Other assets and other liabilities

12 Months Ended

Dec. 31, 2021

Other assets and other liabilities

Other assets and other liabilities

Note 19. Other assets and other liabilities

The table below presents the composition of other assets and other liabilities.

(in thousands)	December 31, 2021		December 31, 2020
Other assets:
Deferred tax asset	$	3,601	$	18,396
Deferred loan exit fees		25,923		13,940
Accrued interest		21,873		12,656
Goodwill		31,470		11,206
Due from servicers		23,729		11,171
Right-of-use lease asset		2,402		3,172
Intangible assets		14,842		6,986
Deferred financing costs		3,840		2,612
PPP fee receivable		407		18
Receivable from third party		29,298		1,246
Other assets		14,713		8,100
Other assets	$	172,098	$	89,503
Accounts payable and other accrued liabilities:
Deferred tax liability	$	11,986	$	16,839
Accrued salaries, wages and commissions		42,715		35,724
Accrued interest payable		22,278		19,695
Servicing principal and interest payable		19,100		7,318
Repair and denial reserve		19,725		9,557
Payable to related parties		5,232		4,088
Accrued professional fees		4,324		1,365
Lease payable		3,002		3,670
Deferred LSP revenue		286		10,700
Accrued PPP related costs		12,460		498
Other liabilities		42,971		26,201
Total accounts payable and other accrued liabilities	$	184,079	$	135,655

Goodwill

The table below presents the carrying value of goodwill by reportable segment.

(in thousands)	December 31, 2021		December 31, 2020
SBC Lending and Acquisitions	$	20,264	$	—
Small Business Lending		11,206		11,206
Residential mortgage banking		—		—
Total	$	31,470	$	11,206

Intangible assets

The table below presents information on intangible assets.

(in thousands)	December 31, 2021		December 31, 2020		Estimated Useful Life
Customer Relationships - Red Stone	$	6,651	$	—	19 years
Internally developed software - Knight Capital		2,428		3,061	6 years
Trade name - Red Stone		2,500		—	Indefinite life
SBA license		1,000		1,000	Indefinite life
Broker network - Knight Capital		622		889	4.5 years
Favorable lease		640		768	12 years
Trade name - Knight Capital		562		709	6 years
Trade name - GMFS		439		559	15 years
Total intangible assets	$	14,842	$	6,986

The amortization expense related to intangible assets for the years ended December 31, 2021 and 2020 was $1.4 million and $1.3 million, respectively. Such amounts are recorded as other operating expenses in the consolidated statements of income.

The table below presents accumulated amortization for finite-lived intangible assets.

(in thousands)	December 31, 2021
Internally developed software - Knight Capital	$	1,372
Favorable lease		840
Trade name - GMFS		781
Broker network - Knight Capital		578
Trade name - Knight Capital		318
Customer Relationship – Red Stone		149
Total accumulated amortization	$	4,038

The table below presents amortization expense related to finite-lived intangible assets for the subsequent five years.

(in thousands)	December 31, 2021
2022	$	1,626
2023		1,599
2024		1,390
2025		1,144
2026		477
Thereafter		5,106
Total	$	11,342

Loan indemnification reserve

A liability has been established for potential losses related to representations and warranties made by GMFS for loans sold with a corresponding provision recorded for loan indemnification losses. The liability is included in accounts payable and other accrued liabilities in the Company's consolidated balance sheets and the provision for loan indemnification losses is included in variable expenses on residential mortgage banking activities, in the Company's consolidated statements of income. In assessing the adequacy of the liability, management evaluates various factors including historical repurchases and indemnifications, historical loss experience, known delinquent and other problem loans, outstanding repurchase demand, historical rescission rates and economic trends and conditions in the industry. Actual losses incurred are reflected as a reduction of the reserve liability. As of December 31, 2021 and 2020, the loan indemnification reserve was $4.0 million and $4.1 million, respectively.

Due to the uncertainty in the various estimates underlying the loan indemnification reserve, there is a range of losses in excess of the recorded loan indemnification reserve that is reasonably possible. The estimate of the range of possible losses for representations and warranties does not represent a probable loss, and is based on current available information, significant judgment, and a number of assumptions that are subject to change. As of December 31, 2021 and 2020, the reasonably possible loss above the recorded loan indemnification reserve was not material.