Quarterly report pursuant to Section 13 or 15(d)

Acquisition of RoundPoint Mortgage Servicing LLC (Tables)

v3.23.3
Acquisition of RoundPoint Mortgage Servicing LLC (Tables)
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Combination, Segment Allocation The Company has performed a provisional allocation of the total consideration of $44.7 million to RoundPoint’s assets and liabilities, as set forth below. The final amount and allocation of total consideration may differ from the amounts included herein to reflect new information, assets acquired and liabilities assumed and the fair value of intangible assets that existed as of the acquisition date. The estimate of fair value of assets and liabilities required the use of significant assumptions and estimates. Significant estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and discount rates. These estimates were based on assumptions that management believes to be reasonable as well as a third party-prepared valuation analysis; however, actual results may differ from these estimates. No measurement period adjustments were made during the three months ended September 30, 2023.
September 30, 2023
(in thousands) Acquisition Date Amounts Recognized Subsequent Measurement Period Adjustments Acquisition Date Amounts Recognized, as adjusted
Total Consideration $ 44,732  $ —  $ 44,732 
Assets
Cash and cash equivalents $ 50,366  $ —  $ 50,366 
Intangible assets 786  —  786 
Other assets 29,148  —  29,148 
Total Assets Acquired $ 80,300  $ —  $ 80,300 
Liabilities
Accrued expenses $ 4,483  $ —  $ 4,483 
Other liabilities 58,739  —  58,739 
Total Liabilities Assumed $ 63,222  $ —  $ 63,222 
Net Assets $ 17,078  $ —  $ 17,078 
Goodwill $ 27,654  $ —  $ 27,654 
Business Acquisition, Pro Forma Information The following table presents unaudited pro forma combined revenues and income before income taxes for the three and nine months ended September 30, 2023 prepared as if the RoundPoint acquisition had been consummated on January 1, 2022.
Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands) 2023 2022 2023 2022
Revenue (1)
$ 585,641  $ 435,563  $ 1,044,039  $ 979,098 
Income before income taxes $ 339,009  $ 271,426  $ 357,636  $ 540,740 
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(1)The Company’s revenue is defined as the sum of the total interest income and total other income line items on the condensed consolidated statements of comprehensive loss.