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v3.22.2.2

Basis of Presentation (Tables) | 9 Months Ended
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Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Assets Acquired and Liabilities Assumed | Through September 30, 2022, there were no significant changes to our purchase price allocations, which are summarized in the following table. Table 2.1 - Purchase Price Allocation
(In Thousands) |  | Riverbend
Acquisition Date |  | July 1, 2022
Purchase price: |  |
Cash |  | $ | 44,126 |
Provisional consideration payable |  | 477 |
Contingent consideration, at fair value |  | — |
Total consideration |  | $ | 44,603 |
Allocated to: |  |
Business purpose loans, at fair value |  | $ | 59,748 |
Other investments |  | 2,443 |
Cash and cash equivalents |  | 3,490 |
Other assets |  | 13,306 |
Goodwill |  | 23,373 |
Intangible assets |  | 13,300 |
Total assets acquired |  | 115,660 |
Short-term debt, net |  | 67,423 |
Accrued expenses and other liabilities |  | 3,634 |
Total liabilities assumed |  | 71,057 |
Total net assets acquired |  | $ | 44,603 |
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 September 30, 2022. Table 2.2 – Intangible Assets – Activity
|  | Intangible Assets at Acquisition |  | Accumulated Amortization at September 30, 2022 |  | Carrying Value at September 30, 2022 |  | Weighted Average Amortization Period (in years)
(Dollars in Thousands) |  |  |  |
Borrower network |  | $ | 56,300 |  |  | $ | (19,537) |  |  | $ | 36,763 |  |  | 7
Broker network |  | 18,100 |  |  | (12,972) |  |  | 5,128 |  |  | 5
Non-compete agreements |  | 11,400 |  |  | (9,567) |  |  | 1,833 |  |  | 3
Tradenames |  | 4,400 |  |  | (3,994) |  |  | 406 |  |  | 3
Developed technology |  | 1,800 |  |  | (1,800) |  |  | — |  |  | 2
Loan administration fees on existing loan assets |  | 2,600 |  |  | (2,600) |  |  | — |  |  | 1
Total |  | $ | 94,600 |  |  | $ | (50,470) |  |  | $ | 44,130 |  |  | 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) |  |  |  |  |  |  |  | September 30, 2022
2022 (3 months) |  |  |  |  |  |  |  | $ | 3,238 |
2023 |  |  |  |  |  |  |  | 12,430 |
2024 |  |  |  |  |  |  |  | 9,413 |
2025 |  |  |  |  |  |  |  | 8,426 |
2026 |  |  |  |  |  |  |  | 6,695 |
2027 and thereafter |  |  |  |  |  |  |  | 3,928 |
Total Future Intangible Asset Amortization |  |  |  |  |  |  |  | $ | 44,130 |
Schedule of Goodwill | Table 2.4 – Goodwill - Activity
(In Thousands) |  | Riverbend
Beginning Balance |  | $ | — |
Goodwill recognized from acquisition |  | 23,373 |
Impairment |  | — |
Ending Balance |  | $ | 23,373 |
Pro Forma Information | The following unaudited pro forma financial information presents Net interest income, Non-interest income, and Net income of Redwood, as if the acquisition of Riverbend occurred as of January 1, 2021. These pro forma amounts have been adjusted to include the amortization of intangible assets for all periods. 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, 2021 and should not be taken as indicative of our future consolidated results of operations. During the period from July 1, 2022 to September 30, 2022, Riverbend had net interest income of $1 million, non-interest income of $0.5 million, and a net loss of $1 million, which included intangible asset amortization expense of 0.6 million. Table 2.5 – Unaudited Pro Forma Financial Information
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Supplementary pro forma information: |  |  |  |  |  |  |  |
Net interest income |  | $ | 34,935 |  |  | $ | 43,174 |  |  | $ | 132,475 |  |  | $ | 100,570 |
Non-interest (loss) income |  | (37,135) |  |  | 102,436 |  |  | (121,614) |  |  | 355,456 |
Net (loss) income |  | (50,411) |  |  | 89,923 |  |  | (117,090) |  |  | 278,134 |

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