Note 5  Business Combinations  Acquisition of Owens Realty Mortgage, Inc. On November 7, 2018, the Company entered into an Agreement and Plan of Merger as amended, (the Merger Agreement) with ORM, a specialty finance company that focused on the origination, investment, and management of commercial real estate loans. Pursuant to the Merger Agreement, the Company acquired ORM in a stock-for-stock transaction with an aggregate purchase price equal to 99.0% of ORMs book value. Upon the closing, each outstanding share of ORMs common stock was converted into the right to receive 1.441 shares of the Company common stock, based on a fixed exchange ratio.  On March 29, 2019, the Company completed the acquisition of ORM, through a merger of ORM with and into a wholly owned subsidiary of the Company, in exchange for approximately 12.2 million shares of the Companys common stock. The total purchase price for the merger of $179.3 million consisted exclusively of the Companys common stock issued in exchange for shares of ORM common stock and cash paid in lieu of fractional shares of the Companys common stock, and was based on the $14.67 closing price of the Companys common stock on March 29, 2019. The consideration transferred was allocated to the assets acquired and liabilities assumed based on their respective fair values. The methodologies used and key assumptions made to estimate the fair value of the assets acquired and liabilities assumed are primarily based on future cash flows and discount rates. The following table summarizes the fair value of assets acquired and liabilities assumed from the merger:      (In Thousands) March 29, 2019 Assets    Cash and cash equivalents  $ 10,822 Loans  130,449 Real estate, held for sale  67,973 Investment in unconsolidated joint ventures  8,619 Other assets    Deferred tax assets   4,660 Accrued interest  1,209 Other  379 Total assets acquired  $ 224,111 Liabilities    Secured borrowings  12,713 Accounts payable and other accrued liabilities   1,000 Due to Manager   228 Deferred tax liabilities   123 Total liabilities assumed  $ 14,064 Net assets acquired  $ 210,047      For acquired loan receivables, the gross contractual unpaid principal acquired is $134.8 million and we expect to collect all contractual amounts. The aggregate consideration transferred, net assets acquired, and the related bargain purchase gain was as follows:     Total consideration transferred (in thousands, except share and per share data) FV of net assets acquired $ 210,047    ORM shares outstanding at March 29, 2019  8,482,880 Exchange ratio x 1.441 Shares issued  12,223,830 Market price as of March 29, 2019 $ 14.67 Total consideration transferred based on value of shares issued $ 179,324    Bargain purchase gain $ 30,728     Based on the calculation, the Company has determined the transaction resulted in a bargain purchase gain, which is predominantly the result of changes in the market price of the Companys common stock between the determination date and the closing date of the transaction. This gain is reflected separately within the unaudited interim consolidated statements of income under gain on bargain purchase. Acquisition-related costs directly attributable to the ORM Merger, including legal, accounting, valuation, and other professional or consulting fees, totaling $0.1 million and $6.1 million for the three and nine months ended September 30, 2019, were expensed as incurred and are reflected separately within the unaudited interim consolidated statements of income. The following pro-forma income and earnings (unaudited) of the combined company are presented for the three months ended March 31, 2019, as if the merger had occurred on January 1, 2019:         For the three months ended (In Thousands)   March 31, 2019 Selected Financial Data    Interest income  $ 51,543 Interest expense   (36,323) Provision for loan losses   (518) Non-interest income   27,031 Non-interest expense   (37,721) Income before provision for income taxes   4,012 Income tax benefit (provision)   2,996 Net income  $ 7,008   Non-recurring pro-forma transaction costs directly attributable to the merger were $8.4 million for the three months ended March 31, 2019 and have been deducted from the non-interest expense amount above. These costs included legal, accounting, valuation, and other professional or consulting fees directly attributable to the merger. The Company excluded the bargain purchase gain of $30.7 million from the amount above.  Acquisition of Knight Capital On October 25, 2019, the Company acquired Knight Capital. Knight Capital is a technology-driven platform that provides working capital to small and medium businesses across the U.S. Through its platform, Knight Capital supports business operations by offering a faster alternative to conventional bank funding. The total purchase price for the merger of $27.8 million consists of $17.5 million of cash and $10.3 million of Ready Capital common stock. The purchase price was allocated to the assets acquired and liabilities assumed based on their respective fair values. The following table summarizes the fair value of assets acquired and liabilities assumed from the merger:      (In Thousands) October 25, 2019 Assets    Cash and cash equivalents  $ 1,673 Purchased future receivables,  39,540 Prepaid expenses and other   1,265 Intangible assets   5,880 Total assets acquired  $ 48,358 Liabilities    Secured borrowings  30,600 Accounts payable and other accrued liabilities   1,173 Total liabilities assumed  $ 31,773 Net assets acquired  $ 16,585  The aggregate consideration transferred, net assets acquired, and the related goodwill was as follows:     Total Consideration Transferred (in thousands)   Cash consideration $ 17,500 Common stock consideration  10,290 Total consideration transferred $ 27,790    Net Tangible Assets $ 10,705 Identified Intangible Assets  5,880 FV of net assets acquired $ 16,585    Goodwill $ 11,205  The acquired intangible assets are definite-lived assets consisting of technology, brokers network and trade name. The estimated fair values of the technology and brokers network were determined using the cost replacement method, and the fair value of the trade name was determined using the relief from royalty method. The estimated fair values of the intangible assets are primarily based on cost assumptions such as replacement costs, which management believes are reasonable. The fair value of the intangible assets with definite lives is as follows):       (In Thousands) Fair Value  Weighted Average Amortization Life Internally developed software $ 3,800  6 years Broker network  1,200  4.5 years Trade name  880  6 years Total Intangible Assets $ 5,880  6 years       Goodwill of $11.2 million was recognized in connection with the Companys acquisition of Knight Capital as the consideration paid exceeded the fair value of the net assets acquired.  The following pro-forma income and earnings (unaudited) of the combined company are presented for the three and nine months ended September 30, 2019, as if the merger had occurred on January 1, 2019:            For the three months ended   For the nine months ended (In Thousands)   September 30, 2019   September 30, 2019 Selected Financial Data       Interest income  $ 59,723  $ 165,510 Interest expense   (39,390)   (110,918) Provision for loan losses   (693)   (2,559) Non-interest income   54,145   174,693 Non-interest expense   (62,747)   (176,111) Income before provision for income taxes   11,038   50,615 Income tax benefit   2,645   8,604 Net income  $ 13,683  $ 59,219