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

12 Months Ended

Dec. 31, 2020

Other Income and Expenses [Abstract]

Components of Operating 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)	2020		2019		2018
General and Administrative Expenses
Fixed compensation expense	$	46,689	$	39,639	$	24,445
Annual variable compensation expense	14,116		21,728		14,589
Long-term incentive award expense (1)	12,439		13,402		12,388
Acquisition-related equity compensation expense (2)	4,848		1,010		—
Systems and consulting	11,728		10,746		7,451
Office costs	7,794		6,310		4,705
Accounting and legal	7,928		5,450		5,529
Corporate costs	2,829		2,351		1,955
Other	6,833		8,101		4,236
Total General and Administrative Expenses	115,204		108,737		75,298
Loan Acquisition Costs
Commissions	4,321		3,833		78
Underwriting costs	4,945		4,767		5,140
Transfer and holding costs	1,757		1,335		2,266
Total Loan Acquisition Costs	11,023		9,935		7,484
Other Expenses
Goodwill impairment expense	88,675		—		—
Amortization of purchase-related intangible assets	15,925		8,696		177
Contingent consideration expense (3)	249		3,218		—
Other	3,936		1,108		19
Total Other Expenses	108,785		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.