General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses

3 Months Ended

Mar. 31, 2022

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 three months ended March 31, 2022 and 2021 are presented in the following table.

Table 21.1 – Components of General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses

	Three Months Ended March 31,
(In Thousands)	2022		2021
General and Administrative Expenses
Fixed compensation expense	$	14,628	$	11,805
Annual variable compensation expense	3,357		18,669
Long-term incentive award expense (1)	5,660		4,169
Acquisition-related equity compensation expense (2)	—		1,212
Systems and consulting	3,184		2,977
Office costs	2,025		1,808
Accounting and legal	1,675		714
Corporate costs	864		691
Other	3,461		1,506
Total General and Administrative Expenses	34,854		43,551
Loan Acquisition Costs
Commissions	2,614		1,263
Underwriting costs	1,372		1,685
Transfer and holding costs	479		611
Total Loan Acquisition Costs	4,465		3,559
Other Expenses
Amortization of purchase-related intangible assets	3,534		3,873
Other	551		223
Total Other Expenses	4,085		4,096
Total General and Administrative Expenses, Loan Acquisition Costs, and Other Expenses	$	43,404	$	51,206

(1)For the three months ended March 31, 2022 and 2021, long-term incentive award expense includes $5 million and $3 million, respectively, of expense for awards settleable in shares of our common stock and $1 million and $1 million, respectively, 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 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.

Long Term Cash-Based Awards

During the three months ended March 31, 2022, $2 million of long-term cash-based retention awards were granted to certain executive and non-executive employees that will vest and be paid over a three-year period, subject to continued employment through the vesting periods from 2022 through 2025. The value of long-term cash-based awards is being amortized into expense on a straight-line basis over each award's respective vesting period.