General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses (Tables)

9 Months Ended

Sep. 30, 2022

Other Income and Expenses [Abstract]

Components of General and Administrative Expenses and Other Expenses

Components of our general and administrative expenses, loan acquisition costs, and other expenses for the three and nine months ended September 30, 2022 and 2021 are presented in the following table.

Table 22.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2022		2021		2022		2021
General and Administrative Expenses
Fixed compensation expense (1)	$	18,626	$	11,285	$	45,364	$	34,359
Annual variable compensation expense	3,521		19,844		8,689		51,021
Long-term incentive award expense (2)	4,998		4,915		16,190		14,766
Acquisition-related equity compensation expense (3)	—		1,189		—		3,613
Systems and consulting	3,909		2,975		10,796		9,224
Office costs	2,381		2,197		6,489		6,029
Accounting and legal	1,775		1,197		5,026		3,132
Corporate costs	928		964		2,792		2,528
Other	3,969		3,126		11,581		7,165
Total General and Administrative Expenses	40,107		47,692		106,927		131,837

Loan Acquisition Costs
Commissions	1,549		1,906		6,279		4,830
Underwriting costs	545		2,351		3,013		5,872
Transfer and holding costs	332		364		1,079		1,226

Total Loan Acquisition Costs	2,426		4,621		10,371		11,928

Other Expenses

Amortization of purchase-related intangible assets	3,891		3,873		10,731		11,619

Other	370		150		1,083		485
Total Other Expenses	4,261		4,023		11,814		12,104
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	$	46,794	$	56,336	$	129,112	$	155,869

(1)Includes $3 million of severance and transition-related expenses for the three and nine months ended September 30, 2022.

(2)For the three months ended September 30, 2022 and 2021, long-term incentive award expense included $5 million and $3 million of expense for awards settleable in shares of our common stock, and $0.1 million and $1 million of expense for awards settleable in cash, respectively. For the nine months ended September 30, 2022 and 2021, long-term incentive award expense included $15 million and $10 million of expense for awards settleable in shares of our common stock, and $1 million and $4 million of expense for awards settleable in cash, respectively.

(3)Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest in 2019. The grant date fair value of these restricted stock awards was $10 million, which was recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP.