Acquisition of Lima One Holdings, LLC (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

The purchase price allocations are summarized in the table below:


Purchase Price Allocation
(In Thousands)
Acquisition Date	July 1, 2021

Purchase Price:
Cash	$	57,255
Equity method investment at fair value	44,465
Total consideration	$	101,720

Allocated to:

Business purpose residential loans, at fair value	$	170,220
Cash and cash equivalents	16,531
Restricted cash	91,394
Other assets	36,864
Goodwill	61,615
Intangible assets	28,000
Total assets acquired	$	404,624

Short term debt, net	$	(170,908)
Accrued expenses and other liabilities	(84,620)
Total liabilities assumed	$	(255,528)
Preferred equity repaid at closing	(47,376)
Total net assets acquired	$	101,720

Finite-lived Intangible Assets Amortization Expense

The amortization period for each of the finite lived intangible assets and the activity for the three months ended September 31, 2021 is summarized in the table below:


(Dollars in Thousands)	Acquisition Date July 1, 2021		Amortization Three Months Ended September 30, 2021		Carrying Value at September 30, 2021		Amortization Period (Years) (1)
Trademarks / Trade Names	$	4,000	$	(100)	$	3,900	10
Customer Relationships	16,000		(2,000)		14,000		4
Internally Developed Software	4,000		(200)		3,800		5
Non-Compete Agreements	4,000		(1,000)		3,000		1
Total Identified Intangibles	$	28,000	$	(3,300)	$	24,700

(1) Amortization is calculated on a straight-line basis over the amortization period, except for Customer Relationships, where amortization is calculated based on expected levels of customer attrition.