Components of Operating Expenses

6 Months Ended

Jun. 30, 2024

Other Income and Expenses [Abstract]

Components of our general and administrative expenses, portfolio management costs, loan acquisition costs, and other expenses for the three and six months ended June 30, 2024 and 2023 are presented in the following table.

Table 22.1 – Components of Operating Expenses


	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2024		2023		2024		2023
General and Administrative Expenses
Fixed compensation expense (1)	$	13,073	$	12,786	$	29,330	$	28,145
Annual variable compensation expense	4,051		3,187		6,968		7,192
Long-term incentive award expense (2)	7,338		6,237		13,825		14,179
Systems and consulting	3,254		2,854		6,455		5,966
Office costs	2,076		2,289		4,158		4,329
Accounting and legal	789		1,176		2,006		2,095
Corporate costs	985		957		1,857		1,886
Other	1,718		1,319		3,254		2,568
Total General and Administrative Expenses	33,284		30,805		67,853		66,360

Portfolio Management Costs	4,864		3,100		8,461		6,610

Loan Acquisition Costs
Commissions	1,571		1,023		2,452		1,851
Underwriting costs	1,039		219		1,721		461
Transfer and holding costs	1,054		202		1,728		421
Total Loan Acquisition Costs	3,664		1,444		5,901		2,733

Other Expenses

Amortization of purchase-related intangible assets	2,202		3,107		5,007		6,214

Other	2,975		1,868		3,531		2,445
Total Other Expenses	5,177		4,975		8,538		8,659
Total Operating Expenses	$	46,989	$	40,324	$	90,753	$	84,362

(1)Includes $2 million and $1 million of severance and transition-related expenses for the six months ended June 30, 2024 and 2023, respectively.

(2)Includes $1 million of equity amortization expense related to employee terminations for both the six months ended June 30, 2024 and 2023. For the three months ended June 30, 2024 and 2023, long-term incentive award expense included $5 million and $4 million of expense, respectively, for awards settleable in shares of our common stock, and $2 million and $1 million of expense, respectively, for awards settleable in cash. For the six months ended June 30, 2024 and 2023, long-term incentive award expense included $11 million and $10 million of expense, respectively, for awards settleable in shares of our common stock, and $3 million and $3 million of expense, respectively, for awards settleable in cash.

For additional information related to cash-settled, long-term incentive awards, see Note 22 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.