XML 120 R36.htm IDEA: XBRL DOCUMENT
v3.19.3

Basis of Presentation (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2019
Accounting Policies [Abstract] |
Schedule of Assets Acquired and Liabilities Assumed | Through September 30, 2019, there have been no significant changes to our preliminary purchase price allocation, which is summarized in the following table. Table 2.1 – 5 Arches Purchase Price Allocation
(In Thousands) |  | March 1, 2019
Purchase price: |  |
Cash |  | $ | 12,575 |
Contingent consideration, at fair value |  | 24,621 |
Purchase option, at fair value |  | 5,082 |
Equity method investment, at fair value |  | 8,052 |
Total consideration |  | $ | 50,330 |
Allocated to: |  |
Tangible net assets acquired (1) |  | $ | 985 |
Goodwill |  | 28,747 |
Intangible assets |  | 24,800 |
Deferred tax liability |  | (4,202 | )
Total net assets acquired |  | $ | 50,330 |
(1) 5 Arches net assets acquired consisted of assets of $19 million and liabilities of $18 million as of March 1, 2019.
Schedule of Finite-Lived Intangible Assets | The amortization period for each of these assets and the activity for the period from March 1, 2019 to September 30, 2019 is summarized in the table below. Table 2.2 – Intangible Assets – Activity
(Dollars in Thousands) |  | Carrying Value at December 31, 2018 |  | Additions |  | Amortization Expense |  | Carrying Value at September 30, 2019 |  | Weighted Average Amortization Period (in years)
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Broker network |  | $ | — |  |  | $ | 18,100 |  |  | $ | (2,112 | ) |  | $ | 15,988 |  |  | 5
Non-compete agreements |  | — |  |  | 2,900 |  |  | (564 | ) |  | 2,336 |  |  | 3
Loan administration fees on existing loan assets |  | — |  |  | 2,600 |  |  | (1,517 | ) |  | 1,083 |  |  | 1
Tradename |  | — |  |  | 1,200 |  |  | (233 | ) |  | 967 |  |  | 3
Total |  | $ | — |  |  | $ | 24,800 |  |  | $ | (4,426 | ) |  | $ | 20,374 |  |  | 4
Finite-lived Intangible Assets Amortization Expense | All of our intangible assets are amortized on a straight-line basis. Estimated amortization expense for the remainder of 2019 and the following years is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year
(In Thousands) |  | September 30, 2019
2019 (3 months) |  | $ | 1,897 |
2020 |  | 5,420 |
2021 |  | 4,987 |
2022 |  | 3,848 |
2023 and thereafter |  | 4,222 |
Total Future Intangible Asset Amortization |  | $ | 20,374 |
Schedule of Goodwill | The following table presents the goodwill activity for the nine months ended September 30, 2019. Table 2.4 – Goodwill – Activity
(In Thousands) |  | Nine Months Ended September 30, 2019
Beginning balance |  | $ | — |
Goodwill recognized from 5 Arches acquisition |  | 28,728 |
Measurement period adjustment |  | 19 |
Impairment |  | — |
Ending Balance |  | $ | 28,747 |
Pro Forma Information | The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood and 5 Arches combined, as if the acquisition occurred as of January 1, 2018. These pro forma amounts have been adjusted to include the amortization of intangible assets for both periods, and to exclude the income statement impacts related to our equity method investment in 5 Arches. The unaudited pro forma financial information is not intended to represent or be indicative of the consolidated financial results of operations that would have been reported if the acquisition had been completed as of January 1, 2018 and should not be taken as indicative of our future consolidated results of operations. During the period from March 1, 2019 to September 30, 2019, 5 Arches had mortgage banking income of $12 million and a net loss of $3 million. Included in the net loss for this period was intangible asset amortization expense of $4 million. Table 2.5 – Unaudited Pro Forma Financial Information
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Supplementary pro forma information: |  |  |  |  |  |  |  |
Net interest income |  | $ | 33,513 |  |  | $ | 35,231 |  |  | $ | 98,101 |  |  | $ | 105,660 |
Non-interest income |  | 27,498 |  |  | 22,280 |  |  | 98,780 |  |  | 84,684 |
Net income |  | 34,310 |  |  | 32,636 |  |  | 115,809 |  |  | 111,072 |

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of amortization expense of assets, excluding financial assets, that lack physical substance, having a limited useful life. + References No definition available. + Details
Name: | us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 + Details
Name: | us-gaap_ScheduleOfFiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13854-109267 + Details
Name: | us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116869197&loc=d3e4845-128472 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration