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Basis of Presentation (Tables)
 9 Months Ended
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 DateJuly 1, 2022
Purchase price:
Cash$44,126 
Provisional consideration payable477 
Contingent consideration, at fair value— 
Total consideration $44,603 
Allocated to:
Business purpose loans, at fair value$59,748 
Other investments2,443 
Cash and cash equivalents3,490 
Other assets13,306 
Goodwill23,373 
Intangible assets13,300 
Total assets acquired115,660 
Short-term debt, net67,423 
Accrued expenses and other liabilities3,634 
Total liabilities assumed71,057 
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 AcquisitionAccumulated Amortization at September 30, 2022Carrying Value at September 30, 2022Weighted Average Amortization Period (in years)
(Dollars in Thousands)
Borrower network$56,300 $(19,537)$36,763 7
Broker network18,100 (12,972)5,128 5
Non-compete agreements11,400 (9,567)1,833 3
Tradenames4,400 (3,994)406 3
Developed technology1,800 (1,800)— 2
Loan administration fees on existing loan assets2,600 (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 
202312,430 
20249,413 
20258,426 
20266,695 
2027 and thereafter3,928 
Total Future Intangible Asset Amortization$44,130 
Schedule of Goodwill
Table 2.4 – Goodwill - Activity

(In Thousands)Riverbend
Beginning Balance$— 
Goodwill recognized from acquisition23,373 
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)2022202120222021
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