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Basis of Presentation (Tables) | 12 Months Ended
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Dec. 31, 2021
Accounting Policies [Abstract] |
Schedule of Assets Acquired and Liabilities Assumed | Through December 31, 2021, there were no changes to our purchase price allocations, which are summarized in the following table. Table 2.1 – Purchase Price Allocations
(In Thousands) |  | 5 Arches |  | CoreVest
Acquisition Date |  | March 1, 2019 |  | October 15, 2019
Purchase price: |  |  |  |
Cash |  | $ | 12,575 |  |  | $ | 482,311 |
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 |  |  | $ | 482,311 |
Allocated to: |  |  |  |
Business purpose loans, at fair value |  | $ | 2,022 |  |  | $ | 2,610,490 |
Cash and cash equivalents |  | 2,128 |  |  | 30,685 |
Restricted cash |  | 9,082 |  |  | — |
Other assets |  | 5,473 |  |  | 67,420 |
Goodwill |  | 28,747 |  |  | 59,928 |
Intangible assets |  | 24,800 |  |  | 56,500 |
Deferred tax asset |  | — |  |  | 2,577 |
Total assets acquired |  | 72,252 |  |  | 2,827,600 |
Asset-backed securities issued, at fair value |  | — |  |  | 1,656,023 |
Short-term debt, net |  | 3,800 |  |  | 663,275 |
Accrued expenses and other liabilities |  | 13,920 |  |  | 25,991 |
Deferred tax liability |  | 4,202 |  |  | — |
Total liabilities assumed |  | 21,922 |  |  | 2,345,289 |
Total net assets acquired |  | $ | 50,330 |  |  | $ | 482,311 |
Because we owned a 20% non-controlling interest in 5 Arches immediately before obtaining full control, we remeasured our initial minority investment and purchase option at their acquisition-date fair values using the income approach, which resulted in a gain of $2 million that was recorded in Other income on our consolidated statements of income (loss) during the three months ended March 31, 2019. We recognized $2 million of acquisition costs related our acquisitions of 5 Arches and CoreVest during the year ended December 31, 2019. These costs primarily related to accounting, consulting, and legal expenses and are included in our General and administrative expenses on our consolidated statements of income (loss).
Schedule of Finite-Lived Intangible Assets | The table below presents the amortization period and carrying value of our intangible assets, net of accumulated amortization at December 31, 2021 and 2020. Table 2.2 – Intangible Assets – Activity
|  | Intangible Assets at Acquisition |  | Accumulated Amortization at December 31, 2021 |  | Carrying Value at December 31, 2021 |  | Weighted Average Amortization Period (in years)
(Dollars in Thousands) |  |  |  |
Borrower network |  | $ | 45,300 |  |  | $ | (14,291) |  |  | $ | 31,009 |  |  | 7
Broker network |  | 18,100 |  |  | (10,257) |  |  | 7,843 |  |  | 5
Non-compete agreements |  | 9,500 |  |  | (7,597) |  |  | 1,903 |  |  | 3
Tradenames |  | 4,000 |  |  | (3,194) |  |  | 806 |  |  | 3
Developed technology |  | 1,800 |  |  | (1,800) |  |  | — |  |  | 2
Loan administration fees on existing loan assets |  | 2,600 |  |  | (2,600) |  |  | — |  |  | 1
Total |  | $ | 81,300 |  |  | $ | (39,739) |  |  | $ | 41,561 |  |  | 6
|  | Intangible Assets at Acquisition |  | Accumulated Amortization at December 31, 2020 |  | Carrying Value at December 31, 2020 |  | Weighted Average Amortization Period (in years)
(Dollars in Thousands) |  |  |  |
Borrower network |  | $ | 45,300 |  |  | $ | (7,819) |  |  | $ | 37,481 |  |  | 7
Broker network |  | 18,100 |  |  | (6,637) |  |  | 11,463 |  |  | 5
Non-compete agreements |  | 9,500 |  |  | (4,431) |  |  | 5,069 |  |  | 3
Tradenames |  | 4,000 |  |  | (1,860) |  |  | 2,140 |  |  | 3
Developed technology |  | 1,800 |  |  | (1,088) |  |  | 712 |  |  | 2
Loan administration fees on existing loan assets |  | 2,600 |  |  | (2,600) |  |  | — |  |  | 1
Total |  | $ | 81,300 |  |  | $ | (24,435) |  |  | $ | 56,865 |  |  | 6
Finite-lived Intangible Assets Amortization Expense | Estimated future amortization expense is summarized in the table below. Table 2.3 – Intangible Asset Amortization Expense by Year
(In Thousands) |  |  |  |  |  | December 31, 2021
2022 |  |  |  |  |  | $ | 12,800 |
2023 |  |  |  |  |  | 10,091 |
2024 |  |  |  |  |  | 7,073 |
2025 |  |  |  |  |  | 6,471 |
2026 |  |  |  |  |  | 5,126 |
Total Future Intangible Asset Amortization |  |  |  |  |  | $ | 41,561 |
Pro Forma Information | The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood, 5 Arches, and CoreVest combined, for the year ended December 31, 2019, as if the acquisitions occurred as of January 1, 2018. These pro forma amounts have been adjusted to include the amortization of intangible assets and acquisition-related compensation expense 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 acquisitions had been completed as of January 1, 2018 and should not be taken as indicative of our future consolidated results of operations. Table 2.4 – Unaudited Pro Forma Financial Information
|  |  |  | Year Ended
(In Thousands) |  |  |  | December 31, 2019
Supplementary pro forma information: |  |  |  |
Net interest income |  |  |  | $ | 167,680 |
Non-interest income |  |  |  | 193,519 |
Net income |  |  |  | 185,896 |

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