally pay non-refundable deposits. Pursuant to these land option agreements, the Company provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. In accordance with ASC 810, we analyze our land option or purchase agreements to determine whether the corresponding land sellers are VIEs and, if so, whether we are the primary beneficiary. Although we do not have legal title to the optioned land, ASC 810 requires a company to consolidate a VIE if the company is determined to be the primary beneficiary. In cases where we are the primary beneficiary, even though we do not have title to such land, we are required to consolidate these purchase/option agreements and reflect such assets and liabilities as Consolidated Inventory not Owned in our Unaudited Condensed Consolidated Balance Sheets. At both September 30, 2017 and December 31, 2016, we have concluded that we were not the primary beneficiary of any VIEs from which we are purchasing under land option or purchase agreements.

At September 30, 2017, “Consolidated Inventory Not Owned” was $22.2 million. At September 30, 2017, the corresponding liability of $22.2 million has been classified as Obligation for Consolidated Inventory Not Owned on our Unaudited Condensed Consolidated Balance Sheets.

Other than the Consolidated Inventory Not Owned balance, the Company currently believes that its maximum exposure as of September 30, 2017 related to our land option agreements is equal to the amount of the Company’s outstanding deposits and prepaid acquisition costs, which totaled $49.6 million, including cash deposits of $31.4 million, prepaid acquisition costs of $5.4 million, letters of credit of $7.8 million and $5.0 million of other non-cash deposits.

Letters of Credit and Completion Bonds.  The Company provides standby letters of credit and completion bonds for development work in progress, deposits on land and lot purchase agreements and miscellaneous deposits.  As of September 30, 2017, the Company had outstanding $167.7 million of completion bonds and standby letters of credit, some of which were issued to various

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local governmental entities, that expire at various times through September 2024.  Included in this total are: (1) $118.8 million of performance and maintenance bonds and $32.9 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $8.5 million of financial letters of credit; and (3) $7.5 million of financial bonds.  The development agreements under which we are required to provide completion bonds or letters of credit are generally not subject to a required completion date and only require that the improvements are in place in phases as houses are built and sold.  In locations where development has progressed, the amount of development work remaining to be completed is typically less than the remaining amount of bonds or letters of credit due to timing delays in obtaining release of the bonds or letters of credit.

Guarantees and Indemnities. In the ordinary course of business, M/I Financial enters into agreements that guarantee purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur.  The risks associated with these guarantees are offset by the value of the underlying assets, and the Company accrues its best estimate of the probable loss on these loans.  Additionally, the Company has provided certain other guarantees and indemnities in connection with the acquisition and development of land by our homebuilding operations.  Refer to Note 5 for additional details relating to our guarantees and indemnities.

INTEREST RATES AND INFLATION

Our business is significantly affected by general economic conditions within the United States and, particularly, by the impact of interest rates and inflation.  Inflation can have a long-term impact on us because increasing costs of land, materials and labor can result in a need to increase the sales prices of homes. In addition, inflation is often accompanied by higher interest rates, which can have a negative impact on housing demand and the costs of financing land development activities and housing construction. Higher interest rates also may decrease our potential market by making it more difficult for homebuyers to qualify for mortgages or to obtain mortgages at interest rates that are acceptable to them.  The impact of increased rates can be offset, in part, by offering variable rate loans with lower interest rates.  In conjunction with our mortgage financing services, hedging methods are used to reduce our exposure to interest rate fluctuations between the commitment date of the loan and the time the loan closes. Rising interest rates, as well as increased materials and labor costs, may reduce gross margins. An increase in material and labor costs is particularly a problem during a period of declining home prices. Conversely, deflation can impact the value of real estate and make it difficult for us to recover our land costs. Therefore, either inflation or deflation could adversely impact our future results of operations.

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ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our primary market risk results from fluctuations in interest rates. We are exposed to interest rate risk through borrowings under our revolving credit and mortgage repurchase facilities, consisting of the Credit Facility, the MIF Mortgage Warehousing Agreement, and the MIF Mortgage Repurchase Facility which permit borrowings of up to $660 million, subject to availability constraints. Additionally, M/I Financial is exposed to interest rate risk associated with its mortgage loan origination services.

Interest Rate Lock Commitments: Interest rate lock commitments (“IRLCs”) are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a duration of less than six months; however, in certain markets, the duration could extend to twelve months.

Some IRLCs are committed to a specific third party investor through the use of best-efforts whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings.

Forward Sales of Mortgage-Backed Securities: Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings.

Mortgage Loans Held for Sale: Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. During the period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a best-efforts contract or by FMBSs. The FMBSs are classified and accounted for as non-designated derivative instruments, with gains and losses recorded in current earnings.

The table below shows the notional amounts of our financial instruments at September 30, 2017 and December 31, 2016:

	September 30,		December 31,
Description of Financial Instrument (in thousands)	2017		2016
Best-effort contracts and related committed IRLCs	$	2,571	$	6,607
Uncommitted IRLCs	105,104		66,875
FMBSs related to uncommitted IRLCs	105,000		66,000
Best-effort contracts and related mortgage loans held for sale	10,423		125,348
FMBSs related to mortgage loans held for sale	81,000		33,000
Mortgage loans held for sale covered by FMBSs	81,244		32,870

The table below shows the measurement of assets and liabilities at September 30, 2017 and December 31, 2016:

	September 30,			December 31,
Description of Financial Instrument (in thousands)	2017			2016
Mortgage loans held for sale	$	91,987		$	154,020
Forward sales of mortgage-backed securities	471			230
Interest rate lock commitments	366			250
Best-efforts contracts	(60		)	(90		)
Total	$	92,764		$	154,410

The following table sets forth the amount of gain (loss) recognized on assets and liabilities for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2017			2016			2017		2016
Mortgage loans held for sale	$	(64	)	$	(1,127	)	$	4,326	$	1,059
Forward sales of mortgage-backed securities	(128		)	1,443			241		(245		)
Interest rate lock commitments	22			(531		)	116		388
Best-efforts contracts	(41		)	15			30		31
Total (loss) gain recognized	$	(211	)	$	(200	)	$	4,713	$	1,233

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The following table provides the expected future cash flows and current fair values of borrowings under our credit facilities and mortgage loan origination services that are subject to market risk as interest rates fluctuate, as of September 30, 2017. Because the MIF Mortgage Warehousing Agreement and MIF Mortgage Repurchase Facility are effectively secured by certain mortgage loans held for sale which are typically sold within 30 to 45 days, their outstanding balances are included in the most current period presented. The interest rates for our variable rate debt represent the weighted average interest rates in effect at September 30, 2017. For fixed-rate debt, changes in interest rates generally affect the fair market value of the debt instrument, but not our earnings or cash flow. Conversely, for variable-rate debt, changes in interest rates generally do not affect the fair market value of the debt instrument, but do affect our earnings and cash flow. We do not have the obligation to prepay fixed-rate debt prior to maturity, and, as a result, interest rate risk and changes in fair market value should not have a significant impact on our fixed-rate debt until we are required or elect to refinance it.

	Expected Cash Flows by Period																					Fair Value
(Dollars in thousands)	2017			2018			2019			2020			2021			Thereafter			Total			9/30/2017
ASSETS:
Mortgage loans held for sale:
Fixed rate	$	91,615		—			—			—			—			—			$	91,615		$	89,827
Weighted average interest rate	3.92		%	—			—			—			—			—			3.92		%
Variable rate	$	2,187		—			—			—			—			—			$	2,187		$	2,160
Weighted average interest rate	3.26		%	—			—			—			—			—			3.26		%
LIABILITIES:
Long-term debt — fixed rate	$	162		$	86,778		$	292		$	292		$	300,188		$	250,000		$	637,712		$	656,324
Weighted average interest rate	3.83		%	3.01		%	3.37		%	3.37		%	6.74		%	5.63		%	5.80		%
Short-term debt — variable rate	$	91,275		—			—			—			—			—			$	91,275		$	91,275
Weighted average interest rate	3.61		%	—			—			—			—			—			3.61		%

55

ITEM 4:  CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

An evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended) was performed by the Company’s management, with the participation of the Company’s principal executive officer and principal financial officer.  Based on that evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company and certain of its subsidiaries have received claims from homeowners in certain of our Florida communities (and been named as a defendant in legal proceedings initiated by certain of such homeowners) related to stucco on their homes. Please refer to Note 6 of the Company’s consolidated financial statements for further information regarding these stucco claims.

The Company and certain of its subsidiaries have been named as defendants in certain other legal proceedings which are incidental to our business. While management currently believes that the ultimate resolution of these other legal proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial position, results of operations and cash flows, such legal proceedings are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these other legal proceedings. However, the possibility exists that the costs to resolve these legal proceedings could differ from the recorded estimates and, therefore, have a material effect on the Company’s net income for the periods in which they are resolved.

Item 1A. Risk Factors

There have been no material changes to the risk factors appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as updated by our Quarterly Report on Form 10-Q for the three months ended March 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Recent Sales of Unregistered Securities — None.

(b) Use of Proceeds — Not Applicable.

(c) Purchases of Equity Securities

There were no purchases made by, or on behalf of, the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended) of the Company’s common shares or Series A Preferred Shares during the three months ended September 30, 2017.

See Note 7 above for more information regarding the limit imposed by the indenture governing our 2025 Senior Notes and the indenture governing our 2021 Senior Notes on our ability to pay dividends on, and repurchase, our common shares and any preferred shares of the Company then outstanding to the amount of the positive balance in our “restricted payments basket,” as defined in the indentures.

Item 3. Defaults Upon Senior Securities - None.

Item 4. Mine Safety Disclosures - None.

Item 5. Other Information - None.

56

Item 6. Exhibits

The exhibits required to be filed herewith are set forth below.

Exhibit Number	Description
10.1	Eighth Amended and Restated Master Letter of Credit Facility Agreement by and between M/I Homes, Inc. and U.S. Bank National Association, dated as of September 30, 2017. (Filed herewith.)
10.2	Second Amendment to Credit Agreement, dated July 18, 2017, by and among M/I Homes, Inc., as borrower, the lenders party thereto and PNC Bank, National Association, as administrative agent, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 20, 2017.
10.3	Indenture, dated as of August 3, 2017, by and among M/I Homes, Inc., the guarantors named therein and U.S. Bank National Association, as trustee of M/I Homes, Inc.’s 5.625% Senior Notes due 2025, incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on August 3, 2017.
10.4	Form of 5.625% Senior Notes due 2025 incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on August 3, 2017.
10.5	Registration Rights Agreement, dated as of August 3, 2017, by and among M/I Homes, Inc., the guarantors named therein and the initial purchasers named therein, dated as of August 3, 2017, incorporated herein by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K filed on August 3, 2017.
31.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
31.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
101.INS	XBRL Instance Document. (Furnished herewith.)
101.SCH	XBRL Taxonomy Extension Schema Document. (Furnished herewith.)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. (Furnished herewith.)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document. (Furnished herewith.)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. (Furnished herewith.)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. (Furnished herewith.)

57

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		M/I Homes, Inc.
		(Registrant)
Date:	October 27, 2017	By:	/s/ Robert H. Schottenstein
			Robert H. Schottenstein
			Chairman, Chief Executive Officer and
			President
			(Principal Executive Officer)
Date:	October 27, 2017	By:	/s/ Ann Marie W. Hunker
			Ann Marie W. Hunker
			Vice President, Corporate Controller
			(Principal Accounting Officer)

58

EXHIBIT INDEX
Exhibit Number	Description
10.1	Eighth Amended and Restated Master Letter of Credit Facility Agreement by and between M/I Homes, Inc. and U.S. Bank National Association, dated as of September 30, 2017. (Filed herewith.)
10.2	Second Amendment to Credit Agreement, dated July 18, 2017, by and among M/I Homes, Inc., as borrower, the lenders party thereto and PNC Bank, National Association, as administrative agent, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 20, 2017.
10.3	Indenture, dated as of August 3, 2017, by and among M/I Homes, Inc., the guarantors named therein and U.S. Bank National Association, as trustee of M/I Homes, Inc.’s 5.625% Senior Notes due 2025, incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on August 3, 2017.
10.4	Form of 5.625% Senior Notes due 2025 incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on August 3, 2017.
10.5	Registration Rights Agreement, dated as of August 3, 2017, by and among M/I Homes, Inc., the guarantors named therein and the initial purchasers named therein, dated as of August 3, 2017, incorporated herein by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K filed on August 3, 2017.
31.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
31.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to Item 601 of Regulation S-K as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.1	Certification by Robert H. Schottenstein, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
32.2	Certification by Phillip G. Creek, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith.)
101.INS	XBRL Instance Document. (Furnished herewith.)
101.SCH	XBRL Taxonomy Extension Schema Document. (Furnished herewith.)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document. (Furnished herewith.)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document. (Furnished herewith.)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document. (Furnished herewith.)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document. (Furnished herewith.)

59

EX-10.1

Exhibit 10.1

EIGHTH AMENDED AND RESTATED MASTER LETTER OF CREDIT FACILITY AGREEMENT

This Eighth Amended and Restated Master Letter of Credit Facility Agreement (this "Agreement") is entered into at Columbus, Ohio, as of the 30^th day of September, 2017 (the “Effective Date”), by and between U.S. BANK NATIONAL ASSOCIATION, a national banking association (the "Bank"), and M/I HOMES, INC., an Ohio corporation (the "Company").

1. Letter of Credit Facility.

1.1    Generally. Subject to the terms and conditions hereof, Bank, upon the proper application by the Company, will issue standby letters of credit in the form of Exhibit "A" attached hereto, or such other form as the Bank may approve from time to time (each, a "Letter of Credit" and collectively, “Letters of Credit”), provided that the aggregate stated value of Letters of Credit issued hereunder and under the Superseded Agreements (as hereinafter defined) outstanding at any one time shall in no event exceed $1,000,000.00 (the "Facility"), and provided, further, that all Letters of Credit issued under this Section 1.1 shall expire not later than thirty-seven (37) months from the date of issuance. The Company's right to obtain the issuance of Letters of Credit under the Facility shall terminate on September 30, 2018.

Each request for a Letter of Credit submitted by the Company shall, at the option of the Bank, be accompanied by the following materials (collectively, the "LC Application Materials"):

a. An application (the "Application") in the form of Exhibit "B" attached hereto and made a part hereof, or such other form as the Bank may require from time to time;

b. Cash (the "Cash Collateral") in an amount equal to not less than 101% of the face amount of the applicable Letter of Credit, which the Bank shall deposit in an Account (hereinafter defined);

c. Such information as the Bank reasonably requests regarding the intended use of the Letter of Credit;

d. Such other documents or materials as the Bank may request from time to time.

With respect to each request for the issuance of a Letter of Credit, the Company shall present the LC Application Materials to the Bank not later than noon, Columbus, Ohio time, on a Business Day that is not less than four (4) Business Days prior to the Business Day on which issuance of the Letter of Credit is desired. "Business Day" means a day which is not a Saturday or Sunday or a legal holiday and on which the Bank is not required by law or other governmental action to close in Ohio.

Each Letter of Credit issued by the Bank shall be deemed issued subject to the following:

a. The executed reimbursement agreement (the "Reimbursement Agreement") dated July 27, 2009, and attached hereto as Exhibit "C"; and

b. The executed security agreement (the "Security Agreement") dated July 27, 2009, and attached hereto as Exhibit "D".

At the request of the Company, and subject to the terms and conditions of this Agreement, the Bank shall issue Letters of Credit on behalf of one or more Company Subsidiaries (hereinafter defined), provided, however, that the applicable Company Subsidiary(ies) and the Company shall be jointly and severally liable for all obligations pursuant to this Agreement, the Reimbursement Agreement, and the other Loan Documents.

Notwithstanding anything in the Reimbursement Agreement to the contrary, to the extent that any provision of this Agreement or the Security Agreement is inconsistent with the Reimbursement Agreement, the terms of this Agreement and the Security Agreement shall prevail. Specifically, without limitation: (i) the security interest granted by the Company to the Bank pursuant to the Reimbursement Agreement shall be limited to the Collateral (as defined in the Security Agreement), and the Bank shall not file any financing statement that contains a collateral description that is broader than such definition of Collateral, and (ii) except for the Collateral and the Cash Collateral, as to which the Bank’s rights shall include all rights contained in this Agreement, the Reimbursement Agreement and the Security Agreement, the Bank shall not set off or apply any deposits (general or special, time or demand, provisional or final) at any time held or other indebtedness at any time owing by Bank to or for the credit or the account of the Company.

1.2Account(s). The Bank shall deposit the Cash Collateral in one or more accounts at the Bank specified in the Security Agreement (each, an "Account"). Each Account shall be an interest bearing account (unless the Company requests a non-interest bearing account) satisfactory to the Bank, including as of the Effective Date, without limitation, money market accounts and commercial paper open accounts. The Cash Collateral applicable to a given Letter of Credit shall be held in the Account until the earlier of (a) the occurrence of a draw pursuant to the Letter of Credit, or (b) the expiration of the Letter of Credit. Upon the expiration of a Letter of Credit, provided that no draws have been made upon such Letter of Credit, Bank shall remit to the Company an amount equal to the Cash Collateral together with any interest earned thereon.

1.3    Letter of Credit Draws. In the event that the Bank pays any sum (a "LC Draw Amount") drawn by the beneficiary of an outstanding Letter of Credit (a "LC Draw"), interest shall immediately start to accrue on the LC Draw Amount at the Adjusted One Month LIBOR Rate (hereinafter defined), and such interest shall continue to accrue until reimbursement in full to the Bank. In the event that the LC Draw Amount (together with accrued interest) has not been repaid to Bank within ten (10) Business Days, then the Bank may, without further notice to the Company and at Bank’s sole option, reimburse itself from the Account applicable to the Letter of Credit. In the event that the funds contained in the Account are not sufficient to reimburse the Bank for the LC Draw Amount plus accrued interest, the Bank shall have the right to declare any remaining funds due and payable by written notice to the Company. Such funds shall continue to bear interest at the Adjusted One Month LIBOR Rate until fully repaid by the Company.

2. Interest Rate; Fees.

2.1.    Adjusted One Month LIBOR Rate. As used herein, "Adjusted One Month LIBOR Rate" shall mean an annual rate equal to two and one-half percent (2.50%) plus the greater of: (a) the One-Month LIBOR Rate, or (b) one and one-half percent (1.50%). "One Month LIBOR Rate" shall mean the one-month LIBOR rate quoted by the Bank from Reuters Screen LIBOR01 Page or any successor thereto, which shall be that one-month LIBOR rate in effect two New York Banking Days prior to the Reprice Date, adjusted for any reserve requirement and any subsequent costs arising from a change in government regulation, such rate rounded up to the nearest one-sixteenth percent and such rate to be reset monthly on each Reprice Date. The term "New York Banking Day"means any date (other than a Saturday or Sunday) on which commercial banks are open for business in New York, New York. The term "Reprice Date" means the first day of each month. If an LC Draw occurs other than on the Reprice Date, the initial one-month LIBOR rate shall be that one-month LIBOR rate in effect two New York Banking Days prior to the date of the LC Draw, which rate plus the percentage described above shall be in effect until the next Reprice Date. Lender’s internal records of applicable interest rates shall be determinative in the absence of manifest error.

2.2    Fees, Costs, Expenses. In consideration of the issuance of each Letter of Credit, the Company agrees to pay to the Bank, for the sole benefit of the Bank, Bank's customary letter of credit negotiation and documentation fees (which fees shall not exceed $500.00 for each Letter of Credit), all such fees being due and payable at the time of issuance of such Letter of Credit.

With respect to the period through September 30, 2017, the Company also agrees to pay to the Bank a fee (which shall accrue on a daily basis, but be due and payable quarterly in arrears upon the issuance of a statement to the Company by the Bank) equal to the sum of (a) an amount equal to an annualized rate of one and one-half percent (1.50%) on the daily outstanding balance of all Letters of Credit pursuant to the Facility during such calendar quarter; and (b) an amount equal to an annualized rate of one-quarter of one percent (0.25%) on the daily unused portion of the Facility during such calendar quarter (i.e., $2,000,000.00 minus the daily outstanding balance of all Letters of Credit pursuant to the Facility).

With respect to the period after September 30, 2017 through September 30, 2018, the Company also agrees to pay to the Bank a fee (which shall accrue on a daily basis, but be due and payable quarterly in arrears upon the issuance of a statement to the Company by the Bank) equal to the sum of (a) an amount equal to an annualized rate of one and one-half percent (1.50%) on the daily outstanding balance of all Letters of Credit pursuant to the Facility during such calendar quarter; and (b) an amount equal to an annualized rate of one-quarter of one percent (0.25%) on the daily unused portion of the Facility during such calendar quarter (i.e., $1,000,000.00 minus the daily outstanding balance of all Letters of Credit pursuant to the Facility).

With respect to the period following September 30, 2018, the Company shall, in addition, pay to the Bank a variable fee (which shall be due and payable quarterly in arrears upon the issuance of a statement to the Company by the Bank) equal to an annualized rate of one and one-half percent (1.50%) on the average daily outstanding balance of all Letters of Credit pursuant to the Facility

during such calendar quarter; such quarterly payments shall continue until a quarter occurs when there are no such outstanding Letters of Credit.

Additionally, the Company agrees to pay on demand by the Bank all other reasonable and actual costs and expenses incidental to or incurred in connection with (a) the Facility and the preparation of this Agreement and the other Loan Documents (as hereinafter defined), and any subsequent amendments or modifications thereof, (b) the enforcement of the rights of the Bank in connection therewith, and (c) any litigation, contest, dispute, proceeding or action in any way relating to the Collateral (as hereinafter defined), this Agreement or the other Loan Documents, whether any of the foregoing are incurred prior to or after maturity, the occurrence of an Event of Default, or the rendering of a judgment. Such costs and expenses shall include, but not be limited to, reasonable attorneys' fees and out-of-pocket expenses of the Bank. All indebtedness, debts and liabilities, including, without limitation, principal, interest, indemnification obligations, prepayment fees, late charges, collection costs, attorneys' fees and expenses, of the Company to the Bank arising under or in connection with this Agreement or the other Loan Documents are hereafter referred to collectively as the "Obligations.")

Upon the occurrence of an Event of Default as defined in Section 6.1, the payment of any fees, costs and expenses set forth in this Section 2.2 may be charged (via automatic debit) by the Bank to any Account.

All fees shall be fully earned by the Bank, as applicable, pursuant to the foregoing provisions of this Agreement on the due date thereof and, except as otherwise set forth herein or required by applicable law, shall not be subject to rebate, refund or proration. All fees provided for in this Section 2.2 shall be deemed to be for compensation for services and are not, and shall not be deemed to be, interest or any other charge for the use, forbearance or detention of money.

2.3 Letter of Credit Reserves. If any change in any law or regulation or in the interpretation or application thereof by any court or other governmental authority charged with the administration thereof shall either (a) impose, modify, deem or make applicable any reserve, special deposit, assessment or similar requirements against Letters of Credit issued by the Bank, or (b) impose on the Bank any other condition regarding this Agreement or the Facility, and the result of any event referred to in clause (a) or (b) above shall be to increase the cost to the Bank of issuing or maintaining any Letter of Credit or the Facility (which increase in cost shall be the result of the Bank's reasonable allocation of the aggregate of such cost increases resulting from such events), then, upon demand by the Bank, the Company shall immediately pay to the Bank additional amounts which shall be sufficient to compensate the Bank for such increased cost, together with interest on each such amount from the date demanded until payment in full thereof at a rate per annum equal to the Adjusted Daily LIBOR Rate. A certificate as to such increased cost incurred by the Bank, submitted by the Bank to the Company, shall be conclusive, absent manifest error, as to the amount thereof. This provision shall survive the termination of this Agreement and shall remain in full force and effect until there is no existing or future obligation of the Bank under any Letter of Credit.

2.4Further Assurances. The Company hereby agrees to do and perform any and all acts and to execute any and all further instruments reasonably requested by the Bank more fully to effect the purposes of this Agreement and the issuance of Letters of Credit hereunder, and further agrees

to execute any and all instruments reasonably requested by the Bank in connection with the obtaining and/or maintaining of any insurance coverage applicable to any Letter of Credit.

3. Warranties and Representations. In order to induce the Bank to enter into this Agreement and to make the Facility available to the Company, the Company warrants and represents to the Bank that each of the following statements is true and correct:

3.1.    Corporate Organization and Authority. The Company (a) is a corporation duly organized, validly existing and in good standing under the laws of the State of Ohio; (b) has all requisite corporate power and authority and all necessary licenses and permits to own and operate its properties and to carry on its business as now conducted and as presently proposed to be conducted; and (c) is not doing business or conducting any activity in any jurisdiction in which it has not duly qualified and become authorized to do business, except where the failure to so qualify will not have a Material Adverse Effect. "Material Adverse Effect" means a material adverse effect upon (i) the business (present or future), condition (financial or otherwise), operations, performance or properties of the Company, (ii) the ability of the Company to perform its obligations under this Agreement, the Reimbursement Agreement, the Security Agreement and/or the other documents contemplated herein or therein and/or executed in connection herewith or therewith, any mortgage, any guaranty, or any other agreement or instrument (collectively, the "Loan Documents"), or (iii) the rights and remedies of the Bank under the Loan Documents.

3.2.    Borrowing is Legal and Authorized. (a) The Executive Committee of the Board of Directors of the Company has duly authorized the execution and delivery of the Loan Documents, and the Loan Documents constitute valid and binding obligations of the Company enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium and other similar laws affecting creditors' rights generally; and (b) the execution of the Loan Documents and the compliance by the Company with the applicable provisions thereof (i) are within the corporate powers of the Company, and (ii) are legal and will not conflict with, result in any breach in any of the provisions of, constitute a default under, or result in the creation of any lien or encumbrance upon any property of the Company under the provisions of, any agreement, charter instrument, bylaw or other instrument to which the Company is a party or by which it is bound.

3.3.    Taxes. All tax returns required to be filed by the Company in any jurisdiction have in fact been filed, and all taxes, estimated payments, assessments, fees and other governmental charges or levies upon the Company, or upon any of its property or assets or in respect of its franchises, businesses or income, which are due and payable have been paid, except those (a) contested in good faith by the Company, by appropriate proceedings diligently instituted and conducted, and (b) with respect to which any reserve or other appropriate provision, as shall be required in accordance with generally accepted accounting principles consistently applied ("GAAP"), shall have been made therefor. The Company does not know of any proposed additional tax assessment against it. The accruals for taxes on the books of the Company for its current fiscal period are adequate.

3.4.    Compliance with Law. The Company is not in violation of any laws, ordinances, governmental rules or regulations to which it is subject, except to the extent that such a violation or failure does not have or is not likely to have a Material Adverse Effect.

3.5.    Litigation; Adverse Effects. There is no action, suit, audit, proceeding, administrative proceeding, investigation or arbitration (or series of related actions, suits, audits, proceedings, investigations or arbitrations) before or by any governmental authority or private arbitrator pending or, to the knowledge of the Company, threatened against the Company or any property of the Company challenging the validity or the enforceability of any of the Loan Documents, or which, if adversely determined, shall have or is reasonably likely to have a Material Adverse Effect. The Company is not subject to or in default with respect to any final judgment, writ, injunction, restraining order or order of any nature, decree, rule or regulation of any court or governmental authority, in each case which shall have or is likely to have a Material Adverse Effect.

3.6.    No Insolvency. On the date of this Agreement and after giving effect to all indebtedness of the Company, the Company (a) will be able to pay its obligations as they become due and payable; (b) has assets, the present fair saleable value of which exceeds the amount that will be required to pay its probable liability on its obligations as the same become absolute and matured; (c) has sufficient property, the sum of which at a fair valuation exceeds all of the Company's indebtedness; and (d) will have sufficient capital to engage in its business. The determination of the foregoing for the Company takes into account all of the Company's properties and liabilities, regardless of whether, or the amount at which, any such property or liability is included on a balance sheet of the Company prepared in accordance with GAAP, including property such as contingent contribution or subrogation rights, business prospects and goodwill. The determination of the sum of the Company's properties at the present fair salable value has been made on a going concern basis.

3.7.    Government Consent. Neither the nature of the Company or of its business or properties, nor any relationship between the Company and any other entity or person, nor any circumstance in connection with the execution of this Agreement, is such as to require a consent, approval or authorization of, or filing, registration or qualification with, any governmental authority on the part of the Company as a condition to the execution and delivery of the Loan Documents.

3.8.    No Defaults. No event has occurred and no condition exists which would constitute an Event of Default pursuant to this Agreement. The Company is not in violation in any respect of any term of any material agreement, charter instrument, bylaw or other material instrument to which it is a party or by which it may be bound, which violation would have a Material Adverse Effect.

3.9.    Warranties and Representations. On the date of the issuance of any Letter of Credit pursuant to the Facility, the warranties and representations set forth in this Section 3 shall be true and correct on and as of such date with the same effect as though such warranties and representations had been made on and as of such date, except to the extent that such warranties and representations expressly relate to an earlier date.

4. Company Business Covenants. The Company covenants that on and after the date of this Agreement until terminated pursuant to the terms of this Agreement, or so long as any of the indebtedness provided for herein remains unpaid:

4.1.    Payment of Taxes. The Company shall pay all taxes, estimated payments, assessments and governmental charges or levies imposed upon it or its property or assets or in

respect of any of its franchises, businesses, income or property before any penalty or interest accrues thereon; provided, however, that no such taxes, estimated payments, assessments and governmental charges are required to be paid if being contested in good faith by the Company, by appropriate proceedings diligently instituted and conducted, without any of the same becoming a lien upon the Cash Collateral, and if such reserve or other appropriate provision, if any, as shall be required in accordance with GAAP, shall have been made therefor.

4.2.    Maintenance of Properties and Corporate Existence. The Company shall do or cause to be done all things necessary (i) to preserve and keep in full force and effect its existence, rights and franchises, and (ii) to maintain its status as a corporation duly organized and existing and in good standing under the laws of the state of its organization.

4.3.    Subsidiaries. Except as disclosed in Schedule 4.3 attached hereto as amended from time to time (the "Company Subsidiaries"), the Company has no wholly-owned subsidiaries and conducts business only in the name of the Company. The Company will promptly notify the Bank upon the creation of any additional Company Subsidiaries; provided, that so long as Bank is a lender in the Company’s primary credit agreement, notices to Bank as lender as required under such credit agreement of the creation of any additional Company Subsidiaries shall satisfy the requirements of this Section 4.3.

5. Financial Information and Reporting. As long as the Company is listed on the New York Stock Exchange, is publicly traded and timely Securities and Exchange Commission filings for the Company are generally available on EDGAR Online, the Company will have no additional financial information or reporting requirements hereunder, but if any of the foregoing shall cease to be true, then at the request of the Bank, the Company shall provide such tax returns and other financial information and reports as the Bank may from time to time reasonably require.

6. Default.

6.1.    Events of Default. Each of the following shall constitute an "Event of Default" hereunder: (a) the Company fails to make any payment of fees, principal or interest in connection with this Agreement when due; (b) the Company fails to perform or observe any covenant contained in Sections 1, 2, 3, 4 or 5 of this Agreement; (c) the Company fails to comply with any other provision of this Agreement or (subject to any shorter cure period as may be set forth in any of the following agreements) any provision contained in any security agreement, reimbursement agreement or other agreement now or hereafter executed by the Company in connection with the Facility in favor of the Bank, and such failure continues for more than 10 days after such failure shall first become known to any officer of the Company; (d) any warranty, representation or other statement by or on behalf of the Company contained in this Agreement or in any other Loan Document or in any instrument or certificate furnished in compliance with or in reference hereto or thereto is false or misleading in any material respect; (e) the Company becomes insolvent or makes an assignment for the benefit of creditors, or consents to the appointment of a trustee, receiver or liquidator; (f) bankruptcy, reorganization, composition, arrangement, insolvency, dissolution or liquidation proceedings are instituted by the Company, or bankruptcy, reorganization, composition, arrangement, insolvency, dissolution or liquidation proceedings are instituted against the Company

which are not stayed or dismissed within 60 days; (g) the default by Company or any Company Subsidiary with respect to any Obligation or indebtedness to the Bank; or (h) a Change of Control of the Company shall have occurred.

For purposes of this Agreement, a "Change of Control" of the Company shall mean any of the following: (a) any Person or group (as that term is understood under Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting power, in the event different classes of stock shall have different voting powers) of the voting stock of the Company equal to at least fifty percent (50%); or (b) as of any date a majority of the Board of Directors of the Company consists of individuals who were not either (i) directors of the Company as of the corresponding date of the previous year, (ii) selected or nominated to become directors by the Board of Directors of the Company of which a majority consisted of individuals described in clause (b)(i) above or (iii) selected or nominated to become directors by the Board of Directors of the Company of which a majority consisted of individuals described in clause (b)(i) above and individuals described in clause (b)(ii) above. For purposes of the definition of “Change of Control,” “Person” shall mean shall mean an individual, a partnership (including without limitation a joint venture), a limited liability company (including without limitation a joint venture), a corporation (including without limitation a joint venture), a business trust, a joint stock company, a trust, an unincorporated association or any other entity of whatever nature (including without limitation a joint venture).

6.2.    Default Remedies. If an Event of Default exists, the Bank may immediately exercise any right, power or remedy permitted to the Bank by law or any provision of this Agreement and the Security Agreement, provided that any outstanding Letter of Credit for which the Bank has Cash Collateral in accordance with the requirements of this Agreement and the Security Agreement shall remain in full force and effect in accordance with its terms, subject to the Bank’s rights pursuant to this Agreement and the Security Agreement with respect to the Cash Collateral that secures such Letter of Credit. In addition, following the occurrence of an Event of Default, the Bank shall have no further obligation to issue additional Letters of Credit pursuant to the Facility.

7. Miscellaneous.

7.1.    Notices. All communications under the Loan Documents shall be in writing and shall be mailed by certified mail, postage prepaid, or sent by commercial overnight courier:

(i) if to the Bank, at the following address, or at such other address as may have been furnished in writing to the Company by the Bank:

U.S. Bank National Association

10 West Broad Street, 12^th Floor

Columbus, Ohio 43215

Attn: Commercial Real Estate

(ii) if to the Company, at the following address, or at such other address as may have been furnished in writing to the Bank by the Company:

M/I Homes, Inc.

3 Easton Oval

Columbus, Ohio 43219

Attn: Chief Financial Officer

(b) Any notice so addressed and stamped, if mailed by certified mail, shall be deemed to be given on the second business day following the postmark date, or if sent by commercial overnight courier, shall be deemed to be given when delivered.

7.2.    Successors and Assigns. This Agreement and the Loan Documents shall inure to the benefit of and be binding upon the heirs, successors and assigns of each of the parties. Notwithstanding the foregoing, the Company shall not have the right to assign its rights or obligations under this Agreement or the Loan Documents.

7.3.    Entire Agreement.

The Loan Documents embody the entire agreement and understanding between the Company and the Bank and supersede all prior agreements and understandings between the Company and the Bank relating to the subject matter thereof.

7.4.    Reinstatement. Notwithstanding any other provision of this Agreement, all of the rights, claims, interests and authorizations in favor of the Bank under this Agreement shall be reinstated and revived, and all of such rights, claims, interests and authorizations shall be fully enforceable, if at any time any amount paid to the Bank or any of their respective affiliates on account of any Obligation is thereafter required to be restored or returned by the Bank as a result of the bankruptcy, insolvency or reorganization of the Company, or any other person, or as a result of any other fact or circumstance, all as though such amount had not been paid.

7.5.    Amendment and Waiver; Duplicate Originals. All references to this Agreement and the other Loan Documents shall also include all amendments, extensions, renewals, modifications and substitutions thereto and thereof. The provisions of this Agreement and the other Loan Documents may be amended, and the observance of any term of this Agreement and the other Loan Documents may be waived, with (and only with) the written consent of the Company and the Bank; provided, however that nothing herein shall change the sole discretion of the Bank (as set forth elsewhere in this Agreement) to make advances, determinations, decisions or to take or refrain from taking other actions. Two or more duplicate originals of this Agreement may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. This Agreement amends, restates, releases and supersedes that certain Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of July 27, 2009, that certain Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of August 16, 2010, that certain Second Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of September 30, 2011, that certain Third Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of September 30, 2012, that certain

Fourth Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated as of September 30, 2013, that certain Fifth Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated September 30, 2014, that certain Sixth Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated September 30, 2015, and that certain Seventh Amended and Restated Master Letter of Credit Facility Agreement by and between the Bank and the Company dated September 30, 2016 (collectively, the “Superseded Agreements”).

7.6.    Severability; Enforceability; Governing Law; Jurisdiction; Venue; and Service of Process. Any provision of this Agreement or the other Loan Documents which is prohibited or unenforceable in any jurisdiction, as to such jurisdiction, shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. No delay or failure or other course of conduct by the Bank in the exercise of any power or right shall operate as a waiver thereof, nor shall any single or partial exercise of the same preclude any other or further exercise thereof, or the exercise of any other power or right. All of the rights and remedies of the Bank, whether evidenced hereby or by any other agreement or instrument, shall be cumulative and may be exercised singularly or concurrently.

The validity of this Agreement and the other Loan Documents, their construction, interpretation and enforcement, and the rights of the parties hereto and thereto shall be determined under, governed by and construed in accordance with the laws of the State of Ohio (without reference to the choice of law principles thereof), but giving effect to applicable federal laws. The parties agree that all actions or proceedings arising in connection with this Agreement and the other Loan Documents shall be tried and litigated only in the state and federal courts located in the County of Franklin, State of Ohio.

The Company hereby submits, for itself and in respect of its property, generally and unconditionally, to the jurisdiction of the aforesaid courts and waives, to the extent permitted under applicable law, any right it may have to assert the doctrine of forum non conveniens or to object to venue to the extent any proceeding is brought in accordance with this Section 7.6.

The Company hereby waives personal service of the summons, complaint or other process issued in any action or proceeding and agrees that service of such summons, complaint or other process may be made by registered or certified mail addressed to the Company at the address for notices set forth in Section 7.1 of this Agreement and that service so made shall be deemed completed upon the earlier of the Company's actual receipt thereof or 3 days after deposit in the United States mails, proper postage prepaid.

Nothing in this Agreement shall be deemed or operate to affect the right of the Bank to serve legal process in any other manner permitted by law, or to preclude the enforcement by the Bank of any judgment or order obtained in such forum or the taking of any action under this Agreement or the other Loan Documents to enforce same in any other appropriate forum or jurisdiction.

7.7.    No Consequential Damages. No claim may be made by the Company, or by any of its affiliates, or their respective directors, officers, employees, attorneys or agents, against the Bank,

or any of its affiliates, directors, officers, employees, attorneys or agents for any special, indirect or consequential damages in respect of any breach or wrongful conduct (whether the claim therefor is based on contract, tort or duty imposed by law) in connection with, arising out of or in any way related to the transactions contemplated and relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, and the Company hereby waives, releases and agrees not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

7.8.    Indemnity; Assumption of Risk. The Company agrees to indemnify the Bank, and its affiliates, directors, officers, employees, agents and advisors (each an "Indemnitee"), against, and hold each Indemnitee harmless from, any and all claims, liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, reasonable fees and disbursements of counsel) which may be imposed on, incurred by, or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any other Loan Document or any other document, agreement or instrument contemplated hereby or thereby, the performance by the parties hereto or thereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Letter of Credit or the use of the proceeds therefrom (including any refusal by the Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), or (iii) any actual or prospective claim, litigation, proceeding or investigation (including, without limitation, any investigation instituted or conducted by any governmental agency or instrumentality) relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.

As among the Company and the Bank, the Company assumes all risks of the acts and omissions of, or misuse of Letters of Credit by the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Bank shall not be responsible (other than as a result of its gross negligence or willful misconduct): (i) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for and issuance of a Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent, or forged; (ii) for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) for failure of the beneficiary of a Letter of Credit to comply fully with conditions required in order to draw upon such Letter of Credit; (iv) for errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex, facsimile transmission or otherwise; (v) for errors in interpretation of technical terms; (vi) for any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any Letter of Credit or of the proceeds of any drawing under such Letter of Credit; or (viii) for any consequences arising from causes beyond the control of the Bank including, without

limitation, any act or omission, whether rightful or wrongful, of any government, court or other governmental agency or authority. None of the above shall affect, impair, or prevent the vesting of any of the Bank's rights or powers under this subsection 7.8.

7.9.    WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HERETO HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, OR ANY RELATIONSHIP AMONG THE COMPANY AND THE BANK. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING DESCRIBED HEREIN OR IN ANY OTHER LOAN DOCUMENT.

7.10.    Interest Rate Limitation. Notwithstanding anything in this Agreement to the contrary, if at any time the interest rate applicable to the Facility, together with all fees, charges and other amounts which are treated as interest on the Facility under applicable law (collectively the "Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for, charged, taken, received or reserved by the Bank in accordance with applicable law, the rate of interest payable in respect of the Facility hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate.

7.11.    Important Information About Procedures For Opening A New Account. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account. When the Company opens an Account the Bank will ask for the depositor's name, address and other information that will allow the Bank to identify the depositor. The Bank may also ask to see other documents that substantiate the depositor's identity.

7.12.    Capital Adequacy. If there shall occur, after the date of this Agreement, any adoption or implementation of, or change to, any Regulation, or interpretation or administration thereof, which shall have the effect of imposing on Bank (or Bank’s holding company) anyincrease or expansion of or any new: tax (excluding taxes on or measured by its overall income and franchise taxes), charge, fee, assessment or deduction of any kind whatsoever, or reserve, capital adequacy, special deposits or similar requirements against credit extended by, assets of, or deposits with or for the account of Bank or otherconditions affecting the extensions of credit evidenced by the Letters of Credit, and the result of any of the foregoing is that Bank (or Bank’s holding company) has incurred increased costs or reductions in the amounts received or receivable by it hereunder in an amount that Bank reasonably deems to be material,then the Company shall pay to Bank such additional amount as Bank reasonably deems necessary to compensate Bank for any increased cost to Bank attributable to the extension(s) of credit evidenced by the Letters of Credit and/or for any reduction in the rate of return on Bank’s capital and/or Bank’s revenue attributable to such extension(s) of credit. As used above, the term "Regulation" shall include any federal, state or international law, governmental or quasi-governmental rule, regulation, policy, guideline or directive (including but not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act and enactments, issuances or similar pronouncements by the Bank for International Settlements, the Basel Committee

on Banking Regulations and Supervisory Practices or any similar authority and any successor thereto) that applies to Bank. Bank’s determination of the additional amount(s) due under this Section 7.12, in accordance with the foregoing, shall be binding in the absence of manifest error, and such amount(s) shall be payable within thirty (30) days of demand and, if recurring, as otherwise billed by Bank. Such demand or bill or any notice provided therewith shall set forth in reasonable detail the basis for Bank’s determination and the calculation of such amounts. Notwithstanding anything in this Agreement to the contrary, Bank shall not demand compensation for any reduction referred to in this Section 7.12 or payment or reimbursement of other amounts under this Section 7.12 if it shall not at the time be the general policy or practice of Bank to demand such compensation, payment or reimbursement in similar circumstances under comparable provisions of other letter of credit facility agreements.

7.13.    Definitions, Exhibits and Schedules.

Definitions:

"Account" is defined in Section 1.2.

"Act" is defined in Section 7.11.

"Adjusted One Month LIBOR Rate" is defined in Section 2.1.

"Agreement" is defined in the preamble.

"Application" is defined in Section 1.1.

"Bank" is defined in the preamble.

"Business Day" is defined in Section 1.1.

"Cash Collateral" is defined in Section 1.1.

"Change of Control" is defined in Section 6.1.

"Charges" is defined in Section 7.10.

"Company" is defined in the preamble.

"Company Subsidiaries" is defined in Section 4.3.

"Event of Default" is defined in Section 6.1.

"Facility" is defined in Section 1.1.

"GAAP" is defined in Section 3.3.

"LC Application Materials" is defined in Section 1.1.

"LC Draw" is defined in Section 1.3.

"LC Draw Amount" is defined in Section 1.3.

"Letter of Credit" is defined in Section 1.1.

"Loan Documents" is defined in Section 3.1.

"Material Adverse Effect" is defined in Section 3.1.

"Maximum Rate" is defined in Section 7.10.

"New York Banking Day" is defined in Section 2.1.

"Obligations" is defined in Section 2.2.

"One Month LIBOR Rate" is defined in Section 2.1.

"Reimbursement Agreement" is defined in Section 1.1.

“Person” is defined in Section 6.1.

"Reprice Date" is defined in Section 2.1.

"Security Agreement" is defined in Section 1.1.

"Superseded Agreements" is defined in Section 7.5.

Exhibits:

Exhibit AForm of Letter of Credit

Exhibit BForm of Application

Exhibit CReimbursement Agreement

Exhibit DSecurity Agreement

Schedules:

Schedule 4.3Schedule of Company Subsidiaries

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Company and the Bank have caused this Agreement to be duly executed as of the Effective Date first written above.

M/I HOMES, INC.,

an Ohio corporation

By:    /s/ Kevin Hake

Its: Senior Vice President, Finance and Business Development and Treasurer

U.S. BANK NATIONAL ASSOCIATION,

a national banking association

By:    /s/ John C. Hart    

Its:    Senior Vice President    

EXHIBIT A

Form of Letter of Credit

U.S. BANK NATIONAL ASSOCIATION        SWIFT: USBKUS44STL

INTERNATIONAL DEPT. SL-MO-L2IL         TELEX:

721 LOCUST STREET                 TELEPHONE: 314-418-2875

ST. LOUIS, MO 63101                FACSIMILE:     314-418-1376

DATE:

BENEFICIARY:

OUR IRREVOCABLE LETTER OF CREDIT NO. SLCLSTL0XXXX

GENTLEMEN:

WE HEREBY ISSUE OUR IRREVOCABLE LETTER OF CREDIT NO. SLCLSTL0XXXX IN FAVOR OF YOURSELVES FOR THE ACCOUNT OF _____________ UP TO THE AGGREGATE AMOUNT OF USD$__________ (AMOUNT IN WORDS AND 00/100 UNITED STATES DOLLARS) AVAILABLE BY YOUR DRAFT AT SIGHT DRAWN ON U.S. BANK NATIONAL ASSOCIATION, ST. LOUIS, MISSOURI ACCOMPANIED BY:

A DATED AND SIGNED STATEMENT APPEARING ON ITS FACE TO BE EXECUTED BY BENEFICIARY OR DULY AUTHORIZED AGENT THEREOF CERTIFYING THAT:

“

.”

THIS INSTRUMENT MUST BE PRESENTED WITH THE ABOVE REFERENCED DOCUMENTS FOR NEGOTIATION.

DRAFTS MUST BE DRAWN AND PRESENTED AT U.S. BANK NATIONAL ASSOCIATION, INTERNATIONAL DEPT., SL-MO-L2IL, 721 LOCUST STREET, ST. LOUIS, MISSOURI 63101 NOT LATER THAN (EXPIRY DATE).

EACH DRAFT MUST STATE THAT IT IS “DRAWN UNDER U.S. BANK NATIONAL ASSOCIATION, ST. LOUIS, MISSOURI LETTER OF CREDIT NO. SLCLSTL0XXXX DATED (ISSUANCE DATE).”

WE HEREBY ENGAGE WITH THE DRAWERS OF ALL DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS CREDIT, THAT SUCH DRAFTS WILL BE DULY HONORED UPON PRESENTATION TO THE DRAWEE.

CANCELLATION OF LETTER OF CREDIT PRIOR TO EXPIRY: THIS LETTER OF CREDIT AND AMENDMENTS, IF ANY, MUST BE RETURNED TO US FOR CANCELLATION WITH BENEFICIARY’S STATEMENT THAT THE LETTER OF CREDIT IS BEING RETURNED FOR CANCELLATION. IN THE ABSENCE OF BENEFICIARY’S STATEMENT WE WILL CONSIDER THE LETTER OF CREDIT RETURNED FOR CANCELLATION.

THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (2007 REVISION) INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NUMBER 600.

VERY TRULY YOURS,

U.S. BANK NATIONAL ASSOCIATION

________________________________

AUTHORIZED SIGNATURE/

EXHIBIT B

Form of Application

Bank Use Only: LC No. _____ Date Rec'd______
800 NicoIlet Mall	1420 Fifth Ave	811 E Wisconsin Ave.	721 Locust SI.	111 SW 5th Ave.
BC-MN-H2OG	PlIWA.T9IN	MO-WI-46N	SL-MO-L2IL	PD-OR-T5CE
Minneapolis, MN 55402	Seattle, WA 98101	Milwaukee, WI 53202	St. Louis, MO 63101	Portland, OR 97204
(866) 359-2503 15854	(206)344-2398	(414) 765-5626	(3141418-2875	(503) 275-7951
FAX (612) 303-5226	FAX (206) 344-5365	FAX (414) 765-448576112	FAX (314) 418-1376	FAX (503) 275-5132

APPLICATION FOR STANDBY LETTER OF CREDIT

The undersigned ("Applicant") hereby requests U.S. Bank National Association ("Bank") to establish an irrevocable Letter of Credit (hereinafter "Credit") as set forth below in such language as Bank may deem appropriate, with such variations from such terms as Bank may determine in its discretion are necessary and are not materially inconsistent with this Application. and to forward the same directly, or through Bank's correspondent, to the Beneficiary.

In Favor of ("Beneficiary") (include name & address):	For the Account of Applicant (or, if different from Applicant, the "Account Party") (include name & address):
Advising Bank (if any):	Amount $ Expiration Date.
To be available by drafts at sight drawn on Bank or, at Bank's option, by a written or authenticated SWIFT/telex demand for payment.
o If checked, Applicant requests Bank to issue the Credit in the form of the attached document signed by Applicant and labeled "Exhibit A".
The Credit shall be subject to the current revision of (choose one): o the International Standby Practices (ISP), published by the International Chamber of Commerce ("ICC"). or o the Uniform Customs and Practice for Documentary Credits (UCP), published by the ICC.
Document(s), if any, required to accompany drawing(s):
Additional Conditions:

In consideration of Bank's issuance of the Credit, Applicant agrees to the terms and conditions as set forth herein, in any attachments, exhibits or addenda, and in the most recent Continuing Reimbursement Agreement executed by Applicant.

Applicant Name:	Account Number:
Authorized Signature:	Telephone:
Printed Name: Title:	Date:

If the Account Party listed above is not the Applicant: In consideration of Bank's issuance of the Credit, the Account Party hereby agrees. if Applicant fails to pay when due any amounts owing to Bank under this Application, Applicant's Continuing Reimbursement Agreement, or the Credit, the Account Party shall pay the same to Bank upon demand.

Account Party Name:	Account Number:
Authorized Signature:	Telephone:
Printed Name: Title:	Date:

Draft Version 4 - Last Revised 5 December 2006                                    Rev 2006

EXHIBIT C

Form of Reimbursement Agreement

US BANK

CONTINUING REIMBURSEMENT AGREEMENT FOR

LETTERS OF CREDIT

Including U.S. Bank Global Trade WorksSM

This Continuing Reimbursement Agreement for Letters of Credit is made effective this 27th day of July, 2009 by and between U.S. BANK NATIONAL ASSOCIATION ("Bank") and M/I HOMES, INC. ("Applicant").

In consideration of the issuance by Bank or an affiliate of Bank (each such affiliated issuer, an "Other Issuer') of one or more Credits, Applicant agrees that the following terms shall apply to each Application and each Credit issued by Bank or any Other Issuer (either or both referred to herein as "Bank").

1. The Credit,

(a)From time to time, Applicant may request Bank to issue or to request one of its subsidiaries or affiliates to issue one or more letters of credit (each, a 'Credit') substantially in accordance with the terms of any application (each, an 'Application') submitted to Bank by Applicant. All Credits will be deemed irrevocable unless otherwise stated in an Application. Bank may either issue the Credit or request one of its affiliates to issue the Credit. Bank may sell, assign or participate all or any part of its rights and obligations under this Agreement, the Application and the Credit, Without limiting the foregoing, any Other Issuer may sell a participation in all or any part of its rights and obligations under this Agreement and the Credit to Bank.

(b)Bank hereby is authorized to set forth in the Credit the terms appearing in the Application, with such modifications as Bank in its discretion may determine are appropriate or necessary and are not materially different from such terms,

(c)All communications relating to the Credit will be sent at Applicant's risk. Bank shall have no responsibility for any inaccuracy of translation, or any error or delay in transmission or delivery by mail, telecommunication or any other method outside of Bank's reasonable control. including all communications made through a correspondent.

(d)Neither Bank no its correspondents shall be in any way responsible for the performance of any beneficiary's obligations to Applicant or for the form, sufficiency, accuracy, genuineness, authority of person signing, falsification or legal effect, of any documents required by the Credit it such documents appear in order on their face. Whether the documents conform to the terms of the Credit and whether arty demand is timely and in proper form shall be independently determined by Bank in its sole discretion, which determination shall be final and binding on Applicant.

(e)Subject to Section 8(b), Bank may in its discretion honor Applicant's request to increase the amount of the Credit, extend the time for making and honoring of demands under the Credit and otherwise modify the terms and conditions governing the Credit. In the event of any extension of the maturity or time for negotiation or presentation of the drafts or documents or any other modification of the terms or provisions of, or increase in the amount of, the Credit at the request or with the consent of Applicant, this Agreement shall be binding upon Applicant with regard to (i) the Credit as so increased or otherwise modified, (ii) drafts, documents and properly covered thereby, (iii) any action taken by Bank or Bank's correspondents in accordance with such extension, increase or other modification; and (w) any draft paid by Bank or any of Bank's correspondents which is dated on or before the expiration of any time limit expressed in the Credit, regardless of when drawn or presented for payment and when or whether negotiated, provided the required documents are presented prior to the expiration of the Credit.

(f)     Applicant shall promptly review all information, documents and instruments delivered to Applicant from time to time by Bank, Including any Credits upon issuance and any amendments and all related presentations and negotiations, and shall notify Bank Within five banking days after receipt if Applicant claims that Bank has failed to comply with Applicant's instructions or Bank's obligations with respect to the Credit, has wrongfully honored or dishonored any presentation under the Credit or claims any other irregularity. It Applicant does not so notify Bank within such time period, Applicant shall be conclusively deemed to have waived and shall be precluded from asserting such claim(s).

2. Internet-Based Letter of Credit Services ("Internet ServIces").

(a)If requested by Applicant and agreed to by Bank, Bank will grant Applicant access to Bank's letter of credit-related Internet Services. U.S. Bank Global Trade Works is an example of one such Internet Service, Bank's Internet Services may be used by Applicant for the processing and issuance of Credits in accordance with the terms of this Agreement Bank shall post Rules of Use of the Internet Services within each such Service. Applicant's initial use of an Internet Service shall constitute Applicant's acceptance of the Rules of Use.

(b)Applicant agrees to use the Internet Services In accordance with the security procedures established by Bank. Due to emerging technologies and ensuing changes in security practices, Bank reserves the right to supplement or change its security procedures from time to time upon reasonable notice to Applicant. Applicant shall designate one or more Security Administrators. The Security Administrator is responsible for setting up Applicant's Internet Services and for establishing internal security procedures related to such services, Including without limitation, accepting software for delivery, assigning users, establishing authority levels, distributing passwords and other security devices and procedures related to the Internet Services. Designation of any Security Administrator may be amended or revoked upon written notice to Bank. Bank shall have a reasonable time to act on any such notice.

(c)Applicant Is responsible for maintaining the security and confidentiality of all IDS, passwords and other security devices issued to or by Applicant (collectively, 'Applicant's Internal Security Service). Applicant shall not permit unauthorized individuals to use Applicant's Internal Security Devices to access the Internet Services. Applicant is responsible for the actions of any individuals using Applicants Internal Security Devices to access to the Internet Services and Applicant shall be bound by any transmission to Bank that is accepted in accordance with the established security procedures. Applicant shall promptly notify Bank if Applicant has actual knowledge that its Internal Security Devices have been compromised. Applicant agrees to defend and indemnify Bank against any claims, losses, damages, costs, expenses, fines and other liabilities arising out of Applicant's failure to maintain the security and confidentiality of Applicant's Internal Security Devices or arising out of the unlawful use of any Internet Services by Applicant or any person who obtains access to the Internet Services using Applicants Internal Security Devices.

3. Reimbursement Obligations Applicant promises to pay Bank on demand at the address specified In the Application for Credit n the following amounts:

(a)     The amount of each draft or other request for payment (hereinafter called a 'draft") drawn under the Credit (whether drawn before, on or, if In accordance with the law applicable to the Credit, after the expiration date stated In the Credit). For amounts payable in United States currency, Applicant agrees to reimburse Bank in United States currency. For amounts payable in other currencies, Applicant agrees to reimburse Bank an equivalent amount In United Slates currency at Bank's then current selling rate for such foreign currencies or Applicant will reimburse Bank by sending the foreign currency amount due Bank by wire transfer to the account and location designated by Bank, or at Bank's option, in any other currency, piece, form and manner acceptable to Bank. Upon request, Applicant wilt pay Bank in advance, in United States currency, alt sums necessary for Bank to pay all such drafts upon presentation whether payable in United States currency or otherwise If the draft is a time draft, Applicant shall make payment without demand sufficiently in advance of its maturity to enable Bank to arrange tar funds to reach the place of payment when due.

(b)    All commissions, at the rate fixed by Bank, shall be payable from time to time at such intervals as Bank may require and shall be nonrefundable, whether or not the Credit is drawn upon, reduced in time or amount or otherwise modified. Applicant also agrees to pay all of Bank's other standard tees and charges related to Credits,

(c)        All taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever paid or incurred by Bank in connection with this Agreement, the Credit or any related transactions, and any liability with respect thereto (including but not limited to interest, penalties and expenses),

(d)    Interest on all amounts due under this Agreement from the applicable due date until paid will be variable at the per annum rate fixed from time to time by Bank. Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed. Interest accrued hereunder shall be due and payable on the first day of each calendar month.

(e)        Without limiting Applicant's obligations to any Other Issuer, but without duplication, Applicant promises to pay Bank on demand, at the Bank International Banking Office designated by Bank, an amount equal to all amounts which Bank pays or becomes obligated to pay to any Other Issuer with respect to the Credit, whether as a participant in the Credit or otherwise.

(f)        notwithstanding any other provision of this Agreement, Applicant's obligation to make any payment hereunder to any Other Issuer shall, to the extent of such payment, be satisfied by payment to Bank as set forth In this Agreement.

(g)     Applicant hereby authorizes Bank to automatically deduct from any of as accounts with Bank, all amounts which become due to Bank under this Agreement. Applicant will pay all fees on the account which result from the automatic deductions, including any overdraft/NSF charges. If for any reason Bank does not charge the account for any amount due, or it an automatic deduction is reversed, the amount due is still owing to Bank as set forth herein.

4 Security and Insurance.

(a)As security for payment of any and all of Applicant's obligations to Bank and any other Issuer under this Agreement, any Credit or any other indebtedness of Applicant to Bank and any Other Issuer, Applicant hereby grants Bank a continuous and continuing interest In (I) all property of Applicant or in which Applicant has an interest (including, but not limited to, all bank accounts Applicant maintains with Bank and all proceeds thereof) and which Is now or hereafter for any reason in the possession or control of, or in transit to, Bank, Bank's affiliates or the agent or bailee thereof, and (ii) any and all bills of lading, other documents of title, policies, certificates of insurance, chattel paper, and general Intangibles accompanying or relative to a Credit or any drafts drawn thereunder, and any and all inventory, goods and other property shipped under, in connection with or relative to a Credit or any drafts drawn thereunder. In addition to all other rights which Bank may have, Applicant hereby authorizes Bank to set off and apply any and all deposits (general of special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by Bank to or for the credit or the account of Applicant against any and all of the obligations of Applicant now or hereafter existing under this Agreement, irrespective of whether Bank shall have made any demand under this Agreement and although such deposits, indebtedness or obligations may be unmatured or contingent.

(b)If at any time Bank requires collateral (or additional collateral), Applicant will, on demand, assign and deliver to Bank as security for any and all obligations of Applicant now or hereafter existing under this Agreement collateral of a type and value satisfactory to Bank or make such cash payment as Bank may require and execute and deliver to Bank such security agreements, pledge agreements, or other documents requested by Bank covering such collateral,

(c)Al Bank's request, Applicant will execute any financing statements and other documents or instruments as Bank may require to perfect the security interests granted or contemplated hereunder and will pay the cost of any filings in connection therewith.

(d)For commercial credits, Applicant shall keep any property described in the Credit adequately covered by Insurance satisfactory to Bank, issued by companies satisfactory to Bank, and at Bank's request will furnish certificates or evidence thereof and will assign insurance policies or certificates to Bank and make losses, adjustments or proceeds payable to Bank. It any such policies procured by Applicant fails to provide for payment of the loss thereunder. Applicant hereby makes the loss payable to Bank under such policy and assigns to Bank all proceeds of such policy and agrees to accept proceeds of all insurance as Bank's agent and to hold same in trust for Bank, arid forthwith to deliver the same to Bank, with Applicant's endorsement where necessary, and Bank or any of Banks officers are hereby Irrevocably empowered, with power of substitution, to endorse any check in the name of Applicant received In payment of any loss or adjustment.

(e)Bank shall not be liable for any failure to collect or demand payment of, or to protest or give any notice of non-payment of, any collateral or any part thereof or for any delay in so doing, nor shall Bank be under any obligation to take any action whatsoever with respect to the collateral or any part thereof. Bank shall use reasonable care in the custody and preservation of the collateral in Bank's possession but need not take any steps to preserve rights against prior parties or to keep the collateral identifiable. Bank shall have no obligation to comply with any recording, re-recording, filing, re-filing or other legal requirement necessary to establish or maintain the validity, ovary or enforceability of, or Bank's right in and to, the collateral, or any part thereof. Bank may exercise any right of Applicant with respect to any collateral. Bank may endorse Applicant's name on any and all notes, checks, drafts, bills of exchange, money orders or commercial paper included in the collateral or representing the proceeds thereof.

5. Default and Remedies:

(a) Time is of the essence in this Agreement, The occurrence of any of the following shall be an Event of Default hereunder:

(i)      Default in payment or performance of any of Applicant's obligations hereunder or under any promissory note or other agreement between Bank and Applicant;

(ii)    Default under any security documents securing Applicant's obligations hereunder, whether executed by Applicant or any other person;

(ill)     Levy or proceeding against any property of Applicant or any guarantor of Applicant's obligations hereunder ('Guarantor);

(iv)     Death, dissolution, termination of existence, insolvency or business failure of, appointment of a receiver for any part of the property of, assignment for the benefit of creditors by, commencement of any proceeding under any bankruptcy or insolvency laws by or against, or entry of judgment against, Applicant or any Guarantor,

(v)     Any warranty, representation or statement made or furnished to Bank by Applicant or any Guarantor proves to have been false in any material respect when made or furnished;

(vi)    Any event which gives the holder of any debt obligation of Applicant or any Guarantor the right to accelerate its maturity, whether or not such right is exercised;

(vii)    Any guaranty of Applicant's obligations hereunder ceases to be, or is asserted by any person not to be, in full force and effect; or

(viii)    Any material adverse change in the financial condition or management Of Applicant or any Guarantor, or if Bank for any reason in good faith, deems itself insecure.

(b) Upon the occurrence of any Event of Default and at any time thereafter, Bank at its option and in addition to all other rights of Bank under this Agreement, any related agreement and applicable law, may (I) without notice or demand declare the amount for which the Credit was issued and any other amounts owing hereunder immediately due and payable; and (ii) exercise any and all rights and remedies of a secured party under the Uniform Commercial Code and other applicable law.

6. Certain Warranties.

(a)Applicant warrants that the execution, delivery and performance of this Agreement are within its authority and are not in contravention of law, of any terms of any agreement, instrument, order or judgment to which Applicant is a party or by which it or its property may be bound or of any provision of its charter document or bylaws, and that it has obtained all necessary approvals and consents therefor.

(b)Applicant represents and warrants that any Credit, and transactions related thereto, shall be in compliance with any federal, state, local and foreign laws, regulations, treaties or customs applicable to Bank or Customer, including without limitation the regulations

promulgated by Office of Foreign Assets Control (OFAC), and any other foreign or domestic legal restriction on doing business with certain individuals or countries.

(c)Applicant will procure promptly all necessary licenses for the export, import, shipping or warehousing of, or payment for property covered by the Credit and will comply with all foreign and U.S. laws, rules and regulations (including exchange control regulations) now or hereafter applicable to the transaction related to the Credit or applicable to the execution, delivery and performance by Applicant of this Agreement.

7. Changes to Laws and Regulations. If any adoption of or change in law or regulation, or in the interpretation or administration thereof by any official authority shall impose on Bank any tax, charge, fee, deduction or withholding of any kind whatsoever, or shall Impose or modify any reserve requirements, standards regarding capital adequacy or any other conditions affecting this Agreement or the Credit, and the result of any of the foregoing shall be to Increase the cost to Bank of issuing and maintaining the Credit, reduce the amount of any sum receivable by Bank hereunder or reduce the rate of return on Bank's capital, then Applicant shall pay to Bank upon demand such additional amount or amounts as Bank may specify to be necessary to compensate Bank for such additional costs incurred or reduction suffered.

8. General Terms and Conditions.

(a)Each Application shall be subject to all terms and conditions of this Agreement. In addition, this Agreement shall apply to each Credit issued or confirmed by Bank at the request of Applicant, including, without limitation, all Credits (if any) previously opened and outstanding on the date hereof.

(b)Notwithstanding any other term hereof, Applicant understands and agrees that the Credit can be revoked or amended only with the consent of the beneficiary of the Credit, Bank or Other Issuer of the Credit and any confirming bank.

(c)If Applicant requests Bank to issue a Credit for the account of a third party, whether affiliated with Applicant or otherwise (the 'Account Party'), the Account Party shall have no rights against Bank Bank may deal with Applicant as if Applicant were the named Account Party.

(d)Applicant shall give Bank prior written notice of any change of name, address or place of business. Any notice of any nature by Applicant to Bank must be given at Bank's office to which the application was submitted.

(e)The singular includes the plural. If Applicant consists of more than one person. the obligations of Applicant hereunder are joint and several and are binding upon any marital community of which any Applicant is a member. This Agreement shall be binding on Applicant, its successors and assigns, and shall inure to the benefit of Bank or Bank's successors, transferees and assigns. Notwithstanding the foregoing, Applicant may not assign its rights under this agreement without Bank's prior written consent.

(f)Notwithstanding the title appearing on any Credit instrument, the rights and obligations of Bank and Applicant with respect to the Credit shall be as set forth herein.

(g)The Application and/or the Credit will set forth which rules or customs apply to the corresponding Credit. Such rules and customs may include, but are not limited to, the International Standby Practices, as published by the International Chamber of Commerce (^-1SP") or the Uniform Customs and Practice for Documentary Credits, as published by the International Chamber of Commerce ("UCP'). In any event, the rules or practices set forth in the Credit are incorporated herein and shall govern the Credit. This Agreement and the Credit shall be governed by the internal laws of the State in which the credit was issued and the United States of America (the 'Governing Laws'), except to the extent such laws are inconsistent with the rules adopted in the Application as set forte above.

(h)When possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement.

(i)     Applicant hereby indemnifies and agrees to defend and hold harmless Bank, its officers, directors, agents, successors and assigns, from and against any and all liabilities, claims, demands, losses and expenses (including without limitation legal costs and attorney fees incurred in any appellate proceeding, proceeding under the bankruptcy code or receivership and post-judgment attorney fees incurred in enforcing any judgment), arising from or in connection with this Agreement, the Credit or any related transaction, except to the extent such claims arise from Bank's gross negligence or willful misconduct.

(j)     Any action, inaction or omission taken or suffered by Bank or by any of Bank's correspondents under or In connection with the Credit or any relative drafts, documents or property, if in good faith and in conformity with foreign or United States laws, regulations or customs applicable thereto, shall be binding upon Applicant and shall not place Bank or any of Bank's correspondents under any resulting liability to Applicant.

Without limiting the generality of the foregoing. Bank and Bank's correspondents may act in reliance upon any oral, telephonic, telegraphic, electronic or written request or notice believed in good faith to have been authorized by Applicant, whether or not in fact given or signed by an authorized person.

(k)     Bank's waiver of any right on any occasion or occasions shall not be construed as a bar or waiver of any other right or of such right on any other occasion. Applicant hereby waives and agrees not to assert any defense under any applicable statute of limitations, to the fullest extent permitted by law,

(l)     Without notice to any Applicant and Without affecting Bank's rights or Applicant's obligations, Bank may deal in any manner with any person who at any time is liable for, or provides any collateral for, any obligations of Applicant to Bank. Without limiting the foregoing, Bank may impair, release (with or without substitution of new collateral) and fall to perfect a security interest in, any collateral provided by any person; and sue, tail to sue, agree not to sue, release, and settle or compromise with, any person.

(m)     Except as otherwise provided herein or in any Credit, all notices and other communications required or permitted to be given to any party hereto shall be in writing or an electronic medium that is retrievable in a perceivable form and shall be deemed given when delivered by hand, electronically, by overnight courier, or when deposited in the United States mail, postage prepaid, addressed as set forth in the Application.

(n)     Whether or not litigation or arbitration is commenced, Applicant promises to pay all attorney fees and other costs and expenses incurred by Bank in collecting overdue amounts or construing or enforcing any provision of this Agreement or the Credit, including but not limited to reasonable attorney fees at trial, in any arbitration, appellate proceeding, proceeding under the bankruptcy code or receivership and post-judgment attorney fees incurred in enforcing any judgment.

(o)     If the Credit is issued pursuant to a ban agreement or other separate agreement, the terms of such other agreement shall control in the event of a conflict between the terms of this Agreement and such other agreement.

(p)     This Agreement is a continuing agreement and shall remain in effect until terminated, amended or replaced. This Agreement may be terminated by Applicant or Bank by giving notice of termination to the other and may be amended or replaced by a written agreement signed by Applicant and accepted by Bank; provided, however that no such termination, amendment or replacement shall alter or affect the undertaking of Applicant or Bank with respect to any Credit issued, or commitment to issue, prior to such termination, amendment or replacement.

(q)     This Agreement, as supplemented by the laws, rules and customs incorporated herein by subpart (g) to this part, and as supplemented by the terms of the Application, it any, constitutes the entire understanding between Bank and Applicant with respect to the matters treated herein and specifically supersedes any prior or contemporaneous oral agreements.

(r)     Nothing in this Agreement shall be construed as imposing any obligation on Bank to issue any Credit Each Credit shall be issued by Bank in its sole discretion and at Its sole option.

(s)         Bank is authorized, but not obligated, to record electronically or otherwise any telephone and other oral communications between Bank and Applicant.

(t)     All terms and conditions on the attached Schedule 1, and any replacement Schedule 1 are hereby incorporated herein. Applicant may change the provisions of Schedule 1 by executing and delivering a new Schedule 1 to Bank,

(u)     In the event Applicant submits an Application or other instruction by facsimile transmission (each, a "Faxed Document"), Applicant agrees: (I) each Faxed Document shall be deemed to be an original document and shall be effective for all purposes as if It were an original; (ii) Applicant shall retain the original of any Faxed Document and shall deliver it to Bank upon request; (ill) if Applicant sends Bank a manually signed confirmation of a Faxed Document, Bank shall have no duty to compare it to Me previously received Faxed Document nor shall a have any liability or duty to act should the contents of the written confirmation differ therefrom. Any manually signed confirmation of a Faxed Document must be conspicuously marked 'Previously transmitted by facsimile". Bank will not be liable for issuance of duplicate letters of credit or amendments thereto that result from Bank's receipt of confirmations not so marked; (iv) Bank cannot effectively determine whether a particular facsimile request is valid, Therefore Applicant shall have sole responsibility for the security of using facsimile transmissions and for any authorized or unauthorized Faxed Document received by Bank, purportedly on behalf of Applicant.

9. IMPORTANT NOTICE.ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING PREPAYMENT OF A DEBT INCLUDING VERBAL PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE.

Applicant acknowledges receipt of a completed copy of this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the day and year first above written.

APPLICANT:BANK

Mil HOMES, INC.U.S.BANK NATIONAL ASSOCIATION

By:______________________By:______________________

Name: Phillip G. CreekName: Anthony J. Mathena

Title: Exec VP & CFLTitle: Vice President

SCHEDULE 1

AUTHORIZATION

CONTINUING REIMBURSEMENT AGREEMENT FOR

LETTERS OF CREDIT

The provisions of this Schedule 1 are hereby incorporated into and made a part of the Continuing Reimbursement Agreement for Letters of Credit ("Agreement') executed by and between U.S. BANK NATIONAL ASSOCIATION, ("Bank') and MA HOMES, INC. ("Applicant"), dated July 27, 2009. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Agreement.

1.    In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offered by Bank, if applicable, any one of the persons whose name, title and signature appears below is authorized to give instructions to Bank and to execute and/or transmit Applications, requests for amendments, requests lot extensions and other communications of any nature regarding any Credit issued by Bank For Applicant

NAME	TITLE	SIGNATURE
Phillip G. Creek	Exec. VP & CFO
Ann Marie Hunker	Corp. Controller & CAO
William Roberts	VP & Treasurer

2.    In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offered by Bank, if applicable, the following persons are entitled to waive discrepancies contained in documents presented under a Credit (Applicant understands that upon any such waiver, Applicant is obligated to reimburse Bank to the same extent as if the documents fully complied with the terms of the Credit.).

NAME	TITLE	TELEPHONE NUMBER
Phillip G. Creek	Exec. VP & CFO	614-418-8000
Ann Marie Hunker	Corp. Controller & CAO
William Roberts	VP & Treasurer

3.    Bank is instructed to automatically deduct from Account No all amounts which become due under the Agreement. Should there be insufficient funds in this account to reimburse Bank, Bank is authorized to deduct any remaining amounts due from any of Applicant's accounts with Bank.

4.    This Schedule 1 shall be effective upon receipt by Bank. Bank may rely on this Schedule Iuntil it has been revoked in writing by Applicant and Bank has a reasonable opportunity to act on any such revocation.

APPLICANT:	BANK
M/I HOMES, INC.	U.S. BANK NATIONAL ASSOCIATION
By: ______________________________	By: ______________________________
Title: Phillip G. Creek	Name: Anthony J. Mathena
Date: Exec VP & CFO	Title: Vice President
	Date: July 27,2009

M/I HOMES

February 1, 2010

Ms. Oretha Rogers

US Bank

Senior Loan Administrator

Commercial Real Estate

CN-OH-BD12

10 West Broad Street, 12th Floor

Columbus, OH 43215

Re: Authorization for Letters of Credit

Dear Ms. Rogers:

Enclosed please find a revised Schedule I to the Letter of Credit Agreement dated July 27, 2009. Please remove William A. Roberts as an authorized person and add Kevin Hake.

If you have any questions regarding this request, please contact Charlotte Stout at 614-418-8237 or cstout@mihomes.corn.

Sincerely,

Phillip G. Creek

EVP, CFO

Enclosure

3 Easton Oval ž Suite 500 ž Columbus, Ohio 43219 ž614/418-8000 ž 614/418-8080 Fax

Listed on the New York Stock Exchange

SCHEDULE I

AUTHORIZATION

CONTINUING REIMBURSEMENT AGREEMENT FOR

LETTERS OF CREDIT

The provisions of Ibis Schedule 1 are hereby incorporated Into and made a part of the Continuing Reimbursement Agreement for Letters of Credit (*Agreement') executed by and between U.S. BANK NATIONAL ASSOCIATION, ("Bank') and MA HOMES, INC, (*Applicant"), dated July 27, 2009. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Agreement.

I.     In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offered by Bank, If applicable, any one of the persons whose name. fills and signature appears below is authorized to give Instructions to Bank and to execute and/or transmit Applications, requests for amendments; requests for extensions and other communications of any nature regarding any Credit issued by Bank for Applicant

NAME	TITLE	SIGNATURE
Phillip G. Creek	Exec. VP & CFO
Ann Marie Hunker	Corp. Controller & CAO
Kevin Hake	VP, Finance

2.     In addition to those authorized through U.S. Bank Global Trade Works or other electronic letter of credit application system offerer/ by Bank, if applicable, the following persona are entitled to waive discrepancies contained in documents presented under a Credit. (Applicant understands that upon any such waiver, Applicant Is obligated to reimburse Bank to the same extent as II the documents fully complied with the terms of the Credit.):

NAME	TITLE	TELEPHONE NUMBER
Phillip G. Creek	Exec. VP & CFO	614-418-8000
Ann Marie Hunker	Corp. Controller & CAO
Kevin Hake	VP, Finance

3,     Bank is instructed to automatically deduct from Account No.all amounts which become due under the Agreement. Should there be insufficient funds in this account to reimburse Bank, Bank is authorized to deduct any remaining amounts due from any of Applicant's accounts with Bank.

4.     This Schedule 1 shall be effective upon receipt by Bank. Bank may rely on this Schedule I until it has been revoked in writing by Applicant and Bank has a reasonable opportunity to act on any such revocation

APPLICANT:	BANK
M/I HOMES, INC.	U.S. BANK NATIONAL ASSOCIATION
By: ______________________________	By: ______________________________
Name: Phillip G. Creek	Name:
Title: Exec VP & CFO	Title:
Date February 1, 2010	Date

M/I HOMES

May 4, 2012

Ms. Oretha Rogers

US Bank

Senior Loan Administrator

Commercial Real Estate

CN-OH-BD12

10 West Broad Street, 12^1x' Floor

Columbus, OH 43215

Dear Oretha:

Please consider this letter as authorization for the undersigned individuals to act on behalf of M/I Homes, Inc. in submitting applications for letters of credit to US Bank under the following credit facilities:

1. Second Amended and Restated Master Letter of Credit Facility Agreement dated September 30, 2011 between U.S. BANK NATIONAL ASSOCIATION, a national banking association, and M/I HOMES, Inc; and

2. Credit Agreement Dated June 9, 2010, as Amended, by and among M/I HOMES, Inc., as Borrower, the Lenders party thereto, including US BANK, and PNC BANK, NA, as Administrative Agent for the Lenders.

If you have any questions, please contact me at 614-418-8227.

Sincerely,

Kevin C. Hake

SVP, Finance and Treasurer

Enclosure

3 Easton Oval Suite 500 Columbus, Ohio 43219

M/I Homes, Inc.

May 4, 2012

Page 2

Authorized Individuals for Letter of Credit Applications:

Ann Marie Hunker, VP, Corporate Controller and CAO

Mark Kirkendall, VP, Housing and Land Controller

Randy Green, Assistant Treasurer

3 Easton Oval Suite 500 Columbus, Ohio 43219

EXHIBIT D

Security Agreement

SECURITY AGREEMENT

(Pledge of Deposit Account)

DEBTOR: WI Homes, Inc,

ADDRESS: 3 Easton Oval, Columbus, Ohio 43219

DATE:    July_.27, 2009                                                 

The undersigned ("Debtor whether one or more), for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby jointly and severally grant, pledge and assign to U.S. BANK NATIONAL ASSOCIATION, a national banking association ("Bank"), a security interest in the following deposit account (the "Account") whether Debtor's interest in the Account be now owned or existing or hereafter arising or acquired, together with all substitutions and replacements therefor, all books and records relating thereto, all interest and increases arising therefrom or payable in respect thereto, whether in cash, property or otherwise, and whether now or hereafter earned, paid or made, and all cash and non-cash proceeds thereof including, but not limited to, notes, drafts, checks and instruments:

Account Description    Principal Amount of

Name and Address of Depositoryand NumberAccount Balance Assigned

U.S. Bank National Association    13011679473

(all of the foregoing hereinafter sometimes called the "Collateral").

If the Account is less than the entire amount of the deposit account, any reduction of the monies comprising such deposit account shall be deemed first to be a reduction of monies other than those comprising the Account, unless the amount of such reduction is received by Bank. Nothing set forth in this paragraph shall authorize or be construed to authorize Debtor to spend, withdraw, reduce, pledge, transfer, assign or otherwise dispose of the Collateral except upon the prior written consent of Bank.

The security interest hereby granted is to secure the prompt and full payment and complete performance of all Obligations of Debtor to Bank. The word "Obligations" means all indebtedness, debts and liabilities (including principal, interest, late charges, collection costs, attorneys' fees to the extent permitted by law and the like) of Debtor to Bank in connection with Letters of Credit issued pursuant to any applicable Reimbursement Agreement(s) (as said terms are defined in the Credit Agreement hereinafter defined), whether now existing or hereafter arising, either created by Debtor alone or together with another or others, primary or secondary, secured or unsecured, absolute or contingent, liquidated or unliquidated, direct or indirect, whether evidenced by note, draft, application for letter of credit, reimbursement agreement or otherwise, and any and all renewals of or substitutes therefor.

1.    General Representations and Covenants:    Debtor represents, warrants and covenants as

follows:

(a)    Except for the security interest granted hereby, Debtor is, or as to Collateral arising or to be acquired after the date hereof, shall be, the sole, exclusive and record owner of the Collateral, and the Collateral is and shall remain free from any and all liens, security interests, encumbrances, claims and interests.

(b)    Debtor shall, at Debtor's expense, perform, do, make, procure, execute and deliver all acts, things, certificates, instruments, passbooks, writings and other assurances as Bank may at any time request or require to protect, assure or enforce its interests, rights and remedies created by, provided in or emanating from this agreement.

(c)     If any of the Collateral is not now evidenced by a certificate, instrument, passbook or writing, and if at any time during the term of this agreement, a certificate, instrument, passbook or writing shall be used or issued to evidence Debtor's interest in the Collateral, Debtor shall, immediately upon learning of the same, notify in writing the loan officer who is handling Debtor's Obligations on behalf of Bank that such has occurred, or that such is going to occur, and shall assist. Bank in order to ensure that Bank obtains possession of that evidence or otherwise perfects its security interest in the certificate, instrument, passbook or writing evidencing the Collateral.

(d)     Debtor shall not create, permit or suffer to exist, and shall take such action as is necessary to remove, any claim to or interest in or lien or encumbrance upon the Collateral, other than the security interest granted hereby, and shall defend the right, title and interest of Bank in and to the Collateral against all claims and demands of all persons and entities at any time claiming the same or any interest therein.

(e)     Subject to any limitation stated therein or in connection therewith, all information furnished by Debtor concerning the Collateral or otherwise in connection with the Obligations, is or shall be at the time the same is furnished, accurate, correct and complete in all material respects.

(f)     Debtor's legal name, state of organization and chief executive office are as set forth at the beginning of this Agreement. Unless Bank consents in writing to a change in Debtor's legal name or state of organization prior to such a change, Debtor shall not change its legal name or state of organization.

2.    Preservation and Disposition of Collateral.

(a)    Debtor shall not spend, withdraw, reduce, pledge, transfer, assign or otherwise dispose of the Account or any portion thereof. Bank shall be entitled to condition withdraws from the Account upon the receipt of such matters as it may reasonably request, including, but not limited to, evidence that Debtor is in full compliance with each of the terms and conditions of, and that no Event of Default exists under that certain Master Letter of Credit Facility Agreement dated as of July 27, 2009 (the "Credit Agreement"), evidencing the Obligations.

(b)     Debtor shall advise Bank promptly, in writing and in reasonable detail, (i) of any material encumbrance upon or claim asserted against any of the Collateral; and (ii) of the occurrence of any event that would have a material effect upon the aggregate value of the Collateral or upon the security interest of Bank.

(c)        At its option, Bank may discharge taxes, liens, security interests or other encumbrances at any time levied or placed on or arising in connection with the Collateral. Debtor agrees to reimburse Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' fees to the extent permitted by law) by Bank pursuant to the foregoing authorization. Should Debtor fail to pay said sum to Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the Obligations.

3.    Extensions and Compromises. With respect to any Collateral held by Bank as security for the Obligations, Debtor assents to all extensions or postponements of the time of payment thereof or any other indulgence in connection therewith, to each substitution, exchange or release of Collateral, to the addition or release of any party primarily or secondarily liable, to the acceptance of partial payments thereon and to the settlement, compromise or adjustment thereof, all in such manner and at such time or times as Bank may deem advisable. Bank shall have no duty as to the collection or protection of Collateral or any income therefrom, nor as to the preservation of any right pertaining thereto, beyond the safe custody of Collateral in the possession of Bank.

4.    Bank's Authorization. Debtor hereby irrevocably authorizes Bank and any officer or agent thereof, in the place and stead of Debtor and in the name of Debtor or in Bank's own name, in Bank's discretion, to take any and all appropriate action and to execute, authenticate and deliver any and all documents, instruments and records that

may be necessary or desirable to accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, Debtor hereby authorizes Bank, on behalf of Debtor, without notice to or assent by Debtor.

Debtor hereby ratifies all that the Bank shall lawfully do or cause to be done by virtue hereof.

The authorization granted to Bank hereunder is solely to protect its interests in the Collateral and shall not impose any duty upon Bank to exercise the same. Bank shall be accountable only for amounts that Bank actually receives as a result of the exercise of such authorization and neither Bank nor any of its officers, directors, employees or agents shall be responsible to Debtor for any act or failure to act, except for Bank's own gross negligence or willful misconduct.

5.    Default. If any event of default in the payment of any of the Obligations or in the performance of any of the terms, conditions, or provisions of any instrument or document evidencing the Obligations secured by this agreement or in the performance of any covenant contained herein shall occur and be continuing; or if any warranty, representation or statement made or furnished to Bank by Debtor proves to have been false in any material respect when made or furnished; or if Bank shall, in the exercise of commercially reasonable judgment, deem itself insecure as to the prospect of payment of any of the Obligations:

(a)Bank may, at its option and without notice, declare the unpaid balance of any or all of the Obligations immediately due and payable and this agreement and any or all of the Obligations in default and may immediately apply any or all of the Collateral to the payment of the Obligations; and

(b)    Bank and its nominees shall have the additional rights and remedies of a secured party under this agreement, under any other instrument or agreement securing, evidencing or relating to the Obligations and under the law of the State of Ohio including, but not limited to, the right to demand and receive the Collateral from any of the depositories designated above. To the extent permitted by applicable law, Debtor waives all claims, damages and demands against Bank arising out of Bank's collection, receipt, retention or disposition of the Collateral including, but not limited to, any claim based upon the early withdrawal or redemption of the Collateral by Bank. Debtor shall remain liable for any deficiency if the Collateral is insufficient to pay all amounts to which Bank is entitled. Debtor shall also be liable for the costs of collecting any of the Obligations or otherwise enforcing the terms thereof or of this agreement including reasonable attorneys' fees to the extent permitted by law.

6.    General. Debtor agrees that if Bank is the depository for any Account, Bank may reduce the rate of interest on such Account, at any time and from time to time, in order to comply with any laws or regulations, including those that require the rate of interest applicable to any Obligation to exceed any rate of interest payable with respect to such Account. Any provision of this agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Bank shall not be deemed to have waived any of its rights hereunder or under any other agreement, instrument or paper signed by Debtor unless such waiver be in writing and signed by Bank. No delay or omission on the part of Bank in exercising any right shall operate as a waiver of such right or any other right. All of Bank's rights and remedies, whether evidenced hereby or by any other agreement, instrument or paper, shall be cumulative and may be exercised singularly or concurrently. Any written demand upon or written notice to the Debtor shall be given in accordance with the Loan Agreement shall be effective when deposited in the mails addressed to the Debtor at the address shown at the beginning of this Agreement. This agreement and all rights and obligations hereunder, including matters of construction, validity and performance, shall be governed by the law of the State of Ohio. The provisions hereof shall, as the case may require, bind or inure to the benefit of, the respective heirs, successors, legal representatives and assigns of Debtor and Bank..

[Remainder of This Page Intentionally Left Blank]

IN WITNESS WHEREOF, Debtor has signed this Agreement as of the date first above written.

DEBTOR:

M/I HOMES, INC., an Ohio corporation

By: _____________________                

Print Name: Phillip G. Creek    

Its: Exec VP & CFO        

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Robert H. Schottenstein, certify that:
1.	I have reviewed this Quarterly Report on Form 10-Q of M/I Homes, Inc. for the fiscal quarter ended September 30, 2017;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/Robert H. Schottenstein	Date:	October 27, 2017
Robert H. Schottenstein
Chairman, Chief Executive Officer and
President

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Phillip G. Creek, certify that:
1.	I have reviewed this Quarterly Report on Form 10-Q of M/I Homes, Inc. for the fiscal quarter ended September 30, 2017;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/Phillip G. Creek	Date:	October 27, 2017
Phillip G. Creek
Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of M/I Homes, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert H. Schottenstein, Chairman, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/Robert H. Schottenstein	Date:	October 27, 2017
Robert H. Schottenstein
Chairman, Chief Executive Officer and
President

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of M/I Homes, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Phillip G. Creek, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/Phillip G. Creek	Date:	October 27, 2017
Phillip G. Creek
Executive Vice President and Chief Financial Officer

XML

DEI Document - shares	9 Months Ended
	Sep. 30, 2017	Oct. 25, 2017
Entity Information [Line Items]
Entity Registrant Name	M I HOMES INC
Entity Central Index Key	0000799292
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		27,520,632

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS:
Cash, cash equivalents and restricted cash	$ 103,636	$ 34,441
Mortgage loans held for sale	91,987	154,020
Inventory	1,455,809	1,215,934
Property and equipment - net	25,320	22,299
Investment in joint venture arrangements	22,981	28,016
Deferred income taxes	29,569	30,875
Other assets	55,393	62,926
Total assets	1,784,695	1,548,511
LIABILITIES:
Accounts payable	120,598	103,212
Customer deposits	30,583	22,156
Other liabilities	108,870	123,162
Preferred shares subject to redemption	50,420	0
Community development district obligations	5,298	476
Obligation for consolidated inventory not owned	22,203	7,528
Notes payable bank - homebuilding operations	0	40,300
Notes payable bank - financial service operations	91,275	152,895
Notes payable - other	4,057	6,415
Convertible senior subordinated notes due 2017 - net	0	57,093
Convertible senior subordinated notes due 2018 - net	85,955	85,423
Senior notes due 2021 - net	296,505	295,677
Senior notes due 2025 - net	245,958	0
TOTAL LIABILITIES	1,061,722	894,337
Commitments and contingencies (Note 6)	0	0
SHAREHOLDERS' EQUITY:
Preferred shares - $.01 par value; authorized 2,000,000 shares; 2,000 shares issued at both September 30, 2017 and December 31, 2016; 2,000 shares outstanding as of December 31, 2016 (excluding the 2,000 shares subject to redemption at September 30, 2017)	0	48,163
Common shares - $.01 par value; authorized 58,000,000 shares at both September 30, 2017 and December 31, 2016; issued 29,508,626 and 27,092,723 shares at September 30, 2017 and December 31, 2016, respectively	295	271
Additional paid-in capital	304,715	246,549
Retained earnings	457,447	407,161
Treasury shares - at cost - 1,987,994 and 2,415,290 shares at September 30, 2017 and December 31, 2016, respectively	(39,484)	(47,970)
TOTAL SHAREHOLDERS' EQUITY	722,973	654,174
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,784,695	$ 1,548,511

XML

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Parentheticals - Balance Sheet [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	58,000,000	58,000,000
Common Stock, Shares, Issued	29,508,626	27,092,723
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Preferred Stock, Shares Issued	2,000	2,000
Preferred Stock, Shares Outstanding	0	2,000
Treasury Stock, Shares	1,987,994	2,415,290

XML

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue	$ 476,423	$ 442,464	$ 1,340,269	$ 1,168,081
Costs and Expenses [Abstract]
Land and housing	374,673	363,635	1,062,552	943,515
General and administrative	31,337	29,160	89,209	78,249
Selling	31,136	27,663	88,666	75,462
Equity in income of joint venture arrangements	(71)	(24)	(198)	(413)
Interest	4,675	3,587	13,847	13,160
Total costs and expenses	441,750	424,021	1,254,076	1,109,973
Income before income taxes	34,673	18,443	86,193	58,108
Provision for income taxes	12,346	7,501	29,994	22,061
Net income	22,327	10,942	56,199	36,047
Preferred Dividends	1,218	1,218	3,656	3,656
Excess of fair value over book value of preferred shares redeemed	2,257	0	2,257	0
Net income to common shareholders	$ 18,852	$ 9,724	$ 50,286	$ 32,391
Earnings per common share:
Basic	$ 0.74	$ 0.39	$ 2.00	$ 1.31
Diluted	$ 0.64	$ 0.35	$ 1.73	$ 1.17
Weighted Average Number of Shares Outstanding [Abstract]
Basic	25,581	24,669	25,106	24,665
Diluted	30,675	30,139	30,539	30,093

XML

Condensed Consolidated Statement of Shareholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Total	Preferred Shares [Member]	Common Shares [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Shares [Member]
Shares Outstanding, Beginning Balance at Dec. 31, 2016		2,000	24,677,433
Stockholders' Equity, Beginning Balance at Dec. 31, 2016	$ 654,174	$ 48,163	$ 271	$ 246,549	$ 407,161	$ (47,970)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	56,199				56,199
Fair value over carrying value of preferred shares subject to redemption	0	$ 2,257			(2,257)
Dividends declared to preferred shareholders	(3,656)				(3,656)
Proceeds from issuance of common shares for conversion of convertible notes	57,500		$ 24	57,476
Stock Issued During Period, Shares, New Issues			2,415,903
Stock Redeemed or Called During Period, Shares		(2,000)
Stock Repurchased and Retired During Period, Value	(50,420)	$ (50,420)
Stock options exercised, shares			342,661
Stock options exercised	4,791			(2,014)		6,805
Stock-based compensation expense	4,034			4,034
Deferral of executive and director compensation	351			351
Executive and director deferred compensation distributions shares			84,635
Executive and director deferred compensation distributions	0			(1,681)		1,681
Shares Outstanding, Ending Balance at Sep. 30, 2017		0	27,520,632
Stockholders' Equity, Ending Balance at Sep. 30, 2017	$ 722,973	$ 0	$ 295	$ 304,715	$ 457,447	$ (39,484)

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES:
Net income	$ 56,199	$ 36,047
Adjustments to reconcile net income to net cash used in operating activities:
Equity in income of joint venture arrangements	(198)	(413)
Mortgage loan originations	(732,587)	(654,905)
Proceeds from the sale of mortgage loans	798,946	687,420
Fair value adjustment of mortgage loans held for sale	(4,326)	(1,059)
Capitalization of originated mortgage servicing rights	(3,873)	(4,350)
Amortization of mortgage servicing rights	789	1,262
Depreciation	7,078	6,328
Amortization of debt discount and debt issue costs	2,632	2,552
Stock-based compensation expense	4,034	3,483
Deferred income tax expense	1,306	20,911
Change in assets and liabilities:
Inventory	(212,660)	(96,510)
Other assets	4,763	(16,364)
Accounts payable	17,386	23,301
Customer deposits	8,427	6,872
Accrued compensation	(9,341)	(6,073)
Other liabilities	(4,600)	18,000
Net cash (used in) provided by operating activities	(66,025)	26,502
INVESTING ACTIVITIES:
Purchase of property and equipment	(6,017)	(11,619)
Return of investment from Investment in joint venture arrangements	1,833	0
Investment in joint venture arrangements	(8,439)	(10,060)
Net proceeds from sale of mortgage servicing rights	7,558	0
Net cash provided by (used in) investing activities	(5,065)	(21,679)
FINANCING ACTIVITIES:
Net proceeds from issuance of senior notes	250,000	0
Proceeds from bank borrowings - homebuilding operations	366,500	276,800
Principal repayments of bank borrowings - homebuilding operations	(406,800)	(235,600)
Net repayment of bank borrowings - financial services operations	(61,620)	(32,165)
(Principal repayment of) proceeds from notes payable - other and community development district bond obligations	(2,358)	125
Dividends paid on preferred shares	(3,656)	(3,656)
Debt issue costs	(6,572)	(193)
Proceeds from exercise of stock options	4,791	73
Net cash (used in) provided by financing activities	140,285	5,384
Net increase (decrease) in cash and cash equivalents	69,195	10,207
Cash and cash equivalents balance at beginning of period	34,441	13,101
Cash and cash equivalents balance at end of period	103,636	23,308
SUPPLEMENTAL DISCLOSURE OF CASH PAID DURING THE YEAR:
Interest — net of amount capitalized	15,386	8,919
Income taxes	27,702	2,073
NON-CASH TRANSACTIONS DURING THE PERIOD
Community development district infrastructure	4,822	(467)
Consolidated inventory not owned	14,675	(145)
Distribution of single-family lots from joint venture arrangements	11,839	20,912
Common stock issued for conversion of convertible notes	57,500	0
Reclassification of preferred shares subject to redemption	$ 50,420	$ 0

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2017

Basis of Presentation [Abstract]

Basis of Accounting [Text Block]

Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements (the “financial statements”) of M/I Homes, Inc. and its subsidiaries (the “Company”) and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The financial statements include the accounts of the Company. All intercompany transactions have been eliminated. Results for the interim period are not necessarily indicative of results for a full year. In the opinion of management, the accompanying financial statements reflect all adjustments (all of which are normal and recurring in nature) necessary for a fair presentation of financial results for the interim periods presented. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”).

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during that period. Actual results could differ from these estimates and have a significant impact on the financial condition and results of operations and cash flows. With regard to the Company, estimates and assumptions are inherent in calculations relating to valuation of inventory and investment in unconsolidated joint ventures, property and equipment depreciation, valuation of derivative financial instruments, accounts payable on inventory, accruals for costs to complete inventory, accruals for warranty claims, accruals for self-insured general liability claims, litigation, accruals for health care and workers’ compensation, accruals for guaranteed or indemnified loans, stock-based compensation expense, income taxes, and contingencies. Items that could have a significant impact on these estimates and assumptions include the risks and uncertainties listed in “Item 1A. Risk Factors” in Part I of our 2016 Form 10-K, as the same may be updated from time to time in our subsequent filings with the SEC, including the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.

Reclassifications

Certain financial statement line items reflected on the September 30, 2016 Statement of Cash Flows were affected by the Company’s early adoption of Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows: Restricted Cash (“ASU 2016-18”) during the fourth quarter of 2016 as a result of the change in accounting principle.

Recently Adopted Accounting Standards

In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted the new standard in the first quarter of 2017. Excess tax benefits or deficiencies for stock-based compensation are now reflected in the Condensed Consolidated Statements of Income as a component of income tax expense, whereas previously they were recognized in equity. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and disclosures.

Impact of New Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delayed the effective date of ASU 2014-09 by one year. ASU 2014-09, as amended, is effective for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.

Subsequent to the issuance of ASU 2014-09, the FASB has issued several ASUs, such as ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. These ASUs do not change the core principle of the guidance stated in ASU 2014-09. Instead, these amendments are intended to clarify and improve the operability of certain topics addressed by ASU 2014-09. These additional ASUs will have the same effective date and transition requirements as ASU 2014-09, as amended. See below for additional explanation of each of these additional ASUs. The Company does not believe the adoption of these additional ASUs will have a material impact on our consolidated financial statements.

The new standard is effective for our fiscal year beginning January 1, 2018, and, at that time, we currently anticipate adopting the standard using the cumulative catch-up transition method. We anticipate this standard will not have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we expect the amount and timing of our housing revenue to remain substantially unchanged. Due to the complexity of certain of our land contracts, however, the actual revenue recognition treatment required under the standard for land sales will depend on contract-specific terms. We do not expect significant changes to our business processes, systems, or internal controls as a result of adopting the standard. However, we continue to evaluate the impact of the revised disclosure requirements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 will require organizations that lease assets - referred to as “lessees” - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities will expand to include qualitative and specific quantitative information. For public entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method. The Company is currently evaluating the potential impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance stated in ASU 2014-09 on principal versus agent considerations and whether an entity reports revenue on a gross or net basis.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”).  ASU 2016-10 provides guidance on identifying performance obligations and licensing. This update clarifies the guidance in ASU 2014-09 relating to identifying performance obligations and licensing.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients (“ASU 2016-12”). ASU 2016-12 provides for amendments to ASU 2014-09 regarding transition, collectability, noncash consideration, and presentation of sales tax and other similar taxes.  Specifically, ASU 2016-12 clarifies that, for a contract to be considered completed at transition, all or substantially all of the revenue must have been recognized under legacy GAAP. In addition, ASU 2016-12 clarifies how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2016-15 will modify the Company's current disclosures and reclassifications within the condensed consolidated statement of cash flows but is not expected to have a material effect on the Company’s consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which provides a more robust framework for determining whether transactions should be accounted for as acquisitions (or dispositions) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the potential impact the adoption of ASU 2017-01 will have on the Company’s consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early application is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not believe the adoption of ASU 2017-04 will have a material impact on the Company’s consolidated financial statements and disclosures.

In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”). ASU 2017-05 is intended to clarify the scope of the original guidance within Subtopic 610-20 that was issued in connection with ASU 2014-09, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. ASU 2017-05 additionally added guidance for partial sales of nonfinancial assets. ASU 2017-05 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are required to adopt ASU 2017-05 concurrent with the adoption of ASU 2014-09. The Company is currently evaluating the potential impact the adoption of ASU 2017-05 will have on the Company’s consolidated financial statements and disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”), which shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public entities, ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company does not believe the adoption of ASU 2017-08 will have a material impact on the Company’s consolidated financial statements and disclosures.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”), which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. For all entities, ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not believe the adoption of ASU 2017-09 will have a material impact on the Company’s consolidated financial statements and disclosures.

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Inventory and Capitalized Interest

9 Months Ended

Sep. 30, 2017

Inventory [Abstract]

Inventory Disclosure [Text Block]

Inventory and Capitalized Interest

Inventory

Inventory is recorded at cost, unless events and circumstances indicate that the carrying value of the land is impaired, at which point the inventory is written down to fair value (see Note 4 for additional details relating to our procedures for evaluating our inventories for impairment). Inventory includes the costs of land acquisition, land development and home construction, capitalized interest, real estate taxes, direct overhead costs incurred during development and home construction, and common costs that benefit the entire community, less impairments, if any.

A summary of the Company’s inventory as of September 30, 2017 and December 31, 2016 is as follows:

(In thousands)	September 30, 2017		December 31, 2016
Single-family lots, land and land development costs	$	663,170	$	602,528
Land held for sale	12,330		12,155
Homes under construction	645,816		494,664
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2017 - $12,929;    December 31, 2016 - $11,835)	75,618		68,727
Community development district infrastructure	5,298		476
Land purchase deposits	31,374		29,856
Consolidated inventory not owned	22,203		7,528
Total inventory	$	1,455,809	$	1,215,934

Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home.

Homes under construction include homes that are in various stages of construction. As of September 30, 2017 and December 31, 2016, we had 1,168 homes (with a carrying value of $238.9 million) and 996 homes (with a carrying value of $199.4 million), respectively, included in homes under construction that were not subject to a sales contract.

Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, which is typically three years.

We own lots in certain communities in Florida that have Community Development Districts (“CDDs”). The Company records a liability for the estimated developer obligations that are probable and estimable and user fees that are required to be paid or transferred at the time the parcel or unit is sold to an end user.  The Company reduces this liability at the time of closing and the transfer of the property.  The Company recorded a $5.3 million and $0.5 million liability related to these CDD bond obligations as of September 30, 2017 and December 31, 2016, respectively, along with the related inventory infrastructure.

Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company expenses any deposits and accumulated pre-acquisition costs relating to such agreement.

Capitalized Interest

The Company capitalizes interest during land development and home construction.  Capitalized interest is charged to land and housing costs and expensed as the related inventory is delivered to a third party.  The summary of capitalized interest for the three and nine months ended September 30, 2017 and 2016 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Capitalized interest, beginning of period	$	16,465		$	16,818		$	16,012		$	16,740
Interest capitalized to inventory	6,178			5,139			15,240			13,392
Capitalized interest charged to land and housing costs and expenses	(4,988		)	(4,963		)	(13,597		)	(13,138		)
Capitalized interest, end of period	$	17,655		$	16,994		$	17,655		$	16,994
Interest incurred	$	10,853		$	8,726		$	29,087		$	26,552

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Investment in Unconsolidated Joint Ventures (Notes)

9 Months Ended

Sep. 30, 2017

Schedule of Equity Method Investments [Line Items]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 3. Investment in Joint Venture Arrangements

Investment in Joint Venture Arrangements

In order to minimize our investment and risk of land exposure in a single location, we have periodically partnered with other land developers or homebuilders to share in the land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. During the nine-month period ended September 30, 2017, we decreased our total investment in such joint venture arrangements by $5.0 million from $28.0 million at December 31, 2016 to $23.0 million at September 30, 2017, which was driven primarily by our increased lot distributions from unconsolidated joint ventures of $11.8 million, offset, in part, by our cash contributions to our unconsolidated joint ventures during the first nine months of 2017 of $8.4 million.

We believe that the Company’s maximum exposure related to its investment in these joint venture arrangements as of September 30, 2017 is the amount invested of $23.0 million, which is reported as Investment in Joint Venture Arrangements on our Unaudited Condensed Consolidated Balance Sheets, although we expect to invest further amounts in these joint venture arrangements as development of the properties progresses.

We use the equity method of accounting for investments in unconsolidated joint ventures over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the unconsolidated joint ventures’ earnings or loss, if any, is included in our consolidated statement of income. The Company assesses its investments in unconsolidated joint ventures for recoverability on a quarterly basis. Refer to Note 4 for additional details relating to our procedures for evaluating our investments for impairment.

For joint venture arrangements where a special purpose entity is established to own the property, we generally enter into limited liability company or similar arrangements (“LLCs”) with the other partners. The Company’s ownership in these LLCs as of September 30, 2017 ranged from 25% to 97% and at December 31, 2016 ranged from 25% to 74%. These entities typically engage in land development activities for the purpose of distributing or selling developed lots to the Company and its partners in the LLC.

Variable Interest Entities

With respect to our investments in these LLCs, we are required, under ASC 810-10, Consolidation (“ASC 810”), to evaluate whether or not such entities should be consolidated into our consolidated financial statements. We initially perform these evaluations when each new entity is created and upon any events that require reconsideration of the entity. See Note 1, “Summary of Significant Accounting Policies - Variable Interest Entities” in the Company’s 2016 Form 10-K for additional information regarding the Company’s methodology for evaluating entities for consolidation.

Land Option Agreements

In the ordinary course of business, the Company enters into land option or purchase agreements for which we generally pay non-refundable deposits. Pursuant to these land option agreements, the Company provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. In accordance with ASC 810, we analyze our land option or purchase agreements to determine whether the corresponding land sellers are VIEs and, if so, whether we are the primary beneficiary, as further described in Note 1, “Summary of Significant Accounting Policies - Land Option Agreements” in the Company’s 2016 Form 10-K. If we are deemed to be the primary beneficiary of the VIE, we will consolidate the VIE in our consolidated financial statements and reflect such assets and liabilities in our Consolidated Inventory not Owned in our Unaudited Condensed Consolidated Balance Sheets. At both September 30, 2017 and December 31, 2016, we concluded that we were not the primary beneficiary of any VIEs from which we are purchasing land under option or purchase agreements.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Assets Measured on a Recurring Basis

The Company measures both mortgage loans held for sale and interest rate lock commitments (“IRLCs”) at fair value. Fair value measurement results in a better presentation of the changes in fair values of the loans and the derivative instruments used to economically hedge them.

In the normal course of business, our financial services segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates.  The commitments become effective when the borrowers “lock-in” a specified interest rate within established time frames.  Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to an investor.  To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers.  The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.  The Company does not engage in speculative trading or derivative activities.  Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers or investors are undesignated derivatives, and accordingly, are marked to fair value through earnings.  Changes in fair value measurements are included in earnings in the accompanying statements of income.

The fair value of mortgage loans held for sale is estimated based primarily on published prices for mortgage-backed securities with similar characteristics.  To calculate the effects of interest rate movements, the Company utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount.  The Company sells loans on a servicing released or servicing retained basis, and receives servicing compensation.  Thus, the value of the servicing rights included in the fair value measurement is based upon contractual terms with investors and depends on the loan type. The Company applies a fallout rate to IRLCs when measuring the fair value of rate lock commitments.  Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan and is based on management’s judgment and company experience.

The fair value of the Company’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date.  The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Interest Rate Lock Commitments. IRLCs are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a term of less than six months; however, in certain markets, the term could extend to nine months.

Some IRLCs are committed to a specific third party investor through the use of best-efforts whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings.

Forward Sales of Mortgage-Backed Securities. Forward sales of mortgage-backed securities (“FMBSs”) are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings.

Mortgage Loans Held for Sale.Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property.  Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination.  During the period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a best-efforts contract or by FMBSs.

The table below shows the notional amounts of our financial instruments at September 30, 2017 and December 31, 2016:

Description of Financial Instrument (in thousands)	September 30, 2017		December 31, 2016
Best efforts contracts and related committed IRLCs	$	2,571	$	6,607
Uncommitted IRLCs	105,104		66,875
FMBSs related to uncommitted IRLCs	105,000		66,000
Best efforts contracts and related mortgage loans held for sale	10,423		125,348
FMBSs related to mortgage loans held for sale	81,000		33,000
Mortgage loans held for sale covered by FMBSs	81,244		32,870

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2017 and December 31, 2016:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	91,987		$	—	$	91,987		$	—
Forward sales of mortgage-backed securities	471			—		471			—
Interest rate lock commitments	366			—		366			—
Best-efforts contracts	(60		)	—		(60		)	—
Total	$	92,764		$	—	$	92,764		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	154,020		$	—	$	154,020		$	—
Forward sales of mortgage-backed securities	230			—		230			—
Interest rate lock commitments	250			—		250			—
Best-efforts contracts	(90		)	—		(90		)	—
Total	$	154,410		$	—	$	154,410		$	—

The following table sets forth the amount of gain (loss) recognized, within our revenue in the Unaudited Condensed Consolidated Statements of Income, on assets and liabilities measured on a recurring basis for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2017			2016			2017		2016
Mortgage loans held for sale	$	(64	)	$	(1,127	)	$	4,326	$	1,059
Forward sales of mortgage-backed securities	(128		)	1,443			241		(245		)
Interest rate lock commitments	22			(531		)	116		388
Best-efforts contracts	(41		)	15			30		31
Total (loss) gain recognized	$	(211	)	$	(200	)	$	4,713	$	1,233

The following tables set forth the fair value of the Company’s derivative instruments and their location within the Unaudited Condensed Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which is disclosed as a separate line item):

	Asset Derivatives			Liability Derivatives
	September 30, 2017			September 30, 2017
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	471	Other liabilities	$	—
Interest rate lock commitments	Other assets	366		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	60
Total fair value measurements		$	837		$	60

	Asset Derivatives			Liability Derivatives
	December 31, 2016			December 31, 2016
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	230	Other liabilities	$	—
Interest rate lock commitments	Other assets	250		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	90
Total fair value measurements		$	480		$	90

Assets Measured on a Non-Recurring Basis

Inventory. The Company assesses inventory for recoverability on a quarterly basis based on the difference in the carrying value of the inventory and its fair value at the time of the evaluation. Determining the fair value of a community’s inventory involves a number of variables, estimates and projections, which are Level 3 measurement inputs. See Note 1, “Summary of Significant Accounting Policies - Inventory” in the Company’s 2016 Form 10-K for additional information regarding the Company’s methodology for determining fair value.

The Company uses significant assumptions to evaluate the recoverability of its inventory, such as estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates. Changes in these assumptions could materially impact future cash flow and fair value estimates and may lead the Company to incur additional impairment charges in the future. Our analysis is conducted only if indicators of a decline in value of our inventory exist, which include, among other things, declines in gross margin on sales contracts in backlog or homes that have been delivered, slower than anticipated absorption pace, declines in average sales price or high incentive offers by management to improve absorptions, declines in margins regarding future land sales, or declines in the value of the land itself as a result of third party appraisals. If communities are not recoverable based on the estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. During the three and nine months ended September 30, 2017 and 2016, the Company did not record any impairment charges on its inventory.

Investment in Unconsolidated Joint Ventures. We evaluate our investments in unconsolidated joint ventures for impairment on a quarterly basis based on the difference in the investment’s carrying value and its fair value at the time of the evaluation. If the Company has determined that the decline in value is other than temporary, the Company would write down the value of the investment to its estimated fair value. Determining the fair value of investments in unconsolidated joint ventures involves a number of variables, estimates and assumptions, which are Level 3 measurement inputs. See Note 1, “Summary of Significant Accounting Policies - Investment in Unconsolidated Joint Ventures,” in the Company’s 2016 Form 10-K for additional information regarding the Company’s methodology for determining fair value. Because of the high degree of judgment involved in developing these assumptions, it is possible that changes in these assumptions could materially impact future cash flow and fair value estimates of the investments which may lead the Company to incur additional impairment charges in the future. During the nine months ended September 30, 2017 and 2016, the Company did not record any impairment charges on its investments in unconsolidated joint ventures.

Financial Instruments

Counterparty Credit Risk. To reduce the risk associated with losses that would be recognized if counterparties failed to perform as contracted, the Company limits the entities with whom management can enter into commitments. This risk of accounting loss is the difference between the market rate at the time of non-performance by the counterparty and the rate to which the Company committed.

The following table presents the carrying amounts and fair values of the Company’s financial instruments at September 30, 2017 and December 31, 2016. The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions.

	September 30, 2017				December 31, 2016
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	103,636	$	103,636	$	34,441	$	34,441
Mortgage loans held for sale	91,987		91,987		154,020		154,020
Split dollar life insurance policies	212		212		214		214
Notes receivable	—		—		763		687
Commitments to extend real estate loans	366		366		250		250
Forward sales of mortgage-backed securities	471		471		230		230
Liabilities:
Notes payable - homebuilding operations	—		—		40,300		40,300
Notes payable - financial services operations	91,275		91,275		152,895		152,895
Notes payable - other	4,057		3,867		6,415		5,999
Convertible senior subordinated notes due 2017 (a)	—		—		57,500		65,957
Convertible senior subordinated notes due 2018 (a)	86,250		86,897		86,250		88,105
Senior notes due 2021 (a)	300,000		313,125		300,000		314,250
Senior notes due 2025 (a)	250,000		255,000		—		—
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	60		60		90		90
Off-Balance Sheet Financial Instruments:
Letters of credit	—		757		—		702

(a) Our senior notes and convertible senior subordinated notes are stated at the principal amount outstanding which does not include the impact of premiums, discounts, and debt issuance costs that are amortized to interest cost over the respective terms of the notes.

The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at September 30, 2017 and December 31, 2016:

Cash, Cash Equivalents and Restricted Cash. The carrying amounts of these items approximate fair value because they are short-term by nature.

Mortgage Loans Held for Sale, Forward Sales of Mortgage-Backed Securities, Commitments to Extend Real Estate Loans, Best-Efforts Contracts for Committed IRLCs and Mortgage Loans Held for Sale, Convertible Senior Subordinated Notes due 2017, Convertible Senior Subordinated Notes due 2018, Senior Notes due 2021 and Senior Notes due 2025. The fair value of these financial instruments was determined based upon market quotes at September 30, 2017 and December 31, 2016. The market quotes used were quoted prices for similar assets or liabilities along with inputs taken from observable market data by correlation. The inputs were adjusted to account for the condition of the asset or liability.

Split Dollar Life Insurance Policy and Notes Receivable. The estimated fair value was determined by calculating the present value of the amounts based on the estimated timing of receipts using discount rates that incorporate management’s estimate of risk associated with the corresponding note receivable.

Notes Payable - Homebuilding Operations. The interest rate available to the Company at September 30, 2017 under the Company’s $475 million unsecured revolving credit facility, dated July 18, 2013, as most recently amended on July 18, 2017 (the “Credit Facility”) fluctuated daily with the one-month LIBOR rate plus a margin of 250 basis points, and thus the carrying value is a reasonable estimate of fair value. Refer to Note 7 for additional information regarding the Credit Facility.

Notes Payable - Financial Services Operations. M/I Financial, LLC (“M/I Financial”) is a party to two credit agreements: (1) a $125 million secured mortgage warehousing agreement (which increases to $150 million during certain periods), dated June 24, 2016, as amended on June 23, 2017 (the “MIF Mortgage Warehousing Agreement”); and (2) a $35 million mortgage repurchase agreement, dated November 3, 2015, as most recently amended on May 16, 2017 (the “MIF Mortgage Repurchase Facility”). For each of these credit facilities, the interest rate is based on a variable rate index, and thus their carrying value is a reasonable estimate of fair value. The interest rate available to M/I Financial during the third quarter of 2017 fluctuated with LIBOR. Refer to Note 7 for additional information regarding the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility.

Notes Payable - Other. The estimated fair value was determined by calculating the present value of the future cash flows using the Company’s current incremental borrowing rate.

Letters of Credit. Letters of credit of $41.4 million and $37.7 million represent potential commitments at September 30, 2017 and December 31, 2016, respectively. The letters of credit generally expire within one or two years. The estimated fair value of letters of credit was determined using fees currently charged for similar agreements.

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Guarantees and Indemnifications

9 Months Ended

Sep. 30, 2017

Guarantees [Abstract]

Guarantees [Text Block]

Guarantees and Indemnifications

In the ordinary course of business, M/I Financial, a 100%-owned subsidiary of M/I Homes, Inc., enters into agreements that guarantee certain purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur, primarily if the mortgagor does not meet the terms of the loan within the first six months after the sale of the loan. Loans totaling approximately $36.7 million and $27.6 million were covered under these guarantees as of September 30, 2017 and December 31, 2016, respectively.  The increase in loans covered by these guarantees from December 31, 2016 is a result of a change in the mix of investors and their related purchase terms.  A portion of the revenue paid to M/I Financial for providing the guarantees on these loans was deferred at September 30, 2017, and will be recognized in income as M/I Financial is released from its obligation under the guarantees. The risk associated with the guarantees above is offset by the value of the underlying assets.

M/I Financial has received inquiries concerning underwriting matters from purchasers of its loans regarding certain loans totaling approximately $0.6 million and $0.9 million at September 30, 2017 and December 31, 2016, respectively.

M/I Financial has also guaranteed the collectability of certain loans to third party insurers (U.S. Department of Housing and Urban Development and U.S. Veterans Administration) of those loans for periods ranging from five to thirty years. As of September 30, 2017 and December 31, 2016, the total of all loans indemnified to third party insurers relating to the above agreements was $1.3 million and $1.6 million, respectively. The maximum potential amount of future payments is equal to the outstanding loan value less the value of the underlying asset plus administrative costs incurred related to foreclosure on the loans, should this event occur.

The Company recorded a liability relating to the guarantees described above totaling $0.7 million and $0.9 million at September 30, 2017 and December 31, 2016, respectively, which is management’s best estimate of the Company’s liability.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Warranty

We use subcontractors for nearly all aspects of home construction. Although our subcontractors are generally required to repair and replace any product or labor defects, we are, during applicable warranty periods, ultimately responsible to the homeowner for making such repairs. As such, we record warranty reserves to cover our exposure to the costs for materials and labor not expected to be covered by our subcontractors to the extent they relate to warranty-type claims. Warranty reserves are established by charging cost of sales and crediting a warranty reserve for each home delivered. Warranty reserves are recorded for warranties under our Home Builder’s Limited Warranty (“HBLW”), and our 30-year (offered on all homes sold after April 25, 1998 and on or before December 1, 2015 in all of our markets except our Texas markets), 15-year (offered on all homes sold after December 1, 2015 in all of our markets except our Texas markets) or 10-year (offered on all homes sold in our Texas markets) transferable structural warranty in Other Liabilities on the Company’s Unaudited Condensed Consolidated Balance Sheets.

The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in quality of construction expected to impact future warranty expenditures; and (6) conditions that may affect certain projects and require a different percentage of average sales price for those specific projects. Changes in estimates for warranties occur due to changes in the historical payment experience and differences between the actual payment pattern experienced during the period and the historical payment pattern used in our evaluation of the warranty reserve balance at the end of each quarter. Actual future warranty costs could differ from our current estimated amount.

Our warranty reserves for our transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house is delivered, the sufficiency of the structural warranty per unit charge and total reserve is re-evaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors.

While we believe that our warranty reserves are sufficient to cover our projected costs, there can be no assurances that historical data and trends will accurately predict our actual warranty costs.

A summary of warranty activity for the three and nine months ended September 30, 2017 and 2016 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Warranty reserves, beginning of period	$	30,303		$	15,815		$	27,732		$	14,281
Warranty expense on homes delivered during the period	2,882			2,755			8,094			7,276
Changes in estimates for pre-existing warranties	92			526			1,154			563
Charges related to stucco-related claims (a)	—			14,500			8,500			19,409
Settlements made during the period	(6,209		)	(5,658		)	(18,412		)	(13,591		)
Warranty reserves, end of period	$	27,068		$	27,938		$	27,068		$	27,938

(a) Estimated stucco-related claim costs, as described below, have been included in warranty accruals.

We have received claims related to stucco installation from homeowners in certain of our communities in our Tampa and Orlando, Florida markets and have been named as a defendant in legal proceedings initiated by certain of such homeowners. These claims primarily relate to homes built prior to 2014 which have second story elevations with frame construction.

During 2015, we repaired certain of the identified homes and accrued for the estimated future cost of repairs for the other identified homes on which repairs had yet to be completed. The aggregate amounts of such repair costs and accruals were not material, and the reserve for identified homes in need of more than minor repair at December 31, 2015 was $0.5 million.

During 2016, based on our review of the stucco issues in our Florida communities, we recorded a $19.4 million warranty charge for stucco-related repair costs for (1) homes in our Florida communities that we had identified as needing repair but had not yet completed the repair and (2) estimated repair costs for homes in our Florida communities that we had not yet identified as needing repair but that may require repair in the future.

During 2017, we have continued our review of the stucco issues in our Florida communities. Based on an analysis of the relevant data, including additional data that we had gathered during the period since the 2016 review, in the second quarter of 2017, we determined to increase our previous estimate of the future stucco-related repair costs in our Florida communities. As a result, during the second quarter of 2017, we recorded an additional $8.5 million warranty charge for stucco-related repairs in our Florida communities, which was included as a change in estimate within our warranty reserve. The remaining reserve for both known repair costs and an estimate of future costs of stucco-related repairs at September 30, 2017 included within our warranty reserve was $11.3 million. We believe that this amount is sufficient to cover both known and estimated future repair costs as of September 30, 2017.

Our review of the stucco-related issues in our Florida communities is ongoing. Our estimate of future costs of stucco-related repairs is based on our judgment, various assumptions and internal data. Due to the degree of judgment and the potential for variability in our underlying assumptions and data, as we obtain additional information, we may revise our estimate, including to reflect additional estimated future stucco repairs costs, which revision could be material.

We also are continuing to investigate the extent to which we may be able to recover a portion of our stucco repair and claims handling costs from other sources, including our direct insurers, the subcontractors involved with the construction of the homes and their insurers. As of September 30, 2017, we are unable to estimate an amount, if any, that we believe is probable that we will recover from these sources and, accordingly, we have not recorded a receivable for estimated recoveries nor included an estimated amount of recoveries in determining our warranty reserves.

Performance Bonds and Letters of Credit

At September 30, 2017, the Company had outstanding approximately $167.7 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through September 2024. Included in this total are: (1) $118.8 million of performance and maintenance bonds and $32.9 million of performance letters of credit that serve as completion bonds for land development work in progress; (2) $8.5 million of financial letters of credit, of which $7.8 million represent deposits on land and lot purchase agreements; and (3) $7.5 million of financial bonds.

Land Option Contracts and Other Similar Contracts

At September 30, 2017, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $672.9 million. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers.

Legal Matters

In addition to the legal proceedings related to stucco, the Company and certain of its subsidiaries have been named as defendants in certain other legal proceedings which are incidental to our business. While management currently believes that the ultimate resolution of these other legal proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial position, results of operations and cash flows, such legal proceedings are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these other legal proceedings. However, the possibility exists that the costs to resolve these legal proceedings could differ from the recorded estimates and, therefore, have a material effect on the Company’s net income for the periods in which they are resolved. At September 30, 2017 and December 31, 2016, we had $0.4 million and $0.3 million reserved for legal expenses, respectively.

Self-insurance Reserves.

Our general liability claims are insured by a third party, subject to a deductible. Effective for home closings occurring on or after July 1, 2017, the Company renewed its general liability insurance coverage which, among other things, changed the structure of our completed operations/construction defect deductible to $10.0 million for the entire company (for closings prior to July 1, 2017, our completed operations/construction defect deductible was $7.5 million for each of our regions), and decreased our third party claims deductible to $250,000 (a decrease from $500,000 for closings prior to July 1, 2017). The Company records a reserve for general liability claims falling below the Company’s deductible. The reserve estimate is based on an actuarial evaluation of our past history of general liability claims, other industry specific factors and specific event analysis.

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Debt

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt

Notes Payable - Homebuilding

The Credit Facility provides for an aggregate commitment amount of $475 million, including a $125 million sub-facility for letters of credit. In addition, the Credit Facility has an accordion feature under which the Company may increase the aggregate commitment amount up to $500 million, subject to certain conditions, including obtaining additional commitments from existing or new lenders. The Credit Facility expires on July 18, 2021. Interest on amounts borrowed under the Credit Facility is payable at a rate which is adjusted daily and is equal to the sum of the one-month LIBOR rate plus a margin of 250 basis points. The margin is subject to adjustment in subsequent quarterly periods based on the Company’s leverage ratio. The Credit Facility also contains certain financial covenants. At September 30, 2017, the Company was in compliance with all financial covenants of the Credit Facility.

The available amount under the Credit Facility is computed in accordance with a borrowing base, which is calculated by applying various advance rates for different categories of inventory, and totaled $512.1 million of availability for additional senior debt at September 30, 2017. As a result, the full $475 million commitment amount of the Credit Facility was available, less any borrowings and letters of credit outstanding. At September 30, 2017, there were no borrowings outstanding and $40.8 million of letters of credit outstanding, leaving net remaining borrowing availability of $434.2 million.

The Company’s obligations under the Credit Facility are guaranteed by all of the Company’s subsidiaries, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries (as defined in Note 11), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility, the indenture governing the Company’s $250.0 million aggregate principal amount of 5.625% Senior Notes due 2025 (the “2025 Senior Notes”) and the indenture governing the Company’s $300.0 million aggregate principal amount of 6.75% Senior Notes due 2021 (the “2021 Senior Notes”). The guarantors for the Credit Facility (the “Guarantor Subsidiaries”) are the same subsidiaries that guarantee the 2025 Senior Notes, 2021 Senior Notes and the Company’s $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”).

The Company’s obligations under the Credit Facility are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. Our obligations under the Credit Facility are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

As of September 30, 2017, the Company was party to a secured credit facility agreement for the issuance of letters of credit (the “Letter of Credit Facility”). During the third quarter of 2017, the Company extended the maturity date of the Letter of Credit Facility for an additional year to September 30, 2018 and also reduced the maximum available amount under the facility from $2.0 million to $1.0 million. At both September 30, 2017 and December 31, 2016, there was $0.6 million of outstanding letters of credit in aggregate under the Letter of Credit Facility, which were collateralized with $0.6 million of the Company’s cash.

Notes Payable — Financial Services

The MIF Mortgage Warehousing Agreement is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Mortgage Warehousing Agreement provides for a maximum borrowing availability of $125 million which may be increased to $150 million during certain periods of expected increases in the volume of mortgage originations, specifically from September 25, 2017 to October 16, 2017 and from December 15, 2017 to February 2, 2018. The MIF Mortgage Warehousing Agreement expires on June 22, 2018. Interest on amounts borrowed under the MIF Mortgage Warehousing Agreement is payable at a per annum rate equal to the greater of (1) the floating LIBOR rate plus a spread of 237.5 basis points and (2) 2.75%. The MIF Mortgage Warehousing Agreement also contains certain financial covenants. At September 30, 2017, M/I Financial was in compliance with all financial covenants of the MIF Mortgage Warehousing Agreement.

The MIF Mortgage Repurchase Facility is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Repurchase Facility provides for a maximum borrowing availability of $35 million. The MIF Mortgage Repurchase Facility expires on October 30, 2017. M/I Financial expects to enter into an amendment to the MIF Mortgage Repurchase Facility prior to its expiration that would extend its term for an additional year, but M/I Financial can provide no assurance that it will be able to obtain such an extension. M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate equal to the floating LIBOR rate plus 250 or 275 basis points depending on the loan type. The MIF Mortgage Repurchase Facility also contains certain financial covenants. At September 30, 2017, M/I Financial was in compliance with all financial covenants of the MIF Mortgage Repurchase Facility.

At both September 30, 2017 and December 31, 2016, M/I Financial’s total combined maximum borrowing availability under the two credit facilities was $185.0 million due to the seasonal increase to the MIF Mortgage Warehousing Agreement in effect from September 25, 2017 through October 15, 2017 and December 15, 2016 through February 1, 2017. At September 30, 2017 and December 31, 2016, M/I Financial had $91.3 million and $152.9 million outstanding on a combined basis under its credit facilities, respectively.

Senior Notes

In August 2017, we issued $250.0 million of 2025 Senior Notes. The 2025 Senior Notes bear interest at a rate of 5.625% per year, payable semiannually in arrears on February 1 and August 1 of each year (commencing on February 1, 2018), and mature on August 1, 2025. We may redeem all or any portion of the 2025 Senior Notes on or after August 1, 2020 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 104.219% of the principal amount outstanding, but will decline to 102.813% of the principal amount outstanding if redeemed during the 12-month period beginning on August 1, 2021, will further decline to 101.406% of the principal amount outstanding if redeemed during the 12-month period beginning on August 1, 2022 and will further decline to 100.000% of the principal amount outstanding if redeemed on or after August 1, 2023, but prior to maturity.

As of both September 30, 2017 and December 31, 2016, we had $300.0 million of our 2021 Senior Notes outstanding. The 2021 Senior Notes bear interest at a rate of 6.75% per year, payable semiannually in arrears on January 15 and July 15 of each year, and mature on January 15, 2021. We may redeem all or any portion of the 2021 Senior Notes on or after January 15, 2018 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 103.375% of the principal amount outstanding, but will decline to 101.688% of the principal amount outstanding if redeemed during the 12-month period beginning on January 15, 2019, and will further decline to 100.000% of the principal amount outstanding if redeemed on or after January 15, 2020, but prior to maturity.

The 2025 Senior Notes and the 2021 Senior Notes contain certain covenants, as more fully described and defined in the indentures governing the 2025 Senior Notes and the 2021 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket”; make certain investments; and create or incur certain liens, consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes. As of September 30, 2017, the Company was in compliance with all terms, conditions, and covenants under the indentures.

The 2025 Senior Notes and the 2021 Senior Notes are fully and unconditionally guaranteed jointly and severally on a senior unsecured basis by the Guarantor Subsidiaries. The 2025 Senior Notes and the 2021 Senior Notes are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. The 2025 Senior Notes and the 2021 Senior Notes are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.

The indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes limit our ability to pay dividends on, and repurchase, our common shares and any of our preferred shares then outstanding to the amount of the positive balance in our “restricted payments basket,” as defined in the indentures. In each case, the “restricted payments basket” is equal to $125.0 million plus (1) 50% of our aggregate consolidated net income (or minus 100% of our aggregate consolidated net loss) from October 1, 2015, excluding income or loss from Unrestricted Subsidiaries, plus (2) 100% of the net cash proceeds from either contributions to the common equity of the Company or the sale of qualified equity interests after December 1, 2015, plus other items and subject to other exceptions. The restricted payments basket was $220.4 million and $144.9 million at September 30, 2017 and December 31, 2016, respectively. The determination to pay future dividends on, or make future repurchases of, our common shares will be at the discretion of our board of directors and will depend upon our results of operations, financial condition, capital requirements and compliance with debt covenants, and other factors deemed relevant by our board of directors. Please see Note 13 for additional information related to our Series A Preferred Shares.

Convertible Senior Subordinated Notes

As of both September 30, 2017 and December 31, 2016, we had $86.3 million of our 2018 Convertible Senior Subordinated Notes outstanding. The 2018 Convertible Senior Subordinated Notes bear interest at a rate of 3.0% per year, payable semiannually in arrears on March 1 and September 1 of each year. The 2018 Convertible Senior Subordinated Notes mature on March 1, 2018. At any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2018 Convertible Senior Subordinated Notes into the Company’s common shares. The conversion rate initially equals 30.9478 shares per $1,000 of principal amount. This corresponds to an initial conversion price of approximately $32.31 per common share, which equates to approximately 2.7 million common shares. The conversion rate is subject to adjustment upon the occurrence of certain events. The 2018 Convertible Senior Subordinated Notes are fully and unconditionally guaranteed jointly and severally on a senior subordinated unsecured basis by the Guarantor Subsidiaries. The 2018 Convertible Senior Subordinated Notes are senior subordinated unsecured obligations of the Company and the Guarantor Subsidiaries, are subordinated in right of payment to our and the Guarantor Subsidiaries’ existing and future senior indebtedness and are also effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2018 Convertible Senior Subordinated Notes requires the Company to repurchase the notes (subject to certain exceptions), at a holder’s option, upon the occurrence of a fundamental change (as defined in the indenture).

The Company may redeem for cash any or all of the 2018 Convertible Senior Subordinated Notes (except for any 2018 Convertible Senior Subordinated Notes that the Company is required to repurchase in connection with a fundamental change), but only if the last reported sale price of the Company’s common shares exceeds 130% of the applicable conversion price for the notes on each of at least 20 applicable trading days. The 20 trading days do not need to be consecutive, but must occur during a period of 30 consecutive trading days that ends within 10 trading days immediately prior to the date the Company provides the notice of redemption. The redemption price for the 2018 Convertible Senior Subordinated Notes to be redeemed will equal 100% of the principal amount, plus accrued and unpaid interest, if any.

On September 11, 2012, the Company issued $57.5 million in aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”). The 2017 Convertible Senior Subordinated Notes were scheduled to mature on September 15, 2017 and the deadline for holders to convert the 2017 Convertible Senior Subordinated Notes was September 13, 2017. As a result of conversion elections made by holders of the 2017 Convertible Senior Subordinated Notes, all $57.5 million in aggregate principal amount of the 2017 Convertible Senior Subordinated Notes were converted and settled through the issuance of our common shares. In total, we issued approximately 2.4 million common shares (at a conversion price per common share of $23.80). In accordance with the indenture governing the 2017 Convertible Senior Subordinated Notes, the Company paid interest on such Notes to but excluding September 15, 2017. On December 31, 2016, we had $57.5 million of our 2017 Convertible Senior Subordinated Notes outstanding.

Notes Payable - Other

The Company had other borrowings, which are reported in Notes Payable - Other in our Unaudited Condensed Consolidated Balance Sheets, totaling $4.1 million and $6.4 million as of September 30, 2017 and December 31, 2016, respectively.  The balance at December 31, 2016 included a mortgage note payable on our principal executive office building with a principal balance outstanding of $3.4 million, which was subsequently paid off in April of 2017. The remaining balance is made up of other notes payable incurred through the normal course of business.

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Preferred Shares (Notes)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Preferred Stock [Text Block]

Preferred Shares

The Company’s Articles of Incorporation authorize the issuance of up to 2,000,000 preferred shares, par value $.01 per share.  On March 15, 2007, the Company issued 4,000,000 depositary shares, each representing 1/1000^th of a 9.75% Series A Preferred Share of the Company (the “Series A Preferred Shares”), or 4,000 Series A Preferred Shares in the aggregate.  On April 10, 2013, the Company redeemed 2,000 of its Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. On September 14, 2017, the Company announced that it will redeem the remaining 2,000 outstanding Series A Preferred Shares (and the 2,000,000 related depositary shares) on October 16, 2017 for an aggregate redemption price of approximately $50.4 million in cash. The redemption was consummated on October 16, 2017.

The Company declared and paid a quarterly dividend of $609.375 per share on its Series A Preferred Shares in both the third quarter of 2017 and 2016 for $1.2 million and has paid aggregate dividend payments of $3.7 million for the nine months ended September 30, 2017 and 2016. Please see Note 13 for additional information related to our Series A Preferred Shares.

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Earnings per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2017			2016			2017			2016
NUMERATOR
Net income	$	22,327		$	10,942		$	56,199		$	36,047
Preferred stock dividends	(1,218		)	(1,218		)	(3,656		)	(3,656		)
Excess of fair value over book value of preferred shares subject to redemption	(2,257		)	—			(2,257		)	—
Net income to common shareholders	18,852			9,724			50,286			32,391
Interest on 3.25% convertible senior subordinated notes due 2017	324			378			1,106			1,152
Interest on 3.00% convertible senior subordinated notes due 2018	530			510			1,586			1,554
Diluted income available to common shareholders	$	19,706		$	10,612		$	52,978		$	35,097
DENOMINATOR
Basic weighted average shares outstanding	25,581			24,669			25,106			24,665
Effect of dilutive securities:
Stock option awards	248			231			302			200
Deferred compensation awards	237			154			207			143
3.25% convertible senior subordinated notes due 2017	1,940			2,416			2,255			2,416
3.00% convertible senior subordinated notes due 2018	2,669			2,669			2,669			2,669
Diluted weighted average shares outstanding - adjusted for assumed conversions	30,675			30,139			30,539			30,093
Earnings per common share:
Basic	$	0.74		$	0.39		$	2.00		$	1.31
Diluted	$	0.64		$	0.35		$	1.73		$	1.17
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	—			896			31			1,288

On September 14, 2017, the Company announced that it will redeem all 2,000 of its outstanding Series A Preferred Shares on October 16, 2017 and recognized a $2.3 million non-cash equity charge related to the excess of fair value over carrying value relating primarily to the original issuance costs that were paid in 2007, which reduced net income to common shareholders in the earnings per share calculation above for the three months and nine months ended September 30, 2017. On October 16, 2017, the redemption was completed. Refer to Note 8 and Note 13 of our Unaudited Condensed Consolidated Financial Statements for additional details.

For the three and nine months ended September 30, 2017 and 2016, the effect of our convertible debt outstanding was included in the diluted earnings per share calculations.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

During the three and nine months ended September 30, 2017, the Company recorded a tax provision of $12.3 million and $30.0 million, respectively, which reflects income tax expense related to the period’s income before income taxes. The effective tax rate for the three and nine months ended September 30, 2017 was 35.6% and 34.8%, respectively, which included tax expense related to the expected tax benefits for the domestic production activities deduction and excess tax benefits from employee share-based payment transactions exercised during the first nine months of 2017 per ASU 2016-09. During the three and nine months ended September 30, 2016, the Company recorded a tax provision of $7.5 million and $22.1 million, respectively, which reflects income tax expense related to the period’s income before income taxes. The effective tax rate for the three and nine months ended September 30, 2016 was 40.7% and 38.0%, respectively, which included tax expense related to the expected tax benefits for the domestic production activities deduction and tax expense related to state tax rate changes.

During 2016, the Company fully utilized its federal NOL carryforwards and federal credit carryforwards. The Company had $4.2 million of state NOL carryforwards, net of the federal benefit, at September 30, 2017. Our state NOLs may be carried forward from one to 16 years, depending on the tax jurisdiction, with $1.2 million expiring between 2022 and 2027 and $3.0 million expiring between 2028 and 2032, absent sufficient state taxable income.

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Business Segments

9 Months Ended

Sep. 30, 2017

Business Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 15 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding reportable segments; and (3) our consolidated financial results.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment as each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. In accordance with the aggregation criteria defined in ASC 280, we have determined our reportable segments are as follows: Midwest homebuilding; Southern homebuilding; Mid-Atlantic homebuilding; and financial services operations.  The homebuilding operating segments that are included within each reportable segment have been aggregated because they share similar aggregation characteristics as prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.  

The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Chicago, Illinois	Orlando, Florida	Charlotte, North Carolina
Cincinnati, Ohio	Sarasota, Florida	Raleigh, North Carolina
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Indianapolis, Indiana	Austin, Texas
Minneapolis/St. Paul, Minnesota	Dallas/Fort Worth, Texas
	Houston, Texas
	San Antonio, Texas

The following table shows, by segment: revenue, operating income and interest expense for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Revenue:
Midwest homebuilding	$	180,488		$	166,928		$	495,379		$	438,016
Southern homebuilding	176,502			143,315			504,647			414,974
Mid-Atlantic homebuilding	107,670			121,659			302,305			284,527
Financial services (a)	11,763			10,562			37,938			30,564
Total revenue	$	476,423		$	442,464		$	1,340,269		$	1,168,081
Operating income:
Midwest homebuilding	$	20,887		$	20,628		$	53,730		$	48,943
Southern homebuilding (b)	13,082			(5,249		)	26,503			8,380
Mid-Atlantic homebuilding	9,969			11,359			26,810			22,827
Financial services (a)	5,887			5,944			21,977			17,581
Less: Corporate selling, general and administrative expense	(10,548		)	(10,676		)	(29,178		)	(26,876		)
Total operating income (b)	$	39,277		$	22,006		$	99,842		$	70,855
Interest expense:
Midwest homebuilding	$	1,319		$	647		$	3,559		$	2,539
Southern homebuilding	2,143			1,788			6,311			6,118
Mid-Atlantic homebuilding	557			601			1,988			3,058
Financial services (a)	656			551			1,989			1,445
Total interest expense	$	4,675		$	3,587		$	13,847		$	13,160
Equity in income of joint venture arrangements	(71		)	(24		)	(198		)	(413		)
Income before income taxes	$	34,673		$	18,443		$	86,193		$	58,108

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of an immaterial amount of mortgage refinancing.

(b) Includes a $14.5 million charge for stucco-related repair costs in certain of our Florida communities taken during the three months ended September 30, 2016, and an $8.5 million and a $19.4 million charge for stucco-related repair costs in certain of our Florida communities taken during the nine months ended September 30, 2017 and 2016, respectively (as more fully discussed in Note 6).

The following tables show total assets by segment at September 30, 2017 and December 31, 2016:

	September 30, 2017
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,078	$	20,094		$	6,202	$	—	$	31,374
Inventory (a)	514,949		623,815			285,671		—		1,424,435
Investments in joint venture arrangements	3,798		10,493			8,690		—		22,981
Other assets	13,106		24,624		(b)	11,600		256,575		305,905
Total assets	$	536,931	$	679,026		$	312,163	$	256,575	$	1,784,695

	December 31, 2016
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,989	$	22,607		$	3,260	$	—	$	29,856
Inventory (a)	399,814		484,038			302,226		—		1,186,078
Investments in joint venture arrangements	10,155		10,630			7,231		—		28,016
Other assets	25,747		35,622		(b)	13,912		229,280		304,561
Total assets	$	439,705	$	552,897		$	326,629	$	229,280	$	1,548,511

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

(b) Includes development reimbursements from local municipalities.

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Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2017

Supplemental Guarantor Information [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Supplemental Guarantor Information

The Company’s obligations under the 2025 Senior Notes, the 2021 Senior Notes and the 2018 Convertible Senior Subordinated Notes are not guaranteed by all of the Company’s subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The Guarantor Subsidiaries of the 2025 Senior Notes, the 2021 Senior Notes and the 2018 Convertible Senior Subordinated Notes are the same.

The following condensed consolidating financial information includes balance sheets, statements of income and cash flow information for M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2025 Senior Notes on a joint and several senior unsecured basis, (b) 2021 Senior Notes on a joint and several senior unsecured basis and (c) 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis.

There are no significant restrictions on the parent company’s ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of September 30, 2017, each of the Company’s subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility, the indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes.

In the condensed financial tables presented below, the parent company presents all of its 100%-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Unrestricted Subsidiaries.

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
	Three Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	464,660	$	11,763		$	—		$	476,423
Costs and expenses:
Land and housing	—		374,673		—			—			374,673
General and administrative	—		25,263		6,074			—			31,337
Selling	—		31,136		—			—			31,136
Equity in income of joint venture arrangements	—		—		(71		)	—			(71		)
Interest	—		4,019		656			—			4,675
Total costs and expenses	—		435,091		6,659			—			441,750
Income before income taxes	—		29,569		5,104			—			34,673
Provision for income taxes	—		10,672		1,674			—			12,346
Equity in subsidiaries	22,327		—		—			(22,327		)	—
Net income	22,327		18,897		3,430			(22,327		)	22,327
Preferred dividends	1,218		—		—			—			1,218
Excess of fair value over book value of preferred shares subject to redemption	2,257		—		—			—			2,257
Net income to common shareholders	$	18,852	$	18,897	$	3,430		$	(22,327	)	$	18,852

	Three Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	431,903	$	10,561		$	—		$	442,464
Costs and expenses:
Land and housing	—		363,635		—			—			363,635
General and administrative	—		24,340		4,820			—			29,160
Selling	—		27,663		—			—			27,663
Equity in income of joint venture arrangements	—		—		(24		)	—			(24		)
Interest	—		3,036		551			—			3,587
Total costs and expenses	—		418,674		5,347			—			424,021
Income before income taxes	—		13,229		5,214			—			18,443
Provision for income taxes	—		5,601		1,900			—			7,501
Equity in subsidiaries	10,942		—		—			(10,942		)	—
Net income	10,942		7,628		3,314			(10,942		)	10,942
Preferred dividends	1,218		—		—			—			1,218
Net income to common shareholders	$	9,724	$	7,628	$	3,314		$	(10,942	)	$	9,724

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
	Nine Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	1,302,331	$	37,938		$	—		$	1,340,269
Costs and expenses:
Land and housing	—		1,062,552		—			—			1,062,552
General and administrative	—		72,638		16,571			—			89,209
Selling	—		88,666		—			—			88,666
Equity in income of joint venture arrangements	—		—		(198		)	—			(198		)
Interest	—		11,858		1,989			—			13,847
Total costs and expenses	—		1,235,714		18,362			—			1,254,076
Income before income taxes	—		66,617		19,576			—			86,193
Provision for income taxes	—		23,407		6,587			—			29,994
Equity in subsidiaries	56,199		—		—			(56,199		)	—
Net income	56,199		43,210		12,989			(56,199		)	56,199
Preferred dividends	3,656		—		—			—			3,656
Excess of fair value over book value of preferred shares subject to redemption	2,257		—		—			—			2,257
Net income to common shareholders	$	50,286	$	43,210	$	12,989		$	(56,199	)	$	50,286

	Nine Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	1,137,517	$	30,564		$	—		$	1,168,081
Costs and expenses:
Land and housing	—		943,515		—			—			943,515
General and administrative	—		64,727		13,522			—			78,249
Selling	—		75,462		—			—			75,462
Equity in income of joint venture arrangements	—		—		(413		)	—			(413		)
Interest	—		11,715		1,445			—			13,160
Total costs and expenses	—		1,095,419		14,554			—			1,109,973
Income before income taxes	—		42,098		16,010			—			58,108
Provision for income taxes	—		16,487		5,574			—			22,061
Equity in subsidiaries	36,047		—		—			(36,047		)	—
Net income	36,047		25,611		10,436			(36,047		)	36,047
Preferred dividends	3,656		—		—			—			3,656
Net income to common shareholders	$	32,391	$	25,611	$	10,436		$	(36,047	)	$	32,391

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	82,504	$	21,132	$	—		$	103,636
Mortgage loans held for sale	—		—		91,987		—			91,987
Inventory	—		1,455,809		—		—			1,455,809
Property and equipment - net	—		24,325		995		—			25,320
Investment in joint venture arrangements	—		15,764		7,217		—			22,981
Deferred income taxes, net of valuation allowances	—		29,461		108		—			29,569
Investment in subsidiaries	710,176		—		—		(710,176		)	—
Intercompany assets	688,260		—		—		(688,260		)	—
Other assets	3,375		42,473		9,545		—			55,393
TOTAL ASSETS	$	1,401,811	$	1,650,336	$	130,984	$	(1,398,436	)	$	1,784,695
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	120,049	$	549	$	—		$	120,598
Customer deposits	—		30,583		—		—			30,583
Intercompany liabilities	—		683,308		4,952		(688,260		)	—
Other liabilities	—		104,279		4,591		—			108,870
Preferred shares subject to redemption	50,420		—		—		—			50,420
Community development district obligations	—		5,298		—		—			5,298
Obligation for consolidated inventory not owned	—		22,203		—		—			22,203
Notes payable bank - financial services operations	—		—		91,275		—			91,275
Notes payable - other	—		4,057		—		—			4,057
Convertible senior subordinated notes due 2018 - net	85,955		—		—		—			85,955
Senior notes due 2021 - net	296,505		—		—		—			296,505
Senior notes due 2025 - net	245,958		—		—		—			245,958
TOTAL LIABILITIES	678,838		969,777		101,367		(688,260		)	1,061,722
SHAREHOLDERS’ EQUITY	722,973		680,559		29,617		(710,176		)	722,973
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,401,811	$	1,650,336	$	130,984	$	(1,398,436	)	$	1,784,695

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	20,927	$	13,514	$	—		$	34,441
Mortgage loans held for sale	—		—		154,020		—			154,020
Inventory	—		1,215,934		—		—			1,215,934
Property and equipment - net	—		21,242		1,057		—			22,299
Investment in joint venture arrangements	—		12,537		15,479		—			28,016
Deferred income taxes, net of valuation allowances	—		30,767		108		—			30,875
Investment in subsidiaries	666,008		—		—		(666,008		)	—
Intercompany assets	424,669		—		—		(424,669		)	—
Other assets	1,690		43,809		17,427		—			62,926
TOTAL ASSETS	$	1,092,367	$	1,345,216	$	201,605	$	(1,090,677	)	$	1,548,511
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	102,663	$	549	$	—		$	103,212
Customer deposits	—		22,156		—		—			22,156
Intercompany liabilities	—		411,196		13,473		(424,669		)	—
Other liabilities	—		117,133		6,029		—			123,162
Community development district obligations	—		476		—		—			476
Obligation for consolidated inventory not owned	—		7,528		—		—			7,528
Notes payable bank - homebuilding operations	—		40,300		—		—			40,300
Notes payable bank - financial services operations	—		—		152,895		—			152,895
Notes payable - other	—		6,415		—		—			6,415
Convertible senior subordinated notes due 2017 - net	57,093		—		—		—			57,093
Convertible senior subordinated notes due 2018 - net	85,423		—		—		—			85,423
Senior notes due 2021 - net	295,677		—		—		—			295,677
TOTAL LIABILITIES	438,193		707,867		172,946		(424,669		)	894,337
SHAREHOLDERS’ EQUITY	654,174		637,349		28,659		(666,008		)	654,174
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,092,367	$	1,345,216	$	201,605	$	(1,090,677	)	$	1,548,511

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	12,031		$	(152,148	)	$	86,123		$	(12,031	)	$	(66,025	)
INVESTING ACTIVITIES:
Purchase of property and equipment	—			(5,848		)	(169		)	—			(6,017		)
Intercompany investing	(13,166		)	—			—			13,166			—
Investments in and advances to joint venture arrangements	—			(3,401		)	(5,038		)	—			(8,439		)
Return of capital from unconsolidated joint ventures	—			—			1,833			—			1,833
Net proceeds from the sale of mortgage servicing rights	—			—			7,558			—			7,558
Net cash (used in) provided by investing activities	(13,166		)	(9,249		)	4,184			13,166			(5,065		)
FINANCING ACTIVITIES:
Proceeds from issuance of senior notes	—			250,000			—			—			250,000
Proceeds from bank borrowings - homebuilding operations	—			366,500			—			—			366,500
Principal repayments of bank borrowings - homebuilding operations	—			(406,800		)	—			—			(406,800		)
Net repayments of bank borrowings - financial services operations	—			—			(61,620		)	—			(61,620		)
(Principal repayment of) proceeds from notes payable - other and CDD bond obligations	—			(2,358		)	—			—			(2,358		)
Proceeds from exercise of stock options	4,791			—			—			—			4,791
Intercompany financing	—			22,141			(8,975		)	(13,166		)	—
Dividends paid	(3,656		)	—			(12,031		)	12,031			(3,656		)
Debt issue costs	—			(6,509		)	(63		)	—			(6,572		)
Net cash provided by (used in) financing activities	1,135			222,974			(82,689		)	(1,135		)	140,285
Net increase in cash, cash equivalents and restricted cash	—			61,577			7,618			—			69,195
Cash, cash equivalents and restricted cash balance at beginning of period	—			20,927			13,514			—			34,441
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	82,504		$	21,132		$	—		$	103,636

	Nine Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities (1)	$	7,138		$	(18,210	)	$	44,712		$	(7,138	)	$	26,502
INVESTING ACTIVITIES:
Purchase of property and equipment	—			(11,565		)	(54		)	—			(11,619		)
Intercompany Investing	(3,555		)	—			—			3,555			—
Investments in and advances to joint venture arrangements	—			(5,504		)	(4,556		)	—			(10,060		)
Net cash (used in) provided by investing activities (1)	(3,555		)	(17,069		)	(4,610		)	3,555			(21,679		)
FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			276,800			—			—			276,800
Principal repayments of bank borrowings - homebuilding operations	—			(235,600		)	—			—			(235,600		)
Net repayments of bank borrowings - financial services operations	—			—			(32,165		)	—			(32,165		)
Principal proceeds from notes payable - other and CDD bond obligations	—			125			—			—			125
Intercompany financing	—			(630		)	(3,766		)	4,396			—
Dividends paid	(3,656		)	—			(7,138		)	7,138			(3,656		)
Debt issue costs	—			(153		)	(40		)	—			(193		)
Proceeds from exercise of stock options	73			—			—			—			73
Net cash (used in) provided by financing activities	(3,583		)	40,542			(43,109		)	11,534			5,384
Net increase (decrease) in cash, cash equivalents and restricted cash	—			5,263			(3,007		)	7,951			10,207
Cash, cash equivalents and restricted cash balance at beginning of period	—			2,896			18,156			(7,951		)	13,101
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	8,159		$	15,149		$	—		$	23,308

(1) During the fourth quarter of 2016, we elected to early-adopt Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Certain amounts above have been adjusted to apply the new method retrospectively.

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Subsequent Event Subsequent Event (Notes)

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Event

On October 16, 2017, the Company redeemed all 2,000 of its outstanding Series A Preferred Shares for $50.4 million in cash, which reduced the restricted payments basket with respect to our 2025 Senior Notes and our 2021 Senior Notes by an equal amount. Refer to Note 8 of our Unaudited Condensed Consolidated Financial Statements for additional details.

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Inventory and Capitalized Interest Inventory (Tables)

9 Months Ended

Sep. 30, 2017

Inventory [Abstract]

Schedule of Inventory, Current [Table Text Block]

A summary of the Company’s inventory as of September 30, 2017 and December 31, 2016 is as follows:

(In thousands)	September 30, 2017		December 31, 2016
Single-family lots, land and land development costs	$	663,170	$	602,528
Land held for sale	12,330		12,155
Homes under construction	645,816		494,664
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2017 - $12,929;    December 31, 2016 - $11,835)	75,618		68,727
Community development district infrastructure	5,298		476
Land purchase deposits	31,374		29,856
Consolidated inventory not owned	22,203		7,528
Total inventory	$	1,455,809	$	1,215,934

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

 The summary of capitalized interest for the three and nine months ended September 30, 2017 and 2016 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Capitalized interest, beginning of period	$	16,465		$	16,818		$	16,012		$	16,740
Interest capitalized to inventory	6,178			5,139			15,240			13,392
Capitalized interest charged to land and housing costs and expenses	(4,988		)	(4,963		)	(13,597		)	(13,138		)
Capitalized interest, end of period	$	17,655		$	16,994		$	17,655		$	16,994
Interest incurred	$	10,853		$	8,726		$	29,087		$	26,552

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Fair Value Measurements Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Measurements [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The table below shows the notional amounts of our financial instruments at September 30, 2017 and December 31, 2016:

Description of Financial Instrument (in thousands)	September 30, 2017		December 31, 2016
Best efforts contracts and related committed IRLCs	$	2,571	$	6,607
Uncommitted IRLCs	105,104		66,875
FMBSs related to uncommitted IRLCs	105,000		66,000
Best efforts contracts and related mortgage loans held for sale	10,423		125,348
FMBSs related to mortgage loans held for sale	81,000		33,000
Mortgage loans held for sale covered by FMBSs	81,244		32,870

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The table below shows the level and measurement of assets and liabilities measured on a recurring basis at September 30, 2017 and December 31, 2016:

Description of Financial Instrument (in thousands)	Fair Value Measurements September 30, 2017			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	91,987		$	—	$	91,987		$	—
Forward sales of mortgage-backed securities	471			—		471			—
Interest rate lock commitments	366			—		366			—
Best-efforts contracts	(60		)	—		(60		)	—
Total	$	92,764		$	—	$	92,764		$	—

Description of Financial Instrument (in thousands)	Fair Value Measurements December 31, 2016			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Mortgage loans held for sale	$	154,020		$	—	$	154,020		$	—
Forward sales of mortgage-backed securities	230			—		230			—
Interest rate lock commitments	250			—		250			—
Best-efforts contracts	(90		)	—		(90		)	—
Total	$	154,410		$	—	$	154,410		$	—

Schedule of Derivative Instruments, (Loss) Gain in Statement of Financial Performance [Table Text Block]

The following table sets forth the amount of gain (loss) recognized, within our revenue in the Unaudited Condensed Consolidated Statements of Income, on assets and liabilities measured on a recurring basis for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
Description (in thousands)	2017			2016			2017		2016
Mortgage loans held for sale	$	(64	)	$	(1,127	)	$	4,326	$	1,059
Forward sales of mortgage-backed securities	(128		)	1,443			241		(245		)
Interest rate lock commitments	22			(531		)	116		388
Best-efforts contracts	(41		)	15			30		31
Total (loss) gain recognized	$	(211	)	$	(200	)	$	4,713	$	1,233

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following tables set forth the fair value of the Company’s derivative instruments and their location within the Unaudited Condensed Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which is disclosed as a separate line item):

	Asset Derivatives			Liability Derivatives
	September 30, 2017			September 30, 2017
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	471	Other liabilities	$	—
Interest rate lock commitments	Other assets	366		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	60
Total fair value measurements		$	837		$	60

	Asset Derivatives			Liability Derivatives
	December 31, 2016			December 31, 2016
Description of Derivatives	Balance Sheet Location	Fair Value (in thousands)		Balance Sheet Location	Fair Value (in thousands)
Forward sales of mortgage-backed securities	Other assets	$	230	Other liabilities	$	—
Interest rate lock commitments	Other assets	250		Other liabilities	—
Best-efforts contracts	Other assets	—		Other liabilities	90
Total fair value measurements		$	480		$	90

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents the carrying amounts and fair values of the Company’s financial instruments at September 30, 2017 and December 31, 2016. The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions.

	September 30, 2017				December 31, 2016
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash, cash equivalents and restricted cash	$	103,636	$	103,636	$	34,441	$	34,441
Mortgage loans held for sale	91,987		91,987		154,020		154,020
Split dollar life insurance policies	212		212		214		214
Notes receivable	—		—		763		687
Commitments to extend real estate loans	366		366		250		250
Forward sales of mortgage-backed securities	471		471		230		230
Liabilities:
Notes payable - homebuilding operations	—		—		40,300		40,300
Notes payable - financial services operations	91,275		91,275		152,895		152,895
Notes payable - other	4,057		3,867		6,415		5,999
Convertible senior subordinated notes due 2017 (a)	—		—		57,500		65,957
Convertible senior subordinated notes due 2018 (a)	86,250		86,897		86,250		88,105
Senior notes due 2021 (a)	300,000		313,125		300,000		314,250
Senior notes due 2025 (a)	250,000		255,000		—		—
Best-efforts contracts for committed IRLCs and mortgage loans held for sale	60		60		90		90
Off-Balance Sheet Financial Instruments:
Letters of credit	—		757		—		702

(a) Our senior notes and convertible senior subordinated notes are stated at the principal amount outstanding which does not include the impact of premiums, discounts, and debt issuance costs that are amortized to interest cost over the respective terms of the notes.

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Commitments and Contingencies Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2017

Warranty Accrual Rollforward [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

A summary of warranty activity for the three and nine months ended September 30, 2017 and 2016 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Warranty reserves, beginning of period	$	30,303		$	15,815		$	27,732		$	14,281
Warranty expense on homes delivered during the period	2,882			2,755			8,094			7,276
Changes in estimates for pre-existing warranties	92			526			1,154			563
Charges related to stucco-related claims (a)	—			14,500			8,500			19,409
Settlements made during the period	(6,209		)	(5,658		)	(18,412		)	(13,591		)
Warranty reserves, end of period	$	27,068		$	27,938		$	27,068		$	27,938

(a) Estimated stucco-related claim costs, as described below, have been included in warranty accruals.

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Earnings per Share Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)	2017			2016			2017			2016
NUMERATOR
Net income	$	22,327		$	10,942		$	56,199		$	36,047
Preferred stock dividends	(1,218		)	(1,218		)	(3,656		)	(3,656		)
Excess of fair value over book value of preferred shares subject to redemption	(2,257		)	—			(2,257		)	—
Net income to common shareholders	18,852			9,724			50,286			32,391
Interest on 3.25% convertible senior subordinated notes due 2017	324			378			1,106			1,152
Interest on 3.00% convertible senior subordinated notes due 2018	530			510			1,586			1,554
Diluted income available to common shareholders	$	19,706		$	10,612		$	52,978		$	35,097
DENOMINATOR
Basic weighted average shares outstanding	25,581			24,669			25,106			24,665
Effect of dilutive securities:
Stock option awards	248			231			302			200
Deferred compensation awards	237			154			207			143
3.25% convertible senior subordinated notes due 2017	1,940			2,416			2,255			2,416
3.00% convertible senior subordinated notes due 2018	2,669			2,669			2,669			2,669
Diluted weighted average shares outstanding - adjusted for assumed conversions	30,675			30,139			30,539			30,093
Earnings per common share:
Basic	$	0.74		$	0.39		$	2.00		$	1.31
Diluted	$	0.64		$	0.35		$	1.73		$	1.17
Anti-dilutive equity awards not included in the calculation of diluted earnings per common share	—			896			31			1,288

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Business Segments Business Segments (Tables)

9 Months Ended

Sep. 30, 2017

Business Segments [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table shows, by segment: revenue, operating income and interest expense for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Revenue:
Midwest homebuilding	$	180,488		$	166,928		$	495,379		$	438,016
Southern homebuilding	176,502			143,315			504,647			414,974
Mid-Atlantic homebuilding	107,670			121,659			302,305			284,527
Financial services (a)	11,763			10,562			37,938			30,564
Total revenue	$	476,423		$	442,464		$	1,340,269		$	1,168,081
Operating income:
Midwest homebuilding	$	20,887		$	20,628		$	53,730		$	48,943
Southern homebuilding (b)	13,082			(5,249		)	26,503			8,380
Mid-Atlantic homebuilding	9,969			11,359			26,810			22,827
Financial services (a)	5,887			5,944			21,977			17,581
Less: Corporate selling, general and administrative expense	(10,548		)	(10,676		)	(29,178		)	(26,876		)
Total operating income (b)	$	39,277		$	22,006		$	99,842		$	70,855
Interest expense:
Midwest homebuilding	$	1,319		$	647		$	3,559		$	2,539
Southern homebuilding	2,143			1,788			6,311			6,118
Mid-Atlantic homebuilding	557			601			1,988			3,058
Financial services (a)	656			551			1,989			1,445
Total interest expense	$	4,675		$	3,587		$	13,847		$	13,160
Equity in income of joint venture arrangements	(71		)	(24		)	(198		)	(413		)
Income before income taxes	$	34,673		$	18,443		$	86,193		$	58,108

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of an immaterial amount of mortgage refinancing.

(b) Includes a $14.5 million charge for stucco-related repair costs in certain of our Florida communities taken during the three months ended September 30, 2016, and an $8.5 million and a $19.4 million charge for stucco-related repair costs in certain of our Florida communities taken during the nine months ended September 30, 2017 and 2016, respectively (as more fully discussed in Note 6).

The following tables show total assets by segment at September 30, 2017 and December 31, 2016:

	September 30, 2017
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,078	$	20,094		$	6,202	$	—	$	31,374
Inventory (a)	514,949		623,815			285,671		—		1,424,435
Investments in joint venture arrangements	3,798		10,493			8,690		—		22,981
Other assets	13,106		24,624		(b)	11,600		256,575		305,905
Total assets	$	536,931	$	679,026		$	312,163	$	256,575	$	1,784,695

	December 31, 2016
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,989	$	22,607		$	3,260	$	—	$	29,856
Inventory (a)	399,814		484,038			302,226		—		1,186,078
Investments in joint venture arrangements	10,155		10,630			7,231		—		28,016
Other assets	25,747		35,622		(b)	13,912		229,280		304,561
Total assets	$	439,705	$	552,897		$	326,629	$	229,280	$	1,548,511

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.

(b) Includes development reimbursements from local municipalities.

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Supplemental Guarantor Information Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2017

Supplemental Guarantor Information [Abstract]

Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block]

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
	Three Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	464,660	$	11,763		$	—		$	476,423
Costs and expenses:
Land and housing	—		374,673		—			—			374,673
General and administrative	—		25,263		6,074			—			31,337
Selling	—		31,136		—			—			31,136
Equity in income of joint venture arrangements	—		—		(71		)	—			(71		)
Interest	—		4,019		656			—			4,675
Total costs and expenses	—		435,091		6,659			—			441,750
Income before income taxes	—		29,569		5,104			—			34,673
Provision for income taxes	—		10,672		1,674			—			12,346
Equity in subsidiaries	22,327		—		—			(22,327		)	—
Net income	22,327		18,897		3,430			(22,327		)	22,327
Preferred dividends	1,218		—		—			—			1,218
Excess of fair value over book value of preferred shares subject to redemption	2,257		—		—			—			2,257
Net income to common shareholders	$	18,852	$	18,897	$	3,430		$	(22,327	)	$	18,852

	Three Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	431,903	$	10,561		$	—		$	442,464
Costs and expenses:
Land and housing	—		363,635		—			—			363,635
General and administrative	—		24,340		4,820			—			29,160
Selling	—		27,663		—			—			27,663
Equity in income of joint venture arrangements	—		—		(24		)	—			(24		)
Interest	—		3,036		551			—			3,587
Total costs and expenses	—		418,674		5,347			—			424,021
Income before income taxes	—		13,229		5,214			—			18,443
Provision for income taxes	—		5,601		1,900			—			7,501
Equity in subsidiaries	10,942		—		—			(10,942		)	—
Net income	10,942		7,628		3,314			(10,942		)	10,942
Preferred dividends	1,218		—		—			—			1,218
Net income to common shareholders	$	9,724	$	7,628	$	3,314		$	(10,942	)	$	9,724

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
	Nine Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	1,302,331	$	37,938		$	—		$	1,340,269
Costs and expenses:
Land and housing	—		1,062,552		—			—			1,062,552
General and administrative	—		72,638		16,571			—			89,209
Selling	—		88,666		—			—			88,666
Equity in income of joint venture arrangements	—		—		(198		)	—			(198		)
Interest	—		11,858		1,989			—			13,847
Total costs and expenses	—		1,235,714		18,362			—			1,254,076
Income before income taxes	—		66,617		19,576			—			86,193
Provision for income taxes	—		23,407		6,587			—			29,994
Equity in subsidiaries	56,199		—		—			(56,199		)	—
Net income	56,199		43,210		12,989			(56,199		)	56,199
Preferred dividends	3,656		—		—			—			3,656
Excess of fair value over book value of preferred shares subject to redemption	2,257		—		—			—			2,257
Net income to common shareholders	$	50,286	$	43,210	$	12,989		$	(56,199	)	$	50,286

	Nine Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	1,137,517	$	30,564		$	—		$	1,168,081
Costs and expenses:
Land and housing	—		943,515		—			—			943,515
General and administrative	—		64,727		13,522			—			78,249
Selling	—		75,462		—			—			75,462
Equity in income of joint venture arrangements	—		—		(413		)	—			(413		)
Interest	—		11,715		1,445			—			13,160
Total costs and expenses	—		1,095,419		14,554			—			1,109,973
Income before income taxes	—		42,098		16,010			—			58,108
Provision for income taxes	—		16,487		5,574			—			22,061
Equity in subsidiaries	36,047		—		—			(36,047		)	—
Net income	36,047		25,611		10,436			(36,047		)	36,047
Preferred dividends	3,656		—		—			—			3,656
Net income to common shareholders	$	32,391	$	25,611	$	10,436		$	(36,047	)	$	32,391

Schedule Of Condensed Consolidating Balance Sheet [Table Text Block]

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
	September 30, 2017
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	82,504	$	21,132	$	—		$	103,636
Mortgage loans held for sale	—		—		91,987		—			91,987
Inventory	—		1,455,809		—		—			1,455,809
Property and equipment - net	—		24,325		995		—			25,320
Investment in joint venture arrangements	—		15,764		7,217		—			22,981
Deferred income taxes, net of valuation allowances	—		29,461		108		—			29,569
Investment in subsidiaries	710,176		—		—		(710,176		)	—
Intercompany assets	688,260		—		—		(688,260		)	—
Other assets	3,375		42,473		9,545		—			55,393
TOTAL ASSETS	$	1,401,811	$	1,650,336	$	130,984	$	(1,398,436	)	$	1,784,695
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	120,049	$	549	$	—		$	120,598
Customer deposits	—		30,583		—		—			30,583
Intercompany liabilities	—		683,308		4,952		(688,260		)	—
Other liabilities	—		104,279		4,591		—			108,870
Preferred shares subject to redemption	50,420		—		—		—			50,420
Community development district obligations	—		5,298		—		—			5,298
Obligation for consolidated inventory not owned	—		22,203		—		—			22,203
Notes payable bank - financial services operations	—		—		91,275		—			91,275
Notes payable - other	—		4,057		—		—			4,057
Convertible senior subordinated notes due 2018 - net	85,955		—		—		—			85,955
Senior notes due 2021 - net	296,505		—		—		—			296,505
Senior notes due 2025 - net	245,958		—		—		—			245,958
TOTAL LIABILITIES	678,838		969,777		101,367		(688,260		)	1,061,722
SHAREHOLDERS’ EQUITY	722,973		680,559		29,617		(710,176		)	722,973
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,401,811	$	1,650,336	$	130,984	$	(1,398,436	)	$	1,784,695

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2016
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	20,927	$	13,514	$	—		$	34,441
Mortgage loans held for sale	—		—		154,020		—			154,020
Inventory	—		1,215,934		—		—			1,215,934
Property and equipment - net	—		21,242		1,057		—			22,299
Investment in joint venture arrangements	—		12,537		15,479		—			28,016
Deferred income taxes, net of valuation allowances	—		30,767		108		—			30,875
Investment in subsidiaries	666,008		—		—		(666,008		)	—
Intercompany assets	424,669		—		—		(424,669		)	—
Other assets	1,690		43,809		17,427		—			62,926
TOTAL ASSETS	$	1,092,367	$	1,345,216	$	201,605	$	(1,090,677	)	$	1,548,511
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	102,663	$	549	$	—		$	103,212
Customer deposits	—		22,156		—		—			22,156
Intercompany liabilities	—		411,196		13,473		(424,669		)	—
Other liabilities	—		117,133		6,029		—			123,162
Community development district obligations	—		476		—		—			476
Obligation for consolidated inventory not owned	—		7,528		—		—			7,528
Notes payable bank - homebuilding operations	—		40,300		—		—			40,300
Notes payable bank - financial services operations	—		—		152,895		—			152,895
Notes payable - other	—		6,415		—		—			6,415
Convertible senior subordinated notes due 2017 - net	57,093		—		—		—			57,093
Convertible senior subordinated notes due 2018 - net	85,423		—		—		—			85,423
Senior notes due 2021 - net	295,677		—		—		—			295,677
TOTAL LIABILITIES	438,193		707,867		172,946		(424,669		)	894,337
SHAREHOLDERS’ EQUITY	654,174		637,349		28,659		(666,008		)	654,174
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,092,367	$	1,345,216	$	201,605	$	(1,090,677	)	$	1,548,511

Schedule Of Condensed Consolidating Statement Of Cash Flows [Table Text Block]

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30, 2017
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	12,031		$	(152,148	)	$	86,123		$	(12,031	)	$	(66,025	)
INVESTING ACTIVITIES:
Purchase of property and equipment	—			(5,848		)	(169		)	—			(6,017		)
Intercompany investing	(13,166		)	—			—			13,166			—
Investments in and advances to joint venture arrangements	—			(3,401		)	(5,038		)	—			(8,439		)
Return of capital from unconsolidated joint ventures	—			—			1,833			—			1,833
Net proceeds from the sale of mortgage servicing rights	—			—			7,558			—			7,558
Net cash (used in) provided by investing activities	(13,166		)	(9,249		)	4,184			13,166			(5,065		)
FINANCING ACTIVITIES:
Proceeds from issuance of senior notes	—			250,000			—			—			250,000
Proceeds from bank borrowings - homebuilding operations	—			366,500			—			—			366,500
Principal repayments of bank borrowings - homebuilding operations	—			(406,800		)	—			—			(406,800		)
Net repayments of bank borrowings - financial services operations	—			—			(61,620		)	—			(61,620		)
(Principal repayment of) proceeds from notes payable - other and CDD bond obligations	—			(2,358		)	—			—			(2,358		)
Proceeds from exercise of stock options	4,791			—			—			—			4,791
Intercompany financing	—			22,141			(8,975		)	(13,166		)	—
Dividends paid	(3,656		)	—			(12,031		)	12,031			(3,656		)
Debt issue costs	—			(6,509		)	(63		)	—			(6,572		)
Net cash provided by (used in) financing activities	1,135			222,974			(82,689		)	(1,135		)	140,285
Net increase in cash, cash equivalents and restricted cash	—			61,577			7,618			—			69,195
Cash, cash equivalents and restricted cash balance at beginning of period	—			20,927			13,514			—			34,441
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	82,504		$	21,132		$	—		$	103,636

	Nine Months Ended September 30, 2016
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Unrestricted Subsidiaries			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities (1)	$	7,138		$	(18,210	)	$	44,712		$	(7,138	)	$	26,502
INVESTING ACTIVITIES:
Purchase of property and equipment	—			(11,565		)	(54		)	—			(11,619		)
Intercompany Investing	(3,555		)	—			—			3,555			—
Investments in and advances to joint venture arrangements	—			(5,504		)	(4,556		)	—			(10,060		)
Net cash (used in) provided by investing activities (1)	(3,555		)	(17,069		)	(4,610		)	3,555			(21,679		)
FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			276,800			—			—			276,800
Principal repayments of bank borrowings - homebuilding operations	—			(235,600		)	—			—			(235,600		)
Net repayments of bank borrowings - financial services operations	—			—			(32,165		)	—			(32,165		)
Principal proceeds from notes payable - other and CDD bond obligations	—			125			—			—			125
Intercompany financing	—			(630		)	(3,766		)	4,396			—
Dividends paid	(3,656		)	—			(7,138		)	7,138			(3,656		)
Debt issue costs	—			(153		)	(40		)	—			(193		)
Proceeds from exercise of stock options	73			—			—			—			73
Net cash (used in) provided by financing activities	(3,583		)	40,542			(43,109		)	11,534			5,384
Net increase (decrease) in cash, cash equivalents and restricted cash	—			5,263			(3,007		)	7,951			10,207
Cash, cash equivalents and restricted cash balance at beginning of period	—			2,896			18,156			(7,951		)	13,101
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	8,159		$	15,149		$	—		$	23,308

(1) During the fourth quarter of 2016, we elected to early-adopt Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Certain amounts above have been adjusted to apply the new method retrospectively.

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Inventory and Capitalized Interest Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory [Abstract]
Single-family lots, land and land development costs	$ 663,170	$ 602,528
Land held for sale	12,330	12,155
Homes under construction	645,816	494,664
Model homes and furnishings - at cost (less accumulated depreciation: September 30, 2017 - $12,929; December 31, 2016 - $11,835)	75,618	68,727
Community development district	5,298	476
Land purchase deposits	31,374	29,856
Consolidated inventory not owned	22,203	7,528
Total Inventory	$ 1,455,809	$ 1,215,934

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Inventory and Capitalized Interest Inventory Parentheticals (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Parantheticals - Inventory [Abstract]
Model Home Accumulated Depreciation	$ 12,929	$ 11,835

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Inventory and Capitalized Interest Other Inventory Items - Homes under construction not subject to a sale contract (Details) $ in Thousands	Sep. 30, 2017 USD ($) homes	Dec. 31, 2016 USD ($)
Other Inventory, Gross [Abstract]
Number of Speculative Homes	1,168	996
Speculative Homes Carrying Value	$ 238,900	$ 199,400
Community development district	$ 5,298	$ 476

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Inventory and Capitalized Interest Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized Interest, beginning of period	$ 16,465	$ 16,818	$ 16,012	$ 16,740
Interest capitalized to inventory	6,178	5,139	15,240	13,392
Capitalized interest charged to land and housing costs and expenses	(4,988)	(4,963)	(13,597)	(13,138)
Capitalized Interest, end of period	17,655	16,994	17,655	16,994
Interest incurred	$ 10,853	$ 8,726	$ 29,087	$ 26,552

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Investment in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Increase (decrease) in Investments in Unconsolidated JVs and other joint agreements	$ (5,000)
Investment in joint venture arrangements	22,981		$ 28,016
Distribution of single-family lots from joint venture arrangements	11,839	$ 20,912
Investment in joint venture arrangements	$ 8,439	$ 10,060
Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	97.00%		74.00%
Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	25.00%		25.00%

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Fair Value Measurements Notional Amount of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Notional Disclosures [Abstract]
Best efforts contracts and related committed IRLCs	$ 2,571	$ 6,607
Uncommitted IRLCs	105,104	66,875
FMBSs related to uncommitted IRLCs	105,000	66,000
Best efforts contracts and related mortgage loans held for sale	10,423	125,348
FMBSs related to mortgage loans held for sale	81,000	33,000
Mortgage loans held for sale covered by FMBSs	$ 81,244	$ 32,870

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Fair Value Measurements Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	$ 0	$ 0
Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	92,764	154,410
Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Mortgage Loans Held for Sale [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Mortgage Loans Held for Sale [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	91,987	154,020
Mortgage Loans Held for Sale [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Forward Sales of Mortgage Backed Securities [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Forward Sales of Mortgage Backed Securities [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	471	230
Forward Sales of Mortgage Backed Securities [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Interest Rate Lock Commitments [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Interest Rate Lock Commitments [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	366	250
Interest Rate Lock Commitments [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Best Efforts Contracts [Member] | Fair Value, Inputs - Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Best Efforts Contracts [Member] | Fair Value, Significant Other observable Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	(60)	(90)
Best Efforts Contracts [Member] | Fair Value, Significant Unobservable Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	0	0
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	92,764	154,410
Fair Value, Measurements, Recurring [Member] | Mortgage Loans Held for Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	91,987	154,020
Fair Value, Measurements, Recurring [Member] | Forward Sales of Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	471	230
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	366	250
Fair Value, Measurements, Recurring [Member] | Best Efforts Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring	$ (60)	$ (90)

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Fair Value Measurements (Loss) Gain On Assets and Liabilities Measured On A Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financial Instrument [Line Items]
Gain (Loss) On Assets and Liabilities Measured On A Recurring Basis	$ (211)	$ (200)	$ 4,713	$ 1,233
Mortgage Loans Held for Sale [Member]
Financial Instrument [Line Items]
Gain (Loss) On Assets and Liabilities Measured On A Recurring Basis	(64)	(1,127)	4,326	1,059
Forward Sales of Mortgage Backed Securities [Member]
Financial Instrument [Line Items]
Gain (Loss) On Assets and Liabilities Measured On A Recurring Basis	(128)	1,443	241	(245)
Interest Rate Lock Commitments [Member]
Financial Instrument [Line Items]
Gain (Loss) On Assets and Liabilities Measured On A Recurring Basis	22	(531)	116	388
Best Efforts Contracts [Member]
Financial Instrument [Line Items]
Gain (Loss) On Assets and Liabilities Measured On A Recurring Basis	$ (41)	$ 15	$ 30	$ 31

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Fair Value Measurements Balance Sheet Location of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	$ 837	$ 480
Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	60	90
Forward Sales of Mortgage Backed Securities [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	471	230
Forward Sales of Mortgage Backed Securities [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	0	0
Interest Rate Lock Commitments [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	366	250
Interest Rate Lock Commitments [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	0	0
Best Efforts Contracts [Member] | Other Assets [Member]
Financial Insturments, Fair Value [Line Items]
Financial Instrument, Fair Value	0	0
Best Efforts Contracts [Member] | Other Liabilities [Member]
Financial Insturments, Fair Value [Line Items]
Fair Value Disclosure, Recurring	$ 60	$ 90

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Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS:
Cash, cash equivalents and restricted cash	$ 103,636	$ 34,441
Carrying (Reported) Amount, Fair Value Disclosure [Member]
ASSETS:
Cash, cash equivalents and restricted cash	103,636	34,441
Mortgage loans held for sale	91,987	154,020
Split dollar life insurance policies	212	214
Notes receivable	0	763
Commitments to extend real estate loans (assets)	366	250
Forward sales of mortgage-backed securities	471	230
LIABILITIES:
Notes payable - homebuilding operations - Fair Value Disclosure	0	40,300
Notes Payable - Financial Services Fair Value Disclosure	91,275	152,895
Notes payable - other	4,057	6,415
Convertible senior subordinated notes due 2017 (a)	0	57,500
Convertible senior subordinated notes due 2018 (a)	86,250	86,250
Senior notes due 2021 (a)	300,000	300,000
Senior notes due 2025 (a)	250,000	0
Best efforts contracts for committed IRLCs and mortgage loans held for sale	60	90
Off-Balance Sheet Letters of Credit	0	0
Estimate of Fair Value, Fair Value Disclosure [Member]
ASSETS:
Cash, cash equivalents and restricted cash	103,636	34,441
Mortgage loans held for sale	91,987	154,020
Split dollar life insurance policies	212	214
Notes receivable	0	687
Commitments to extend real estate loans (assets)	366	250
Forward sales of mortgage-backed securities	471	230
LIABILITIES:
Notes payable - homebuilding operations - Fair Value Disclosure	0	40,300
Notes Payable - Financial Services Fair Value Disclosure	91,275	152,895
Notes payable - other	3,867	5,999
Convertible senior subordinated notes due 2017 (a)	0	65,957
Convertible senior subordinated notes due 2018 (a)	86,897	88,105
Senior notes due 2021 (a)	313,125	314,250
Senior notes due 2025 (a)	255,000	0
Best efforts contracts for committed IRLCs and mortgage loans held for sale	60	90
Off-Balance Sheet Letters of Credit	$ 757	$ 702

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Fair Value Measurements Fair Value of Financial Instrument Assumptions (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value of Financial Instrument Assumptions [Line Items]
Letters of Credit Potential Commitments, Amount	$ 41.4	$ 37.7
Second Amendment to Credit Facility [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	475.0
Warehousing Agreement - First Amendment to Second Amended and Restated [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
M/I Financial Maximum Borrowing Capacity	125.0
M/I Financial Temporary Increase Maximum Borrowing Capacity	150.0
Repurchase Agreement - Amendment No. 4 [Member]
Fair Value of Financial Instrument Assumptions [Line Items]
M/I Financial Maximum Borrowing Capacity	$ 35.0

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Guarantees and Indemnifications Guarantees (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Guarantees [Abstract]
Total of Loans Covered by Guarantees	$ 36,700	$ 27,600
Total of Guaranteed Loans Inquired About	600	900
Total Loans Indemnified to third parties	1,300	1,600
Loan Repurchase Guarantee Liability	$ 700	$ 900

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Commitments and Contingencies Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Warranty Accrual Rollforward [Abstract]
Warranty reserves, beginning of period	$ 30,303	$ 15,815	$ 27,732	$ 14,281
Warranty expense on homes delivered during the period	2,882	2,755	8,094	7,276
Changes in estimates for pre-existing warranties	92	526	1,154	563
Charges related to stucco-related claims	0	14,500	8,500	19,409
Settlements made during the period	(6,209)	(5,658)	(18,412)	(13,591)
Warranty reserves, end of period	$ 27,068	$ 27,938	$ 27,068	$ 27,938

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Commitments and Contingencies Legal Liabilities (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Product Liability Accrual, Component Amount						$ 19,400,000	$ 500,000
Charges related to stucco-related claims	$ 0	$ 14,500,000	$ 8,500,000	$ 19,409,000
Estimated Repair Costs for Affected Homes	11,300,000		11,300,000
Amount Reserved for Legal Expenses	400,000		400,000			$ 300,000
General Liability Insurance Deductible	10,000,000		10,000,000		$ 7,500,000
Workers Compensation	$ 250,000		$ 250,000		$ 500,000

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Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2017 USD ($)
Commitments and Contingencies [Abstract]
Letters of credit and completion bonds	$ 167.7
Performance bonds outstanding	118.8
Performance letters of credit outstanding	32.9
Financial letters of credit	8.5
Financial letters of credit representing deposits on land and lot purchase agreements	7.8
Financial Bonds	7.5
Unrecorded conditional purchase obligation	$ 672.9

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Debt Debt (Details) $ in Thousands	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing availability, subject to obtaining additional commitments	$ 500,000
Debt Instrument, Unused Borrowing Capacity, Amount	512,100
Notes payable bank - homebuilding operations	0		$ 40,300
letters of credit outstanding under credit facility	40,800
Maximum borrowing availability subject to limit	434,200
Aggregate Capacity of Secured Letters of Credit under Credit Facility	1,000	$ 2,000
Letters of Credit Outstanding Under Letter of Credit Facilities	610		624
Restricted Cash for Secured Letter of Credit Agreements	616		$ 630
Second Amendment to Credit Facility [Member]
Line of Credit Facility [Line Items]
Sub-limit for letters of credit	125,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 475,000
Basis Points Spread on Variable Rate - Credit Facility	250
2025 Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount	$ 250,000
Debt Instrument, Interest Rate, Stated Percentage	5.625%
2021 Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount	$ 300,000
Debt Instrument, Interest Rate, Stated Percentage	6.75%
2018 Convertible Senior Notes [Member]
Line of Credit Facility [Line Items]
Convertible Subordinated Debt	$ 86,250
Debt Instrument, Interest Rate, Stated Percentage	3.00%

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Debt MIF Warehousing Agreement (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Maximum Borrowing Availability under all Credit Lines	$ 185,000	$ 185,000
Notes payable bank - financial service operations	91,275	$ 152,895
Warehousing Agreement - First Amendment to Second Amended and Restated [Member]
Debt Instrument [Line Items]
M/I Financial Maximum Borrowing Capacity	125,000
M/I Financial Temporary Increase Maximum Borrowing Capacity	$ 150,000
LIBOR basis points	237.5
Debt Instrument, Basis Spread on Variable Rate	2.75%
Repurchase Agreement - Amendment No. 4 [Member]
Debt Instrument [Line Items]
M/I Financial Maximum Borrowing Capacity	$ 35,000
Minimum [Member] | Repurchase Agreement - Amendment No. 4 [Member]
Debt Instrument [Line Items]
LIBOR basis points	250
Maximum [Member] | Repurchase Agreement - Amendment No. 4 [Member]
Debt Instrument [Line Items]
LIBOR basis points	275

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Debt Senior Notes (Details) $ / shares in Units, shares in Millions	9 Months Ended	12 Months Ended					24 Months Ended	48 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares	Jul. 31, 2023	Jul. 31, 2022	Jan. 15, 2021	Jan. 14, 2020	Jan. 14, 2019	Jul. 31, 2025	Jul. 31, 2021	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Restricted Payments Basket	$ 220,400,000								$ 144,900,000
2025 Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 250,000,000
Debt Instrument, Interest Rate, Stated Percentage	5.625%
Debt Instrument, Redemption Price, Percentage		101.406%	102.813%				100.00%	104.219%
2021 Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage	6.75%
Debt Instrument, Redemption Price, Percentage				100.00%	101.688%	103.375%
2018 Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Convertible senior subordinated notes	$ 86,250,000
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Debt Instrument, Convertible, Conversion Ratio	30.9478
Debt Instrument Convertible Principal Amount Used In Conversion Rate Calculation	$ 1,000
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 32.31
Stock Issued During Period, Shares, Other | shares	2.7
2017 Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Convertible senior subordinated notes	$ 57,500,000
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 23.80
Stock Issued During Period, Shares, Other | shares	2.4
Base of restricted payments basket income calculation [Member]
Debt Instrument [Line Items]
Other Restrictions on Payment of Dividends	$ 125,000,000
Percentage of our aggregate consolidated net income added to base amount of calculation [Member]
Debt Instrument [Line Items]
Percent restrictions on payment of dividends	50.00%
Percentage of our aggregate consolidated net income subtracted from base amount of calculation [Member]
Debt Instrument [Line Items]
Percent restrictions on payment of dividends	100.00%
Percentage of net cash proceeds from sale of qualified equity interests added to base and income/loss amount in calculation [Member]
Debt Instrument [Line Items]
Percent restrictions on payment of dividends	100.00%

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Debt Notes Payable Other (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Notes payable - other	$ 4,057	$ 6,415
Secured Debt		$ 3,400

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Preferred Shares Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2013	Sep. 30, 2017	Sep. 30, 2016	Sep. 14, 2017	Dec. 31, 2016	Apr. 10, 2013	Mar. 15, 2007
Investments, Debt and Equity Securities [Abstract]
Preferred Stock, Shares Authorized	2,000,000			2,000,000		2,000,000	2,000,000	2,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01			$ 0.01			$ 0.01
Shares, Issued									4,000,000
Preferred Stock, Dividend Rate, Percentage				9.75%
Preferred Stock, Shares Issued	2,000			2,000			2,000		4,000
Preferred shares redeemed						2,000		2,000
Payments for Repurchase of Redeemable Preferred Stock			$ 50,352	$ 50,420
Preferred Stock, Redemption Price Per Share	$ 609.375			$ 609.375
Preferred Dividends	$ 1,218	$ 1,218		$ 3,656	$ 3,656

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Earnings per Share Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share Calculation [Line Items]
Net Income, Including Portion Attributable to Noncontrolling Interest	$ 22,327	$ 10,942	$ 56,199	$ 36,047
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Preferred Dividends	(1,218)	(1,218)	(3,656)	(3,656)
Excess of fair value over book value of preferred shares redeemed	(2,257)	0	(2,257)	0
Net income to common shareholders	18,852	9,724	50,286	32,391
Net Income Available to Common Stockholders, Diluted	$ 19,706	$ 10,612	$ 52,978	$ 35,097
Weighted Average Number of Shares Outstanding, Basic	25,581	24,669	25,106	24,665
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Stock Options	248	231	302	200
Incremental Common Shares Attributable to Deferred Compensation	237	154	207	143
Weighted Average Number of Shares Outstanding, Diluted	30,675	30,139	30,539	30,093
Earnings Per Share, Basic	$ 0.74	$ 0.39	$ 2.00	$ 1.31
Earnings Per Share, Diluted	$ 0.64	$ 0.35	$ 1.73	$ 1.17
Anti-dilutive stock equivalent awards not included in the calculation of diluted loss per share	0	896	31	1,288
2017 Convertible Senior Notes [Member]
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Interest on Convertible Debt, Net of Tax	$ 324	$ 378	$ 1,106	$ 1,152
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Conversion of Debt Securities	1,940	2,416	2,255	2,416
2018 Convertible Senior Notes [Member]
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract]
Interest on Convertible Debt, Net of Tax	$ 530	$ 510	$ 1,586	$ 1,554
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Incremental Common Shares Attributable to Conversion of Debt Securities	2,669	2,669	2,669	2,669

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Earnings per Share Earnings per share narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 14, 2017	Apr. 10, 2013
Earnings Per Share Narrative [Abstract]
Preferred shares redeemed					2,000	2,000
Excess of fair value over book value of preferred shares redeemed	$ 2,257	$ 0	$ 2,257	$ 0

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Income Taxes Income Tax (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Valuation Allowance [Line Items]
Provision for income taxes	$ 12,346	$ 7,501	$ 29,994	$ 22,061
Effective Income Tax Rate Reconciliation, Percent	35.60%	40.70%	34.80%	38.00%

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Income Taxes Net Operating Loss Carryforwards (Details) - State and Local Jurisdiction [Member] $ in Millions	Sep. 30, 2017 USD ($)
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 4.2
Expiring between 2028 and 2032 [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	3.0
Expiring between 2022 and 2027 [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 1.2

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Business Segments Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 476,423	$ 442,464	$ 1,340,269	$ 1,168,081
Operating Income	39,277	22,006	99,842	70,855
Interest	4,675	3,587	13,847	13,160
Equity in income of joint venture arrangements	(71)	(24)	(198)	(413)
Income before income taxes	34,673	18,443	86,193	58,108
Charges related to stucco-related claims	0	14,500	8,500	19,409
Midwest Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	180,488	166,928	495,379	438,016
Operating Income	20,887	20,628	53,730	48,943
Interest	1,319	647	3,559	2,539
Southern Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	176,502	143,315	504,647	414,974
Operating Income	13,082	(5,249)	26,503	8,380
Interest	2,143	1,788	6,311	6,118
Mid-Atlantic Homebuilding [Member]
Segment Reporting Information [Line Items]
Homebuilding revenue	107,670	121,659	302,305	284,527
Operating Income	9,969	11,359	26,810	22,827
Interest	557	601	1,988	3,058
Financial Services [Member]
Segment Reporting Information [Line Items]
Financial services revenue	11,763	10,562	37,938	30,564
Operating Income	5,887	5,944	21,977	17,581
Interest	656	551	1,989	1,445
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Selling, general and administrative expenses	$ (10,548)	$ (10,676)	$ (29,178)	$ (26,876)

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Business Segments Business Segments - Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	$ 31,374	$ 29,856
Inventory	1,424,435	1,186,078
Investment in joint venture arrangements	22,981	28,016
Other assets	305,905	304,561
Total assets	1,784,695	1,548,511
Midwest Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	5,078	3,989
Inventory	514,949	399,814
Investment in joint venture arrangements	3,798	10,155
Other assets	13,106	25,747
Total assets	536,931	439,705
Southern Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	20,094	22,607
Inventory	623,815	484,038
Investment in joint venture arrangements	10,493	10,630
Other assets	24,624	35,622
Total assets	679,026	552,897
Mid-Atlantic Homebuilding [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	6,202	3,260
Inventory	285,671	302,226
Investment in joint venture arrangements	8,690	7,231
Other assets	11,600	13,912
Total assets	312,163	326,629
Corporate, Financial Services and Unallocated [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	0	0
Inventory	0	0
Investment in joint venture arrangements	0	0
Other assets	256,575	229,280
Total assets	$ 256,575	$ 229,280

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Supplemental Guarantor Information Supplemental Guarantor Information - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue	$ 476,423	$ 442,464	$ 1,340,269	$ 1,168,081
Land and housing	374,673	363,635	1,062,552	943,515
General and administrative	31,337	29,160	89,209	78,249
Selling	31,136	27,663	88,666	75,462
Equity in income of joint venture arrangements	(71)	(24)	(198)	(413)
Interest	4,675	3,587	13,847	13,160
Total costs and expenses	441,750	424,021	1,254,076	1,109,973
Income before income taxes	34,673	18,443	86,193	58,108
Provision for income taxes	12,346	7,501	29,994	22,061
Equity In subsidiaries	0	0	0	0
Net income	22,327	10,942	56,199	36,047
Preferred Dividends	1,218	1,218	3,656	3,656
Preferred Stock Redemption Premium	2,257	0	2,257	0
Net income to common shareholders	18,852	9,724	50,286	32,391
Consolidation, Eliminations [Member]
Revenue	0	0	0	0
Land and housing	0	0	0	0
General and administrative	0	0	0	0
Selling	0	0	0	0
Equity in income of joint venture arrangements	0	0	0	0
Interest	0	0	0	0
Total costs and expenses	0	0	0	0
Income before income taxes	0	0	0	0
Provision for income taxes	0	0	0	0
Equity In subsidiaries	(22,327)	(10,942)	(56,199)	(36,047)
Net income	(22,327)	(10,942)	(56,199)	(36,047)
Preferred Dividends	0	0	0	0
Preferred Stock Redemption Premium	0		0
Net income to common shareholders	(22,327)	(10,942)	(56,199)	(36,047)
Parent Company [Member]
Revenue	0	0	0	0
Land and housing	0	0	0	0
General and administrative	0	0	0	0
Selling	0	0	0	0
Equity in income of joint venture arrangements	0	0	0	0
Interest	0	0	0	0
Total costs and expenses	0	0	0	0
Income before income taxes	0	0	0	0
Provision for income taxes	0	0	0	0
Equity In subsidiaries	22,327	10,942	56,199	36,047
Net income	22,327	10,942	56,199	36,047
Preferred Dividends	1,218	1,218	3,656	3,656
Preferred Stock Redemption Premium	2,257		2,257
Net income to common shareholders	18,852	9,724	50,286	32,391
Guarantor Subsidiaries [Member]
Revenue	464,660	431,903	1,302,331	1,137,517
Land and housing	374,673	363,635	1,062,552	943,515
General and administrative	25,263	24,340	72,638	64,727
Selling	31,136	27,663	88,666	75,462
Equity in income of joint venture arrangements	0	0	0	0
Interest	4,019	3,036	11,858	11,715
Total costs and expenses	435,091	418,674	1,235,714	1,095,419
Income before income taxes	29,569	13,229	66,617	42,098
Provision for income taxes	10,672	5,601	23,407	16,487
Equity In subsidiaries	0	0	0	0
Net income	18,897	7,628	43,210	25,611
Preferred Dividends	0	0	0	0
Preferred Stock Redemption Premium	0		0
Net income to common shareholders	18,897	7,628	43,210	25,611
Non-Guarantor Subsidiaries [Member]
Revenue	11,763	10,561	37,938	30,564
Land and housing	0	0	0	0
General and administrative	6,074	4,820	16,571	13,522
Selling	0	0	0	0
Equity in income of joint venture arrangements	(71)	(24)	(198)	(413)
Interest	656	551	1,989	1,445
Total costs and expenses	6,659	5,347	18,362	14,554
Income before income taxes	5,104	5,214	19,576	16,010
Provision for income taxes	1,674	1,900	6,587	5,574
Equity In subsidiaries	0	0	0	0
Net income	3,430	3,314	12,989	10,436
Preferred Dividends	0	0	0	0
Preferred Stock Redemption Premium	0		0
Net income to common shareholders	$ 3,430	$ 3,314	$ 12,989	$ 10,436

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Supplemental Guarantor Information Supplemental Guarantor Information - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS:
Cash, cash equivalents and restricted cash	$ 103,636	$ 34,441
Mortgage loans held for sale	91,987	154,020
Inventory	1,455,809	1,215,934
Property and equipment - net	25,320	22,299
Investment in joint venture arrangements	22,981	28,016
Deferred Income taxes	29,569	30,875
Investment in subsidiaries	0	0
Intercompany	0	0
Other assets	55,393	62,926
TOTAL ASSETS	1,784,695	1,548,511
LIABILITIES:
Accounts payable	120,598	103,212
Customer deposits	30,583	22,156
Intercompany liabilities	0	0
Other liabilities	108,870	123,162
Preferred shares subject to redemption	50,420	0
Community development district obligations	5,298	476
Obligation for consolidated inventory not owned	22,203	7,528
Notes payable bank - homebuilding operations	0	40,300
Notes payable bank - financial service operations	91,275	152,895
Notes payable - other	4,057	6,415
Convertible senior subordinated notes due 2017 - net	0	57,093
Convertible senior subordinated notes due 2018 - net	85,955	85,423
Senior notes due 2021	296,505	295,677
Senior notes due 2025	245,958	0
TOTAL LIABILITIES	1,061,722	894,337
TOTAL SHAREHOLDERS' EQUITY	722,973	654,174
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,784,695	1,548,511
Consolidation, Eliminations [Member]
ASSETS:
Cash, cash equivalents and restricted cash	0	0
Mortgage loans held for sale	0	0
Inventory	0	0
Property and equipment - net	0	0
Investment in joint venture arrangements	0	0
Deferred Income taxes	0	0
Investment in subsidiaries	(710,176)	(666,008)
Intercompany	(688,260)	(424,669)
Other assets	0	0
TOTAL ASSETS	(1,398,436)	(1,090,677)
LIABILITIES:
Accounts payable	0	0
Customer deposits	0	0
Intercompany liabilities	(688,260)	(424,669)
Other liabilities	0	0
Preferred shares subject to redemption	0
Community development district obligations	0	0
Obligation for consolidated inventory not owned	0	0
Notes payable bank - homebuilding operations		0
Notes payable bank - financial service operations	0	0
Notes payable - other	0	0
Convertible senior subordinated notes due 2017 - net		0
Convertible senior subordinated notes due 2018 - net	0	0
Senior notes due 2021	0	0
Senior notes due 2025	0
TOTAL LIABILITIES	(688,260)	(424,669)
TOTAL SHAREHOLDERS' EQUITY	(710,176)	(666,008)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(1,398,436)	(1,090,677)
Parent Company [Member]
ASSETS:
Cash, cash equivalents and restricted cash	0	0
Mortgage loans held for sale	0	0
Inventory	0	0
Property and equipment - net	0	0
Investment in joint venture arrangements	0	0
Deferred Income taxes	0	0
Investment in subsidiaries	710,176	666,008
Intercompany	688,260	424,669
Other assets	3,375	1,690
TOTAL ASSETS	1,401,811	1,092,367
LIABILITIES:
Accounts payable	0	0
Customer deposits	0	0
Intercompany liabilities	0	0
Other liabilities	0	0
Preferred shares subject to redemption	50,420
Community development district obligations	0	0
Obligation for consolidated inventory not owned	0	0
Notes payable bank - homebuilding operations		0
Notes payable bank - financial service operations	0	0
Notes payable - other	0	0
Convertible senior subordinated notes due 2017 - net		57,093
Convertible senior subordinated notes due 2018 - net	85,955	85,423
Senior notes due 2021	296,505	295,677
Senior notes due 2025	245,958
TOTAL LIABILITIES	678,838	438,193
TOTAL SHAREHOLDERS' EQUITY	722,973	654,174
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,401,811	1,092,367
Guarantor Subsidiaries [Member]
ASSETS:
Cash, cash equivalents and restricted cash	82,504	20,927
Mortgage loans held for sale	0	0
Inventory	1,455,809	1,215,934
Property and equipment - net	24,325	21,242
Investment in joint venture arrangements	15,764	12,537
Deferred Income taxes	29,461	30,767
Investment in subsidiaries	0	0
Intercompany	0	0
Other assets	42,473	43,809
TOTAL ASSETS	1,650,336	1,345,216
LIABILITIES:
Accounts payable	120,049	102,663
Customer deposits	30,583	22,156
Intercompany liabilities	683,308	411,196
Other liabilities	104,279	117,133
Preferred shares subject to redemption	0
Community development district obligations	5,298	476
Obligation for consolidated inventory not owned	22,203	7,528
Notes payable bank - homebuilding operations		40,300
Notes payable bank - financial service operations	0	0
Notes payable - other	4,057	6,415
Convertible senior subordinated notes due 2017 - net		0
Convertible senior subordinated notes due 2018 - net	0	0
Senior notes due 2021	0	0
Senior notes due 2025	0
TOTAL LIABILITIES	969,777	707,867
TOTAL SHAREHOLDERS' EQUITY	680,559	637,349
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,650,336	1,345,216
Non-Guarantor Subsidiaries [Member]
ASSETS:
Cash, cash equivalents and restricted cash	21,132	13,514
Mortgage loans held for sale	91,987	154,020
Inventory	0	0
Property and equipment - net	995	1,057
Investment in joint venture arrangements	7,217	15,479
Deferred Income taxes	108	108
Investment in subsidiaries	0	0
Intercompany	0	0
Other assets	9,545	17,427
TOTAL ASSETS	130,984	201,605
LIABILITIES:
Accounts payable	549	549
Customer deposits	0	0
Intercompany liabilities	4,952	13,473
Other liabilities	4,591	6,029
Preferred shares subject to redemption	0
Community development district obligations	0	0
Obligation for consolidated inventory not owned	0	0
Notes payable bank - homebuilding operations		0
Notes payable bank - financial service operations	91,275	152,895
Notes payable - other	0	0
Convertible senior subordinated notes due 2017 - net		0
Convertible senior subordinated notes due 2018 - net	0	0
Senior notes due 2021	0	0
Senior notes due 2025	0
TOTAL LIABILITIES	101,367	172,946
TOTAL SHAREHOLDERS' EQUITY	29,617	28,659
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 130,984	$ 201,605

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Supplemental Guarantor Information Supplemental Guarantor Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	$ (66,025)	$ 26,502
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of property and equipment	(6,017)	(11,619)
Intercompany Investing	0	0
Investment in joint venture arrangements	(8,439)	(10,060)
Return of investment from Investment in joint venture arrangements	1,833	0
Net proceeds from sale of mortgage servicing rights	7,558	0
Net cash provided by (used in) investing activities	(5,065)	(21,679)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net proceeds from issuance of senior notes	250,000	0
Proceeds from bank borrowings - homebuilding operations	366,500	276,800
Principal repayments of bank borrowings - homebuilding operations	(406,800)	(235,600)
Net repayment of bank borrowings - financial services operations	(61,620)	(32,165)
Proceeds from (principal repayments of) notes payable-other and CDD bond obligations	(2,358)	125
Proceeds from exercise of stock options	4,791	73
Intercompany Financing	0	0
Dividends paid	(3,656)	(3,656)
Debt issue costs	(6,572)	(193)
Net Cash Provided by (Used in) Financing Activities	140,285	5,384
Net increase (decrease) in cash and cash equivalents	69,195	10,207
Cash and cash equivalents balance at beginning of period	34,441	13,101
Cash and cash equivalents balance at end of period	103,636	23,308
Consolidation, Eliminations [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	(12,031)	(7,138)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of property and equipment	0	0
Intercompany Investing	13,166	3,555
Investment in joint venture arrangements	0	0
Return of investment from Investment in joint venture arrangements	0
Net proceeds from sale of mortgage servicing rights	0
Net cash provided by (used in) investing activities	13,166	3,555
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net proceeds from issuance of senior notes	0
Proceeds from bank borrowings - homebuilding operations	0	0
Principal repayments of bank borrowings - homebuilding operations	0	0
Net repayment of bank borrowings - financial services operations	0	0
Proceeds from (principal repayments of) notes payable-other and CDD bond obligations	0	0
Proceeds from exercise of stock options	0	0
Intercompany Financing	(13,166)	4,396
Dividends paid	12,031	7,138
Debt issue costs	0	0
Net Cash Provided by (Used in) Financing Activities	(1,135)	11,534
Net increase (decrease) in cash and cash equivalents	0	7,951
Cash and cash equivalents balance at beginning of period	0	(7,951)
Cash and cash equivalents balance at end of period	0	0
Parent Company [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	12,031	7,138
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of property and equipment	0	0
Intercompany Investing	(13,166)	(3,555)
Investment in joint venture arrangements	0	0
Return of investment from Investment in joint venture arrangements	0
Net proceeds from sale of mortgage servicing rights	0
Net cash provided by (used in) investing activities	(13,166)	(3,555)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net proceeds from issuance of senior notes	0
Proceeds from bank borrowings - homebuilding operations	0	0
Principal repayments of bank borrowings - homebuilding operations	0	0
Net repayment of bank borrowings - financial services operations	0	0
Proceeds from (principal repayments of) notes payable-other and CDD bond obligations	0	0
Proceeds from exercise of stock options	4,791	73
Intercompany Financing	0	0
Dividends paid	(3,656)	(3,656)
Debt issue costs	0	0
Net Cash Provided by (Used in) Financing Activities	1,135	(3,583)
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents balance at beginning of period	0	0
Cash and cash equivalents balance at end of period	0	0
Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	(152,148)	(18,210)
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of property and equipment	(5,848)	(11,565)
Intercompany Investing	0	0
Investment in joint venture arrangements	(3,401)	(5,504)
Return of investment from Investment in joint venture arrangements	0
Net proceeds from sale of mortgage servicing rights	0
Net cash provided by (used in) investing activities	(9,249)	(17,069)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net proceeds from issuance of senior notes	250,000
Proceeds from bank borrowings - homebuilding operations	366,500	276,800
Principal repayments of bank borrowings - homebuilding operations	(406,800)	(235,600)
Net repayment of bank borrowings - financial services operations	0	0
Proceeds from (principal repayments of) notes payable-other and CDD bond obligations	(2,358)	125
Proceeds from exercise of stock options	0	0
Intercompany Financing	22,141	(630)
Dividends paid	0	0
Debt issue costs	(6,509)	(153)
Net Cash Provided by (Used in) Financing Activities	222,974	40,542
Net increase (decrease) in cash and cash equivalents	61,577	5,263
Cash and cash equivalents balance at beginning of period	20,927	2,896
Cash and cash equivalents balance at end of period	82,504	8,159
Non-Guarantor Subsidiaries [Member]
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash (used in) provided by operating activities	86,123	44,712
Net Cash Provided by (Used in) Investing Activities [Abstract]
Purchase of property and equipment	(169)	(54)
Intercompany Investing	0	0
Investment in joint venture arrangements	(5,038)	(4,556)
Return of investment from Investment in joint venture arrangements	1,833
Net proceeds from sale of mortgage servicing rights	7,558
Net cash provided by (used in) investing activities	4,184	(4,610)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net proceeds from issuance of senior notes	0
Proceeds from bank borrowings - homebuilding operations	0	0
Principal repayments of bank borrowings - homebuilding operations	0	0
Net repayment of bank borrowings - financial services operations	(61,620)	(32,165)
Proceeds from (principal repayments of) notes payable-other and CDD bond obligations	0	0
Proceeds from exercise of stock options	0	0
Intercompany Financing	(8,975)	(3,766)
Dividends paid	(12,031)	(7,138)
Debt issue costs	(63)	(40)
Net Cash Provided by (Used in) Financing Activities	(82,689)	(43,109)
Net increase (decrease) in cash and cash equivalents	7,618	(3,007)
Cash and cash equivalents balance at beginning of period	13,514	18,156
Cash and cash equivalents balance at end of period	$ 21,132	$ 15,149

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Subsequent Event Subsequent Event (Details) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2013	Sep. 30, 2017	Sep. 14, 2017	Apr. 10, 2013
Subsequent Event [Line Items]
Preferred shares redeemed			2,000	2,000
Payments for Repurchase of Redeemable Preferred Stock	$ 50,352	$ 50,420