XML 56 R30.htm IDEA: XBRL DOCUMENT v3.20.4
General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses
 12 Months Ended
Dec. 31, 2020
Other Income and Expenses [Abstract]  
General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses
Components of our general and administrative expenses, loan acquisition costs, and other expenses for the years ended December 31, 2020, 2019 and 2018 are presented in the following table.
Table 21.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses
Years Ended December 31,
(In Thousands)202020192018
General and Administrative Expenses
Fixed compensation expense $46,689 $39,639 $24,445 
Annual variable compensation expense 14,11621,728 14,589 
Long-term incentive award expense (1)
12,43913,402 12,388 
Acquisition-related equity compensation expense (2)
4,8481,010 — 
Systems and consulting11,728 10,746 7,451 
Office costs7,794 6,310 4,705 
Accounting and legal7,928 5,450 5,529 
Corporate costs2,829 2,351 1,955 
Other6,833 8,101 4,236 
Total General and Administrative Expenses115,204 108,737 75,298 
Loan Acquisition Costs
Commissions4,321 3,833 78 
Underwriting costs4,945 4,767 5,140 
Transfer and holding costs1,757 1,335 2,266 
Total Loan Acquisition Costs11,023 9,935 7,484 
Other Expenses
Goodwill impairment expense88,675 — — 
Amortization of purchase-related intangible assets 15,925 8,696 177 
Contingent consideration expense (3)
249 3,218 — 
Other3,936 1,108 19 
Total Other Expenses108,785 13,022 196 
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses$235,012 $131,694 $82,978 
(1)For the year ended December 31, 2020, long-term incentive award expense includes $10 million of expense for awards settleable in shares of our common stock and $2 million of expense for awards settleable in cash.
(2)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. The grant date fair value of these restricted stock awards was $10 million, which will be recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP.
(3)Contingent consideration expense relates to the acquisition of 5 Arches during 2019. Refer to Note 2 for additional detail.
Cash-Based Retention Awards
During the three months ended September 30, 2020, $8 million of cash-based retention awards were granted to certain executive and non-executive employees that will vest and be paid over the next three years, subject to continued employment through the vesting periods from 2021 through 2023. Additionally, during the three months ended September 30, 2020, Cash Performance Awards with an aggregate granted award value of $2 million, were granted to certain executive and non-executive employees that will vest between 0% to 400% of granted award value based on a relative total stockholder return measure, and are contingent on continued employment over a three-year service period.
The value of the cash-based retention awards is being amortized into expense on a straight-line basis over each award's respective vesting period. The Cash Performance Awards are amortized on a straight-line basis over three years; however, they are remeasured at fair value each quarter-end and the cumulative straight-line expense is trued-up in respect to their updated value. For the year ended December 31, 2020, General and administrative expenses included $5 million in aggregate related to the cash-based retention awards and the Cash Performance awards.
Cash-Settled Deferred Stock Units
In December 2020, $2 million of cash-settled deferred stock units were granted to certain executive officers and non-executive employees that will vest over the next four years through 2024. These awards will be fully vested and payable in cash with a vested award value based on the closing market price of our common stock on December 15, 2024. These awards are classified as a liability in Accrued expenses and other liabilities on our consolidated balance sheets, and will be amortized over the vesting period on a straight-line basis, adjusted for changes in the value of our common stock at the end of each reporting period. For the year ended December 31, 2020, we recognized an expense of less than $0.1 million in "Long-term incentive award expense," as presented in Table 21.1 above.