Total expenses increased by $16.0 million, or 26.3%, to $76.6 million for the nine months ended September 30, 2021 from $60.6 million for the nine months ended September 30, 2020. Compensation and benefits expense increased by $10.7 million, or 24.1%, to $54.9 million for the nine months ended September 30, 2021 from $44.2 million for the nine months ended September 30, 2020. The increase was primarily attributable to an increase in the accrual for bonuses of $8.8 million, an increase in salaries and benefits of $1.1 million primarily as a result of merit-based increases and newly hired staff and an increase in equity-based compensation expense of $0.7 million due to an increase in the number of vested and unvested restricted stock units and unvested non-qualified stock options outstanding. General and administrative expenses increased by $5.3 million, or 32.1%, to $21.7 million for the nine months ended September 30, 2021 from $16.4 million for the nine months ended September 30, 2020. This was primarily attributable to an increase in the adjustment to the fair value of contingent consideration related to the Cortina Acquisition of $5.1 million, an increase in trade errors of $0.3 million, an increase in professional fees of $0.1 million, an increase in sub-advisory and referral fees of $0.1 million and an increase in insurance expense of $0.1 million partially offset by a decrease in travel and entertainment expenses of $0.2 million as a result of the coronavirus pandemic, a decrease in portfolio and systems expense of $0.1 million and a decrease in depreciation and amortization of $0.1 million.

Consolidated net income was $16.4 million or 16.7% of revenue for the nine months ended September 30, 2021 as compared to $14.0 million or 17.5% of revenue for the same period in the prior year. Net income attributable to Silvercrest was $9.6 million, or $0.99 per basic and diluted share for the nine months ended September 30, 2021. Our Adjusted Net Income(1) was $19.5 million, or $1.35 per adjusted basic share and $1.31 per adjusted diluted share(2) for the nine months ended September 30, 2021.

Adjusted EBITDA(1) was $30.4 million or 31.1% of revenue for the nine months ended September 30, 2021 as compared to $23.0 million or 28.9% of revenue for the same period in the prior year.

Liquidity and Capital Resources

Cash and cash equivalents were $65.9 million at September 30, 2021, compared to $62.5 million at December 31, 2020. As of September 30, 2021, there was $9.9 million outstanding under our term loan with City National Bank and nothing outstanding on our revolving credit facility with City National Bank.

Silvercrest Asset Management Group Inc.'s total equity was $75.5 million at September 30, 2021. We had 9,653,214 shares of Class A common stock outstanding and 4,815,460 shares of Class B common stock outstanding at September 30, 2021.

Non-GAAP Financial Measures

To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Earnings Per Share which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

   -- EBITDA represents net income before provision for income taxes, interest 
      income, interest expense, depreciation and amortization. 
   -- We define Adjusted EBITDA as EBITDA without giving effect to the Delaware 
      franchise tax, professional fees associated with acquisitions or 
      financing transactions, gains on extinguishment of debt or other 
      obligations related to acquisitions, impairment charges and losses on 
      disposals or abandonment of assets and leaseholds, client reimbursements 
      and fund redemption costs, severance and other similar expenses, but 
      including partner incentive allocations, prior to our initial public 
      offering, as an expense. We feel that it is important to management and 
      investors to supplement our consolidated financial statements presented 
      on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of 
      earnings, as this measure provides a perspective of recurring earnings of 
      the Company, taking into account earnings attributable to both Class A 
      and Class B shareholders. 
   -- Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total 
      revenue. We feel that it is important to management and investors to 
      supplement our consolidated financial statements presented on a GAAP 
      basis with Adjusted EBITDA Margin, a non-GAAP financial measure of 
      earnings, as this measure provides a perspective of recurring 
      profitability of the Company, taking into account profitability 
      attributable to both Class A and Class B shareholders. 
   -- Adjusted Net Income represents recurring net income without giving effect 
      to professional fees associated with acquisitions or financing 
      transactions, losses on forgiveness of notes receivable from our 
      principals, gains on extinguishment of debt or other obligations related 
      to acquisitions, impairment charges and losses on disposals or 
      abandonment of assets and leaseholds, client reimbursements and fund 
      redemption costs, severance and other similar expenses, but including 
      partner incentive allocations, prior to our initial public offering, as 
      an expense. Furthermore, Adjusted Net Income includes income tax expense 
      assuming a blended corporate rate of 26%. We feel that it is important to 
      management and investors to supplement our consolidated financial 
      statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP 
      financial measure of earnings, as this measure provides a perspective of 
      recurring income of the Company, taking into account income attributable 
      to both Class A and Class B shareholders. 
   -- Adjusted Earnings Per Share represents Adjusted Net Income divided by the 
      actual Class A and Class B shares outstanding as of the end of the 
      reporting period for basic Adjusted Earnings Per Share, and to the extent 
      dilutive, we add unvested restricted stock units and non-qualified stock 
      options to the total shares outstanding to compute diluted Adjusted 
      Earnings Per Share. As a result of our structure, which includes a 
      non-controlling interest, we feel that it is important to management and 
      investors to supplement our consolidated financial statements presented 
      on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial 
      measure of earnings, as this measure provides a perspective of recurring 
      earnings per share of the Company as a whole as opposed to being limited 
      to our Class A common stock. 

Conference Call

The Company will host a conference call on November 5, 2021, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/ .

Forward-Looking Statements and Other Disclosures

This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients from whom we derive a substantial portion of our assets under management; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; and our expectations with respect to deferred tax assets, adverse economic or market conditions, including the continued adverse effects of the coronavirus pandemic; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2020, which is accessible on the SEC's website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement,