Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'MUNICIPAL MORTGAGE & EQUITY LLC | ' |
Entity Central Index Key | '0001003201 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'MMAB | ' |
Entity Common Stock, Shares Outstanding | ' | 41,512,514 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents (includes $41,634 at December 31, 2012 in a consolidated subsidiary that had restrictions on distributions) | $45,605 | $50,857 |
Restricted cash (includes $55,945 and $53,957 related to CFVs) | 90,949 | 55,313 |
Bonds available-for-sale (includes $132,930 and $925,346 pledged as collateral and/or restricted) | 196,485 | 969,394 |
Investments in Lower Tier Property Partnerships related to CFVs | 299,730 | 333,335 |
SA Fund investments related to CFVs | 157,791 | 161,433 |
Real estate held-for-use, net (includes $15,595 and $17,756 pledged as collateral and $103,649 and $111,931 related to CFVs) | 121,863 | 129,687 |
Real estate held-for-sale related to CFVs | 51,836 | 15,338 |
Investment in preferred stock | 31,371 | 31,371 |
Other assets (includes $12,054 and $14,691 pledged as collateral and $23,714 and $17,568 related to CFVs) | 44,226 | 55,024 |
Total assets | 1,039,856 | 1,801,752 |
LIABILITIES AND EQUITY | ' | ' |
Debt (includes $96,142 and $55,433 related to CFVs) | 461,126 | 1,042,959 |
Derivative liabilities | 662 | 3,544 |
Accounts payable and accrued expenses | 7,833 | 12,498 |
Unfunded equity commitments to Lower Tier Property Partnerships related to CFVs | 13,461 | 15,881 |
Other liabilities (includes $10,167 and $6,150 related to CFVs) | 17,281 | 15,145 |
Total liabilities | 500,363 | 1,090,027 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Perpetual preferred shareholders’ equity in a subsidiary company, liquidation preference of $159,000 at December 31, 2012 | 0 | 155,033 |
Noncontrolling interests in CFVs and IHS (net of $1,533 of subscriptions receivable) | 487,896 | 511,791 |
Common shareholders' equity: | ' | ' |
Common shares, no par value (40,902,784 and 40,638,614 shares issued and outstanding and 1,310,226 and 1,873,348 non-employee directors’ and employee deferred shares issued at September 30, 2013 and December 31, 2012, respectively) | 15,741 | -93,786 |
Accumulated other comprehensive income | 35,856 | 138,687 |
Total common shareholders’ equity | 51,597 | 44,901 |
Total equity | 539,493 | 711,725 |
Total liabilities and equity | 1,039,856 | 1,801,752 |
Consolidated Funds and Ventures [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash (includes $55,945 and $53,957 related to CFVs) | 55,945 | 53,957 |
Real estate held-for-use, net (includes $15,595 and $17,756 pledged as collateral and $103,649 and $111,931 related to CFVs) | 103,649 | 111,931 |
Other assets (includes $12,054 and $14,691 pledged as collateral and $23,714 and $17,568 related to CFVs) | 23,714 | 17,568 |
LIABILITIES AND EQUITY | ' | ' |
Debt (includes $96,142 and $55,433 related to CFVs) | 96,142 | 55,433 |
Other liabilities (includes $10,167 and $6,150 related to CFVs) | $10,167 | $6,150 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Cash and cash equivalents, restrictions on distributions (in dollars) | ' | $41,634 |
Bonds available-for-sale, pledged as collateral (in dollars) | 132,930 | 925,346 |
Real estate held-for-use, net, pledged as collateral (in dollars) | 15,595 | 17,756 |
Other assets, pledged as collateral (in dollars) | 12,054 | 14,691 |
Preferred stock, liquidation preference, value (in dollars) | ' | 159,000 |
Noncontrolling interests in consolidated funds and ventures, subscriptions receivable (in dollars) | ' | $1,533 |
Common shares, shares issued (in shares) | 40,902,784 | 40,638,614 |
Common shares, shares outstanding (in shares) | 40,902,784 | 40,638,614 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 1,310,226 | 1,873,348 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Interest income | ' | ' | ' | ' | ||||
Interest income | $4,380 | $16,225 | $35,177 | $50,187 | ||||
Interest expense | ' | ' | ' | ' | ||||
Interest expense | 2,199 | [1] | 6,547 | [1] | 22,213 | [1] | 20,090 | [1] |
Net interest income | 2,181 | 9,678 | 12,964 | 30,097 | ||||
Non-interest revenue | ' | ' | ' | ' | ||||
Income on preferred stock investment | 1,326 | 1,340 | 3,935 | 4,429 | ||||
Other income | 809 | 489 | 1,866 | 1,662 | ||||
Total non-interest revenue | 9,610 | 5,896 | 22,681 | 14,549 | ||||
Total revenues, net of interest expense | 11,791 | 15,574 | 35,645 | 44,646 | ||||
Operating and other expenses | ' | ' | ' | ' | ||||
Interest expense | 3,628 | [2] | 4,639 | [2] | 11,374 | [2] | 14,179 | [2] |
Salaries and benefits | 2,895 | 2,457 | 10,045 | 7,757 | ||||
General and administrative | 1,102 | 1,286 | 3,528 | 3,814 | ||||
Professional fees | 1,375 | 1,525 | 6,777 | 5,163 | ||||
Impairment on bonds | 939 | 2,282 | 1,772 | 3,369 | ||||
Net loan loss (recovery) | 5 | -1,363 | 5 | -5,647 | ||||
Other expenses | 1,178 | 955 | 4,965 | 2,950 | ||||
Total operating and other expenses | 25,976 | 20,820 | 78,414 | 52,708 | ||||
Net gains (losses) on assets and derivatives | 76,404 | -633 | 78,509 | -1,768 | ||||
Net (losses) gains on early extinguishment of liabilities | -84 | 132 | 36,179 | 601 | ||||
Net gains due to initial real estate consolidation and foreclosure | 2,411 | 2,853 | 10,895 | 5,404 | ||||
Net gains (losses) related to CFVs | ' | ' | 32,964 | 5,407 | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | ' | ' | -20,323 | -25,917 | ||||
Net income (loss) from continuing operations before income taxes | 62,015 | -13,988 | 90,417 | -24,335 | ||||
Income tax (expense) benefit | -123 | -24 | 1,309 | -65 | ||||
Income from discontinued operations, net of tax | 403 | 602 | 6,527 | 694 | ||||
Net income (loss) | 62,295 | -13,410 | 98,253 | -23,706 | ||||
Net income to common shareholders | 73,316 | 718 | 112,142 | 6,974 | ||||
Basic income per common share: | ' | ' | ' | ' | ||||
Income from continuing operations (in dollars per share) | $1.73 | $0.03 | $2.52 | $0.13 | ||||
Income (loss) from discontinued operations (in dollars per share) | $0.01 | ($0.01) | $0.12 | $0.03 | ||||
Income per common share (in dollars per share) | $1.74 | $0.02 | $2.64 | $0.16 | ||||
Diluted income per common share: | ' | ' | ' | ' | ||||
Income from continuing operations (adjusted for liability classified awards) (in dollars per share) | $1.66 | $0.03 | $2.48 | $0.13 | ||||
Income (loss) from discontinued operations (in dollars per share) | $0.01 | ($0.01) | $0.12 | $0.03 | ||||
Income per common share (in dollars per share) | $1.67 | $0.02 | $2.60 | $0.16 | ||||
Weighted-average common shares outstanding: | ' | ' | ' | ' | ||||
Basic (in shares) | 42,290 | [3] | 42,304 | [3] | 42,380 | [3] | 42,207 | [3] |
Diluted (in shares) | 43,916 | 42,380 | 43,823 | 42,414 | ||||
Bonds [Member] | ' | ' | ' | ' | ||||
Interest income | ' | ' | ' | ' | ||||
Interest income | 4,214 | 15,998 | 34,677 | 49,467 | ||||
Interest expense | ' | ' | ' | ' | ||||
Interest expense | 1,975 | [1] | 5,922 | [1] | 21,167 | [1] | 18,208 | [1] |
Loans [Member] | ' | ' | ' | ' | ||||
Interest income | ' | ' | ' | ' | ||||
Interest income | 166 | 227 | 500 | 720 | ||||
Non Bond [Member] | ' | ' | ' | ' | ||||
Interest expense | ' | ' | ' | ' | ||||
Interest expense | 224 | [1] | 625 | [1] | 1,046 | [1] | 1,882 | [1] |
Consolidated Funds and Ventures [Member] | ' | ' | ' | ' | ||||
Non-interest revenue | ' | ' | ' | ' | ||||
Revenue from CFVs | 7,475 | 4,067 | 16,880 | 8,458 | ||||
Operating and other expenses | ' | ' | ' | ' | ||||
Expenses from CFVs | 14,854 | 9,039 | 39,948 | 21,123 | ||||
Net gains (losses) related to CFVs | 3,812 | -4,608 | 27,732 | 5,407 | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | -6,343 | -6,486 | -20,129 | -25,917 | ||||
Consolidated Funds and Ventures [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses | ' | ' | ' | ' | ||||
Income allocable to noncontrolling interests: | 11,186 | 17,407 | 18,915 | 36,884 | ||||
Consolidated Funds and Ventures [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses | ' | ' | ' | ' | ||||
Income allocable to noncontrolling interests: | -129 | -995 | -1,312 | 648 | ||||
Subsidiaries [Member] | ' | ' | ' | ' | ||||
Operating and other expenses | ' | ' | ' | ' | ||||
Income allocable to noncontrolling interests: | ($36) | ($2,284) | ($3,714) | ($6,852) | ||||
[1] | Represents interest expense related to debt which finances interest-bearing assets. See Note 6, “Debt.†| |||||||
[2] | Represents interest expense related to debt which does not finance interest-bearing assets. See Note 6, “Debt.†| |||||||
[3] | Includes common shares issued and outstanding, as well as non-employee directors’ and employee deferred shares that have vested, but are not issued and outstanding. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Net income to common shareholders | $73,316 | $718 | $112,142 | $6,974 | ||
Net loss allocable to noncontrolling interests | -11,021 | -14,128 | -13,889 | -30,680 | ||
Net income (loss) | 62,295 | -13,410 | 98,253 | -23,706 | ||
Other comprehensive (loss) income allocable to common shareholders: | ' | ' | ' | ' | ||
Unrealized net holding (losses) gains arising during the period | -5,259 | 12,803 | -16,792 | 28,489 | ||
Reversal of unrealized gains on sold/redeemed bonds | -76,362 | [1] | 0 | -76,960 | [1] | -52 |
Reclassification of unrealized bond losses to operations due to impairment | 939 | 2,282 | 1,772 | 3,369 | ||
Reclassification of unrealized bond gains to operations due to consolidation of funds and ventures | -2,411 | [1] | -2,853 | -10,895 | [1] | -5,404 |
Net changes in other comprehensive income due to bonds | -83,093 | 12,232 | -102,875 | 26,402 | ||
Foreign currency translation adjustment | 43 | -24 | 44 | 97 | ||
Other comprehensive (loss) income allocable to common shareholders | -83,050 | 12,208 | -102,831 | 26,499 | ||
Other comprehensive loss allocable to noncontrolling interests: | ' | ' | ' | ' | ||
Foreign currency translation adjustment for SA Fund and IHS | -2,212 | -45 | -20,674 | -3,758 | ||
Comprehensive (loss) income to common shareholders | -9,734 | 12,926 | 9,311 | 33,473 | ||
Comprehensive loss to noncontrolling interests | -13,233 | -14,173 | -34,563 | -34,438 | ||
Comprehensive loss | ($22,967) | ($1,247) | ($25,252) | ($965) | ||
[1] | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives†on the consolidated statements of operations. |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Preferred Stock [Member] | Noncontrolling Interest [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2012 | $711,725 | ($93,786) | $138,687 | $44,901 | $155,033 | $511,791 |
Balance (in shares) at Dec. 31, 2012 | ' | 42,512 | ' | ' | ' | ' |
Net income | 98,253 | 112,142 | 0 | 112,142 | 3,714 | -17,603 |
Other comprehensive income | -123,505 | 0 | -102,831 | -102,831 | 0 | -20,674 |
Distributions | -3,714 | 0 | 0 | 0 | -3,714 | 0 |
Contributions | 8,051 | 0 | 0 | 0 | 0 | 8,051 |
Net change due to consolidation | 6,331 | 0 | 0 | 0 | 0 | 6,331 |
Non-employee director deferred shares | 81 | 81 | 0 | 81 | 0 | 0 |
Non-employee director deferred shares (in shares) | ' | 67 | ' | ' | ' | ' |
Non-employee director options | 19 | 19 | 0 | 19 | 0 | 0 |
Employee deferred shares (liability classified awards) (in shares) | ' | 52 | ' | ' | ' | ' |
Mark-to-market activity for liability classified awards previously classified as equity | -19 | -19 | 0 | -19 | 0 | 0 |
Employee and non-employee shares cancelled | 0 | 0 | 0 | 0 | 0 | 0 |
Employee and non-employee shares cancelled (in shares) | ' | -32 | ' | ' | ' | ' |
Common shares repurchases | -516 | -516 | 0 | -516 | 0 | 0 |
Common shares repurchases (in shares) | ' | -386 | ' | ' | ' | ' |
Preferred shares repurchases | -36,213 | 842 | 0 | 842 | -37,055 | 0 |
Preferred shares transferred to TEB purchaser | -121,000 | -3,022 | 0 | -3,022 | -117,978 | 0 |
Balance at Sep. 30, 2013 | $539,493 | $15,741 | $35,856 | $51,597 | $0 | $487,896 |
Balance (in shares) at Sep. 30, 2013 | ' | 42,213 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | $98,253 | ($23,706) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Net gains on sales of bonds and loans | -78,450 | -366 |
Net gains due to real estate consolidation and foreclosure | -10,895 | -5,399 |
Net gains related to CFVs | -32,964 | -5,407 |
Provisions for credit losses and impairment | 16,962 | 8,502 |
Equity in losses from Lower Tier Property Partnerships of CFVs | 20,323 | 25,917 |
Subordinate debt effective yield amortization and interest accruals | 6,188 | 8,629 |
Net gains on early extinguishment of liabilities | -36,179 | 0 |
Depreciation and other amortization | 15,742 | 7,274 |
Foreign currency loss | 9,136 | 1,237 |
Stock-based compensation expense | 2,137 | 294 |
Other | -2,322 | -1,312 |
Net cash provided by operating activities | 7,931 | 15,663 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Advances on and purchases of bonds | 0 | -6,189 |
Principal payments and sales proceeds received on bonds | 15,203 | 15,721 |
Advances on and originations of loans held for investment | -278 | -450 |
Principal payments received on loans held for investment | 563 | 2,400 |
Insurance recoveries on real estate | 0 | 753 |
Investments in property partnerships and real estate | -20,509 | -46,033 |
Proceeds from the sale of real estate and other investments | 39,437 | 3,222 |
Proceeds received on redemption of investment in preferred stock | 0 | 5,000 |
Net proceeds from the sale of a subsidiary company | 19,151 | 0 |
Increase in restricted cash | -24,784 | -11,278 |
Capital distributions received from investments in partnerships | 12,728 | 8,816 |
Net cash provided by (used in) investing activities | 41,511 | -28,038 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from borrowing activity | 116,461 | 35,482 |
Repayment of borrowings | -136,639 | -34,647 |
Payment of debt issuance costs | -1,202 | -889 |
Contributions from holders of noncontrolling interests | 8,051 | 20,462 |
Purchase of treasury stock | -516 | 0 |
Distributions paid to perpetual preferred shareholders of a subsidiary company | -4,636 | -7,050 |
Redemption of perpetual preferred shares | -36,213 | 0 |
Net cash (used in) provided by financing activities | -54,694 | 13,358 |
Net (decrease) increase in cash and cash equivalents | -5,252 | 983 |
Cash and cash equivalents at beginning of period | 50,857 | 42,116 |
Cash and cash equivalents at end of period | 45,605 | 43,099 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Interest paid | 26,868 | 31,235 |
Income taxes paid | 254 | 146 |
Non-cash investing and financing activities: | ' | ' |
Unrealized (losses) gains included in other comprehensive income | -123,505 | 22,741 |
Debt and liabilities extinguished through sales and collections on bonds and loans | 4,252 | 11,400 |
Increase in real estate assets due to initial consolidation of funds and ventures | 43,943 | 47,058 |
Decrease in bond assets due to initial consolidation of funds and ventures | 37,777 | 34,108 |
Increase Decrease In Liabilities Of Equity Method Investment | 6,737 | 0 |
Increase in real estate assets and decrease in loan investments due to foreclosure | 0 | 7,711 |
Increase in common equity due to purchase of noncontrolling interests | 0 | 2,203 |
Decrease in noncontrolling interests due to sale of common equity | 0 | 2,203 |
Subsidiaries [Member] | ' | ' |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Increase in restricted cash | -14,672 | 0 |
Net change in assets and liabilities due to the sale of a subsidiary company: | ' | ' |
Net decrease in interest receivable | 4,612 | 0 |
Net decrease in interest payable | -1,052 | 0 |
Net decrease in bonds available-for-sale | 678,983 | 0 |
Increase related to new borrowing activities | 169,601 | 0 |
Net decrease in perpetual preferred shares and related distributions | -122,669 | 0 |
Decrease related to borrowings transferred to purchaser | ($695,652) | $0 |
DESCRIPTION_OF_THE_BUSINESS_AN
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' |
Note 1—description of the business and BASIS OF PRESENTATION | |
Municipal Mortgage & Equity, LLC, the registrant, was organized in 1996 as a Delaware limited liability company. When used in this report, the “Company”, “MuniMae”, “we”, “our” or “us” may refer to the registrant, the registrant and its subsidiaries, or one or more of the registrant’s subsidiaries depending on the context of the disclosure. | |
Effective July 10, 2013, we are taxed as a corporation. However, we have significant loss carryfowards that we expect will be sufficient to offset federal taxable income and gains for the foreseeable future. | |
Description of the Business | |
The Company operates through two reportable segments: US Operations and International Operations. | |
We own and manage a range of real estate related assets. Our primary holdings include a portfolio of tax-exempt bonds, a substantial portion of which are backed by affordable multifamily rental properties. We also manage tax credit equity funds for third party investors which invest in similar affordable multifamily rental properties. Finally, we own a variety of direct investments in multifamily rental properties and land. Outside of the United States (“US”), we are in the business of raising, investing in and asset managing private real estate funds which invest in affordable for-sale and rental housing in South Africa and, to a lesser extent, Sub-Saharan Africa. | |
US Operations | |
The Company’s bond portfolio consisted of 45 bonds and interests in bonds totaling $321.4 million (based on the fair value of all bonds, including those that have been eliminated due to consolidation), collateralized by 28 real estate properties at September 30, 2013. This bond portfolio is comprised primarily of multifamily tax-exempt bonds as well as community development district (“CDD”) bonds. At September 30, 2013, approximately 55% of this portfolio was unleveraged. | |
MuniMae is also the general partner (“GP”) and manager of 13 low income housing tax credit funds (“LIHTC Funds”) which have $852.9 million in capital invested at September 30, 2013, which hold limited partnership interests in 117 affordable multifamily rental properties in the US. The Company’s ownership interest in the LIHTC Funds is negligible; however, the Company is entitled to asset management fees as well as contingent asset management fees based on several factors including the residual value of the LIHTC Funds’ underlying multifamily rental properties. | |
As a result of the third quarter 2013 sale of our common shares of MuniMae TE Bond Subsidiary, LLC (“TEB”) described in Note 2 “Bonds Available-For-Sale,” we significantly reduced our long term interest rate risk; however, we no longer have a substantial portion of the net interest spread generated by TEB. As a result, to cover operating costs and grow shareholder value over the long term, we will need to find and make new investments that generate sufficient returns to achieve these goals. | |
International Operations | |
Substantially all of the Company’s International Operations take place through a subsidiary, International Housing Solutions S.à r.l. (“IHS”) which is in the business of raising, investing in and asset managing private real estate funds which invest in affordable for-sale and rental housing in South Africa and, to a lesser extent, Sub-Saharan Africa. At September 30, 2013, the Company’s ownership interest in IHS is approximately 83%. In addition to earning asset management fees, IHS as the managing member is entitled to special distributions based on returns generated by the funds it sponsors. IHS currently manages a single fund (South Africa Workforce Housing Fund SA I - “SA Fund”), and expects to raise capital for and manage additional funds in the near future. | |
Use of Estimates | |
The preparation of the Company’s financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, commitments and contingencies, and revenues and expenses. Management has made significant estimates in certain areas, including the determination of fair values for bonds, derivative financial instruments, guarantee obligations, and certain assets and liabilities of consolidated funds and ventures (“CFVs”). Management has also made significant estimates in the determination of impairment on bonds and real estate investments. Actual results could differ materially from these estimates. | |
Basis of Presentation and Significant Accounting Policies | |
The consolidated financial statements include the accounts of the Company and of entities that are considered to be variable interest entities in which the Company is the primary beneficiary, as well as those entities in which the Company has a controlling financial interest, including wholly owned subsidiaries of the Company. All intercompany transactions and balances have been eliminated in consolidation. Investments in unconsolidated entities where the Company has the ability to exercise significant influence over the operations of the entity are accounted for using the equity method of accounting. See Note 1, “Description of Business and Basis of Presentation” to the consolidated financial statements in our 2012 Form 10-K, which discusses our consolidation presentation and our significant accounting policies. | |
Changes in Presentation | |
We have revised the presentation of our consolidated statements of operations so that we now separately present “Net interest income,” which is interest income less interest expense on debt which finances interest-bearing assets. This presentation change had no impact on “Net (loss) income.” | |
Reclassifications | |
The Company made reclassifications to discontinued operations on its previously issued consolidated statements of operations for the three months and nine months ended September 30, 2012 as a result of certain discontinued operations occurring subsequent to September 30, 2012. | |
Interim Period Presentation | |
The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations. | |
The consolidated financial statements are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. These consolidated financial statements should be read in conjunction with the financial statements included in our 2012 Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. | |
BONDS_AVAILABLEFORSALE
BONDS AVAILABLE-FOR-SALE | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Available-For-Sale Securities [Abstract] | ' | |||||||||||||||||
Available-for-sale Securities Disclosure [Text Block] | ' | |||||||||||||||||
Note 2—BONDs available-for-sale | ||||||||||||||||||
Sale of the Company’s common shares in TEB | ||||||||||||||||||
On July 3, 2013, the Company sold the common shares of TEB to Merrill Lynch Portfolio Management, Inc. (together with its affiliates, the “Purchaser”), an affiliate of Bank of America Merrill Lynch, pursuant to a Share Purchase Agreement, dated as of July 1, 2013 (“Share Purchase Agreement”), by and among the Purchaser, MuniMae TEI Holdings, LLC, the Company and TEB. Immediately prior to the closing, TEB distributed to the Company, and the Company retained approximately $146.7 million of bonds and bond related investments on an unleveraged basis comprised of TEB’s bonds that were non-performing (i.e., bonds that are 30 days or greater past due in either principal or interest) as well as certain performing bonds with debt service coverage below 1.0x, its participating multifamily bonds, and all but one of its CDD bonds. | ||||||||||||||||||
Following TEB’s distribution of the foregoing bonds, the Purchaser paid the Company $78.7 million for the TEB common shares, reflecting (a) the value of the bonds and non-bond related investments remaining in TEB, consisting of fixed rate performing multifamily bonds and interests in such bonds and one CDD bond (aggregate fair value of $848.6 million) as well as cash, restricted cash and accrued interest of approximately $51.5 million, net of (b) TEB’s contractual debt and preferred share obligations of $821.4 million including interest and distributions due and payable of $4.8 million, which will remain the obligation of TEB. As a result of the transaction, the Company eliminated $816.7 million of debt and preferred equity financing (liquidation preference). See Note 6, “Debt” and Note 12, “Equity” for more information. | ||||||||||||||||||
Even though the Company sold bonds and interests in bonds with a fair value of $848.6 million, the Company derecognized from its balance sheet only $679.0 million of bonds because bonds totaling $94.4 million did not receive sale accounting and $75.2 million were not reported as bonds on our balance sheet because the Company consolidated the real estate serving as collateral to these bonds. | ||||||||||||||||||
On July 3, 2013, the Company also entered into two Total Return Swap (“TRS”) agreements with the Purchaser using the July 3, 2013 fair value of two bond assets of $30.6 million to set the notional amount for the TRS. Under the terms of the TRS, the Purchaser is required to pay the Company an amount equal to the interest payments received on the two assets, currently a weighted average rate of 6.9%, and the Company is required to pay the Purchaser a rate of SIFMA (Securities Industry and Financial Markets Association) plus a spread of 150 basis points (“bps”) on the notional amount of the TRS. The Company also agreed with the Purchaser to pledge $16.3 million of cash as additional collateral against the Company’s new and existing TRS borrowings with the Purchaser. Because the Company retains the economic risk and rewards associated with these bonds, they do not receive sale accounting (these bonds are included in the $94.4 million described above). Also included in the $94.4 million of bonds that did not receive sale accounting were $63.8 million of senior certificates in bonds where the Company retained the subordinate certificates and therefore did not receive sale accounting for the sale of the senior interests. | ||||||||||||||||||
The following table summarizes the third quarter 2013 impact of the transactions described above. | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Increase in MuniMae’s cash (including $16,337 of restricted cash) | $ | $78,664 | ||||||||||||||||
Reduction in bonds | -678,983 | -1 | ||||||||||||||||
Reduction in other assets (bond interest receivable) | -4,612 | -2 | ||||||||||||||||
Reduction in TEB’s cash (including $1,665 of restricted cash) | -44,841 | -2 | ||||||||||||||||
Net reduction in assets | $ | -649,772 | ||||||||||||||||
Reduction in senior interests and debt owed to securitization trusts | $ | 574,652 | ||||||||||||||||
Reduction in mandatorily redeemable preferred shares | 121,000 | |||||||||||||||||
Reduction in perpetual preferred shares ($121,000 liquidation preference) | 117,978 | |||||||||||||||||
Reduction in accounts payable and accrued expenses and other liabilities (interest and distributions payable) | 4,781 | |||||||||||||||||
Increase in debt (resulting from bonds and interests in bonds that did not qualify for sale treatment) | -94,410 | -1 | ||||||||||||||||
Increase in debt (due from CFVs) | -75,191 | -1 | ||||||||||||||||
Increase in accounts payable and accrued expenses (interest payable resulting from failed sales) | -618 | -2 | ||||||||||||||||
Increase in accounts payable and accrued expense (interest payable due from CFVs) | -1,442 | -2 | ||||||||||||||||
Net reduction in liabilities | $ | 646,750 | ||||||||||||||||
Net reduction in common shareholders’ equity | $ | -3,022 | -3 | |||||||||||||||
(1) The sum of these amounts total $848.6 million and represents the fair value of the bonds sold on July 3, 2013. | ||||||||||||||||||
(2) Represents the total cash, restricted cash and interest receivable of $51.5 million transferred to the Purchaser as part of the sale of TEB. | ||||||||||||||||||
(3) Represents the difference between the Company’s carrying value of the perpetual preferred shares on June 30, 2013 of $118.0 million as compared to the liquidation preference amount assumed in the sale on July 3, 2013 of $121.0 million. | ||||||||||||||||||
In addition to the net $3.0 million reduction to common equity as described above, the bonds transferred to the Purchaser (that received sale accounting) resulted in a gain on sale of bonds of $75.7 million reported through "net gains (losses) on assets and derivatives" on the Consolidated Statement of Operations. These gains were offset by a corresponding reduction to "reversal of unrealized gains on sold/redeemed bonds" on the Consolidated Statements of Comprehensive loss resulting in no changes to common equity. | ||||||||||||||||||
The following table summarizes the Company’s bonds and related unrealized losses and unrealized gains at September 30, 2013 and December 31, 2012. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
(in thousands) | Unpaid | Basis | Unrealized | Unrealized | Fair Value | |||||||||||||
Principal | Adjustments (1) | Losses | Gains | |||||||||||||||
Balance | ||||||||||||||||||
Mortgage revenue bonds | $ | 146,587 | $ | -3,879 | $ | -37,572 | $ | 16,776 | $ | 121,912 | ||||||||
Other bonds | 80,045 | -1,921 | -22,922 | 19,371 | 74,573 | |||||||||||||
Total | $ | 226,632 | -2 | $ | -5,800 | $ | -60,494 | $ | 36,147 | $ | 196,485 | |||||||
December 31, 2012 | ||||||||||||||||||
(in thousands) | Unpaid | Basis | Unrealized | Unrealized | Fair Value | |||||||||||||
Principal | Adjustments (1) | Losses | Gains | |||||||||||||||
Balance | ||||||||||||||||||
Mortgage revenue bonds | $ | 898,209 | $ | -10,314 | $ | -118,933 | $ | 115,196 | $ | 884,158 | ||||||||
Other bonds | 86,113 | -2,339 | -22,364 | 23,826 | 85,236 | |||||||||||||
Total | $ | 984,322 | -2 | $ | -12,653 | $ | -141,297 | $ | 139,022 | $ | 969,394 | |||||||
(1) Represents net discounts, deferred costs and fees. | ||||||||||||||||||
(2) The Company had bonds with an unpaid principal balance (“UPB”) of $113.5 million ($124.9 million fair value) and $123.9 million ($125.1 million fair value) at September 30, 2013 and December 31, 2012, respectively, which were eliminated due to consolidation of the real estate partnerships where the real estate served as collateral for the Company’s bonds. See Note 16, “Consolidated Funds and Ventures” for more information. | ||||||||||||||||||
Mortgage Revenue Bonds | ||||||||||||||||||
Mortgage revenue bonds are issued by state and local governments or their agencies or authorities to finance multifamily rental housing; typically however, the only source of recourse on these bonds is the collateral, which is a first mortgage or a subordinate mortgage on the underlying properties. The Company’s rights under the mortgage revenue bonds are defined by the contractual terms of the underlying mortgage loans, which are pledged to the bond issuer and assigned to a trustee for the benefit of bondholders to secure the payment of debt service (any combination of interest and/or principal as set forth in the trust indenture) on the bonds. | ||||||||||||||||||
The payment of debt service on our subordinate bond investments occurs only after payment of senior obligations which have priority to the cash flow of the underlying collateral. At September 30, 2013, the Company’s subordinate bond investments had an aggregate unpaid principal balance of $9.5 million (or $49.0 million including those bond investments eliminated in consolidation, $15.2 million of which a third party held the related senior interests). | ||||||||||||||||||
At September 30, 2013, the Company had no participating bonds (i.e., bonds that allow the Company to receive additional interest from net property cash flows in addition to the base interest rate) on its balance sheet; however, there were participating bonds eliminated in consolidation with an unpaid principal balance of $33.3 million. | ||||||||||||||||||
The interest income from the mortgage revenue bonds (including interest income from the participating bonds) is exempt from federal income tax. However, a significant portion of the tax-exempt income generated from the mortgage revenue bonds is subject to the alternative minimum tax (“AMT”) calculation for federal income tax purposes. Prior to July 10, 2013, we were a pass-through entity for federal income tax purposes, meaning our shareholders paid any taxes due on our pass through income, which included any taxes due in respect of bond income subject to AMT. Effective July 10, 2013, we are taxed as a corporation and therefore the Company will now be responsible for AMT related to our mortgage revenue bonds. However, we have significant loss carryfowards that we expect will be sufficient to offset federal taxable income and gains for the foreseeable future. | ||||||||||||||||||
Other Bonds | ||||||||||||||||||
Other bonds consists primarily of municipal bonds issued by community development districts or other municipal issuers to finance the development of community infrastructure supporting single-family housing and mixed-use and commercial developments such as storm water management systems, roads and utilities. In some cases these bonds are secured by specific payments or assessments pledged by the issuers or incremental tax revenue generated by the underlying properties. The income on these bonds is exempt from federal income tax and is generally not included in the AMT calculation. | ||||||||||||||||||
Maturity | ||||||||||||||||||
Principal payments on bonds are based on amortization tables set forth in the bond documents. If no principal amortization is required during the bond term, the outstanding principal balance is required to be paid in a lump sum payment at maturity or at such earlier time as may be provided under the bond documents. The following table summarizes, by contractual maturity, the amortized cost and fair value of bonds available-for-sale at September 30, 2013. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | ||||||||||||||||
Non-Amortizing: | ||||||||||||||||||
Due in less than one year | $ | – | $ | – | ||||||||||||||
Due between one and five years | – | – | ||||||||||||||||
Due between five and ten years | – | – | ||||||||||||||||
Due after ten years | 1,429 | 1,532 | ||||||||||||||||
Amortizing: | ||||||||||||||||||
Due at stated maturity dates between December 2013 and June 2056 | 158,909 | 194,953 | ||||||||||||||||
$ | 160,338 | $ | 196,485 | |||||||||||||||
Bonds with Lockouts, Prepayment Premiums or Penalties | ||||||||||||||||||
Substantially all of the Company’s bonds include provisions that allow the borrowers to prepay the bonds at a premium or at par after a specified date that is prior to the stated maturity date. The following table provides the amount of bonds that were prepayable without restriction, premium or penalty at September 30, 2013 as well as the year in which the remaining portfolio becomes prepayable without restriction, premium or penalty at each period presented. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | ||||||||||||||||
Bonds that may be prepaid without restrictions, premiums or penalties at September 30, | $ | – | $ | – | ||||||||||||||
2013 | ||||||||||||||||||
October 1 through December 31, 2013 | 1,133 | 1,400 | ||||||||||||||||
2014 | – | – | ||||||||||||||||
2015 | – | – | ||||||||||||||||
2016 | 10,183 | 13,410 | ||||||||||||||||
2017 | 5,725 | 6,488 | ||||||||||||||||
Thereafter | 106,023 | 128,531 | ||||||||||||||||
Bonds that may not be prepaid | 37,274 | 46,656 | ||||||||||||||||
Total | $ | 160,338 | $ | 196,485 | ||||||||||||||
Non-Accrual Bonds | ||||||||||||||||||
The carrying value of bonds on non-accrual was $70.5 million and $103.8 million at September 30, 2013 and December 31, 2012, respectively (or $103.4 million at September 30, 2013 including those bonds eliminated in consolidation). During the period in which these bonds were on non-accrual, the Company recognized interest income on a cash basis of $3.2 million and $2.4 million for the nine months ended September 30, 2013 and 2012, respectively (or $3.9 million for the nine months ended September 30, 2013 including those bonds eliminated in consolidation). Interest income not recognized on the non-accrual bonds was $3.6 million and $3.7 million for the nine months ended September 30, 2013 and 2012, respectively (or $5.5 million for the nine months ended September 30, 2013 including those bonds eliminated in consolidation). | ||||||||||||||||||
Bond Aging Analysis | ||||||||||||||||||
The following table provides an aging analysis for the fair value of bonds available-for-sale at September 30, 2013 and December 31, 2012. | ||||||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||||
Total current | $ | 117,709 | $ | 850,155 | ||||||||||||||
30-59 days past due | – | 8,013 | ||||||||||||||||
60-89 days past due | 8,244 | 7,471 | ||||||||||||||||
Greater than 90 days | 70,532 | 103,755 | ||||||||||||||||
Total | $ | 196,485 | $ | 969,394 | ||||||||||||||
Bond Sales and Redemptions | ||||||||||||||||||
The Company recorded cash proceeds on sales and redemptions of bonds of $10.1 million and $8.2 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
Provided in the table below are unrealized losses and realized gains and losses recorded through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” for bonds sold or redeemed during the three months and nine months ended September 30, 2013 and 2012, as well as for bonds still in the Company’s portfolio at September 30, 2013 and 2012, respectively. | ||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Bond impairment recognized on bonds held at each period-end | $ | -939 | $ | -2,282 | $ | -1,242 | $ | -3,369 | ||||||||||
Bond impairment recognized on bonds sold/redeemed during each period | – | – | -530 | – | ||||||||||||||
Gains recognized at time of sale/redemption | 76,362 | 2 | 76,960 | 54 | ||||||||||||||
Total net gains (losses) on bonds | $ | 75,423 | $ | -2,280 | $ | 75,188 | $ | -3,315 | ||||||||||
Unfunded Bond Commitments | ||||||||||||||||||
Unfunded bond commitments are agreements to fund construction or renovation of properties securing a bond over the construction or renovation period. Since September 30, 2010 there have been no unfunded bond commitments. | ||||||||||||||||||
INVESTMENTS_IN_PREFERRED_STOCK
INVESTMENTS IN PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Preferred Stock [Text Block] | ' |
Note 3—INVESTMENTS IN PREFERRED STOCK | |
These investments are prepayable at any time and are comprised of preferred stock investments in a private national mortgage lender and servicer specializing in affordable and market rate multifamily housing, senior housing and healthcare. At September 30, 2013, the carrying value of the preferred stock investments was $31.4 million and the UPB and estimated fair value was $36.6 million with a weighted average distribution rate of 14.4%. These investments were obtained as part of the Company’s sale of its Agency Lending business in May 2009. As part of the sale, the Company agreed to reimburse the purchaser for potential losses up to a maximum of $30.0 million over the first four years after the sale date. This reimbursement agreement expired on May 15, 2013 and over the course of the obligation period the Company used $3.4 million of shares to settle loss obligations. The Company accounts for the preferred stock using the historical cost approach and tests for impairment at each balance sheet date. An impairment loss is recognized if the carrying amount of the preferred stock is not deemed recoverable. The Company did not have impairments on the preferred stock for the nine months ended September 30, 2013 and 2012. | |
The Company was obligated to fund losses on specific loans identified at the sale date that were not part of the $30.0 million loss reimbursement discussed above. During the first quarter of 2013, the Company paid the purchaser $0.2 million to fully satisfy the guarantee obligation related to the specific loans and over the course of the entire obligation period, the Company paid the purchaser $1.8 million to cover losses on the specific loans. See Note 10, “Guarantees and Collateral.” | |
On March 28, 2013, the Company sold 100% of its interests in the preferred stock investments for $36.6 million plus accrued interest. Separately, the Company entered into three total return swap agreements with an affiliate of the purchaser of the preferred stock investments. The notional amount of the TRS was set based on the preferred stock investments as the reference asset. Under the terms of the TRS, the Company receives an amount equal to the distributions on the preferred stock, a weighted average rate of 14.4% at September 30, 2013, and the Company pays a quarterly rate of 3-month LIBOR plus a spread of 400 bps, 4.25% at September 30, 2013, on the notional amount, currently an aggregate of $36.6 million. The TRS interest payments settle on a “net” basis and the notional amount will decline if and when the preferred stock is redeemed in part or in full. At September 30, 2013 the Company held $12.4 million in a restricted collateral account as security for the TRS. | |
The TRS agreements have a termination date of March 31, 2015, and a termination fee equal to 1% of the notional amount. The Company may elect to terminate any or all of the TRS at any time. The counterparty to the TRS has the right to terminate the TRS upon the occurrence of certain events. Under any termination event, if the fair values of the preferred stock are above par, the Company will receive the premium value above par. If the fair values of the preferred stock are below par, the Company will be required to pay the difference between fair value and par. | |
The Company recorded the $36.6 million of proceeds from the transfer of its interest in the preferred stock investments as debt on the consolidated balance sheets secured by the preferred stock as the sale transaction did not meet the criteria for sale accounting. See Note 6, “Debt.” | |
REAL_ESTATE
REAL ESTATE | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate Held For Use [Abstract] | ' | |||||||
Real Estate Held For Use [Text Block] | ' | |||||||
Note 4—Real estate | ||||||||
Real estate held-for-use | ||||||||
The following table summarizes real estate held-for-use at September 30, 2013 and December 31, 2012: | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
MuniMae’s real estate held-for-use | $ | 18,214 | $ | 17,756 | ||||
Real estate held-for-use related to CFVs(1) | 103,649 | 111,931 | ||||||
Total real estate held-for-use | $ | 121,863 | $ | 129,687 | ||||
(1) For more information see Note 16, “Consolidated Funds and Ventures.” | ||||||||
MuniMae’s real estate held-for-use was comprised of three investments in undeveloped land with a carrying value of $7.9 million at September 30, 2013 and December 31, 2012, and an affordable multifamily property with a carrying value of $10.3 million and $9.9 million, at September 30, 2013 and December 31, 2012, respectively. | ||||||||
Real estate held-for-sale | ||||||||
During the third quarter of 2013, the Company foreclosed on a multifamily real estate partnership serving as collateral to one of its bonds. The fair value of the Company’s bond was $10.4 million at the foreclosure date. The Company sold the real estate property for $10.7 million in net cash proceeds. Because the bond had unrealized gains recorded through accumulated other comprehensive income, the Company transferred unrealized gains of $2.4 million out of equity and into income through an increase to “Net gains due to real estate consolidation and foreclosure” resulting in no impact to overall common equity. A gain on sale of real estate of $0.3 million was recorded to “Income (loss) from discontinued operations, net of tax.” | ||||||||
During the second quarter of 2013, the Company took a deed-in-lieu of foreclosure on a multifamily real estate property serving as collateral to one of its bonds. The fair value of the Company’s bond was $7.3 million at March 31, 2013 and during the second quarter of 2013, after taking title to the property, the Company sold the real estate property for $7.3 million in net cash proceeds. Because the bond had unrealized gains recorded through accumulated other comprehensive income, the Company transferred unrealized gains of $1.2 million out of equity and into income through an increase to “Net gains due to real estate consolidation and foreclosure” resulting in no impact to overall common shareholders’ equity. | ||||||||
For information regarding real estate held-for-sale related to CFVs see Note 16, “Consolidated Funds and Ventures.” | ||||||||
OTHER_ASSETS
OTHER ASSETS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||||||||
Other Assets Disclosure [Text Block] | ' | |||||||||||||
Note 5—OTHER ASSETS | ||||||||||||||
The following table summarizes other assets at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Other assets: | ||||||||||||||
Solar facilities (includes other assets such as cash and other receivables) | $ | 5,640 | $ | 7,960 | ||||||||||
Investment in a real estate partnership | 6,089 | 6,266 | ||||||||||||
Accrued interest receivable | 1,461 | 6,035 | ||||||||||||
State tax receivables, net | 219 | 2,403 | ||||||||||||
Debt issuance costs, net | 3,705 | 10,199 | ||||||||||||
Loans receivable | 1,188 | 1,165 | ||||||||||||
Other assets | 2,210 | 3,428 | ||||||||||||
Other assets held by CFVs (1) | 23,714 | 17,568 | ||||||||||||
Total other assets | $ | 44,226 | $ | 55,024 | ||||||||||
(1) For more information see Note 16, “Consolidated Funds and Ventures.” | ||||||||||||||
Solar Facilities | ||||||||||||||
At September 30, 2013, the Company had a solar investment fund and four solar facilities with a carrying value of $4.9 million. These facilities generate energy that is sold under long-term power contracts to the owner or lessee of the properties on which the projects are built. The useful life of these solar facilities is generally twenty years. | ||||||||||||||
During the second quarter of 2013, the counterparty on a long-term power contract exercised its right to terminate the contract by paying a termination fee of $1.3 million, which represented the carrying amount of the solar facility at March 31, 2013. At termination, the Company had approximately $0.8 million in non-recourse debt for which the solar facility was serving as collateral. This debt was fully paid using proceeds from the termination. The lender and the Company also agreed to $0.3 million in contingent interest in connection with the termination which resulted in a $0.3 million loss which was recognized during the second quarter of 2013. | ||||||||||||||
The Company has a contingent liability to creditors of its remaining solar facilities who provided non-recourse debt to finance the solar facilities. The Company entered into agreements with these creditors to provide for contingent interest to be paid to them should the Company recover its investment in the solar facilities. The total contingent liability associated with these agreements was $1.3 million at September 30, 2013 and should the facilities generate enough cash to pay the contingent interest, the Company will begin to record the associated contingent interest expense. | ||||||||||||||
Investment in a Real Estate Partnership | ||||||||||||||
Investment in a real estate partnership represents a 33.3% interest in a partnership that was formed to take a deed-in-lieu of foreclosure on land that was collateral for a loan held by the Company. The remaining interest in the partnership is held by a third party who had also loaned money to the developer on the same land parcel. The ownership interests in the partnership were determined based on the relative loan amounts provided by the Company and the third party lender. This third party interest holder is the primary beneficiary of the partnership. | ||||||||||||||
The following table displays the total assets and liabilities held by the real estate partnership in which the Company held an equity investment at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Investment in a real estate partnership: | ||||||||||||||
Total assets (primarily real estate) | $ | 18,800 | $ | 18,820 | ||||||||||
Total liabilities | 447 | – | ||||||||||||
The following table displays the net (loss) income for the three months and nine months ended September 30, 2013 and 2012 for the real estate partnership: | ||||||||||||||
For the three months | For the nine months | |||||||||||||
ended September 30, | ended September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net (loss) income | $ | -194 | $ | -38 | $ | -583 | $ | 302 | ||||||
Accrued Interest Receivable | ||||||||||||||
As part of the TEB sale, the accrued interest related to the bonds transferred ($4.4 million) to the Purchaser was also transferred as part of the sale. | ||||||||||||||
State Tax Receivables, net | ||||||||||||||
State tax receivables represent the net refund position as reflected on the Company’s various state tax returns. A portion of these receivables may be subject to challenge by the relevant tax authority and therefore a liability for uncertain tax positions of $0.7 million and $2.3 million at September 30, 2013 and December 31, 2012, respectively, has been recorded through “Other liabilities.” | ||||||||||||||
On March 20, 2013, the Company entered into a closing agreement with the Commonwealth of Massachusetts for all years covered by an audit of the Company by the Commonwealth of Massachusetts. Pursuant to the closing agreement, the Commonwealth of Massachusetts agreed to issue a refund of $1.8 million to the Company. The Company received the refund on April 8, 2013. This agreement also resolved $1.6 million of the Company’s uncertain tax positions recorded at December 31, 2012. As a result, during the first quarter of 2013 the Company recorded a $1.6 million benefit on the consolidated statements of operations for the reduction of the liability for unrecognized tax benefits reflected in “Income tax (expense) benefit” for the nine months ended September 30, 2013. | ||||||||||||||
Debt issuance costs, net | ||||||||||||||
As part of the Company’s sale of its common shares in TEB, the Purchaser assumed the debt obligations held by TEB at June 30, 2013 ($695.7 million of unpaid principal on the Company’s balance sheet at June 30, 2013). As a result, the Company accelerated the recognition of unamortized debt issuance costs associated with this debt and increased its bond-related debt interest expense by $5.5 million during the second quarter of 2013. | ||||||||||||||
DEBT
DEBT | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||
Debt Disclosure [Text Block] | ' | |||||||||||||||||
Note 6—DEBT | ||||||||||||||||||
The table below summarizes outstanding debt balances, the weighted-average interest rates and term dates at September 30, 2013 and December 31, 2012: | ||||||||||||||||||
(dollars in thousands) | September 30, | Weighted-Average | December 31, | Weighted-Average | ||||||||||||||
2013 | Effective Interest | 2012 | Effective Interest | |||||||||||||||
Rate at | Rate at | |||||||||||||||||
September 30, | December 31, 2012 | |||||||||||||||||
2013 | ||||||||||||||||||
Asset Related Debt (1) | ||||||||||||||||||
Senior interests in and debt owed to securitization trusts | ||||||||||||||||||
Due within one year | $ | – | – | % | $ | – | – | % | ||||||||||
Due after one year | – | – | 589,592 | 2.1 | ||||||||||||||
Mandatorily redeemable preferred shares | ||||||||||||||||||
Due within one year | – | – | 4,901 | 7.5 | ||||||||||||||
Due after one year | – | – | 83,819 | 7.4 | ||||||||||||||
Notes payable and other debt – bond related (2) | ||||||||||||||||||
Due within one year | 21,261 | 1.8 | – | – | ||||||||||||||
Due after one year | 125,043 | 5.5 | 57,729 | 5 | ||||||||||||||
Notes payable and other debt – non-bond related | ||||||||||||||||||
Due within one year | 1,446 | 9.2 | 17,617 | 9.9 | ||||||||||||||
Due after one year | 7,156 | 9.9 | 8,290 | 9.8 | ||||||||||||||
Total asset related debt | 154,906 | 5.2 | 761,948 | 3.2 | ||||||||||||||
Other Debt (1) | ||||||||||||||||||
Subordinate debentures (3) | ||||||||||||||||||
Due within one year | 742 | 8.1 | 529 | 8.1 | ||||||||||||||
Due after one year | 142,157 | 7.2 | 193,971 | 6.9 | ||||||||||||||
Notes payable and other debt | ||||||||||||||||||
Due within one year (4) | 5,342 | 10 | 10,444 | 13.5 | ||||||||||||||
Due after one year | 61,837 | 5.3 | 20,634 | 6.4 | ||||||||||||||
Total other debt | 210,078 | 6.7 | 225,578 | 7.2 | ||||||||||||||
Total asset related debt and other debt | 364,984 | 6.1 | 987,526 | 4.1 | ||||||||||||||
Debt related to CFVs (5) | ||||||||||||||||||
Due within one year | 35 | 6 | 5,908 | 10 | ||||||||||||||
Due after one year | 96,107 | 4.5 | 49,525 | 2.7 | ||||||||||||||
Total debt related to CFVs | 96,142 | 4.5 | 55,433 | 3.5 | ||||||||||||||
Total debt | $ | 461,126 | 5.7 | $ | 1,042,959 | 4.1 | ||||||||||||
(1) Asset related debt is debt which finances interest-bearing assets and the interest expense from this debt is included in “Net interest income” on the consolidated statements of operations. Other debt is debt which does not finance interest-bearing assets and the interest expense from this debt is included in “Interest expense” under “Operating and other expenses” on the consolidated statements of operations. | ||||||||||||||||||
(2) Included in notes payable and other debt were unamortized discounts of $1.7 million at December 31, 2012. | ||||||||||||||||||
(3) Included in the subordinate debt balance were $1.3 million of net discounts and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) and $7.1 million of net premiums and effective interest rate payable at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
(4) This amount includes $3.8 million of debt that has come due and remains payable; however, the Company has a forbearance agreement with the lender such that it is not pursuing any remedies. | ||||||||||||||||||
(5) See Note 16, “Consolidated Funds and Ventures” for more information. | ||||||||||||||||||
Covenant Compliance and Debt Maturities | ||||||||||||||||||
The following table summarizes principal payment commitments across all debt agreements at September 30, 2013: | ||||||||||||||||||
(in thousands) | Asset Related Debt | CFVs | ||||||||||||||||
and Other Debt | Related Debt | |||||||||||||||||
2013 | $ | 4,754 | $ | 133 | ||||||||||||||
2014 | 25,157 | 469 | ||||||||||||||||
2015 | 67,007 | 403 | ||||||||||||||||
2016 | 34,133 | 435 | ||||||||||||||||
2017 | 3,737 | 469 | ||||||||||||||||
Thereafter | 228,985 | 92,974 | ||||||||||||||||
Net discount | 1,211 | 1,259 | ||||||||||||||||
Total | $ | 364,984 | $ | 96,142 | ||||||||||||||
Included in the 2013 principal payments for asset related debt and other debt is $3.8 million of debt that has come due and remains payable; however, the Company has a forbearance agreement with the lender such that it is not pursuing any remedies. The Company is not in default under any of its other debt arrangements. | ||||||||||||||||||
Asset Related Debt | ||||||||||||||||||
Senior Interests in and Debt Owed to Securitization Trusts | ||||||||||||||||||
On July 3, 2013, all but $2.5 million of the Company’s unpaid principal of $577.1 million in senior interests in and debt owed to securitization trusts at June 30, 2013, was transferred to the Purchaser of the Company’s common shares in TEB. During the second quarter of 2013, the Company recognized $4.6 million of unamortized debt issuance costs associated with this debt that was recorded within other assets. During the third quarter of 2013, the remaining $2.5 million in senior interests and debt owed to securitization trusts was repaid. | ||||||||||||||||||
Interest expense on the senior interests in and debt owed to securitization trusts totaled $11.3 million (including $4.6 million related to the acceleration of the unamortized debt issuance costs discussed above) and $9.6 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
Mandatorily Redeemable Preferred Shares | ||||||||||||||||||
All of the Company’s mandatorily redeemable preferred shares were transferred to the Purchaser of the Company’s common shares in TEB at the liquidation amount of $121.0 million. During the second quarter of 2013, the Company recognized the remaining unamortized issuance discounts ($2.3 million) previously recorded as a net discount against the debt balance in order to carry the debt at its liquidation amount. In addition, the Company recognized $0.9 million of unamortized debt issuance costs associated with this debt that was recorded within other assets. | ||||||||||||||||||
Interest expense on mandatorily redeemable preferred shares totaled $6.5 million (including $3.2 million related to the acceleration of debt issuance costs and issuance discounts discussed above) and $6.4 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
During the first quarter of 2013, TEB issued $74 million (unpaid principal) of mandatorily redeemable preferred shares with a distribution rate of 5.0%. Proceeds from this issuance were used to redeem $43.2 million (liquidation preference) of then outstanding mandatorily redeemable preferred shares at a rate of 7.5%. The Company recorded a loss on debt extinguishment of $1.5 million during the first quarter of 2013, due to the acceleration of unamortized debt issuance costs and issuance discounts related to the redemption. These losses are reflected in “Net (losses) gains on early extinguishment of liabilities” for the nine months ended September 30, 2013. | ||||||||||||||||||
Notes Payable and Other Debt – Bond Related | ||||||||||||||||||
This debt is comprised of proceeds received on bond and bond interest transfers that did not qualify for sale accounting treatment because the Company either transferred a participation interest or the Company entered into a performance guarantee at the time of transfer. This debt also includes financing proceeds received on TRS agreements where the related bond did not receive sale accounting treatment. | ||||||||||||||||||
Other Debt | ||||||||||||||||||
Subordinate Debt | ||||||||||||||||||
The table below provides a summary of the key terms of the subordinate debt issued by MMA Financial Inc. (“MFI”) and MMA Financial Holdings, Inc. (“MFH”) and held by third parties at September 30, 2013: | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Issuer | Principal | Net Premium/ | Carrying | Interim | Maturity Date | Coupon Interest Rate | ||||||||||||
(Discount) | Value | Principal | ||||||||||||||||
Payments | ||||||||||||||||||
MFI | $ | 29,651 | $ | – | $ | 29,651 | – | Various dates through December 2033 | 8.00% | |||||||||
MFH | 33,286 | 565 | 33,851 | $4,689 due April 2015 | 30-Mar-35 | 0.75% to March 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
MFH | 30,116 | 331 | 30,447 | $4,242 due May 2015 | 30-Apr-35 | 0.75% to April 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
MFH | 17,219 | 150 | 17,369 | $2,305 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
MFH | 31,308 | 273 | 31,581 | $4,191 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
$ | 141,580 | $ | 1,319 | $ | 142,899 | |||||||||||||
Interest expense on the subordinate debt totaled $8.2 million and $11.4 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
During March of 2013, the Company repurchased the remaining unpaid principal balance ($45.5 million) of MFH subordinate debt due May 2034 for a cash payment of $17.4 million plus accrued interest. As a result of this transaction, the Company recognized a gain on debt extinguishment of $37.9 million, comprised of the difference between the cash payment of $17.4 million and the carrying value of the repurchased debt of $56.9 million, reduced by the acceleration of $1.6 million of debt issuance costs. The gain on debt extinguishment is recorded in “Net (losses) gains on early extinguishment of liabilities” on the consolidated statements of operations for the first nine months of 2013. | ||||||||||||||||||
Notes Payable and Other Debt | ||||||||||||||||||
At September 30, 2013, this debt includes $36.6 million related to the TRS entered into during March of 2013 in connection with the Company’s sale of its preferred stock investment. See Note 3, “Investment in Preferred Stock” for more information. The debt is non-amortizing, matures on March 31, 2015 and bears an interest rate of 3-month LIBOR plus 400 bps (4.25% at September 30, 2013), which resets quarterly. The Company recorded debt issuance costs of $0.8 million associated with the transaction, of which $0.4 million was paid at inception and $0.4 million is payable at termination. | ||||||||||||||||||
Letters of Credit | ||||||||||||||||||
On July 1, 2013, $0.1 million in a letter of credit expired unused and $2.9 million was canceled unused on July 31, 2013. As a result, the Company had no letters of credit outstanding at September 30, 2013. | ||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||
Note 7— DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
The following table summarizes the Company’s derivative liabilities fair value balances at September 30, 2013 and December 31, 2012. | ||||||||||||||
Fair Value | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | $ | 662 | $ | 3,184 | ||||||||||
Other | – | 360 | ||||||||||||
Total derivative financial instruments | $ | 662 | $ | 3,544 | ||||||||||
The following table summarizes the derivative notional amounts at September 30, 2013 and December 31, 2012. | ||||||||||||||
Notional | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | $ | 7,837 | $ | 24,885 | ||||||||||
The following table summarizes derivative activity for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Realized/Unrealized | Realized/Unrealized | |||||||||||||
(Losses) Gains For the | (Losses) Gains For the | |||||||||||||
three months ended | nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Interest rate swaps(1) | $ | -76 | $ | -655 | $ | -156 | $ | -2,336 | ||||||
Other | – | -3 | 215 | 202 | ||||||||||
Total | $ | -76 | $ | -658 | $ | 59 | $ | -2,134 | ||||||
(1) The cash paid and received on interest rate swaps is settled on a net basis and recorded through “Net gains (losses) on assets and derivatives.” Net cash interest paid was $0.1 million and $1.0 million for the three months ended September 30, 2013 and 2012, respectively. Net cash paid was $0.7 million and $3.2 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||
Financial Instruments Disclosure [Text Block] | ' | |||||||||||||||||||
Note 8—Financial Instruments | ||||||||||||||||||||
The following table provides information about financial assets and liabilities not carried at fair value on the consolidated balance sheets. This table excludes non-financial assets and liabilities. | ||||||||||||||||||||
The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. A description of how the Company estimates fair values is provided below. These estimates are subjective in nature, involve uncertainties and significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | ||||||||||||||||||||
As required by GAAP, assets and liabilities are classified into levels based on the lowest level of input that is significant to the fair value measurement. The determination of which level an asset or liability gets classified into is based on the following fair value hierarchy: | ||||||||||||||||||||
⋅ | Level 1: Quoted prices in active markets for identical instruments. | |||||||||||||||||||
⋅ | Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs or significant value drivers are observable in active markets. | |||||||||||||||||||
⋅ | Level 3: Valuations derived from valuation techniques in which significant inputs or significant value drivers are unobservable. | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Carrying | Fair Value | Carrying | ||||||||||||||||||
(in thousands) | Amount | Level 1 | Level 2 | Level 3 | Amount | Fair Value | ||||||||||||||
Assets: | ||||||||||||||||||||
Investments in preferred stock | $ | 31,371 | $ | – | $ | – | $ | 36,613 | $ | 31,371 | $ | 35,807 | ||||||||
Loans receivable | 1,174 | – | – | 302 | 1,072 | 383 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Senior interests in and debt owed to securitization trusts | – | – | – | – | 589,592 | 589,778 | ||||||||||||||
Mandatorily redeemable preferred shares | – | – | – | – | 88,720 | 91,517 | ||||||||||||||
Notes payable and other debt, bond related | 146,304 | – | – | 145,091 | 57,729 | 59,001 | ||||||||||||||
Notes payable and other debt, non-bond related | 75,781 | – | – | 67,851 | 56,985 | 48,696 | ||||||||||||||
Notes payable and other debt related to CFVs | 96,142 | – | 49,745 | 44,977 | 55,433 | 55,580 | ||||||||||||||
Subordinate debt issued by MFH | 113,248 | – | – | 42,869 | 164,500 | 47,219 | ||||||||||||||
Subordinate debt issued by MFI | 29,651 | – | – | 29,651 | 30,000 | 30,000 | ||||||||||||||
Investment in preferred stock –The fair value of the preferred stock was determined based on the terms and conditions of the preferred stock as compared to other, best available market benchmarks. At December 31, 2012, the fair value also included the obligation related to the embedded loss-sharing feature contained in the Series B and C preferred stock agreements. These loss reimbursement agreements expired on May 15, 2013. | ||||||||||||||||||||
Loans receivable –The Company estimates fair value by discounting the expected cash flows using current market yields for similar loans. Loans receivable is recorded through “Other assets.” | ||||||||||||||||||||
Notes payable and other debt – The fair value was estimated based on discounting contractual cash flows using a market rate of interest or by estimating the fair value of the collateral supporting the debt arrangement, taking into account credit risk. | ||||||||||||||||||||
Subordinate debt – The fair value of the subordinate debt was estimated using best available market benchmarks, taking into account credit risk. | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||
Note 9—FAIR VALUE MEASUREMENTS | ||||||||||||||
Recurring Valuations | ||||||||||||||
The following tables present assets and liabilities that are measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. | ||||||||||||||
Fair Value Measurement Levels at September 30, 2013 | ||||||||||||||
(in thousands) | September 30, | Level 1 | Level 2 | Level 3 | ||||||||||
2013 | ||||||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 196,485 | $ | – | $ | – | $ | 196,485 | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 662 | $ | – | $ | – | $ | 662 | ||||||
Fair Value Measurement Levels at December 31, 2012 | ||||||||||||||
(in thousands) | December 31, | Level 1 | Level 2 | Level 3 | ||||||||||
2012 | ||||||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 969,394 | $ | – | $ | – | $ | 969,394 | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 3,544 | $ | – | $ | 2,477 | $ | 1,067 | ||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended September 30, 2013. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, July 1, 2013 | $ | 896,322 | $ | -694 | ||||||||||
Net losses included in earnings | -1,321 | 32 | ||||||||||||
Net losses included in other comprehensive income (1) | -80,682 | – | ||||||||||||
Impact from sales/redemptions | -606,121 | – | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -10,168 | – | ||||||||||||
Impact from settlements | -1,545 | – | ||||||||||||
Balance, September 30, 2013 | $ | 196,485 | $ | -662 | ||||||||||
(1) This amount includes $5.2 million of unrealized net holding losses arising during the period, which is then reduced by $0.9 million of unrealized bond losses reclassified into operations. This amount is then increased by $76.4 million of unrealized gains related to bonds that were redeemed. | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized (losses) gains recognized at bond sale or redemption and derivative settlement for the three months ended September 30, 2013. | ||||||||||||||
(in thousands) | Net gains on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | – | $ | – | $ | – | ||||||||
July 1, 2013, but settled during the third quarter of 2013 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -939 | -382 | 32 | |||||||||||
September 30, 2013 | ||||||||||||||
Additional realized gains (losses) recognized | 76,362 | - | -77 | |||||||||||
Total gains (losses) reported in earnings | $ | 75,423 | $ | -382 | $ | -45 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended September 30, 2012. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, July 1, 2012 | $ | 1,006,539 | $ | -1,192 | ||||||||||
Net losses included in earnings | -3,373 | -27 | ||||||||||||
Net gains included in other comprehensive income (1) | 15,085 | – | ||||||||||||
Impact from purchases | – | – | ||||||||||||
Impact from sales | – | – | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -21,545 | – | ||||||||||||
Impact from settlements | -2,419 | – | ||||||||||||
Balance, September 30, 2012 | $ | 994,287 | $ | -1,219 | ||||||||||
(1) This amount includes $12.8 million of unrealized net holding gains arising during the period, which is then increased by $2.3 million of unrealized bond losses reclassified into operations. | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized losses recognized at bond sale or redemption and derivative settlement for the three months ended September 30, 2012. | ||||||||||||||
(in thousands) | Net losses on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | – | $ | – | $ | – | ||||||||
July 1, 2012, but settled during the third quarter of 2012 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -2,282 | -1,091 | -27 | |||||||||||
September 30, 2012 | ||||||||||||||
Additional realized gains (losses) recognized | 2 | – | -76 | |||||||||||
Total losses reported in earnings | $ | -2,280 | $ | -1,091 | $ | -103 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the nine months ended September 30, 2013. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, January 1, 2013 | $ | 969,394 | $ | -1,067 | ||||||||||
Net losses included in earnings | -4,589 | 259 | ||||||||||||
Net losses included in other comprehensive income (1) | -91,980 | – | ||||||||||||
Impact from sales/redemptions | -612,154 | – | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -55,275 | – | ||||||||||||
Impact from settlements | -8,911 | 146 | ||||||||||||
Balance, September 30, 2013 | $ | 196,485 | $ | -662 | ||||||||||
(1) This amount includes $16.8 million of unrealized net holding losses arising during the period, which is then reduced by $1.8 million of unrealized bond losses reclassified into operations. This amount is then increased by $77.0 million of unrealized gains related to bonds that were redeemed | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized (losses) gains recognized at bond sale or redemption and derivative settlement for the nine months ended September 30, 2013. | ||||||||||||||
(in thousands) | Net gains on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | -530 | $ | – | $ | – | ||||||||
January 1, 2013, but settled during the first nine months of 2013 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -1,242 | -2,817 | 259 | |||||||||||
September 30, 2013 | ||||||||||||||
Additional realized gains (losses) recognized | 76,960 | – | -230 | |||||||||||
Total gains (losses) reported in earnings | $ | 75,188 | $ | -2,817 | $ | 29 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the nine months ended September 30, 2012. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, January 1, 2012 | $ | 1,021,628 | $ | -1,167 | ||||||||||
Net losses included in earnings | -6,397 | 429 | ||||||||||||
Net gains included in other comprehensive income (1) | 31,806 | – | ||||||||||||
Impact from purchases | 6,189 | – | ||||||||||||
Impact from sales | -8,172 | – | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -34,108 | – | ||||||||||||
Impact from settlements | -16,659 | 128 | ||||||||||||
Transfer into Level 3 | – | -609 | ||||||||||||
Balance, September 30, 2012 | $ | 994,287 | $ | -1,219 | ||||||||||
(1) This amount includes $28.4 million of unrealized net holding gains arising during the period, which is then increased by $3.4 million of unrealized bond losses reclassified into operations. | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized (losses) gains recognized at bond sale or redemption and derivative settlement for the nine months ended September 30, 2012. | ||||||||||||||
(in thousands) | Net losses on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | – | $ | – | $ | – | ||||||||
January 1, 2012, but settled during the first nine months of 2012 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -3,369 | -3,028 | -180 | |||||||||||
September 30, 2012 | ||||||||||||||
Additional realized gains (losses) recognized | 54 | – | -228 | |||||||||||
Total losses reported in earnings | $ | -3,315 | $ | -3,028 | $ | -408 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following methods or assumptions were used to estimate the fair value of these recurring financial instruments: | ||||||||||||||
Bonds Available-for-sale – For most of our performing bonds, the Company estimates fair value using a discounted cash flow methodology; specifically, the Company discounts contractual principal and interest payments, adjusted for expected prepayments. The discount rate for each bond is based on expected investor yield requirements adjusted for bond attributes such as the expected term of the bond, debt service coverage ratios, geographic location and bond size. The weighted average discount rate for the performing bond portfolio was 7.36% and 7.45% at September 30, 2013 and December 31, 2012, respectively for performing bonds still held in the portfolio at September 30, 2013. If observable market quotes are available, the Company will estimate the fair value based on such quoted prices. | ||||||||||||||
For non-performing bonds and certain currently performing bonds where payment of full principal and interest is uncertain, the Company estimates fair value by discounting the property’s expected cash flows and residual proceeds using estimated market discount and capitalization rates, less estimated selling costs. The discount rate averaged 8.6% and 8.2% at September 30, 2013 and December 31, 2012, respectively for these bonds still in the portfolio at September 30, 2013. The capitalization rate averaged 6.6% and 6.9% at September 30, 2013 and December 31, 2012, respectively, for these bonds still in the portfolio at September 30, 2013. However, to the extent available, the Company may estimate fair value based on a sale agreement, a letter of intent to purchase, an appraisal or other indications of fair value as available. | ||||||||||||||
The discount rates and capitalization rates as discussed above are significant inputs to bond valuations and are unobservable in the market. To the extent discount rates and capitalization rates were to increase (decrease) in isolation the corresponding estimated bond values would decrease (increase). | ||||||||||||||
Derivative Financial Instruments – At September 30, 2013, the Company had one interest rate swap contract. This contract was valued using an internal valuation model, taking into consideration credit risk. | ||||||||||||||
Non-recurring Valuations | ||||||||||||||
At year-end 2012 and September 30, 2013, the only non-recurring instruments were certain loans held-for-sale; however, the Company’s loan portfolio at each period-end was de minimis. | ||||||||||||||
GUARANTEES_AND_COLLATERAL
GUARANTEES AND COLLATERAL | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||||||
Guarantees [Text Block] | ' | ||||||||||||||||||||||||
Note 10—GUARANTEES AND COLLATERAL | |||||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||||
Guarantee obligations are recorded through “Other liabilities.” | |||||||||||||||||||||||||
The following table summarizes guarantees, by type, at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(in thousands) | Maximum | Carrying | Maximum | Carrying | |||||||||||||||||||||
Exposure | Amount | Exposure | Amount | ||||||||||||||||||||||
Indemnification contracts | $ | 26,178 | $ | 1,281 | $ | 26,178 | $ | 1,531 | |||||||||||||||||
Other | – | – | 376 | 34 | |||||||||||||||||||||
Total | $ | 26,178 | $ | 1,281 | $ | 26,554 | $ | 1,565 | |||||||||||||||||
Indemnification Contracts | |||||||||||||||||||||||||
The Company entered into indemnification contracts with the purchaser of the tax credit equity (“TCE”) business related to the guarantees of the investor yields on their investment in certain LIHTC Funds and indemnifications related to property performance on certain Lower Tier Property Partnerships. The Company made no cash payments related to these indemnification agreements for the nine months ended September 30, 2013 or 2012. The carrying amount represents the amount of unamortized fees received related to these guarantees with no additional amounts recognized as management does not believe it is probable that it will have to make payments under these indemnifications. However, it is possible that certain performance guarantees could result in the Company having to pay up to $1.5 million between now and 2017. | |||||||||||||||||||||||||
The Company’s maximum exposure under its indemnification contracts represents the maximum loss the Company could incur under its guarantee agreements and is not indicative of the likelihood of the expected loss under the guarantee. The Company also has guarantees associated with the LIHTC Funds that were not sold to the purchaser of the TCE business. See Note 16, “Consolidated Funds and Ventures” for information on these guarantees. | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||
In 2009, the Company entered into a loss sharing agreement with the purchaser of the Agency Lending business which was settled during the first quarter of 2013. See Note 3, “Investments in Preferred Stock” for information on this guarantee. | |||||||||||||||||||||||||
Collateral and restricted assets | |||||||||||||||||||||||||
The following table summarizes assets that are either pledged or restricted for the Company’s use at September 30, 2013 and December 31, 2012. This table also reflects certain assets held by CFVs in order to reconcile to the Company’s consolidated balance sheets. | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
(in thousands) | Note | Restricted | Bonds | Real Estate | Real Estate | Investment | Other | Total | |||||||||||||||||
Ref. | Cash | Available- | Held-for- | Held-for- | in Preferred | Assets | Assets | ||||||||||||||||||
for-sale | Use | Sale | stock | Pledged | |||||||||||||||||||||
Notes payable | A | $ | – | $ | – | $ | 1,735 | $ | – | $ | – | $ | 11,728 | $ | 13,463 | ||||||||||
Other | B | 35,004 | 132,930 | 13,860 | – | 31,371 | 326 | 213,491 | |||||||||||||||||
CFVs | C | 55,945 | – | 103,649 | 51,836 | – | 23,714 | 235,144 | |||||||||||||||||
Total | $ | 90,949 | $ | 132,930 | $ | 119,244 | $ | 51,836 | $ | 31,371 | $ | 35,768 | $ | 462,098 | |||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | Note | Restricted | Bonds | Real Estate | Other | Total | |||||||||||||||||||
Ref. | Cash | Available- | Held-for- | Assets | Assets | ||||||||||||||||||||
for-sale | Use | Pledged | |||||||||||||||||||||||
Notes payable | A | $ | 13 | – | 1,735 | 14,302 | 16,050 | ||||||||||||||||||
Other | B | 1,341 | 59,354 | 13,402 | 389 | 74,486 | |||||||||||||||||||
CFVs | C | 53,957 | – | 111,931 | 17,568 | 183,456 | |||||||||||||||||||
Senior interests in and debt owed | D | 2 | 865,992 | 2,619 | – | 868,613 | |||||||||||||||||||
to securitization trusts | |||||||||||||||||||||||||
Total | $ | 55,313 | $ | 925,346 | $ | 129,687 | $ | 32,259 | $ | 1,142,605 | |||||||||||||||
A. | The Company pledges bonds, loans, investments in preferred stock, investments in solar facilities and an investment in a mixed-use real estate development as collateral for notes payable. | ||||||||||||||||||||||||
B. | The Company pledges collateral in connection with secured borrowings, derivative transactions, other liabilities, guarantee exposure and leases. The Company may elect to pledge collateral on behalf of the Company’s customers in order to facilitate credit and other collateral requirements. In addition, cash may be restricted for funding obligations. | ||||||||||||||||||||||||
C. | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. | ||||||||||||||||||||||||
D. | Includes assets held by bond securitization trusts as well as assets pledged as collateral for bond securitizations. | ||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | |||||||||||||
Note 11—Commitments and Contingencies | ||||||||||||||
Operating Leases | ||||||||||||||
The Company has various operating leases that expire at various dates through 2018. These leases require the Company to pay property taxes, maintenance and other costs. | ||||||||||||||
The following table summarizes rental expense and rental income from operating leases for the nine months ended September 30, 2013 and 2012: | ||||||||||||||
Reported through | Reported through | |||||||||||||
General and Administrative | Discontinued Operations | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Rental expense | $ | -1,537 | $ | -1,660 | $ | -492 | $ | -1,107 | ||||||
Rental income | 976 | 1,173 | 492 | 1,107 | ||||||||||
Net rental expense | $ | -561 | $ | -487 | $ | – | $ | – | ||||||
The following table summarizes the future minimum rental commitments on non-cancelable operating leases at September 30, 2013: | ||||||||||||||
(in thousands) | ||||||||||||||
2013 | $ | 457 | ||||||||||||
2014 | 1,182 | |||||||||||||
2015 | 1,146 | |||||||||||||
2016 | 676 | |||||||||||||
2017 | 108 | |||||||||||||
2018 | 40 | |||||||||||||
Total minimum future rental commitments | $ | 3,609 | ||||||||||||
At September 30, 2013, the Company expects to receive $1.8 million in future rental payments from non-cancelable subleases, which is not netted against the commitments above. | ||||||||||||||
Litigation | ||||||||||||||
From time to time, the Company and its subsidiaries are named as defendants in various litigation matters arising in the ordinary course of business. These proceedings may include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive or declaratory relief. | ||||||||||||||
The Company establishes reserves for litigation matters when those matters present loss contingencies that are probable and can be reasonably estimated. Once established, reserves may be adjusted when new information is obtained. | ||||||||||||||
It is the opinion of the Company’s management that adequate provisions have been made for losses with respect to litigation matters and other claims that existed at September 30, 2013. Management believes the ultimate resolution of these matters is not likely to have a material effect on its financial position, results of operations or cash flows. Assessment of the potential outcomes of these matters involves significant judgment and is subject to change, based on future developments, which could result in significant changes. | ||||||||||||||
Shareholder Matters | ||||||||||||||
The Company is a defendant in a purported class action lawsuit and two derivative suits originally filed in 2008. The plaintiffs in the class action lawsuit claim to represent a class of investors in the Company’s shares who allegedly were injured by misstatements in press releases and SEC filings between May 3, 2004, and January 28, 2008. The plaintiffs seek unspecified damages for themselves and the shareholders of the class they purport to represent. In the derivative suits, the plaintiffs claim, among other things, that the Company was injured because its directors and certain named officers did not fulfill duties regarding the accuracy of its financial disclosures. Both the class action and the derivative cases are pending in the United States District Court for the District of Maryland. The Company filed a motion to dismiss the class action and in June 2012, the Court issued a ruling dismissing all of the counts alleging any knowing or intentional wrongdoing by the Company or its affiliates, directors and officers. The only remaining counts relate to the Company’s dividend reinvestment plan. Plaintiffs have appealed the Court’s ruling. As of September 30, 2013, based on the Company’s exposure under the remaining counts, the Company believes it is probable that it will settle this case for at least $0.5 million and as such the Company has a contingent obligation for $0.5 million (reported through “Other liabilities”). If the plaintiffs are successful on appeal, or as a result of an agreed upon settlement, it is possible that the Company could incur additional losses and these additional losses could be significant; however, these losses cannot be estimated at this time. To the extent there are additional losses, the Company expects those losses to be covered by insurance proceeds. | ||||||||||||||
On September 27, 2013, the Company entered into a settlement agreement with the Securities and Exchange Commission (“SEC”) intended to resolve claims as to filing deficiencies of the Company from 2006 through 2010. Pursuant to the settlement, the SEC issued an order revoking registration of our common shares (“Deregistration Order”) effective September 30, 2013. Once the Deregistration Order was effective, the Company was eligible to re-register its common shares with the SEC. Accordingly the Company filed a Registration Statement on Form 8-A on September 30, 2013 to re-register its common shares under Section 12(g) of the Exchange Act, which was effective immediately upon filing. Therefore, as of the filing of our Form 8-A, the Company’s common shares were once again registered under the Exchange Act with the SEC. As a result of the deregistration, and subsequent re-registration, of the Company’s common shares, the Company believes it has resolved the historical filing deficiencies described in Part I, Item 1A “Risk Factors” of the Company’s 2012 Form 10-K. | ||||||||||||||
EQUITY
EQUITY | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||
Note 12—Equity | ||||||||||||||
Common Share Information | ||||||||||||||
The following table provides a summary of net income to common shareholders as well as information pertaining to weighted average shares used in the per share calculations as presented on the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net income from continuing operations | $ | 73,042 | $ | 1,111 | $ | 106,927 | $ | 5,632 | ||||||
Net income (loss) from discontinued operations | 274 | -393 | 5,215 | 1,342 | ||||||||||
Net income to common shareholder | $ | 73,316 | $ | 718 | $ | 112,142 | $ | 6,974 | ||||||
Basic weighted-average shares (1) | 42,290 | 42,304 | 42,380 | 42,207 | ||||||||||
Common stock equivalents (2) (3) (4) | 1,626 | 76 | 1,443 | 207 | ||||||||||
Diluted weighted-average shares | 43,916 | 42,380 | 43,823 | 42,414 | ||||||||||
-1 | Includes common shares issued and outstanding, as well as non-employee directors’ and employee deferred shares that have vested, but are not issued and outstanding. | |||||||||||||
-2 | At September 30, 2013, 2,128,125 stock options were in the money and had a dilutive impact of 1,470,198 shares and 1,373,840 shares for the three months and nine months ended September 30, 2013, respectively. In addition, 260,417 unvested employee deferred shares had a dilutive impact of 156,251 and 69,826 shares for the three and nine months ended September 30, 2013, respectively. | |||||||||||||
-3 | At September 30, 2012, 850,000 stock options were in the money and had a dilutive impact of 75,508 shares and 206,967 shares for the three months and nine months ended September 30, 2012, respectively. There were no unvested employee deferred shares at September 30, 2012. | |||||||||||||
-4 | For the three months and nine months ended September 30, 2013, the average number of options excluded from the calculations of diluted earnings per share was 302,287 and 456,803, respectively, because of their anti-dilutive effect. For the three months and nine months ended September 30, 2012, the average number of options excluded from the calculations of diluted earnings per share was 1,512,031 and 1,060,535, respectively, because of their anti-dilutive effect. | |||||||||||||
On July 10, 2013, the Company converted from a partnership to a corporation for federal and state income tax purposes. As a result of the conversion, the Company will (i) be a direct corporate taxpayer, (ii) no longer pass through its income and loss to its shareholders for tax purposes, and (iii) no longer issue each shareholder an annual tax statement on Schedule K-1 (although there will be investor K-1s for the partial year January 1, 2013 through July 9, 2013). At the date of the conversion to a corporation, there was no impact to the Company’s earnings. | ||||||||||||||
During November 2012, our Board of Directors authorized a one year stock repurchase program of up to $1.0 million. The program was terminated and replaced with a new stock repurchase program as authorized by our Board of Directors on August 8, 2013. Specifically, the Board authorized management to enter into an amended and restated stock repurchase program effective subsequent to the Company’s filing of the June 30, 2013 quarterly report on Form 10-Q, and in any event not earlier than August 15, 2013. Pursuant to this authorization the Company amended and restated the plan on August 16, 2013, to provide for the Company to purchase up to four million shares, and up to 800,000 shares in any one calendar month at a price up to 100% of its common shareholders’ equity per share as shown on its most recently filed periodic report. During September 2013 the Board authorized further amendments to the plan to increase the aggregate shares authorized for repurchase to five million shares, to remove the monthly limit of 800,000 shares and to allow for block trades. The Company has repurchased 386,236 shares at an average price of $1.31 during the nine months ended September 30, 2013. | ||||||||||||||
Perpetual Preferred Shareholders’ Equity in a Subsidiary Company | ||||||||||||||
On July 3, 3013 the perpetual preferred shares were assumed at their liquidation preference amount by the Purchaser of the Company’s common shares in TEB. As a result, the Company recorded a reduction to common shareholders’ equity of $3.0 million representing the difference between the carrying value of the preferred shares of $118.0 million and the liquidation preference amount assumed by the Purchaser of the Company’s common shares in TEB. | ||||||||||||||
During the second quarter of 2013, TEB repurchased and retired five shares of Series C-1 cumulative perpetual preferred shares (original liquidation preference of $5.0 million) and three shares of Series D Preferred Shares (original liquidation preference of $6.0 million) for $9.5 million. As a result of the repurchase and retirement, the Company recorded a net increase to common equity of $1.2 million, comprised of the discount on the repurchase of $1.5 million partially offset by unamortized issuance discounts of $0.3 million associated with these shares. | ||||||||||||||
As discussed in Note 6, “Debt,” during the first quarter of 2013, TEB issued $74 million (liquidation preference) of mandatorily redeemable preferred shares with a distribution rate of 5.0%. Proceeds from this issuance were used to redeem $27.0 million (liquidation preference) of then outstanding perpetual preferred shares with a weighted average distribution rate of 8.5%. The Company recorded a net reduction in common shareholders’ equity of $0.3 million as a result of unamortized issuance discounts and net premiums paid related to the redeemed shares. | ||||||||||||||
Noncontrolling Interests | ||||||||||||||
A significant component of equity is comprised of outside investor interests in entities that the Company consolidates. In addition to the preferred shares discussed above, the Company reported the following noncontrolling interests within equity in entities that the Company did not wholly own at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Noncontrolling interests in: | ||||||||||||||
LIHTC Funds | $ | 343,962 | $ | 379,407 | ||||||||||
SA Fund | 130,915 | 122,641 | ||||||||||||
Lower Tier Property Partnerships | 14,470 | 10,777 | ||||||||||||
IHS | -1,451 | -1,034 | ||||||||||||
Total | $ | 487,896 | $ | 511,791 | ||||||||||
Substantially all of these interests represent limited partner interests in partnerships or the equivalent of limited partner interests in limited liability companies. In allocating income between the Company and the noncontrolling interest holders of the consolidated entities, the Company takes into account the legal agreements governing ownership, and other contractual agreements and interests the Company has with the consolidated entities. See Note 16, “Consolidated Funds and Ventures” for further information. | ||||||||||||||
LIHTC Funds | ||||||||||||||
The noncontrolling interest in the LIHTC Funds is comprised primarily of the LIHTC Funds’ investment in Lower Tier Property Partnerships as well as operating cash partially offset by the LIHTC Funds’ obligations which primarily consist of unfunded equity commitments to Lower Tier Property Partnerships. The vast majority of the equity in the LIHTC Funds is held by third parties as the Company’s equity interest is nominal (ranging from 0.01% to 0.04%). A LIHTC Fund’s investment in Lower Tier Property Partnerships is accounted for under the equity method which means the investment balance is impacted by its share of Lower Tier Property Partnership income or loss. By design, the Lower Tier Property Partnerships typically generate net losses which are generally driven by depreciation of the rental property. The investment balance is also impacted by impairment charges as well as investment disposition activity. The decline in the noncontrolling interest balance was primarily a result of the decline in the LIHTC Funds’ investment balance mainly due to net operating losses and impairment charges recognized in the first nine months of 2013. During the first nine months of 2013, the Funds’ investment balance declined by $33.6 million and the noncontrolling interest balance declined by $35.4 million. See Note 16, “Consolidated Funds and Ventures” for further information. | ||||||||||||||
SA Fund | ||||||||||||||
The noncontrolling interest in the SA Fund is comprised primarily of the SA Fund’s investment in for-sale and rental properties as well as operating cash partially offset by the SA Fund’s debt obligations. The vast majority of the equity in the SA Fund is held by third parties as the Company’s equity interest is 2.7%. The SA Fund’s investments in for-sale and rental properties are accounted for at fair value. During the first nine months of 2013, the SA Fund’s noncontrolling interest balance increased by $8.3 million, which was due to $7.4 million of capital contributions from third party equity holders and $21.6 million of net operating income partially offset by $20.7 million of foreign currency translation loss adjustments for the nine months ended September 30, 2013. Because the SA Fund’s functional currency is the South African rand and the Company’s functional currency is the US dollar, the Company translates the SA Fund’s rand balance sheet into a dollar denominated balance sheet as part of consolidating the SA Fund into the Company’s balance sheet. The translation losses recorded for the first nine months of 2013 were a result of the weakening of the South African rand as compared to the US dollar. The Company recorded foreign currency translation losses of $0.6 million through OCI allocable to common shareholders for the nine months ended September 30, 2013. | ||||||||||||||
Lower Tier Property Partnerships | ||||||||||||||
At September 30, 2013 and December 31, 2012, two non-profit entities (which are consolidated by the Company) consolidated certain Lower Tier Property Partnerships because they were either the GP or the owner of rental properties. | ||||||||||||||
These non-profits held 14 and 12 Lower Tier Property Partnerships of which four and one were classified as held for sale at September 30, 2013 and December 31, 2012, respectively. The remaining properties at each period end were classified as held for use. | ||||||||||||||
IHS | ||||||||||||||
At September 30, 2013 and December 31, 2012, 17% of IHS was held by third parties. | ||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||
The following table summarizes the net change in accumulated other comprehensive income and amounts reclassified out of accumulated other comprehensive income for the three months ended September 30, 2013. | ||||||||||||||
Unrealized | Foreign | Accumulated | ||||||||||||
Gains on | Currency | Other | ||||||||||||
Bonds | Translation | Comprehensive | ||||||||||||
Available- | Income | |||||||||||||
for-Sale | ||||||||||||||
Balance at July 1, 2013 | $ | 119,239 | $ | -333 | $ | 118,906 | ||||||||
Unrealized net holding (losses) gains arising during period | -5,259 | 43 | -5,216 | |||||||||||
Reversal of unrealized gains on sold/redeemed bonds | -76,362 | -1 | – | -76,362 | ||||||||||
Reclassification of unrealized losses to income | 939 | – | 939 | |||||||||||
Reclassification of unrealized gains to operations due to | -2,411 | -1 | – | -2,411 | ||||||||||
consolidation of funds and ventures | ||||||||||||||
Net current period other comprehensive income | -83,093 | 43 | -83,050 | |||||||||||
Balance at September 30, 2013 | $ | 36,146 | $ | -290 | $ | 35,856 | ||||||||
(1) | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
The following table summarizes the net change in accumulated other comprehensive income and amounts reclassified out of accumulated other comprehensive income for the nine months ended September 30, 2013. | ||||||||||||||
Unrealized | Foreign | Accumulated | ||||||||||||
Gains on | Currency | Other | ||||||||||||
Bonds | Translation | Comprehensive | ||||||||||||
Available- | Income | |||||||||||||
for-Sale | ||||||||||||||
Balance at January 1, 2013 | $ | 139,021 | $ | -334 | $ | 138,687 | ||||||||
Unrealized net holding (losses) gains arising during period | -16,792 | 44 | -16,748 | |||||||||||
Reversal of unrealized gains on sold/redeemed bonds | -76,960 | -1 | – | -76,960 | ||||||||||
Reclassification of unrealized losses to income | 1,772 | – | 1,772 | |||||||||||
Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -10,895 | -1 | – | -10,895 | ||||||||||
Net current period other comprehensive income | -102,875 | 44 | -102,831 | |||||||||||
Balance at September 30, 2013 | $ | 36,146 | $ | -290 | $ | 35,856 | ||||||||
-1 | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||
Note 13—Stock-Based Compensation | |||||||||||||||
The Company has stock-based compensation plans (“Plans”) for Non-employee Directors (“Non-employee Directors’ Stock-Based Compensation Plan”) and stock-based incentive compensation plans for employees (“Employees’ Stock-Based Compensation Plan”). | |||||||||||||||
Total compensation expense recorded for these Plans was as follows for the three months and nine months ended September 30, 2013 and 2012: | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Employees’ Stock-Based Compensation Plan | $ | 279 | $ | 22 | $ | 1,937 | $ | 106 | |||||||
Non-employee Directors’ Stock-Based Compensation Plan | 75 | 63 | 200 | 188 | |||||||||||
Total | $ | 354 | $ | 85 | $ | 2,137 | $ | 294 | |||||||
Employees’ Stock-Based Compensation Plan | |||||||||||||||
The Employees’ Stock-Based Compensation Plan has 6,722,033 shares authorized to be issued, of which 1,870,936 shares were available to be issued at September 30, 2013. The Employees’ Stock-Based Compensation Plan authorizes grants of a broad variety of awards; however, the Company primarily has outstanding non-qualified common stock options and restricted shares. Currently only options can be issued from the existing plan because the plan has only been approved by the Company and not its shareholders. | |||||||||||||||
Employee Common Stock Options | |||||||||||||||
The Company measures the fair value of options granted with solely time-based vesting using a lattice model for purposes of recognizing compensation expense. The Company believes the lattice model provides a better estimate of the fair value of time-based options as it uses a range of possible outcomes over an option term and can be adjusted for exercise patterns. The Company measures the fair value of options granted with specific stock price targets using a Monte Carlo simulation for purposes of recognizing compensation expense. Because the options granted with stock price targets contain a “market condition” under FASB’s Accounting Standards Codification Topic 718, a Monte Carlo simulation is used to simulate future stock price movements for the Company. The Company believes a Monte Carlo simulation provides a better estimate of the fair value of performance-based options as the model’s flexibility allows for the fair value to account for the vesting provisions as well as the different stock price outcomes. | |||||||||||||||
The following table summarizes option activity under the Employees’ Stock-Based Compensation Plan: | |||||||||||||||
(in thousands, except per option data) | Number of | Weighted- | Weighted- | Aggregate | Period | ||||||||||
Options | average | average | Intrinsic | End | |||||||||||
Exercise | Remaining | Value (1) | Liability (2) | ||||||||||||
Price per | Contractual Life | ||||||||||||||
Option | per Option | ||||||||||||||
(in years) | |||||||||||||||
Outstanding at January 1, 2012 (1) | 1,145 | $ | 7.01 | 7.2 | $ | – | $ | 181 | |||||||
Granted in 2012 | 1,200 | 0.36 | |||||||||||||
Outstanding at December 31, 2012 (1) | 2,345 | 3.61 | 7.8 | 58 | 355 | ||||||||||
Forfeited/Expired in 2013 | -264 | 26.5 | |||||||||||||
Outstanding at September 30, 2013 (1) | 2,081 | 0.7 | 7.6 | 2,024 | 2,076 | ||||||||||
Number of options that were exercisable at: | |||||||||||||||
31-Dec-12 | 1,333 | 6.08 | 6.6 | ||||||||||||
30-Sep-13 | 1,436 | 0.86 | 7.2 | ||||||||||||
(1) Intrinsic value is based on outstanding shares. | |||||||||||||||
(2) Only options that were amortized based on a vesting schedule have a liability balance. These options were 1,812,118; 1,486,345; and 818,556 at September 30, 2013, December 31, 2012 and January 1, 2012, respectively. | |||||||||||||||
The value of employee options increased by $1.7 million in the first nine months of 2013 and was recognized as additional compensation expense. | |||||||||||||||
Employee Deferred Shares | |||||||||||||||
The following table summarizes the deferred shares granted to employees. The deferred shares that were issued to employees in the second quarter of 2013 have time and price vesting requirements. Half of the shares vest in three equal tranches over the next three years. The other half of the deferred shares will vest when certain average stock prices have been met. | |||||||||||||||
(in thousands, except per | Deferred Share | Weighted- | |||||||||||||
share data) | Grants | average Grant | |||||||||||||
Date Share Price | |||||||||||||||
1-Jan-13 | 29 | $ | 24.98 | ||||||||||||
Granted in 2013 | 312 | 0.88 | |||||||||||||
30-Sep-13 | 341 | 2.92 | |||||||||||||
The Company recognized $0.2 million of additional compensation expense related to employee deferred shares, mainly driven by new grants executed in the second quarter of 2013. | |||||||||||||||
Non-employee Directors’ Stock-Based Compensation Plan | |||||||||||||||
The Non-employee Directors’ Stock-based Compensation Plans authorize a total of 5,650,000 shares for issuance, of which 2,270,735 were available to be issued at September 30, 2013. The Non-employee Directors’ Stock-based Compensation Plans provide for grants of non-qualified common stock options, common shares, restricted shares and deferred shares. | |||||||||||||||
The following table summarizes option activity under the Non-employee Directors’ Stock-based Compensation Plan: | |||||||||||||||
(in thousands, except per option data) | Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Options | average | average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | |||||||||||||
Price per | Contractual Life | ||||||||||||||
Option | per Option | ||||||||||||||
(in years) | |||||||||||||||
Outstanding at January 1, 2012 | 27 | $ | 24.69 | 1.1 | $ | – | |||||||||
Expired/Forfeited in 2012 | -10 | 24.74 | |||||||||||||
Granted in 2012 | 78.1 | 0.36 | 9.8 | ||||||||||||
Outstanding at December 31, 2012 | 95.1 | 4.7 | 8.3 | – | |||||||||||
Expired/Forfeited in 2013 | -17 | 24.67 | – | ||||||||||||
Outstanding at September 30, 2013 | 78.1 | 0.36 | 9.2 | 73 | |||||||||||
Number of options that were exercisable at: | |||||||||||||||
31-Dec-12 | 17 | 24.67 | 0.4 | ||||||||||||
30-Sep-13 | 58.6 | 0.36 | 9.2 | ||||||||||||
Stock options awarded in 2012 were valued at $25,000 at the date of issuance and will vest in four equal installments on the last day of each of each quarter during 2013. See the table below which summarizes the director options that vested during the period presented and the deferred shares granted to the directors for services rendered for the nine months ended September 30, 2013 and 2012. The directors are fully vested in the deferred shares at the grant date. | |||||||||||||||
(in thousands, except per share | Shares | Deferred Share | Weighted- | Options | Directors’ Fees | ||||||||||
data) | Granted | Grants | average Grant | Vested | Expense | ||||||||||
Date Share Price | |||||||||||||||
30-Sep-13 | 5 | 62 | $ | 1.21 | 59 | $ | 200 | ||||||||
30-Sep-12 | – | 292 | 0.32 | - | 188 | ||||||||||
For the nine months ended September 30, 2013 and 2012, the Company recognized $200,000 and $187,500 in Director fees, of which $100,000 and $93,750 was paid in cash and the balance in deferred shares and vested options. Director fees are reflected in “General and administrative” on the consolidated statements of operations. | |||||||||||||||
The Company appointed a new Director in August 2013. The Company incurred Director fees for six independent directors for the three months ended September 2013 as well as fees for five independent directors for the six months ended June 30, 2013 and nine months ended September 2012 | |||||||||||||||
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Note 14—Related Party Transactions And Transactions with Affiliates | |
Transactions with The Shelter Group, LLC (“The Shelter Group”) | |
Mark Joseph (Chairman of MuniMae’s Board of Directors) has direct and indirect minority ownership interests in The Shelter Group. The Shelter Group provides property management services for certain properties that serve as collateral for the Company’s bonds. During the nine months ended September 30, 2013 and 2012, there were two and three such property management contracts, respectively, securing the Company’s bonds (including those bonds eliminated in consolidation). Fees paid by the properties to The Shelter Group under these contracts were $0.2 million and $0.4 million for the nine months ended September 30, 2013 and 2012, respectively. | |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||||||||
Note 15—discontinued operations | ||||||||||||||
The table below reflects the activity related to the Company’s discontinued operations. The revenues, expenses and all other statement of operations activity in discontinued operations, including the gains and losses on dispositions, have been classified as “Income (loss) from discontinued operations, net of tax” and “Net losses (income) allocable to noncontrolling interests from CFVs and IHS – related to discontinued operations” on the consolidated statements of operations. | ||||||||||||||
Four rental properties with a carrying value of $51.8 million were classified as real estate held-for-sale at September 30, 2013. The revenues, expenses and all other statement of operations amounts were reclassified to “Income (loss) from discontinued operations, net of tax.” | ||||||||||||||
During the first quarter of 2013, the same non-profit entity sold a property that was classified as held-for-sale on the consolidated balance sheet at December 31, 2012. The sale generated $20.1 million of net cash proceeds. As a result of the sale, the Company recognized a gain on sale of the real estate of $5.0 million of which $1.4 million was allocable to noncontrolling interests as reflected in the nine months ended September 30, 2013. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Sublease income | $ | - | $ | 369 | $ | 492 | $ | 1,107 | ||||||
Income from CFVs (primarily rental income) | 3,511 | 5,034 | 10,968 | 14,999 | ||||||||||
Income from REO operations | - | - | - | 57 | ||||||||||
Rent expense | - | -369 | -492 | -1,107 | ||||||||||
Expenses from CFVs (primarily operating expenses) | -3,594 | -4,545 | -10,152 | -14,707 | ||||||||||
Other income | 46 | 113 | 44 | 345 | ||||||||||
Net gains on property acquisition | 320 | - | 320 | - | ||||||||||
Net income before disposal activity | 283 | 602 | 1,180 | 694 | ||||||||||
Disposal: | ||||||||||||||
Net gains related to REO | 95 | - | 95 | - | ||||||||||
Net gains related to CFVs | 25 | - | 5,252 | - | ||||||||||
Net income from discontinued operations | 403 | 602 | 6,527 | 694 | ||||||||||
(Income) loss from discontinued operations allocable | -129 | -995 | -1,312 | 648 | ||||||||||
to noncontrolling interests | ||||||||||||||
Net income (loss) to common shareholders from | $ | 274 | $ | -393 | $ | 5,215 | $ | 1,342 | ||||||
discontinued operations | ||||||||||||||
The details of net income to common shareholders from discontinued operations for the three months and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Interest income | $ | - | $ | 765 | $ | 1,108 | $ | 2,349 | ||||||
Other income | 399 | 478 | 1,268 | 1,476 | ||||||||||
Other expense | -245 | -1,636 | -1,161 | -2,483 | ||||||||||
Net gains on disposal of REO | 95 | - | 95 | - | ||||||||||
Net gains on redemption of bonds | 25 | - | 3,905 | - | ||||||||||
Net income to common shareholders from discontinued | $ | 274 | $ | -393 | $ | 5,215 | $ | 1,342 | ||||||
operations | ||||||||||||||
CONSOLIDATED_FUNDS_AND_VENTURE
CONSOLIDATED FUNDS AND VENTURES | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Consolidated Funds and Ventures [Abstract] | ' | |||||||||||||
Consolidated Funds and Ventures [Text Block] | ' | |||||||||||||
Note 16—CONSOLIDATED FUNDS AND VENTURES | ||||||||||||||
Due to the Company’s minimal equity ownership interests in certain consolidated entities, the assets, liabilities, revenues, expenses, equity in losses from those entities’ unconsolidated Lower Tier Property Partnerships and the losses allocated to the noncontrolling interests of the consolidated entities have been separately identified on the consolidated balance sheets and statements of operations. Third-party ownership in these CFVs is recorded in equity as “Noncontrolling interests in CFVs and IHS.” | ||||||||||||||
The total assets, by type of consolidated fund or venture, at September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
LIHTC Funds | $ | 343,544 | $ | 381,394 | ||||||||||
SA Fund | 184,770 | 175,572 | ||||||||||||
Consolidated Lower Tier Property Partnerships | 162,286 | 135,674 | ||||||||||||
Other consolidated entities | 2,065 | 922 | ||||||||||||
Total assets of CFVs | $ | 692,665 | $ | 693,562 | ||||||||||
The following provides a detailed description of the nature of these entities. | ||||||||||||||
LIHTC Funds | ||||||||||||||
In general, the LIHTC Funds invest in limited partnerships that develop or rehabilitate and operate affordable multifamily housing rental properties. These properties generate tax operating losses and federal and state income tax credits for their investors, enabling them to realize a return on their investment through reductions in income tax expense. The LIHTC Funds’ primary assets are their investments in Lower Tier Property Partnerships, which are the owners of the affordable housing properties (see Investments in Lower Tier Property Partnerships in the Asset Summary below). The LIHTC Funds account for these investments using the equity method of accounting. The Company sold its GP interest in substantially all of the LIHTC Funds through the sale of its TCE business in July 2009. However, the Company retained its GP interest in certain LIHTC Funds. The Company continues to consolidate 11 funds at September 30, 2013 and December 31, 2012. The Company’s GP ownership interests of the funds remaining at September 30, 2013 ranges from 0.01% to 0.04%. The Company has guarantees associated with these funds. These guarantees, along with the Company’s ability to direct the activities of the funds, have resulted in the Company being the primary beneficiary for financial reporting purposes. At September 30, 2013 and December 31, 2012, the Company’s maximum exposure under these guarantees is estimated to be approximately $659.7 million; however, the Company does not anticipate any losses under these guarantees. | ||||||||||||||
SA Fund | ||||||||||||||
The Company is the majority owner of the GP of the SA Fund, which is an investment fund formed to invest directly or indirectly in affordable for-sale and rental housing in South Africa and, to a lesser extent, Sub-Saharan Africa (see SA Fund investments in the Asset Summary below). The SA Fund has $125.8 million in equity commitments from investors, of which $115.3 million has been funded at September 30, 2013. As a 2.7% limited partner of the SA Fund, the Company’s portion of this equity commitment is $3.4 million. At September 30, 2013, the Company had funded $3.2 million of this equity commitment. The SA Fund also has an agreement with Overseas Private Investment Corporation (“OPIC”), an agency of the US, to provide loan financing not to exceed $80.0 million, of which $49.1 million has been funded. Because the Company is deemed the primary beneficiary of the SA Fund through its majority owned GP interest in the SA Fund, the Company’s 2.7% equity investment is eliminated and the SA Fund is consolidated. The Company is allocated 2.7% of the SA Fund’s operating activities through an income or loss allocation. | ||||||||||||||
Consolidated Lower Tier Property Partnerships | ||||||||||||||
Due to financial or operating issues at a Lower Tier Property Partnership, the Company may assert its rights to assign the GP’s interest in the Lower Tier Property Partnership to affiliates of the Company. Generally, the Company will take these actions to either preserve the tax status of the Company’s bonds and/or to protect the LIHTC Fund’s interests in the tax credits. As a result of its ownership interest, controlling financial interest or its designation as the primary beneficiary, the Company consolidates these Lower Tier Property Partnerships. The Company consolidated 14 and 12 Lower Tier Property Partnerships at September 30, 2013 and December 31, 2012, respectively. Lower Tier Property Partnerships own and operate affordable multifamily housing rental properties (see real estate held-for-use, net and held-for-sale in the Asset Summary below). | ||||||||||||||
Other Consolidated Entities | ||||||||||||||
The Company also has other consolidated entities where it has been deemed to be the primary beneficiary or the Company has a controlling interest. At September 30, 2013, these entities include two non-profit entities that provide charitable services and programs for the affordable housing market. | ||||||||||||||
The following section provides more information related to the assets of the CFVs at September 30, 2013 and December 31, 2012. | ||||||||||||||
Asset Summary: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Cash, cash equivalents and restricted cash | $ | 55,945 | $ | 53,957 | ||||||||||
Investments in Lower Tier Property Partnerships | 299,730 | 333,335 | ||||||||||||
SA Fund investments | 157,791 | 161,433 | ||||||||||||
Real estate held-for-use, net | 103,649 | 111,931 | ||||||||||||
Real estate held-for-sale | 51,836 | 15,338 | ||||||||||||
Other assets | 23,714 | 17,568 | ||||||||||||
Total assets of CFVs | $ | 692,665 | $ | 693,562 | ||||||||||
Substantially all of the assets of the CFVs are restricted for use by the specific owner entity and are not available for the Company’s general use. | ||||||||||||||
LIHTC Funds’ Investments in Lower Tier Property Partnerships | ||||||||||||||
The Lower Tier Property Partnerships of the LIHTC Funds are considered variable interest entities; although in most cases it is the third party GP who is the primary beneficiary. Therefore, substantially all of the LIHTC Funds’ investments in Lower Tier Property Partnerships are accounted for under the equity method. The following table provides the LIHTC Funds’ investment balances in the unconsolidated Lower Tier Property Partnerships as well as the assets and liabilities of the Lower Tier Property Partnerships at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
LIHTC Funds’ investment in Lower Tier Property Partnerships | $ | 299,730 | $ | 333,335 | ||||||||||
Total assets of Lower Tier Property Partnerships (1) | $ | 1,335,223 | $ | 1,371,880 | ||||||||||
Total liabilities of Lower Tier Property Partnerships (1) | 1,039,405 | 1,041,961 | ||||||||||||
-1 | The assets of the Lower Tier Property Partnerships are primarily real estate and the liabilities are predominantly mortgage debt. | |||||||||||||
The Company’s maximum exposure to loss from the LIHTC Funds and the underlying Lower Tier Property Partnerships relate to the guarantee exposure associated with the LIHTC Funds discussed above and the Company’s bonds which represent the primary mortgage debt obligation held by the LIHTC Funds’ underlying Lower Tier Property Partnerships. The fair value of the Company’s bonds secured by properties owned by the Lower Tier Property Partnerships at September 30, 2013 and December 31, 2012, was $63.6 million and $421.3 million, respectively. | ||||||||||||||
SA Fund Investments | ||||||||||||||
The SA Fund was organized under South African law in a similar manner to US investment companies and therefore follows accounting guidance specific to investment companies which requires fair value accounting for investments. The Company calculates such fair value based on estimates because there are no readily available market values. In establishing fair values of its investments, the Company considers financial conditions and operating results, local market conditions, market values of comparable companies and real estate, the stage of each investment, and other factors as appropriate, including obtaining appraisals from independent third-party licensed appraisers. | ||||||||||||||
As required by GAAP, assets and liabilities are classified into levels based on the lowest level of input that is significant to the fair value measurement, see Note 9, “Fair Value Measurements.” The SA Fund investments are carried at their fair value of $157.8 million and $161.4 million at September 30, 2013 and December 31, 2012, respectively and are considered Level 3 valuations. As noted in the following table, during the first nine months of 2013, the Fund recorded fair value gains of $20.2 million based on internal fair value estimates; however, these gains were more than offset by $27.2 million of foreign currency translation losses. Because the SA Fund’s functional currency is the South African rand and the Company’s functional currency is the US dollar, the Company translates the SA Fund’s rand balance sheet into a dollar denominated balance sheet as part of consolidating the SA Fund into the Company’s balance sheet. The translation losses recorded for the first nine months of 2013 were a result of the weakening of the South African rand as compared to the US dollar. | ||||||||||||||
The following table presents the activity for the SA Fund investments at fair value on a recurring basis using Level 3 inputs for the three months ended September 30, 2013 and 2012: | ||||||||||||||
For the three months ended | ||||||||||||||
September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | ||||||||||||
Balance, July 1, | $ | 156,723 | $ | 126,950 | ||||||||||
Net gains (losses) included in earnings | 2,882 | -4,511 | ||||||||||||
Net foreign currency translation losses included in other comprehensive | -2,658 | -153 | ||||||||||||
income | ||||||||||||||
Impact from purchases | 8,029 | 22,713 | ||||||||||||
Impact from sales | -7,185 | -73 | ||||||||||||
Balance, September 30, | $ | 157,791 | $ | 144,926 | ||||||||||
The following table presents the activity for the SA Fund investments at fair value on a recurring basis using Level 3 inputs for the nine months ended September 30, 2013 and 2012. | ||||||||||||||
For the nine months ended | ||||||||||||||
September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | ||||||||||||
Balance, January 1, | $ | 161,433 | $ | 108,329 | ||||||||||
Net gains included in earnings | 20,178 | 5,480 | ||||||||||||
Net foreign currency translation losses included in other comprehensive | -27,226 | -3,836 | ||||||||||||
income | ||||||||||||||
Impact from purchases | 15,699 | 42,449 | ||||||||||||
Impact from sales | -12,293 | -7,496 | ||||||||||||
Balance, September 30, | $ | 157,791 | $ | 144,926 | ||||||||||
The SA Fund has committed $171.3 million of capital to the project entities who in turn invest that capital into affordable for-sale and rental properties of which $132.3 million was funded at September 30, 2013. | ||||||||||||||
Lower Tier Property Partnership’s Real estate held-for-use, net | ||||||||||||||
The real estate held-for-use by Lower Tier Property Partnerships, which are consolidated by the Company, was comprised of the following at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Building, furniture and fixtures | $ | 108,036 | $ | 116,320 | ||||||||||
Accumulated depreciation | -16,274 | -15,598 | ||||||||||||
Land | 11,887 | 11,209 | ||||||||||||
Total | $ | 103,649 | $ | 111,931 | ||||||||||
Depreciation expense was $6.5 million and $5.8 million for the nine months ended September 30, 2013 and 2012, respectively, of which $2.0 million and $3.7 million was recorded in discontinued operations for the nine months ended September 30, 2013 and 2012, respectively. Buildings are depreciated over a period of 40 years. Furniture and fixtures are depreciated over a period of six to seven years. The Company did not recognize any impairment losses for the nine months ended September 30, 2013 and 2012. | ||||||||||||||
The Lower Tier Property Partnerships which own the real estate held-for-use (affordable multifamily properties) were consolidated by non-profit entities that are in turn consolidated by the Company. The Company does not have an equity interest in the Lower Tier Property Partnerships or the non-profit entities. However, the Company provided debt financing to the Lower Tier Property Partnerships. In consolidation, because the Company consolidates the Lower Tier Property Partnerships, the real estate held by the Lower Tier Property Partnerships is reflected on the Company’s balance sheet. The Company’s bonds have been eliminated against the related mortgage debt obligations of the Lower Tier Property Partnerships. The Company’s maximum loss exposure is the fair value of its bonds. At September 30, 2013, the fair value of these bonds was $50.5 million, including $2.7 million of net unrealized gains occurring since consolidation that have not been reflected in the Company’s common shareholders’ equity given that the Company is required to consolidate and account for the real estate, which prohibits an increase in value from its original cost basis until the real estate is sold. | ||||||||||||||
The decrease in real estate held-for-use was primarily due to four rental properties, with a carrying value of $51.8 million at September 30, 2013, converting to real estate held-for-sale during the quarter. The decrease was partially offset by the consolidation of five rental properties during the second quarter of 2013, with a carrying value of $42.9 million at September 30, 2013. | ||||||||||||||
Lower Tier Property Partnership’s Real estate held-for-sale | ||||||||||||||
The real estate held-for-sale by Lower Tier Property Partnerships, which are consolidated by the Company, was comprised of the following at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Cash | $ | 4,216 | $ | 318 | ||||||||||
Building, furniture and fixtures | 48,133 | 14,740 | ||||||||||||
Accumulated depreciation | -5,786 | -959 | ||||||||||||
Land | 5,111 | 1,215 | ||||||||||||
Other assets | 162 | 24 | ||||||||||||
Total | $ | 51,836 | $ | 15,338 | ||||||||||
The Company had four and one rental properties classified as held-for-sale and reported through discontinued operations at September 30, 2013 and December 31, 2012, respectively. The properties are no longer depreciated and are carried at the lower of the property’s fair value less costs to sell or its current carry value. See Note 15, “Discontinued Operations,” for information on these properties. | ||||||||||||||
The Lower Tier Property Partnerships which own real estate held-for-sale (affordable multifamily properties) were consolidated by a non-profit that is in turn consolidated by the Company. As of September 30, 2013, the Company does not have any equity in the Lower Tier Property Partnerships or the non-profit. However, the Company provided debt financing to the Lower Tier Property Partnerships. In consolidation, because the Company consolidates the Lower Tier Property Partnership, the real estate held by the Lower Tier Property Partnership is reflected on the Company’s balance sheet. The Company’s bonds have been eliminated against the related mortgage debt obligations of the Lower Tier Property Partnerships. The Company’s maximum loss exposure is the fair value of its bonds. At September 30, 2013, the fair value of our debt financing was $83.7 million, including $33.1 million of net unrealized gains occurring since consolidation that have not been reflected in the Company’s common shareholders’ equity given that the Company is required to consolidate and account for the real estate, which prohibits an increase in value from its original cost basis until the real estate is sold. | ||||||||||||||
If the four rental properties are sold at the estimated fair value of $83.7 million, then the Company’s common equity will increase by $33.1 million. | ||||||||||||||
Liability Summary: | ||||||||||||||
The following section provides more information related to the liabilities of the CFVs at September 30, 2013 and December 31, 2012. | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Liabilities of CFVs: | ||||||||||||||
Debt | $ | 96,142 | $ | 55,433 | ||||||||||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 15,881 | ||||||||||||
Other liabilities | 10,167 | 6,150 | ||||||||||||
Total liabilities of CFVs | $ | 119,770 | $ | 77,464 | ||||||||||
Debt | ||||||||||||||
At September 30, 2013 and December 31, 2012, the debt of the CFVs had the following terms: | ||||||||||||||
September 30, 2013 | ||||||||||||||
(in thousands) | Carrying | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Amount | Effective Interest | |||||||||||||
Rates | ||||||||||||||
SA Fund | $ | 49,621 | $ | 49,621 | 2.6 | % | Apr-18 | |||||||
Lower Tier Property Partnerships | 46,521 | 46,648 | 6.4 | Various dates through March 2049 | ||||||||||
December 31, 2012 | ||||||||||||||
(in thousands) | Carrying | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Amount | Effective Interest | |||||||||||||
Rates | ||||||||||||||
SA Fund | $ | 49,352 | $ | 49,352 | 2.6 | % | Apr-18 | |||||||
Lower Tier Property Partnerships | 6,081 | 7,289 | 10.4 | Various dates through October 2021 | ||||||||||
SA Fund | ||||||||||||||
The SA Fund has an agreement with OPIC to provide loan financing not to exceed $80.0 million. The SA Fund has drawn a total of $49.1 million of debt against this financing arrangement as of September 30, 2013. This debt is an obligation of the SA Fund and there is no recourse to the Company. | ||||||||||||||
This debt is denominated in US dollars; however, the SA Fund’s functional currency is the South African rand. Therefore, the SA Fund is exposed to foreign currency risk. In order to hedge this risk, from an economic standpoint, the SA Fund has entered into certain foreign exchange derivative contracts. As required, these derivative instruments are carried at fair value. The SA Fund does not designate these derivatives as accounting hedges and therefore, changes in fair value are recognized through the consolidated statements of operations. The change of value in the debt obligation due to currency fluctuation is also recognized through the consolidated statements of operations. | ||||||||||||||
As required by GAAP, assets and liabilities are classified into levels based on the lowest level of input that is significant to the fair value measurement, see Note 9, “Fair Value Measurements.” The SA Fund derivative assets are carried at their fair value of $7.2 million and $1.0 million at September 30, 2013 and December 31, 2012, respectively based on Level 2 valuations. | ||||||||||||||
At September 30, 2013 the SA Fund had $3.4 million of cash pledged as collateral for the foreign exchange derivative contracts. | ||||||||||||||
Lower Tier Property Partnerships | ||||||||||||||
During the third quarter of 2013, the Company sold 10 bonds and bond interests to the Purchaser of TEB. For these bonds, our consolidated balance sheet reflected real estate instead of bond investments because a non-profit that we consolidate was deemed to be the primary beneficiary of Lower Tier Property Partnerships that held the real estate serving as collateral to the bonds. Therefore, upon the sale of TEB, the cash proceeds received on the 10 bonds and bond interests were recorded as debt owed by the Lower Tier Property Partnerships of $75.2 million. Subsequent to the TEB sale and during third quarter of 2013, we repurchased four of these bond interests thereby causing the outstanding debt obligation to decline by $28.9 million. | ||||||||||||||
Other | ||||||||||||||
The following section provides more information related to the income statement of the CFVs for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Income Statement Summary: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | ||||||||||||||
Rental and other income from real estate | $ | 3,736 | $ | 1,800 | $ | 9,096 | $ | 3,715 | ||||||
Interest and other income | 3,739 | 2,267 | 7,784 | 4,743 | ||||||||||
Total revenue from CFVs | 7,475 | 4,067 | 16,880 | 8,458 | ||||||||||
Expenses: | ||||||||||||||
Depreciation and amortization | 2,386 | 1,525 | 6,169 | 4,056 | ||||||||||
Interest expense | 1,253 | 441 | 2,228 | 1,237 | ||||||||||
Other operating expenses | 3,696 | 1,923 | 8,602 | 4,580 | ||||||||||
Foreign currency loss | 840 | 330 | 8,390 | 1,148 | ||||||||||
Asset impairments | 6,679 | 4,820 | 14,559 | 10,102 | ||||||||||
Total expenses from CFVs | 14,854 | 9,039 | 39,948 | 21,123 | ||||||||||
Net gains (losses) related to CFVs: | ||||||||||||||
Investment gains (losses) | 3,554 | -4,511 | 20,849 | 5,479 | ||||||||||
Derivative gains (losses) | 258 | -97 | 6,883 | 98 | ||||||||||
Net loss on sale of properties | – | – | – | -170 | ||||||||||
Equity in losses from Lower Tier Property Partnerships of CFVs | -6,343 | -6,486 | -20,129 | -25,917 | ||||||||||
Net loss | -9,910 | -16,066 | -15,465 | -33,175 | ||||||||||
Net losses allocable to noncontrolling interests in CFVs (1) | 11,046 | 17,268 | 18,426 | 36,526 | ||||||||||
Net income allocable to the common shareholders related to CFVs | $ | 1,136 | $ | 1,202 | $ | 2,961 | $ | 3,351 | ||||||
(1) Net losses allocable to noncontrolling interests in CFVs have been adjusted to exclude noncontrolling interests related to IHS because the Company’s equity interest in IHS is substantial. The Company has little to no equity interest in the other CFVs including the two non-profits, the LTPPs, the LIHTC Funds and the SA Fund. | ||||||||||||||
The details of Net income allocable to the common shareholders related to CFVs for the three months and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Interest income | $ | 274 | $ | 1,169 | $ | 1,779 | $ | 1,789 | ||||||
Asset management fees | 888 | 937 | 2,629 | 3,521 | ||||||||||
Guarantee fees | 331 | 331 | 993 | 1,042 | ||||||||||
Equity in losses from Lower Tier Property Partnerships | -383 | -1,092 | -2,821 | -3,031 | ||||||||||
Equity in income (loss) from SA Fund | 151 | -99 | 643 | 165 | ||||||||||
Other expense | -125 | -44 | -262 | -135 | ||||||||||
Net income allocable to the common shareholders | $ | 1,136 | $ | 1,202 | $ | 2,961 | $ | 3,351 | ||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||||
Note 17—segment Information | ||||||||||||||||||||||
The Company currently operates through two reportable segments: US Operations and International Operations. | ||||||||||||||||||||||
US Operations | ||||||||||||||||||||||
The Company owns and manages a portfolio of tax-exempt bonds, a substantial majority of which are backed by affordable multifamily rental properties. The Company also manages low income housing tax credit equity funds for third party investors which invest in similar affordable multifamily rental properties. | ||||||||||||||||||||||
International Operations | ||||||||||||||||||||||
Outside of the US, we are in the business of raising, investing in and asset managing private real estate funds which invest in affordable for-sale and rental housing in South Africa and, to a lesser extent, Sub-Saharan Africa. The Company’s International Operations take place through a subsidiary, IHS. | ||||||||||||||||||||||
The following tables reflect the results of the business segments for the three months and nine months ended September 30, 2013 and 2012. The segment results have been adjusted to include revenues and expenses related to transactions between CFVs and the two reportable segments that are eliminated in consolidation and are provided for through an allocation of income. | ||||||||||||||||||||||
Consolidated Funds and Ventures | ||||||||||||||||||||||
CFVs are entities for which the Company is deemed to be the primary beneficiary. The Company earns revenue from these CFVs mainly through asset management fees, interest income (mostly relating to interest on bonds) and guarantee fees. | ||||||||||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 4,644 | $ | 10 | $ | 3,739 | $ | -274 | A | $ | -3,739 | $ | 4,380 | |||||||||
Total interest expense | 2,199 | – | 1,527 | -274 | A | -1,253 | 2,199 | |||||||||||||||
Net interest income | 2,445 | 10 | 2,212 | – | -2,486 | 2,181 | ||||||||||||||||
Total fee and other income | 2,651 | 703 | 3,736 | -1,219 | B | -3,736 | 2,135 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 7,475 | 7,475 | ||||||||||||||||
Total non-interest revenue | 2,651 | 703 | 3,736 | -1,219 | 3,739 | 9,610 | ||||||||||||||||
Total revenues, net of interest | 5,096 | 713 | 5,948 | -1,219 | 1,253 | 11,791 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 3,593 | 35 | – | – | – | 3,628 | ||||||||||||||||
Operating expenses | 4,016 | 1,356 | 4,915 | -1,219 | B | -3,696 | 5,372 | |||||||||||||||
Impairment on bonds and | 939 | 5 | – | – | – | 944 | ||||||||||||||||
provision for loan losses | ||||||||||||||||||||||
Other expenses | 1,463 | 72 | 9,905 | -357 | C, D | -9,905 | 1,178 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 14,854 | 14,854 | ||||||||||||||||
Total operating and other | 10,011 | 1,468 | 14,820 | -1,576 | 1,253 | 25,976 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net gains on assets, derivatives | 76,304 | 16 | 3,812 | – | -3,812 | 76,320 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 2,411 | – | – | – | – | 2,411 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | 3,812 | 3,812 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -6,111 | -232 | C | – | -6,343 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 73,800 | -739 | -11,171 | 125 | – | 62,015 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax benefit | -123 | – | – | – | – | -123 | ||||||||||||||||
Income from discontinued | 274 | – | 129 | – | – | 403 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 73,951 | -739 | -11,042 | 125 | – | 62,295 | ||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -36 | – | – | – | – | -36 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable to | ||||||||||||||||||||||
noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 140 | 11,171 | -125 | D | – | 11,186 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | -129 | – | – | -129 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 73,915 | $ | -599 | $ | – | $ | – | $ | – | $ | 73,316 | ||||||||||
shareholders | ||||||||||||||||||||||
For the three months ended September 30, 2012 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 17,387 | $ | 7 | $ | 2,267 | $ | -1,169 | A | $ | -2,267 | $ | 16,225 | |||||||||
Total interest expense | 6,547 | – | 1,610 | -1,169 | A | -441 | 6,547 | |||||||||||||||
Net interest income | 10,840 | 7 | 657 | – | -1,826 | 9,678 | ||||||||||||||||
Total fee and other income | 2,336 | 761 | 1,800 | -1,268 | B | -1,800 | 1,829 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 4,067 | 4,067 | ||||||||||||||||
Total non-interest revenue | 2,336 | 761 | 1,800 | -1,268 | 2,267 | 5,896 | ||||||||||||||||
Total revenues, net of interest | 13,176 | 768 | 2,457 | -1,268 | 441 | 15,574 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 4,607 | 32 | – | – | – | 4,639 | ||||||||||||||||
Operating expenses | 3,722 | 1,546 | 3,191 | -1,268 | B | -1,923 | 5,268 | |||||||||||||||
Impairment on bonds and | 919 | – | – | – | – | 919 | ||||||||||||||||
provision for loan losses | ||||||||||||||||||||||
Other expenses | 2,038 | 152 | 6,675 | -1,235 | C,D | -6,675 | 955 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 9,039 | 9,039 | ||||||||||||||||
Total operating and other | 11,286 | 1,730 | 9,866 | -2,503 | 441 | 20,820 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net losses on assets, derivatives | -501 | – | -4,608 | – | 4,608 | -501 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 2,853 | – | – | – | – | 2,853 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | -4,608 | -4,608 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -5,295 | -1,191 | C | – | -6,486 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 4,242 | -962 | -17,312 | 44 | – | -13,988 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax expense | -24 | – | – | – | – | -24 | ||||||||||||||||
Income from discontinued | -393 | – | 995 | – | – | 602 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 3,825 | -962 | -16,317 | 44 | -13,410 | |||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -2,284 | – | – | – | – | -2,284 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable | ||||||||||||||||||||||
to noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 139 | 17,312 | -44 | D | – | 17,407 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | -995 | – | – | -995 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 1,541 | $ | -823 | $ | – | $ | – | $ | – | $ | 718 | ||||||||||
shareholders | ||||||||||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 36,931 | $ | 25 | $ | 7,784 | $ | -1,779 | A | $ | -7,784 | $ | 35,177 | |||||||||
Total interest expense | 22,213 | – | 4,007 | -1,779 | A | -2,228 | 22,213 | |||||||||||||||
Net interest income | 14,718 | 25 | 3,777 | – | -5,556 | 12,964 | ||||||||||||||||
Total fee and other income | 7,203 | 2,220 | 9,096 | -3,622 | B | -9,096 | 5,801 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 16,880 | 16,880 | ||||||||||||||||
Total non-interest revenue | 7,203 | 2,220 | 9,096 | -3,622 | 7,784 | 22,681 | ||||||||||||||||
Total revenues, net of interest | 21,921 | 2,245 | 12,873 | -3,622 | 2,228 | 35,645 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 11,273 | 101 | – | – | – | 11,374 | ||||||||||||||||
Operating expenses | 15,843 | 4,507 | 12,224 | -3,622 | B | -8,602 | 20,350 | |||||||||||||||
Impairment on bonds and | 1,772 | 5 | – | – | – | 1,777 | ||||||||||||||||
provision for loan losses | ||||||||||||||||||||||
Other expenses | 7,265 | 140 | 29,118 | -2,440 | C,D | -29,118 | 4,965 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 39,948 | 39,948 | ||||||||||||||||
Total operating and other | 36,153 | 4,753 | 41,342 | -6,062 | 2,228 | 78,414 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net gains on assets, derivatives | 114,672 | 16 | 27,732 | – | -27,732 | 114,688 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 10,895 | – | – | – | – | 10,895 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | 27,732 | 27,732 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -17,951 | -2,178 | C | – | -20,129 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 111,335 | -2,492 | -18,688 | 262 | – | 90,417 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax benefit | 1,309 | – | – | – | – | 1,309 | ||||||||||||||||
Income from discontinued | 5,215 | – | 1,312 | – | – | 6,527 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 117,859 | -2,492 | -17,376 | 262 | 98,253 | |||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -3,714 | – | – | – | – | -3,714 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable | ||||||||||||||||||||||
to noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 489 | 18,688 | -262 | D | – | 18,915 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | -1,312 | – | – | -1,312 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 114,145 | $ | -2,003 | $ | – | $ | – | $ | – | $ | 112,142 | ||||||||||
shareholders | ||||||||||||||||||||||
For the nine months ended September 30, 2012 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 51,946 | $ | 30 | $ | 4,743 | $ | -1,789 | A | $ | -4,743 | $ | 50,187 | |||||||||
Total interest expense | 20,090 | – | 3,026 | -1,789 | A | -1,237 | 20,090 | |||||||||||||||
Net interest income | 31,856 | 30 | 1,717 | – | -3,506 | 30,097 | ||||||||||||||||
Total fee and other income | 7,690 | 2,964 | 3,715 | -4,563 | B | -3,715 | 6,091 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 8,458 | 8,458 | ||||||||||||||||
Total non-interest revenue | 7,690 | 2,964 | 3,715 | -4,563 | 4,743 | 14,549 | ||||||||||||||||
Total revenues, net of interest | 39,546 | 2,994 | 5,432 | -4,563 | 1,237 | 44,646 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 14,074 | 105 | – | – | – | 14,179 | ||||||||||||||||
Operating expenses | 11,948 | 4,786 | 9,143 | -4,563 | B | -4,580 | 16,734 | |||||||||||||||
Impairment on bonds and | -2,278 | – | – | – | – | -2,278 | ||||||||||||||||
recovery of loan losses | ||||||||||||||||||||||
Other expenses | 5,993 | -42 | 15,306 | -3,001 | C,D | -15,306 | 2,950 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 21,123 | 21,123 | ||||||||||||||||
Total operating and other | 29,737 | 4,849 | 24,449 | -7,564 | 1,237 | 52,708 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net losses on assets, derivatives | -1,167 | – | 5,407 | – | -5,407 | -1,167 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 5,404 | – | – | – | – | 5,404 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | 5,407 | 5,407 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -23,051 | -2,866 | C | – | -25,917 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 14,046 | -1,855 | -36,661 | 135 | – | -24,335 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax expense | -65 | – | – | – | – | -65 | ||||||||||||||||
Income (loss) from discontinued | 1,342 | – | -648 | – | – | 694 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 15,323 | -1,855 | -37,309 | 135 | – | -23,706 | ||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -6,852 | – | – | – | – | -6,852 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable | ||||||||||||||||||||||
to noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 358 | 36,661 | -135 | D | – | 36,884 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | 648 | – | – | 648 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 8,471 | $ | -1,497 | $ | – | $ | – | $ | – | $ | 6,974 | ||||||||||
shareholders | ||||||||||||||||||||||
A. Primarily related to interest on bonds that the Company earned by holding the bond but which is eliminated because the Company consolidates two non-profits and the associated Lower Tier Property Partnerships and its related real estate. These Lower Tier Property Partnerships each have a mortgage debt obligation that collateralizes a bond. | ||||||||||||||||||||||
B. Primarily related to asset management fees earned by the Company for asset management services provided to the SA Fund and LIHTC Funds. | ||||||||||||||||||||||
C. Primarily relates to equity in losses from the Lower Tier Property Partnerships associated with the Company’s LIHTC Funds for which the Company has provided bond financing to the Lower Tier Property Partnerships. | ||||||||||||||||||||||
D. Includes losses recorded by the Company related to guarantees provided by the Company associated with third party debt obligations of certain Lower Tier Property Partnerships. | ||||||||||||||||||||||
The total assets by segment at September 30, 2013 and December 31, 2012 are presented in the table below: | ||||||||||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
US Operations | $ | 474,884 | $ | 1,236,288 | ||||||||||||||||||
International Operations | 5,286 | 4,644 | ||||||||||||||||||||
Total segment assets | 480,170 | 1,240,932 | ||||||||||||||||||||
Bonds eliminated in consolidation | -92,429 | -114,529 | ||||||||||||||||||||
Net unrealized mark-to-market gains not recorded in consolidation | -32,336 | -10,585 | ||||||||||||||||||||
Other adjustments | -8,214 | -7,628 | ||||||||||||||||||||
Assets of CFVs | 692,665 | 693,562 | ||||||||||||||||||||
Total MMA consolidated assets | $ | 1,039,856 | $ | 1,801,752 | ||||||||||||||||||
DESCRIPTION_OF_THE_BUSINESS_AN1
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of the Company’s financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, commitments and contingencies, and revenues and expenses. Management has made significant estimates in certain areas, including the determination of fair values for bonds, derivative financial instruments, guarantee obligations, and certain assets and liabilities of consolidated funds and ventures (“CFVs”). Management has also made significant estimates in the determination of impairment on bonds and real estate investments. Actual results could differ materially from these estimates. | |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation and Significant Accounting Policies | |
The consolidated financial statements include the accounts of the Company and of entities that are considered to be variable interest entities in which the Company is the primary beneficiary, as well as those entities in which the Company has a controlling financial interest, including wholly owned subsidiaries of the Company. All intercompany transactions and balances have been eliminated in consolidation. Investments in unconsolidated entities where the Company has the ability to exercise significant influence over the operations of the entity are accounted for using the equity method of accounting. See Note 1, “Description of Business and Basis of Presentation” to the consolidated financial statements in our 2012 Form 10-K, which discusses our consolidation presentation and our significant accounting policies. | |
Changes in Presentation [Policy Text Block] | ' |
Changes in Presentation | |
We have revised the presentation of our consolidated statements of operations so that we now separately present “Net interest income,” which is interest income less interest expense on debt which finances interest-bearing assets. This presentation change had no impact on “Net (loss) income.” | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
The Company made reclassifications to discontinued operations on its previously issued consolidated statements of operations for the three months and nine months ended September 30, 2012 as a result of certain discontinued operations occurring subsequent to September 30, 2012. | |
Interim Period Presentation [Policy Text Block] | ' |
Interim Period Presentation | |
The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations. | |
The consolidated financial statements are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. These consolidated financial statements should be read in conjunction with the financial statements included in our 2012 Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. | |
BONDS_AVAILABLEFORSALE_Tables
BONDS AVAILABLE-FOR-SALE (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Available-For-Sale Securities [Abstract] | ' | |||||||||||||||||
Schedule of Closed Block Assets and Liabilities [Table Text Block] | ' | |||||||||||||||||
The following table summarizes the third quarter 2013 impact of the transactions described above. | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
Increase in MuniMae’s cash (including $16,337 of restricted cash) | $ | $78,664 | ||||||||||||||||
Reduction in bonds | -678,983 | -1 | ||||||||||||||||
Reduction in other assets (bond interest receivable) | -4,612 | -2 | ||||||||||||||||
Reduction in TEB’s cash (including $1,665 of restricted cash) | -44,841 | -2 | ||||||||||||||||
Net reduction in assets | $ | -649,772 | ||||||||||||||||
Reduction in senior interests and debt owed to securitization trusts | $ | 574,652 | ||||||||||||||||
Reduction in mandatorily redeemable preferred shares | 121,000 | |||||||||||||||||
Reduction in perpetual preferred shares ($121,000 liquidation preference) | 117,978 | |||||||||||||||||
Reduction in accounts payable and accrued expenses and other liabilities (interest and distributions payable) | 4,781 | |||||||||||||||||
Increase in debt (resulting from bonds and interests in bonds that did not qualify for sale treatment) | -94,410 | -1 | ||||||||||||||||
Increase in debt (due from CFVs) | -75,191 | -1 | ||||||||||||||||
Increase in accounts payable and accrued expenses (interest payable resulting from failed sales) | -618 | -2 | ||||||||||||||||
Increase in accounts payable and accrued expense (interest payable due from CFVs) | -1,442 | -2 | ||||||||||||||||
Net reduction in liabilities | $ | 646,750 | ||||||||||||||||
Net reduction in common shareholders’ equity | $ | -3,022 | -3 | |||||||||||||||
(1) The sum of these amounts total $848.6 million and represents the fair value of the bonds sold on July 3, 2013. | ||||||||||||||||||
(2) Represents the total cash, restricted cash and interest receivable of $51.5 million transferred to the Purchaser as part of the sale of TEB. | ||||||||||||||||||
(3) Represents the difference between the Company’s carrying value of the perpetual preferred shares on June 30, 2013 of $118.0 million as compared to the liquidation preference amount assumed in the sale on July 3, 2013 of $121.0 million. | ||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||||||
The following table summarizes the Company’s bonds and related unrealized losses and unrealized gains at September 30, 2013 and December 31, 2012. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
(in thousands) | Unpaid | Basis | Unrealized | Unrealized | Fair Value | |||||||||||||
Principal | Adjustments (1) | Losses | Gains | |||||||||||||||
Balance | ||||||||||||||||||
Mortgage revenue bonds | $ | 146,587 | $ | -3,879 | $ | -37,572 | $ | 16,776 | $ | 121,912 | ||||||||
Other bonds | 80,045 | -1,921 | -22,922 | 19,371 | 74,573 | |||||||||||||
Total | $ | 226,632 | -2 | $ | -5,800 | $ | -60,494 | $ | 36,147 | $ | 196,485 | |||||||
December 31, 2012 | ||||||||||||||||||
(in thousands) | Unpaid | Basis | Unrealized | Unrealized | Fair Value | |||||||||||||
Principal | Adjustments (1) | Losses | Gains | |||||||||||||||
Balance | ||||||||||||||||||
Mortgage revenue bonds | $ | 898,209 | $ | -10,314 | $ | -118,933 | $ | 115,196 | $ | 884,158 | ||||||||
Other bonds | 86,113 | -2,339 | -22,364 | 23,826 | 85,236 | |||||||||||||
Total | $ | 984,322 | -2 | $ | -12,653 | $ | -141,297 | $ | 139,022 | $ | 969,394 | |||||||
(1) Represents net discounts, deferred costs and fees. | ||||||||||||||||||
(2) The Company had bonds with an unpaid principal balance of $113.5 million ($124.9 million fair value) and $123.9 million ($125.1 million fair value) at September 30, 2013 and December 31, 2012, respectively, which were eliminated due to consolidation of the real estate partnerships where the real estate served as collateral for the Company’s bonds. See Note 16, “Consolidated Funds and Ventures” for more information. | ||||||||||||||||||
Assets and Liabilities of Unconsolidated Funds and Ventures [Table Text Block] | ' | |||||||||||||||||
The following table summarizes, by contractual maturity, the amortized cost and fair value of bonds available-for-sale at September 30, 2013. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | ||||||||||||||||
Non-Amortizing: | ||||||||||||||||||
Due in less than one year | $ | – | $ | – | ||||||||||||||
Due between one and five years | – | – | ||||||||||||||||
Due between five and ten years | – | – | ||||||||||||||||
Due after ten years | 1,429 | 1,532 | ||||||||||||||||
Amortizing: | ||||||||||||||||||
Due at stated maturity dates between December 2013 and June 2056 | 158,909 | 194,953 | ||||||||||||||||
$ | 160,338 | $ | 196,485 | |||||||||||||||
Bonds Prepayable Without Restriction or Penalty [Table Text Block] | ' | |||||||||||||||||
The following table provides the amount of bonds that were prepayable without restriction, premium or penalty at September 30, 2013 as well as the year in which the remaining portfolio becomes prepayable without restriction, premium or penalty at each period presented. | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | ||||||||||||||||
Bonds that may be prepaid without restrictions, premiums or penalties at September 30, | $ | – | $ | – | ||||||||||||||
2013 | ||||||||||||||||||
October 1 through December 31, 2013 | 1,133 | 1,400 | ||||||||||||||||
2014 | – | – | ||||||||||||||||
2015 | – | – | ||||||||||||||||
2016 | 10,183 | 13,410 | ||||||||||||||||
2017 | 5,725 | 6,488 | ||||||||||||||||
Thereafter | 106,023 | 128,531 | ||||||||||||||||
Bonds that may not be prepaid | 37,274 | 46,656 | ||||||||||||||||
Total | $ | 160,338 | $ | 196,485 | ||||||||||||||
Past Due Analysis of Available-for-sale Securities Bonds, Current [Table Text Block] | ' | |||||||||||||||||
The following table provides an aging analysis for the fair value of bonds available-for-sale at September 30, 2013 and December 31, 2012. | ||||||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||||
Total current | $ | 117,709 | $ | 850,155 | ||||||||||||||
30-59 days past due | - | 8,013 | ||||||||||||||||
60-89 days past due | 8,244 | 7,471 | ||||||||||||||||
Greater than 90 days | 70,532 | 103,755 | ||||||||||||||||
Total | $ | 196,485 | $ | 969,394 | ||||||||||||||
Gain (Loss) on Investments [Table Text Block] | ' | |||||||||||||||||
Provided in the table below are unrealized losses and realized gains and losses recorded through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” for bonds sold or redeemed during the three months and nine months ended September 30, 2013 and 2012, as well as for bonds still in the Company’s portfolio at September 30, 2013 and 2012, respectively. | ||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Bond impairment recognized on bonds held at each period-end | $ | -939 | $ | -2,282 | $ | -1,242 | $ | -3,369 | ||||||||||
Bond impairment recognized on bonds sold/redeemed during each period | - | - | -530 | - | ||||||||||||||
Gains recognized at time of sale/redemption | 76,362 | 2 | 76,960 | 54 | ||||||||||||||
Total net gains (losses) on bonds | $ | 75,423 | $ | -2,280 | $ | 75,188 | $ | -3,315 | ||||||||||
REAL_ESTATE_Tables
REAL ESTATE (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate Held For Use [Abstract] | ' | |||||||
Schedule of Real Estate Held-for-use [Table Text Block] | ' | |||||||
The following table summarizes real estate held-for-use at September 30, 2013 and December 31, 2012: | ||||||||
(in thousands) | September 30, | December 31, | ||||||
2013 | 2012 | |||||||
MuniMae’s real estate held-for-use | $ | 18,214 | $ | 17,756 | ||||
Real estate held-for-use related to CFVs(1) | 103,649 | 111,931 | ||||||
Total real estate held-for-use | $ | 121,863 | $ | 129,687 | ||||
(1) For more information see Note 16, “Consolidated Funds and Ventures.” | ||||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of Other Assets [Table Text Block] | ' | |||||||||||||
The following table summarizes other assets at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Other assets: | ||||||||||||||
Solar facilities (includes other assets such as cash and other receivables) | $ | 5,640 | $ | 7,960 | ||||||||||
Investment in a real estate partnership | 6,089 | 6,266 | ||||||||||||
Accrued interest receivable | 1,461 | 6,035 | ||||||||||||
State tax receivables, net | 219 | 2,403 | ||||||||||||
Debt issuance costs, net | 3,705 | 10,199 | ||||||||||||
Loans receivable | 1,188 | 1,165 | ||||||||||||
Other assets | 2,210 | 3,428 | ||||||||||||
Other assets held by CFVs (1) | 23,714 | 17,568 | ||||||||||||
Total other assets | $ | 44,226 | $ | 55,024 | ||||||||||
(1) For more information see Note 16, “Consolidated Funds and Ventures.” | ||||||||||||||
Schedule of Equity Method Investments [Table Text Block] | ' | |||||||||||||
The following table displays the total assets and liabilities held by the real estate partnership in which the Company held an equity investment at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Investment in a real estate partnership: | ||||||||||||||
Total assets (primarily real estate) | $ | 18,800 | $ | 18,820 | ||||||||||
Total liabilities | 447 | – | ||||||||||||
Schedule of Income (Loss) in Earnings of Unconsolidated Venture [Table Text Block] | ' | |||||||||||||
The following table displays the net (loss) income for the three months and nine months ended September 30, 2013 and 2012 for the real estate partnership: | ||||||||||||||
For the three months | For the nine months | |||||||||||||
ended September 30, | ended September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net (loss) income | $ | -194 | $ | -38 | $ | -583 | $ | 302 | ||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Debt [Table Text Block] | ' | |||||||||||||||||
The table below summarizes outstanding debt balances, the weighted-average interest rates and term dates at September 30, 2013 and December 31, 2012: | ||||||||||||||||||
(dollars in thousands) | September 30, | Weighted-Average | December 31, | Weighted-Average | ||||||||||||||
2013 | Effective Interest | 2012 | Effective Interest | |||||||||||||||
Rate at | Rate at | |||||||||||||||||
September 30, | December 31, 2012 | |||||||||||||||||
2013 | ||||||||||||||||||
Asset Related Debt (1) | ||||||||||||||||||
Senior interests in and debt owed to securitization trusts | ||||||||||||||||||
Due within one year | $ | - | - | % | $ | - | - | % | ||||||||||
Due after one year | - | - | 589,592 | 2.1 | ||||||||||||||
Mandatorily redeemable preferred shares | ||||||||||||||||||
Due within one year | - | - | 4,901 | 7.5 | ||||||||||||||
Due after one year | - | - | 83,819 | 7.4 | ||||||||||||||
Notes payable and other debt – bond related (2) | ||||||||||||||||||
Due within one year | 21,261 | 1.8 | - | - | ||||||||||||||
Due after one year | 125,043 | 5.5 | 57,729 | 5 | ||||||||||||||
Notes payable and other debt – non-bond related | ||||||||||||||||||
Due within one year | 1,446 | 9.2 | 17,617 | 9.9 | ||||||||||||||
Due after one year | 7,156 | 9.9 | 8,290 | 9.8 | ||||||||||||||
Total asset related debt | 154,906 | 5.2 | 761,948 | 3.2 | ||||||||||||||
Other Debt (1) | ||||||||||||||||||
Subordinate debentures (3) | ||||||||||||||||||
Due within one year | 742 | 8.1 | 529 | 8.1 | ||||||||||||||
Due after one year | 142,157 | 7.2 | 193,971 | 6.9 | ||||||||||||||
Notes payable and other debt | ||||||||||||||||||
Due within one year (4) | 5,342 | 10 | 10,444 | 13.5 | ||||||||||||||
Due after one year | 61,837 | 5.3 | 20,634 | 6.4 | ||||||||||||||
Total other debt | 210,078 | 6.7 | 225,578 | 7.2 | ||||||||||||||
Total asset related debt and other debt | 364,984 | 6.1 | 987,526 | 4.1 | ||||||||||||||
Debt related to CFVs (5) | ||||||||||||||||||
Due within one year | 35 | 6 | 5,908 | 10 | ||||||||||||||
Due after one year | 96,107 | 4.5 | 49,525 | 2.7 | ||||||||||||||
Total debt related to CFVs | 96,142 | 4.5 | 55,433 | 3.5 | ||||||||||||||
Total debt | $ | 461,126 | 5.7 | $ | 1,042,959 | 4.1 | ||||||||||||
(1) Asset related debt is debt which finances interest-bearing assets and the interest expense from this debt is included in “Net interest income” on the consolidated statements of operations. Other debt is debt which does not finance interest-bearing assets and the interest expense from this debt is included in “Interest expense” under “Operating and other expenses” on the consolidated statements of operations. | ||||||||||||||||||
(2) Included in notes payable and other debt were unamortized discounts of $1.7 million at December 31, 2012. | ||||||||||||||||||
(3) Included in the subordinate debt balance were $1.3 million of net discounts and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) and $7.1 million of net premiums and effective interest rate payable at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
(4) This amount includes $3.8 million of debt that has come due and remains payable; however, the Company has a forbearance agreement with the lender such that it is not pursuing any remedies. | ||||||||||||||||||
(5) See Note 16, “Consolidated Funds and Ventures” for more information. | ||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||||||||||||
The following table summarizes principal payment commitments across all debt agreements at September 30, 2013: | ||||||||||||||||||
(in thousands) | Asset Related Debt | CFVs | ||||||||||||||||
and Other Debt | Related Debt | |||||||||||||||||
2013 | $ | 4,754 | $ | 133 | ||||||||||||||
2014 | 25,157 | 469 | ||||||||||||||||
2015 | 67,007 | 403 | ||||||||||||||||
2016 | 34,133 | 435 | ||||||||||||||||
2017 | 3,737 | 469 | ||||||||||||||||
Thereafter | 228,985 | 92,974 | ||||||||||||||||
Net discount | 1,211 | 1,259 | ||||||||||||||||
Total | $ | 364,984 | $ | 96,142 | ||||||||||||||
Schedule of Redeemable Preferred Stock Issued for Debt Instrument [Table Text Block] | ' | |||||||||||||||||
The table below provides a summary of the key terms of the subordinate debt issued by MMA Financial Inc. (“MFI”) and MMA Financial Holdings, Inc. (“MFH”) and held by third parties at September 30, 2013: | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Issuer | Principal | Net Premium/ | Carrying | Interim | Maturity Date | Coupon Interest Rate | ||||||||||||
(Discount) | Value | Principal | ||||||||||||||||
Payments | ||||||||||||||||||
MFI | $ | 29,651 | $ | - | $ | 29,651 | - | Various dates through December 2033 | 8.00% | |||||||||
MFH | 33,286 | 565 | 33,851 | $4,689 due April 2015 | 30-Mar-35 | 0.75% to March 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
MFH | 30,116 | 331 | 30,447 | $4,242 due May 2015 | 30-Apr-35 | 0.75% to April 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
MFH | 17,219 | 150 | 17,369 | $2,305 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
MFH | 31,308 | 273 | 31,581 | $4,191 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then 3-month LIBOR plus 3.3% | ||||||||||||
$ | 141,580 | $ | 1,319 | $ | 142,899 | |||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||
The following table summarizes the Company’s derivative liabilities fair value balances at September 30, 2013 and December 31, 2012. | ||||||||||||||
Fair Value | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | $ | 662 | $ | 3,184 | ||||||||||
Other | – | 360 | ||||||||||||
Total derivative financial instruments | $ | 662 | $ | 3,544 | ||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | ' | |||||||||||||
The following table summarizes the derivative notional amounts at September 30, 2013 and December 31, 2012. | ||||||||||||||
Notional | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | $ | 7,837 | $ | 24,885 | ||||||||||
Schedule of Derivative Instruments Included in Trading Activities [Table Text Block] | ' | |||||||||||||
The following table summarizes derivative activity for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Realized/Unrealized | Realized/Unrealized | |||||||||||||
(Losses) Gains For the | (Losses) Gains For the | |||||||||||||
three months ended | nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Interest rate swaps(1) | $ | -76 | $ | -655 | $ | -156 | $ | -2,336 | ||||||
Other | – | -3 | 215 | 202 | ||||||||||
Total | $ | -76 | $ | -658 | $ | 59 | $ | -2,134 | ||||||
(1) The cash paid and received on interest rate swaps is settled on a net basis and recorded through “Net gains (losses) on assets and derivatives.” Net cash interest paid was $0.1 million and $1.0 million for the three months ended September 30, 2013 and 2012, respectively. Net cash paid was $0.7 million and $3.2 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Carrying | Fair Value | Carrying | ||||||||||||||||||
(in thousands) | Amount | Level 1 | Level 2 | Level 3 | Amount | Fair Value | ||||||||||||||
Assets: | ||||||||||||||||||||
Investments in preferred stock | $ | 31,371 | $ | - | $ | - | $ | 36,613 | $ | 31,371 | $ | 35,807 | ||||||||
Loans receivable | 1,174 | - | - | 302 | 1,072 | 383 | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Senior interests in and debt owed to securitization trusts | - | - | - | - | 589,592 | 589,778 | ||||||||||||||
Mandatorily redeemable preferred shares | - | - | - | - | 88,720 | 91,517 | ||||||||||||||
Notes payable and other debt, bond related | 146,304 | - | - | 145,091 | 57,729 | 59,001 | ||||||||||||||
Notes payable and other debt, non-bond related | 75,781 | - | - | 67,851 | 56,985 | 48,696 | ||||||||||||||
Notes payable and other debt related to CFVs | 96,142 | - | 49,745 | 44,977 | 55,433 | 55,580 | ||||||||||||||
Subordinate debt issued by MFH | 113,248 | - | - | 42,869 | 164,500 | 47,219 | ||||||||||||||
Subordinate debt issued by MFI | 29,651 | - | - | 29,651 | 30,000 | 30,000 | ||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||
The following tables present assets and liabilities that are measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. | ||||||||||||||
Fair Value Measurement Levels at September 30, 2013 | ||||||||||||||
(in thousands) | September 30, | Level 1 | Level 2 | Level 3 | ||||||||||
2013 | ||||||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 196,485 | $ | – | $ | – | $ | 196,485 | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 662 | $ | – | $ | – | $ | 662 | ||||||
Fair Value Measurement Levels at December 31, 2012 | ||||||||||||||
(in thousands) | December 31, | Level 1 | Level 2 | Level 3 | ||||||||||
2012 | ||||||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 969,394 | $ | – | $ | – | $ | 969,394 | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 3,544 | $ | – | $ | 2,477 | $ | 1,067 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended September 30, 2013. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, July 1, 2013 | $ | 896,322 | $ | -694 | ||||||||||
Net losses included in earnings | -1,321 | 32 | ||||||||||||
Net losses included in other comprehensive income (1) | -80,682 | - | ||||||||||||
Impact from sales/redemptions | -606,121 | - | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -10,168 | - | ||||||||||||
Impact from settlements | -1,545 | - | ||||||||||||
Balance, September 30, 2013 | $ | 196,485 | $ | -662 | ||||||||||
(1) This amount includes $5.2 million of unrealized net holding losses arising during the period, which is then reduced by $0.9 million of unrealized bond losses reclassified into operations. This amount is then increased by $76.4 million of unrealized gains related to bonds that were redeemed. | ||||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended September 30, 2012. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, July 1, 2012 | $ | 1,006,539 | $ | -1,192 | ||||||||||
Net losses included in earnings | -3,373 | -27 | ||||||||||||
Net gains included in other comprehensive income (1) | 15,085 | – | ||||||||||||
Impact from purchases | – | – | ||||||||||||
Impact from sales | – | – | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -21,545 | – | ||||||||||||
Impact from settlements | -2,419 | – | ||||||||||||
Balance, September 30, 2012 | $ | 994,287 | $ | -1,219 | ||||||||||
(1) This amount includes $12.8 million of unrealized net holding gains arising during the period, which is then increased by $2.3 million of unrealized bond losses reclassified into operations. | ||||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the nine months ended September 30, 2013. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, January 1, 2013 | $ | 969,394 | $ | -1,067 | ||||||||||
Net losses included in earnings | -4,589 | 259 | ||||||||||||
Net losses included in other comprehensive income (1) | -91,980 | – | ||||||||||||
Impact from sales/redemptions | -612,154 | – | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -55,275 | – | ||||||||||||
Impact from settlements | -8,911 | 146 | ||||||||||||
Balance, September 30, 2013 | $ | 196,485 | $ | -662 | ||||||||||
(1) This amount includes $16.8 million of unrealized net holding losses arising during the period, which is then reduced by $1.8 million of unrealized bond losses reclassified into operations. This amount is then increased by $77.0 million of unrealized gains related to bonds that were redeemed | ||||||||||||||
The following table presents activity for assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the nine months ended September 30, 2012. | ||||||||||||||
(in thousands) | Bonds | Derivative | ||||||||||||
Available- | Liabilities | |||||||||||||
for-sale | ||||||||||||||
Balance, January 1, 2012 | $ | 1,021,628 | $ | -1,167 | ||||||||||
Net losses included in earnings | -6,397 | 429 | ||||||||||||
Net gains included in other comprehensive income (1) | 31,806 | - | ||||||||||||
Impact from purchases | 6,189 | - | ||||||||||||
Impact from sales | -8,172 | - | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -34,108 | - | ||||||||||||
Impact from settlements | -16,659 | 128 | ||||||||||||
Transfer into Level 3 | - | -609 | ||||||||||||
Balance, September 30, 2012 | $ | 994,287 | $ | -1,219 | ||||||||||
(1) This amount includes $28.4 million of unrealized net holding gains arising during the period, which is then increased by $3.4 million of unrealized bond losses reclassified into operations. | ||||||||||||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | ' | |||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized (losses) gains recognized at bond sale or redemption and derivative settlement for the three months ended September 30, 2013. | ||||||||||||||
(in thousands) | Net gains on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | – | $ | – | $ | – | ||||||||
July 1, 2013, but settled during the third quarter of 2013 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -939 | -382 | 32 | |||||||||||
September 30, 2013 | ||||||||||||||
Additional realized gains (losses) recognized | 76,362 | - | -77 | |||||||||||
Total gains (losses) reported in earnings | $ | 75,423 | $ | -382 | $ | -45 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized losses recognized at bond sale or redemption and derivative settlement for the three months ended September 30, 2012. | ||||||||||||||
(in thousands) | Net losses on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | - | $ | - | $ | - | ||||||||
July 1, 2012, but settled during the third quarter of 2012 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -2,282 | -1,091 | -27 | |||||||||||
September 30, 2012 | ||||||||||||||
Additional realized gains (losses) recognized | 2 | - | -76 | |||||||||||
Total losses reported in earnings | $ | -2,280 | $ | -1,091 | $ | -103 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized (losses) gains recognized at bond sale or redemption and derivative settlement for the nine months ended September 30, 2013. | ||||||||||||||
(in thousands) | Net gains on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | -530 | $ | – | $ | – | ||||||||
January 1, 2013, but settled during the first nine months of 2013 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -1,242 | -2,817 | 259 | |||||||||||
September 30, 2013 | ||||||||||||||
Additional realized gains (losses) recognized | 76,960 | – | -230 | |||||||||||
Total gains (losses) reported in earnings | $ | 75,188 | $ | -2,817 | $ | 29 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
The following table provides the amount included in earnings related to the activity presented in the table above, as well as additional realized (losses) gains recognized at bond sale or redemption and derivative settlement for the nine months ended September 30, 2012. | ||||||||||||||
(in thousands) | Net losses on | Equity in Losses | Net losses on | |||||||||||
bonds (1) | from Lower Tier | derivatives (2) | ||||||||||||
Property | ||||||||||||||
Partnerships | ||||||||||||||
Change in realized gains related to assets and liabilities held at | $ | – | $ | – | $ | – | ||||||||
January 1, 2012, but settled during the first nine months of 2012 | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at | -3,369 | -3,028 | -180 | |||||||||||
September 30, 2012 | ||||||||||||||
Additional realized gains (losses) recognized | 54 | – | -228 | |||||||||||
Total losses reported in earnings | $ | -3,315 | $ | -3,028 | $ | -408 | ||||||||
(1) Amounts are reflected through “Impairment on bonds” and “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
(2) Amounts are reflected through “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | ||||||||||||||
GUARANTEES_AND_COLLATERAL_Tabl
GUARANTEES AND COLLATERAL (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] | ' | ||||||||||||||||||||||||
The following table summarizes guarantees, by type, at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(in thousands) | Maximum | Carrying | Maximum | Carrying | |||||||||||||||||||||
Exposure | Amount | Exposure | Amount | ||||||||||||||||||||||
Indemnification contracts | $ | 26,178 | $ | 1,281 | $ | 26,178 | $ | 1,531 | |||||||||||||||||
Other | – | – | 376 | 34 | |||||||||||||||||||||
Total | $ | 26,178 | $ | 1,281 | $ | 26,554 | $ | 1,565 | |||||||||||||||||
Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
The following table summarizes assets that are either pledged or restricted for the Company’s use at September 30, 2013 and December 31, 2012. This table also reflects certain assets held by CFVs in order to reconcile to the Company’s consolidated balance sheets. | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
(in thousands) | Note | Restricted | Bonds | Real Estate | Real Estate | Investment | Other | Total | |||||||||||||||||
Ref. | Cash | Available- | Held-for- | Held-for- | in Preferred | Assets | Assets | ||||||||||||||||||
for-sale | Use | Sale | stock | Pledged | |||||||||||||||||||||
Notes payable | A | $ | – | $ | – | $ | 1,735 | $ | – | $ | – | $ | 11,728 | $ | 13,463 | ||||||||||
Other | B | 35,004 | 132,930 | 13,860 | – | 31,371 | 326 | 213,491 | |||||||||||||||||
CFVs | C | 55,945 | – | 103,649 | 51,836 | – | 23,714 | 235,144 | |||||||||||||||||
Total | $ | 90,949 | $ | 132,930 | $ | 119,244 | $ | 51,836 | $ | 31,371 | $ | 35,768 | $ | 462,098 | |||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(in thousands) | Note | Restricted | Bonds | Real Estate | Other | Total | |||||||||||||||||||
Ref. | Cash | Available- | Held-for- | Assets | Assets | ||||||||||||||||||||
for-sale | Use | Pledged | |||||||||||||||||||||||
Notes payable | A | $ | 13 | – | 1,735 | 14,302 | 16,050 | ||||||||||||||||||
Other | B | 1,341 | 59,354 | 13,402 | 389 | 74,486 | |||||||||||||||||||
CFVs | C | 53,957 | – | 111,931 | 17,568 | 183,456 | |||||||||||||||||||
Senior interests in and debt owed | D | 2 | 865,992 | 2,619 | – | 868,613 | |||||||||||||||||||
to securitization trusts | |||||||||||||||||||||||||
Total | $ | 55,313 | $ | 925,346 | $ | 129,687 | $ | 32,259 | $ | 1,142,605 | |||||||||||||||
A. | The Company pledges bonds, loans, investments in preferred stock, investments in solar facilities and an investment in a mixed-use real estate development as collateral for notes payable. | ||||||||||||||||||||||||
B. | The Company pledges collateral in connection with secured borrowings, derivative transactions, other liabilities, guarantee exposure and leases. The Company may elect to pledge collateral on behalf of the Company’s customers in order to facilitate credit and other collateral requirements. In addition, cash may be restricted for funding obligations. | ||||||||||||||||||||||||
C. | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. | ||||||||||||||||||||||||
D. | Includes assets held by bond securitization trusts as well as assets pledged as collateral for bond securitizations. | ||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||
Schedule of Operating Lease Rental Expense and Income [Table Text Block] | ' | |||||||||||||
The following table summarizes rental expense and rental income from operating leases for the nine months ended September 30, 2013 and 2012: | ||||||||||||||
Reported through | Reported through | |||||||||||||
General and Administrative | Discontinued Operations | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Rental expense | $ | -1,537 | $ | -1,660 | $ | -492 | $ | -1,107 | ||||||
Rental income | 976 | 1,173 | 492 | 1,107 | ||||||||||
Net rental expense | $ | -561 | $ | -487 | $ | – | $ | – | ||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||||||||||||
The following table summarizes the future minimum rental commitments on non-cancelable operating leases at September 30, 2013: | ||||||||||||||
(in thousands) | ||||||||||||||
2013 | $ | 457 | ||||||||||||
2014 | 1,182 | |||||||||||||
2015 | 1,146 | |||||||||||||
2016 | 676 | |||||||||||||
2017 | 108 | |||||||||||||
2018 | 40 | |||||||||||||
Total minimum future rental commitments | $ | 3,609 | ||||||||||||
EQUITY_Tables
EQUITY (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||
The following table provides a summary of net income to common shareholders as well as information pertaining to weighted average shares used in the per share calculations as presented on the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net income from continuing operations | $ | 73,042 | $ | 1,111 | $ | 106,927 | $ | 5,632 | ||||||
Net income (loss) from discontinued operations | 274 | -393 | 5,215 | 1,342 | ||||||||||
Net income to common shareholder | $ | 73,316 | $ | 718 | $ | 112,142 | $ | 6,974 | ||||||
Basic weighted-average shares (1) | 42,290 | 42,304 | 42,380 | 42,207 | ||||||||||
Common stock equivalents (2) (3) (4) | 1,626 | 76 | 1,443 | 207 | ||||||||||
Diluted weighted-average shares | 43,916 | 42,380 | 43,823 | 42,414 | ||||||||||
-1 | Includes common shares issued and outstanding, as well as non-employee directors’ and employee deferred shares that have vested, but are not issued and outstanding. | |||||||||||||
-2 | At September 30, 2013, 2,128,125 stock options were in the money and had a dilutive impact of 1,470,198 shares and 1,373,840 shares for the three months and nine months ended September 30, 2013, respectively. In addition, 260,417 unvested employee deferred shares had a dilutive impact of 156,251 and 69,826 shares for the three and nine months ended September 30, 2013, respectively. | |||||||||||||
-3 | At September 30, 2012, 850,000 stock options were in the money and had a dilutive impact of 75,508 shares and 206,967 shares for the three months and nine months ended September 30, 2012, respectively. There were no unvested employee deferred shares at September 30, 2012. | |||||||||||||
-4 | For the three months and nine months ended September 30, 2013, the average number of options excluded from the calculations of diluted earnings per share was 302,287 and 456,803, respectively, because of their anti-dilutive effect. For the three months and nine months ended September 30, 2012, the average number of options excluded from the calculations of diluted earnings per share was 1,512,031 and 1,060,535, respectively, because of their anti-dilutive effect. | |||||||||||||
Non Controlling Interest [Table Text Block] | ' | |||||||||||||
A significant component of equity is comprised of outside investor interests in entities that the Company consolidates. In addition to the preferred shares discussed above, the Company reported the following noncontrolling interests within equity in entities that the Company did not wholly own at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Noncontrolling interests in: | ||||||||||||||
LIHTC Funds | $ | 343,962 | $ | 379,407 | ||||||||||
SA Fund | 130,915 | 122,641 | ||||||||||||
Lower Tier Property Partnerships | 14,470 | 10,777 | ||||||||||||
IHS | -1,451 | -1,034 | ||||||||||||
Total | $ | 487,896 | $ | 511,791 | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||
The following table summarizes the net change in accumulated other comprehensive income and amounts reclassified out of accumulated other comprehensive income for the three months ended September 30, 2013. | ||||||||||||||
Unrealized | Foreign | Accumulated | ||||||||||||
Gains on | Currency | Other | ||||||||||||
Bonds | Translation | Comprehensive | ||||||||||||
Available- | Income | |||||||||||||
for-Sale | ||||||||||||||
Balance at July 1, 2013 | $ | 119,239 | $ | -333 | $ | 118,906 | ||||||||
Unrealized net holding (losses) gains arising during period | -5,259 | 43 | -5,216 | |||||||||||
Reversal of unrealized gains on sold/redeemed bonds | -76,362 | -1 | - | -76,362 | ||||||||||
Reclassification of unrealized losses to income | 939 | - | 939 | |||||||||||
Reclassification of unrealized gains to operations due to | -2,411 | -1 | - | -2,411 | ||||||||||
consolidation of funds and ventures | ||||||||||||||
Net current period other comprehensive income | -83,093 | 43 | -83,050 | |||||||||||
Balance at September 30, 2013 | $ | 36,146 | $ | -290 | $ | 35,856 | ||||||||
(1) | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
The following table summarizes the net change in accumulated other comprehensive income and amounts reclassified out of accumulated other comprehensive income for the nine months ended September 30, 2013. | ||||||||||||||
Unrealized | Foreign | Accumulated | ||||||||||||
Gains on | Currency | Other | ||||||||||||
Bonds | Translation | Comprehensive | ||||||||||||
Available- | Income | |||||||||||||
for-Sale | ||||||||||||||
Balance at January 1, 2013 | $ | 139,021 | $ | -334 | $ | 138,687 | ||||||||
Unrealized net holding (losses) gains arising during period | -16,792 | 44 | -16,748 | |||||||||||
Reversal of unrealized gains on sold/redeemed bonds | -76,960 | -1 | - | -76,960 | ||||||||||
Reclassification of unrealized losses to income | 1,772 | - | 1,772 | |||||||||||
Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -10,895 | -1 | - | -10,895 | ||||||||||
Net current period other comprehensive income | -102,875 | 44 | -102,831 | |||||||||||
Balance at September 30, 2013 | $ | 36,146 | $ | -290 | $ | 35,856 | ||||||||
-1 | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Schedule of Share-based Compensation with Employees and Nonemployees [Table Text Block] | ' | ||||||||||||||
Total compensation expense recorded for these Plans was as follows for the three months and nine months ended September 30, 2013 and 2012: | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Employees’ Stock-Based Compensation Plan | $ | 279 | $ | 22 | $ | 1,937 | $ | 106 | |||||||
Non-employee Directors’ Stock-Based Compensation Plan | 75 | 63 | 200 | 188 | |||||||||||
Total | $ | 354 | $ | 85 | $ | 2,137 | $ | 294 | |||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||
The following table summarizes option activity under the Employees’ Stock-Based Compensation Plan: | |||||||||||||||
(in thousands, except per option data) | Number of | Weighted- | Weighted- | Aggregate | Period | ||||||||||
Options | average | average | Intrinsic | End | |||||||||||
Exercise | Remaining | Value (1) | Liability (2) | ||||||||||||
Price per | Contractual Life | ||||||||||||||
Option | per Option | ||||||||||||||
(in years) | |||||||||||||||
Outstanding at January 1, 2012 (1) | 1,145 | $ | 7.01 | 7.2 | $ | – | $ | 181 | |||||||
Granted in 2012 | 1,200 | 0.36 | |||||||||||||
Outstanding at December 31, 2012 (1) | 2,345 | 3.61 | 7.8 | 58 | 355 | ||||||||||
Forfeited/Expired in 2013 | -264 | 26.5 | |||||||||||||
Outstanding at September 30, 2013 (1) | 2,081 | 0.7 | 7.6 | 2,024 | 2,076 | ||||||||||
Number of options that were exercisable at: | |||||||||||||||
31-Dec-12 | 1,333 | 6.08 | 6.6 | ||||||||||||
30-Sep-13 | 1,436 | 0.86 | 7.2 | ||||||||||||
(1) Intrinsic value is based on outstanding shares. | |||||||||||||||
(2) Only options that were amortized based on a vesting schedule have a liability balance. These options were 1,812,118; 1,486,345; and 818,556 at September 30, 2013, December 31, 2012 and January 1, 2012, respectively. | |||||||||||||||
Schedule of Share Based Compensation Deferred Shares Granted To Employees [Table Text Block] | ' | ||||||||||||||
The following table summarizes the deferred shares granted to employees. The deferred shares that were issued to employees in the second quarter of 2013 have time and price vesting requirements. Half of the shares vest in three equal tranches over the next three years. The other half of the deferred shares will vest when certain average stock prices have been met. | |||||||||||||||
(in thousands, except per share data) | Deferred Share | Weighted- | |||||||||||||
Grants | average Grant | ||||||||||||||
Date Share Price | |||||||||||||||
1-Jan-13 | 29 | $ | 24.98 | ||||||||||||
Granted in 2013 | 312 | 0.88 | |||||||||||||
30-Sep-13 | 341 | 2.92 | |||||||||||||
Schedule of Share-based Goods and Nonemployee Services Transaction by Supplier [Table Text Block] | ' | ||||||||||||||
The following table summarizes option activity under the Non-employee Directors’ Stock-based Compensation Plan: | |||||||||||||||
(in thousands, except per option | Number of | Weighted- | Weighted- | Aggregate | |||||||||||
data) | Options | average | average | Intrinsic | |||||||||||
Exercise | Remaining | Value | |||||||||||||
Price per | Contractual Life | ||||||||||||||
Option | per Option | ||||||||||||||
(in years) | |||||||||||||||
Outstanding at January 1, 2012 | 27 | $ | 24.69 | 1.1 | $ | - | |||||||||
Expired/Forfeited in 2012 | -10 | 24.74 | |||||||||||||
Granted in 2012 | 78.1 | 0.36 | 9.8 | ||||||||||||
Outstanding at December 31, 2012 | 95.1 | 4.7 | 8.3 | - | |||||||||||
Expired/Forfeited in 2013 | -17 | 24.67 | - | ||||||||||||
Outstanding at September 30, 2013 | 78.1 | 0.36 | 9.2 | 64 | |||||||||||
Number of options that were exercisable at: | |||||||||||||||
31-Dec-12 | 17 | 24.67 | 0.4 | ||||||||||||
30-Sep-13 | 58.6 | 0.36 | 9.2 | ||||||||||||
Schedule of Net Income to Shareholders Related to Consolidated Funds and Ventures [Table Text Block] | ' | ||||||||||||||
See the table below which summarizes the director options that vested during the period presented and the deferred shares granted to the directors for services rendered for the nine months ended September 30, 2013 and 2012. The directors are fully vested in the deferred shares at the grant date. | |||||||||||||||
(in thousands, except per share | Shares | Deferred Share | Weighted- | Options | Directors’ Fees | ||||||||||
data) | Granted | Grants | average Grant | Vested | Expense | ||||||||||
Date Share Price | |||||||||||||||
30-Sep-13 | 5 | 62 | $ | 1.21 | 59 | $ | 200 | ||||||||
30-Sep-12 | - | 292 | 0.32 | - | 188 | ||||||||||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Sublease income | $ | - | $ | 369 | $ | 492 | $ | 1,107 | ||||||
Income from CFVs (primarily rental income) | 3,511 | 5,034 | 10,968 | 14,999 | ||||||||||
Income from REO operations | - | - | - | 57 | ||||||||||
Rent expense | - | -369 | -492 | -1,107 | ||||||||||
Expenses from CFVs (primarily operating expenses) | -3,594 | -4,545 | -10,152 | -14,707 | ||||||||||
Other income | 46 | 113 | 44 | 345 | ||||||||||
Net gains on property acquisition | 320 | - | 320 | - | ||||||||||
Net income before disposal activity | 283 | 602 | 1,180 | 694 | ||||||||||
Disposal: | ||||||||||||||
Net gains related to REO | 95 | - | 95 | - | ||||||||||
Net gains related to CFVs | 25 | - | 5,252 | - | ||||||||||
Net income from discontinued operations | 403 | 602 | 6,527 | 694 | ||||||||||
(Income) loss from discontinued operations allocable | -129 | -995 | -1,312 | 648 | ||||||||||
to noncontrolling interests | ||||||||||||||
Net income (loss) to common shareholders from | $ | 274 | $ | -393 | $ | 5,215 | $ | 1,342 | ||||||
discontinued operations | ||||||||||||||
Schedule of Discontinued Operations for Net Income to Common Shareholders [Table Text Block] | ' | |||||||||||||
The details of net income to common shareholders from discontinued operations for the three months and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Interest income | $ | - | $ | 765 | $ | 1,108 | $ | 2,349 | ||||||
Other income | 399 | 478 | 1,268 | 1,476 | ||||||||||
Other expense | -245 | -1,636 | -1,161 | -2,483 | ||||||||||
Net gains on disposal of REO | 95 | - | 95 | - | ||||||||||
Net gains on redemption of bonds | 25 | - | 3,905 | - | ||||||||||
Net income to common shareholders from discontinued | $ | 274 | $ | -393 | $ | 5,215 | $ | 1,342 | ||||||
operations | ||||||||||||||
CONSOLIDATED_FUNDS_AND_VENTURE1
CONSOLIDATED FUNDS AND VENTURES (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Consolidated Funds and Ventures [Abstract] | ' | |||||||||||||
Schedule of Total Assets by Type of Consolidated Fund or Venture [Table Text Block] | ' | |||||||||||||
The total assets, by type of consolidated fund or venture, at September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
LIHTC Funds | $ | 343,544 | $ | 381,394 | ||||||||||
SA Fund | 184,770 | 175,572 | ||||||||||||
Consolidated Lower Tier Property Partnerships | 162,286 | 135,674 | ||||||||||||
Other consolidated entities | 2,065 | 922 | ||||||||||||
Total assets of CFVs | $ | 692,665 | $ | 693,562 | ||||||||||
Schedule of More Information Related to Assets Consolidated Fund or Venture [Table Text Block] | ' | |||||||||||||
The following section provides more information related to the assets of the CFVs at September 30, 2013 and December 31, 2012. | ||||||||||||||
Asset Summary: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Cash, cash equivalents and restricted cash | $ | 55,945 | $ | 53,957 | ||||||||||
Investments in Lower Tier Property Partnerships | 299,730 | 333,335 | ||||||||||||
SA Fund investments | 157,791 | 161,433 | ||||||||||||
Real estate held-for-use, net | 103,649 | 111,931 | ||||||||||||
Real estate held-for-sale | 51,836 | 15,338 | ||||||||||||
Other assets | 23,714 | 17,568 | ||||||||||||
Total assets of CFVs | $ | 692,665 | $ | 693,562 | ||||||||||
Assets and Liabilities of Unconsolidated Funds and Ventures [Table Text Block] | ' | |||||||||||||
The following table provides the LIHTC Funds’ investment balances in the unconsolidated Lower Tier Property Partnerships as well as the assets and liabilities of the Lower Tier Property Partnerships at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
LIHTC Funds’ investment in Lower Tier Property Partnerships | $ | 299,730 | $ | 333,335 | ||||||||||
Total assets of Lower Tier Property Partnerships (1) | $ | 1,335,223 | $ | 1,371,880 | ||||||||||
Total liabilities of Lower Tier Property Partnerships (1) | 1,039,405 | 1,041,961 | ||||||||||||
-1 | The assets of the Lower Tier Property Partnerships are primarily real estate and the liabilities are predominantly mortgage debt. | |||||||||||||
SA Fund Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||
The following table presents the activity for the SA Fund investments at fair value on a recurring basis using Level 3 inputs for the three months ended September 30, 2013 and 2012: | ||||||||||||||
For the three months ended | ||||||||||||||
September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | ||||||||||||
Balance, July 1, | $ | 156,723 | $ | 126,950 | ||||||||||
Net gains (losses) included in earnings | 2,882 | -4,511 | ||||||||||||
Net foreign currency translation losses included in other comprehensive | -2,658 | -153 | ||||||||||||
income | ||||||||||||||
Impact from purchases | 8,029 | 22,713 | ||||||||||||
Impact from sales | -7,185 | -73 | ||||||||||||
Balance, September 30, | $ | 157,791 | $ | 144,926 | ||||||||||
The following table presents the activity for the SA Fund investments at fair value on a recurring basis using Level 3 inputs for the nine months ended September 30, 2013 and 2012. | ||||||||||||||
For the nine months ended | ||||||||||||||
September 30, | ||||||||||||||
(in thousands) | 2013 | 2012 | ||||||||||||
Balance, January 1, | $ | 161,433 | $ | 108,329 | ||||||||||
Net gains included in earnings | 20,178 | 5,480 | ||||||||||||
Net foreign currency translation losses included in other comprehensive | -27,226 | -3,836 | ||||||||||||
income | ||||||||||||||
Impact from purchases | 15,699 | 42,449 | ||||||||||||
Impact from sales | -12,293 | -7,496 | ||||||||||||
Balance, September 30, | $ | 157,791 | $ | 144,926 | ||||||||||
Real Estate Held for Use, Net [Table Text Block] | ' | |||||||||||||
The real estate held-for-use by Lower Tier Property Partnerships, which are consolidated by the Company, was comprised of the following at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Building, furniture and fixtures | $ | 108,036 | $ | 116,320 | ||||||||||
Accumulated depreciation | -16,274 | -15,598 | ||||||||||||
Land | 11,887 | 11,209 | ||||||||||||
Total | $ | 103,649 | $ | 111,931 | ||||||||||
Real Estate Held For Sale Net [Table Text Block] | ' | |||||||||||||
The real estate held-for-sale by Lower Tier Property Partnerships, which are consolidated by the Company, was comprised of the following at September 30, 2013 and December 31, 2012: | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Cash | $ | 4,216 | $ | 318 | ||||||||||
Building, furniture and fixtures | 48,133 | 14,740 | ||||||||||||
Accumulated depreciation | -5,786 | -959 | ||||||||||||
Land | 5,111 | 1,215 | ||||||||||||
Other assets | 162 | 24 | ||||||||||||
Total | $ | 51,836 | $ | 15,338 | ||||||||||
Schedule of More Information Related to Liabilities Consolidated Fund and Venture [Table Text Block] | ' | |||||||||||||
The following section provides more information related to the liabilities of the CFVs at September 30, 2013 and December 31, 2012. | ||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
Liabilities of CFVs: | ||||||||||||||
Debt | $ | 96,142 | $ | 55,433 | ||||||||||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 15,881 | ||||||||||||
Other liabilities | 10,167 | 6,150 | ||||||||||||
Total liabilities of CFVs | $ | 119,770 | $ | 77,464 | ||||||||||
Schedule of Long-term Debt of Consolidated Funds and Ventures [Table Text Block] | ' | |||||||||||||
At September 30, 2013 and December 31, 2012, the debt of the CFVs had the following terms: | ||||||||||||||
September 30, 2013 | ||||||||||||||
(in thousands) | Carrying | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Amount | Effective Interest | |||||||||||||
Rates | ||||||||||||||
SA Fund | $ | 49,621 | $ | 49,621 | 2.6 | % | Apr-18 | |||||||
Lower Tier Property Partnerships | 46,521 | 46,648 | 6.4 | Various dates through March 2049 | ||||||||||
December 31, 2012 | ||||||||||||||
(in thousands) | Carrying | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Amount | Effective Interest | |||||||||||||
Rates | ||||||||||||||
SA Fund | $ | 49,352 | $ | 49,352 | 2.6 | % | Apr-18 | |||||||
Lower Tier Property Partnerships | 6,081 | 7,289 | 10.4 | Various dates through October 2021 | ||||||||||
Schedule of Income Statement of Consolidated Funds and Ventures [Table Text Block] | ' | |||||||||||||
The following section provides more information related to the income statement of the CFVs for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Income Statement Summary: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | ||||||||||||||
Rental and other income from real estate | $ | 3,736 | $ | 1,800 | $ | 9,096 | $ | 3,715 | ||||||
Interest and other income | 3,739 | 2,267 | 7,784 | 4,743 | ||||||||||
Total revenue from CFVs | 7,475 | 4,067 | 16,880 | 8,458 | ||||||||||
Expenses: | ||||||||||||||
Depreciation and amortization | 2,386 | 1,525 | 6,169 | 4,056 | ||||||||||
Interest expense | 1,253 | 441 | 2,228 | 1,237 | ||||||||||
Other operating expenses | 3,696 | 1,923 | 8,602 | 4,580 | ||||||||||
Foreign currency loss | 840 | 330 | 8,390 | 1,148 | ||||||||||
Asset impairments | 6,679 | 4,820 | 14,559 | 10,102 | ||||||||||
Total expenses from CFVs | 14,854 | 9,039 | 39,948 | 21,123 | ||||||||||
Net gains (losses) related to CFVs: | ||||||||||||||
Investment gains (losses) | 3,554 | -4,511 | 20,849 | 5,479 | ||||||||||
Derivative gains (losses) | 258 | -97 | 6,883 | 98 | ||||||||||
Net loss on sale of properties | – | – | – | -170 | ||||||||||
Equity in losses from Lower Tier Property Partnerships of CFVs | -6,343 | -6,486 | -20,129 | -25,917 | ||||||||||
Net loss | -9,910 | -16,066 | -15,465 | -33,175 | ||||||||||
Net losses allocable to noncontrolling interests in CFVs (1) | 11,046 | 17,268 | 18,426 | 36,526 | ||||||||||
Net income allocable to the common shareholders related to CFVs | $ | 1,136 | $ | 1,202 | $ | 2,961 | $ | 3,351 | ||||||
(1) Net losses allocable to noncontrolling interests in CFVs have been adjusted to exclude noncontrolling interests related to IHS because the Company’s equity interest in IHS is substantial. The Company has little to no equity interest in the other CFVs including the two non-profits, the LTPPs, the LIHTC Funds and the SA Fund. | ||||||||||||||
Schedule of Net Income to Shareholders Related to Consolidated Funds and Ventures [Table Text Block] | ' | |||||||||||||
The details of Net income allocable to the common shareholders related to CFVs for the three months and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Interest income | $ | 274 | $ | 1,169 | $ | 1,779 | $ | 1,789 | ||||||
Asset management fees | 888 | 937 | 2,629 | 3,521 | ||||||||||
Guarantee fees | 331 | 331 | 993 | 1,042 | ||||||||||
Equity in losses from Lower Tier Property Partnerships | -383 | -1,092 | -2,821 | -3,031 | ||||||||||
Equity in income (loss) from SA Fund | 151 | -99 | 643 | 165 | ||||||||||
Other expense | -125 | -44 | -262 | -135 | ||||||||||
Net income allocable to the common shareholders | $ | 1,136 | $ | 1,202 | $ | 2,961 | $ | 3,351 | ||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||
Schedule Of Income Statement By Reporting Segments [Table Text Block] | ' | |||||||||||||||||||||
CFVs are entities for which the Company is deemed to be the primary beneficiary. The Company earns revenue from these CFVs mainly through asset management fees, interest income (mostly relating to interest on bonds) and guarantee fees. | ||||||||||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 4,644 | $ | 10 | $ | 3,739 | $ | -274 | A | $ | -3,739 | $ | 4,380 | |||||||||
Total interest expense | 2,199 | – | 1,527 | -274 | A | -1,253 | 2,199 | |||||||||||||||
Net interest income | 2,445 | 10 | 2,212 | – | -2,486 | 2,181 | ||||||||||||||||
Total fee and other income | 2,651 | 703 | 3,736 | -1,219 | B | -3,736 | 2,135 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 7,475 | 7,475 | ||||||||||||||||
Total non-interest revenue | 2,651 | 703 | 3,736 | -1,219 | 3,739 | 9,610 | ||||||||||||||||
Total revenues, net of interest | 5,096 | 713 | 5,948 | -1,219 | 1,253 | 11,791 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 3,593 | 35 | – | – | – | 3,628 | ||||||||||||||||
Operating expenses | 4,016 | 1,356 | 4,915 | -1,219 | B | -3,696 | 5,372 | |||||||||||||||
Impairment on bonds and | 939 | 5 | – | – | – | 944 | ||||||||||||||||
provision for loan losses | ||||||||||||||||||||||
Other expenses | 1,463 | 72 | 9,905 | -357 | C, D | -9,905 | 1,178 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 14,854 | 14,854 | ||||||||||||||||
Total operating and other | 10,011 | 1,468 | 14,820 | -1,576 | 1,253 | 25,976 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net gains on assets, derivatives | 76,304 | 16 | 3,812 | – | -3,812 | 76,320 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 2,411 | – | – | – | – | 2,411 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | 3,812 | 3,812 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -6,111 | -232 | C | – | -6,343 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 73,800 | -739 | -11,171 | 125 | – | 62,015 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax benefit | -123 | – | – | – | – | -123 | ||||||||||||||||
Income from discontinued | 274 | – | 129 | – | – | 403 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 73,951 | -739 | -11,042 | 125 | – | 62,295 | ||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -36 | – | – | – | – | -36 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable to | ||||||||||||||||||||||
noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 140 | 11,171 | -125 | D | – | 11,186 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | -129 | – | – | -129 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 73,915 | $ | -599 | $ | – | $ | – | $ | – | $ | 73,316 | ||||||||||
shareholders | ||||||||||||||||||||||
For the three months ended September 30, 2012 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 17,387 | $ | 7 | $ | 2,267 | $ | -1,169 | A | $ | -2,267 | $ | 16,225 | |||||||||
Total interest expense | 6,547 | – | 1,610 | -1,169 | A | -441 | 6,547 | |||||||||||||||
Net interest income | 10,840 | 7 | 657 | – | -1,826 | 9,678 | ||||||||||||||||
Total fee and other income | 2,336 | 761 | 1,800 | -1,268 | B | -1,800 | 1,829 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 4,067 | 4,067 | ||||||||||||||||
Total non-interest revenue | 2,336 | 761 | 1,800 | -1,268 | 2,267 | 5,896 | ||||||||||||||||
Total revenues, net of interest | 13,176 | 768 | 2,457 | -1,268 | 441 | 15,574 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 4,607 | 32 | – | – | – | 4,639 | ||||||||||||||||
Operating expenses | 3,722 | 1,546 | 3,191 | -1,268 | B | -1,923 | 5,268 | |||||||||||||||
Impairment on bonds and | 919 | – | – | – | – | 919 | ||||||||||||||||
provision for loan losses | ||||||||||||||||||||||
Other expenses | 2,038 | 152 | 6,675 | -1,235 | C,D | -6,675 | 955 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 9,039 | 9,039 | ||||||||||||||||
Total operating and other | 11,286 | 1,730 | 9,866 | -2,503 | 441 | 20,820 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net losses on assets, derivatives | -501 | – | -4,608 | – | 4,608 | -501 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 2,853 | – | – | – | – | 2,853 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | -4,608 | -4,608 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -5,295 | -1,191 | C | – | -6,486 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 4,242 | -962 | -17,312 | 44 | – | -13,988 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax expense | -24 | – | – | – | – | -24 | ||||||||||||||||
Income from discontinued | -393 | – | 995 | – | – | 602 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 3,825 | -962 | -16,317 | 44 | -13,410 | |||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -2,284 | – | – | – | – | -2,284 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable | ||||||||||||||||||||||
to noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 139 | 17,312 | -44 | D | – | 17,407 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | -995 | – | – | -995 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 1,541 | $ | -823 | $ | – | $ | – | $ | – | $ | 718 | ||||||||||
shareholders | ||||||||||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 36,931 | $ | 25 | $ | 7,784 | $ | -1,779 | A | $ | -7,784 | $ | 35,177 | |||||||||
Total interest expense | 22,213 | – | 4,007 | -1,779 | A | -2,228 | 22,213 | |||||||||||||||
Net interest income | 14,718 | 25 | 3,777 | – | -5,556 | 12,964 | ||||||||||||||||
Total fee and other income | 7,203 | 2,220 | 9,096 | -3,622 | B | -9,096 | 5,801 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 16,880 | 16,880 | ||||||||||||||||
Total non-interest revenue | 7,203 | 2,220 | 9,096 | -3,622 | 7,784 | 22,681 | ||||||||||||||||
Total revenues, net of interest | 21,921 | 2,245 | 12,873 | -3,622 | 2,228 | 35,645 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 11,273 | 101 | – | – | – | 11,374 | ||||||||||||||||
Operating expenses | 15,843 | 4,507 | 12,224 | -3,622 | B | -8,602 | 20,350 | |||||||||||||||
Impairment on bonds and | 1,772 | 5 | – | – | – | 1,777 | ||||||||||||||||
provision for loan losses | ||||||||||||||||||||||
Other expenses | 7,265 | 140 | 29,118 | -2,440 | C,D | -29,118 | 4,965 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 39,948 | 39,948 | ||||||||||||||||
Total operating and other | 36,153 | 4,753 | 41,342 | -6,062 | 2,228 | 78,414 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net gains on assets, derivatives | 114,672 | 16 | 27,732 | – | -27,732 | 114,688 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 10,895 | – | – | – | – | 10,895 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | 27,732 | 27,732 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -17,951 | -2,178 | C | – | -20,129 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 111,335 | -2,492 | -18,688 | 262 | – | 90,417 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax benefit | 1,309 | – | – | – | – | 1,309 | ||||||||||||||||
Income from discontinued | 5,215 | – | 1,312 | – | – | 6,527 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 117,859 | -2,492 | -17,376 | 262 | 98,253 | |||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -3,714 | – | – | – | – | -3,714 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable | ||||||||||||||||||||||
to noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 489 | 18,688 | -262 | D | – | 18,915 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | -1,312 | – | – | -1,312 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 114,145 | $ | -2,003 | $ | – | $ | – | $ | – | $ | 112,142 | ||||||||||
shareholders | ||||||||||||||||||||||
For the nine months ended September 30, 2012 | ||||||||||||||||||||||
(in thousands) | US | International | CFVs | Income | Note | CFVs | MMA | |||||||||||||||
Operations | Operations | Allocation | Ref. | Adjustments | Consolidated | |||||||||||||||||
Reclasses | ||||||||||||||||||||||
Total interest income | $ | 51,946 | $ | 30 | $ | 4,743 | $ | -1,789 | A | $ | -4,743 | $ | 50,187 | |||||||||
Total interest expense | 20,090 | – | 3,026 | -1,789 | A | -1,237 | 20,090 | |||||||||||||||
Net interest income | 31,856 | 30 | 1,717 | – | -3,506 | 30,097 | ||||||||||||||||
Total fee and other income | 7,690 | 2,964 | 3,715 | -4,563 | B | -3,715 | 6,091 | |||||||||||||||
Revenue from CFVs | – | – | – | – | 8,458 | 8,458 | ||||||||||||||||
Total non-interest revenue | 7,690 | 2,964 | 3,715 | -4,563 | 4,743 | 14,549 | ||||||||||||||||
Total revenues, net of interest | 39,546 | 2,994 | 5,432 | -4,563 | 1,237 | 44,646 | ||||||||||||||||
expense | ||||||||||||||||||||||
Operating and other expenses: | ||||||||||||||||||||||
Interest expense | 14,074 | 105 | – | – | – | 14,179 | ||||||||||||||||
Operating expenses | 11,948 | 4,786 | 9,143 | -4,563 | B | -4,580 | 16,734 | |||||||||||||||
Impairment on bonds and | -2,278 | – | – | – | – | -2,278 | ||||||||||||||||
recovery of loan losses | ||||||||||||||||||||||
Other expenses | 5,993 | -42 | 15,306 | -3,001 | C,D | -15,306 | 2,950 | |||||||||||||||
Expenses from CFVs | – | – | – | – | 21,123 | 21,123 | ||||||||||||||||
Total operating and other | 29,737 | 4,849 | 24,449 | -7,564 | 1,237 | 52,708 | ||||||||||||||||
expenses | ||||||||||||||||||||||
Net losses on assets, derivatives | -1,167 | – | 5,407 | – | -5,407 | -1,167 | ||||||||||||||||
and extinguishment of | ||||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Net gains due to real estate | 5,404 | – | – | – | – | 5,404 | ||||||||||||||||
consolidation and foreclosure | ||||||||||||||||||||||
Net gains related to CFVs | – | – | – | – | 5,407 | 5,407 | ||||||||||||||||
Equity in losses from Lower Tier | – | – | -23,051 | -2,866 | C | – | -25,917 | |||||||||||||||
Property Partnerships | ||||||||||||||||||||||
Income (loss) from continuing | 14,046 | -1,855 | -36,661 | 135 | – | -24,335 | ||||||||||||||||
operations before income taxes | ||||||||||||||||||||||
Income tax expense | -65 | – | – | – | – | -65 | ||||||||||||||||
Income (loss) from discontinued | 1,342 | – | -648 | – | – | 694 | ||||||||||||||||
operations, net of tax | ||||||||||||||||||||||
Net income (loss) | 15,323 | -1,855 | -37,309 | 135 | – | -23,706 | ||||||||||||||||
Income allocable to | ||||||||||||||||||||||
noncontrolling interests: | ||||||||||||||||||||||
Income allocable to perpetual | -6,852 | – | – | – | – | -6,852 | ||||||||||||||||
preferred shareholders of a | ||||||||||||||||||||||
subsidiary company | ||||||||||||||||||||||
Net losses (income) allocable | ||||||||||||||||||||||
to noncontrolling interests in | ||||||||||||||||||||||
CFVs: | ||||||||||||||||||||||
Related to continuing | – | 358 | 36,661 | -135 | D | – | 36,884 | |||||||||||||||
operations | ||||||||||||||||||||||
Related to discontinued | – | – | 648 | – | – | 648 | ||||||||||||||||
operations | ||||||||||||||||||||||
Net income (loss) to common | $ | 8,471 | $ | -1,497 | $ | – | $ | – | $ | – | $ | 6,974 | ||||||||||
shareholders | ||||||||||||||||||||||
A. Primarily related to interest on bonds that the Company earned by holding the bond but which is eliminated because the Company consolidates two non-profits and the associated Lower Tier Property Partnerships and its related real estate. These Lower Tier Property Partnerships each have a mortgage debt obligation that collateralizes a bond. | ||||||||||||||||||||||
B. Primarily related to asset management fees earned by the Company for asset management services provided to the SA Fund and LIHTC Funds. | ||||||||||||||||||||||
C. Primarily relates to equity in losses from the Lower Tier Property Partnerships associated with the Company’s LIHTC Funds for which the Company has provided bond financing to the Lower Tier Property Partnerships. | ||||||||||||||||||||||
D. Includes losses recorded by the Company related to guarantees provided by the Company associated with third party debt obligations of certain Lower Tier Property Partnerships. | ||||||||||||||||||||||
Schedule of Total Assets by Reporting Segments [Table Text Block] | ' | |||||||||||||||||||||
The total assets by segment at September 30, 2013 and December 31, 2012 are presented in the table below: | ||||||||||||||||||||||
(in thousands) | September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
US Operations | $ | 474,884 | $ | 1,236,288 | ||||||||||||||||||
International Operations | 5,286 | 4,644 | ||||||||||||||||||||
Total segment assets | 480,170 | 1,240,932 | ||||||||||||||||||||
Bonds eliminated in consolidation | -92,429 | -114,529 | ||||||||||||||||||||
Net unrealized mark-to-market gains not recorded in consolidation | -32,336 | -10,585 | ||||||||||||||||||||
Other adjustments | -8,214 | -7,628 | ||||||||||||||||||||
Assets of CFVs | 692,665 | 693,562 | ||||||||||||||||||||
Total MMA consolidated assets | $ | 1,039,856 | $ | 1,801,752 | ||||||||||||||||||
DESCRIPTION_OF_THE_BUSINESS_AN2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details Textual) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Investment Tax Credit | $852.90 |
Bond Investment Unleveraged | 55.00% |
Bonds [Member] | ' |
Bond Investment Fair Value | $321.40 |
International Housing Solutions Sarl [Member] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 83.00% |
BONDS_AVAILABLEFORSALE_Details
BONDS AVAILABLE-FOR-SALE (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jul. 03, 2013 | Sep. 30, 2013 | |
Net reduction in assets | ' | ($649,772) | |
Net reduction in liabilities | ' | 646,750 | |
Net reduction in common shareholders’ equity | ' | -3,022 | [1] |
Failed Sales [Member] | ' | ' | |
Increase (Decrease) in accounts payable and accrued expenses | ' | -618 | [2] |
Munimae Te Bond Subsidiary L L C [Member] | ' | ' | |
Increase (Decrease) in cash | ' | 78,664 | |
Bonds [Member] | ' | ' | |
Reduction in debt instrument | ' | -678,983 | [3] |
Interest Receivable [Member] | ' | ' | |
Reduction in other assets | ' | -4,612 | [2] |
TE Bond Subsidiary LLC [Member] | ' | ' | |
Increase (Decrease) in cash | ' | -44,841 | [2] |
Senior Interests And Debt Owed To Securitization Trusts [Member] | ' | ' | |
Reduction in debt instrument | ' | 574,652 | |
Mandatorily Redeemable Preferred Stock [Member] | ' | ' | |
Reduction in mandatorily redeemable preferred shares | ' | 121,000 | |
Perpetual Preferred Stock [Member] | ' | ' | |
Reduction in preferred shares | ' | 117,978 | |
Debt Securities Payable [Member] | ' | ' | |
Increase (Decrease) in accounts payable and accrued expenses | ' | 4,781 | |
Failed Sales Of Bonds And Interests [Member] | ' | ' | |
Reduction in debt instrument | 63,800 | -94,410 | [3] |
Consolidated Funds and Ventures Segment [Member] | ' | ' | |
Reduction in debt instrument | ' | -75,191 | [3] |
Increase (Decrease) in accounts payable and accrued expenses | ' | ($1,442) | [2] |
[1] | Represents the difference between the Company’s carrying value of the perpetual preferred shares on June 30, 2013 of $118.0 million as compared to the liquidation preference amount assumed in the sale on July 3, 2013 of $121.0 million. | ||
[2] | Represents the total cash, restricted cash and interest receivable of $51.5 million transferred to the Purchaser as part of the sale of TEB. | ||
[3] | The sum of these amounts total $848.6 million and represents the fair value of the bonds sold on July 3, 2013. |
BONDS_AVAILABLEFORSALE_Details1
BONDS AVAILABLE-FOR-SALE (Details 1) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Unpaid Principal Balance | $226,632 | [1] | $984,322 | [1] |
Basis Adjustments | -5,800 | [2] | -12,653 | [2] |
Unrealized Losses | -60,494 | -141,297 | ||
Unrealized Gains | 36,147 | 139,022 | ||
Fair Value | 196,485 | 969,394 | ||
Mortgage Revenue Bonds [Member] | ' | ' | ||
Unpaid Principal Balance | 146,587 | 898,209 | ||
Basis Adjustments | -3,879 | [2] | -10,314 | [2] |
Unrealized Losses | -37,572 | -118,933 | ||
Unrealized Gains | 16,776 | 115,196 | ||
Fair Value | 121,912 | 884,158 | ||
All Other Corporate Bonds [Member] | ' | ' | ||
Unpaid Principal Balance | 80,045 | 86,113 | ||
Basis Adjustments | -1,921 | [2] | -2,339 | [2] |
Unrealized Losses | -22,922 | -22,364 | ||
Unrealized Gains | 19,371 | 23,826 | ||
Fair Value | $74,573 | $85,236 | ||
[1] | The Company had bonds with an unpaid principal balance (“UPBâ€) of $113.5 million ($124.9 million fair value) and $123.9 million ($125.1 million fair value) at September 30, 2013 and December 31, 2012, respectively, which were eliminated due to consolidation of the real estate partnerships where the real estate served as collateral for the Company’s bonds. See Note 16, “Consolidated Funds and Ventures†for more information. | |||
[2] | Represents net discounts, deferred costs and fees. |
BONDS_AVAILABLEFORSALE_Details2
BONDS AVAILABLE-FOR-SALE (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost - Non-Amortizing: | ' | ' |
Amortized Cost, Due in less than one year | $0 | ' |
Amortized Cost, Due between one and five years | 0 | ' |
Amortized Cost, Due between five and ten years | 0 | ' |
Amortized Cost, Due after ten years | 1,429 | ' |
Amortized Cost - Amortizing: | ' | ' |
Amortized Cost, Due at stated maturity dates between December 2013 and June 2056 | 158,909 | ' |
Amortized Cost, Total | 160,338 | ' |
Fair Value - Non-Amortizing: | ' | ' |
Fair Value, Due in less than one year | 0 | ' |
Fair Value, Due between one and five years | 0 | ' |
Fair Value, Due between five and ten years | 0 | ' |
Fair Value, Due after ten years | 1,532 | ' |
Fair Value - Amortizing: | ' | ' |
Fair Value, Due at stated maturity dates between December 2013 and June 2056 | 194,953 | ' |
Fair Value, Total | $196,485 | $969,394 |
BONDS_AVAILABLEFORSALE_Details3
BONDS AVAILABLE-FOR-SALE (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost, Bonds that may be prepaid without restrictions, premiums or penalties at September 30, 2013 | ' | ' |
Amortized Cost, at September 30, 2013 | $0 | ' |
Amortized Cost, October 1 through December 31, 2013 | 1,133 | ' |
Amortized Cost, 2014 | 0 | ' |
Amortized Cost, 2015 | 0 | ' |
Amortized Cost, 2016 | 10,183 | ' |
Amortized Cost, 2017 | 5,725 | ' |
Amortized Cost, Thereafter | 106,023 | ' |
Amortized Cost, Bonds that may not be prepaid | 37,274 | ' |
Amortized Cost, Total | 160,338 | ' |
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties at September 30, 2013 | ' | ' |
Fair Value, at September 30, 2013 | 0 | ' |
Fair Value, October 1 through December 31, 2013 | 1,400 | ' |
Fair Value, 2014 | 0 | ' |
Fair Value, 2015 | 0 | ' |
Fair Value, 2016 | 13,410 | ' |
Fair Value, 2017 | 6,488 | ' |
Fair Value, Thereafter | 128,531 | ' |
Fair Value, Bonds that may not be prepaid | 46,656 | ' |
Fair Value, Total | $196,485 | $969,394 |
BONDS_AVAILABLEFORSALE_Details4
BONDS AVAILABLE-FOR-SALE (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total current | $117,709 | $850,155 |
30-59 days past due | 0 | 8,013 |
60-89 days past due | 8,244 | 7,471 |
Greater than 90 days | 70,532 | 103,755 |
Fair Value, Total | $196,485 | $969,394 |
BONDS_AVAILABLEFORSALE_Details5
BONDS AVAILABLE-FOR-SALE (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Bond impairment recognized on bonds held at each period-end | ($939) | ($2,282) | ($1,772) | ($3,369) |
Bond impairment recognized on bonds sold/redeemed during each period | 0 | 0 | 530 | 0 |
Gains recognized at time of redemption | 76,362 | 2 | 76,960 | 54 |
Total net losses on bonds | $75,423 | ($2,280) | $75,188 | ($3,315) |
BONDS_AVAILABLEFORSALE_Details6
BONDS AVAILABLE-FOR-SALE (Details Textual) (USD $) | 6 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 03, 2013 | Dec. 31, 2012 | Jul. 03, 2013 | Jul. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Total Return Swap [Member] | Munimae Te Bond Subsidiary L L C [Member] | Munimae Te Bond Subsidiary L L C [Member] | TE Bond Subsidiary LLC [Member] | Failed Sales Of Bonds And Interests [Member] | Failed Sales Of Bonds And Interests [Member] | Participating Bonds [Member] | |||||||
Debt Instrument And Related Investments On Unleveraged Basis Held | ' | ' | ' | ' | ' | ' | $146,700,000 | ' | ' | ' | ' | ' | |
Unpaid Principal Balance of Bond Investment Eliminated Due to Consolidation | ' | 113,500,000 | ' | ' | 123,900,000 | ' | ' | ' | ' | ' | ' | 33,300,000 | |
Available-for-sale Securities, Debt Securities | ' | 124,900,000 | ' | ' | 125,100,000 | ' | ' | ' | ' | ' | ' | ' | |
Non Accrual Bonds | ' | 70,500,000 | ' | ' | 103,800,000 | ' | ' | 103,400,000 | ' | ' | ' | ' | |
Non Accrual Bonds Interest Income Cash Basis Method | ' | 3,200,000 | 2,400,000 | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | |
Interest Income Non Accrual Bonds Not Recognized | ' | 3,600,000 | 3,700,000 | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | |
Repayments of Debt from Sales and Redemptions of Bonds | ' | 10,100,000 | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Subordinate Bond Investments Un Paid Principal Balance | ' | 9,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Subordinate Bond Investments Eliminated in consolidation | ' | 49,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Subordinate Bond Investments Held By third Party | ' | 15,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Fair Value Disclosure | ' | ' | ' | 848,600,000 | ' | 30,600,000 | ' | ' | ' | ' | ' | ' | |
Restricted Cash And Accrued Interest | ' | ' | ' | ' | ' | ' | ' | ' | 51,500,000 | ' | ' | ' | |
Elimination Of Debt Instrument And Preferred Equity Financing | ' | ' | ' | ' | ' | ' | ' | ' | 816,700,000 | ' | ' | ' | |
Contractual Obligation, Total | 118,000,000 | ' | ' | ' | ' | ' | ' | ' | 821,400,000 | ' | ' | ' | |
Preferred Stock, Liquidation Preference, Value | ' | ' | ' | 121,000,000 | 159,000,000 | ' | ' | ' | ' | ' | ' | ' | |
Increase in Restricted Cash | ' | 16,337,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Decrease in Restricted Cash | 1,665,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Maturity Date, Description | ' | 'bonds that are 30 days or greater past due in either principal or interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt, Weighted Average Interest Rate | ' | ' | ' | ' | ' | 6.90% | ' | ' | ' | ' | ' | ' | |
Debt Instrument Notional Amount Description | ' | ' | ' | ' | ' | 'the Company is required to pay the Purchaser a rate of SIFMA (Securities Industry and Financial Markets Association) plus a spread of 150 basis points ("bps") on the notional amount of the TRS. | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Collateral Amount | ' | ' | ' | ' | ' | 16,300,000 | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Increase (Decrease), Net, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,800,000 | -94,410,000 | [1] | ' |
Gain on sale of securities | ' | $75,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The sum of these amounts total $848.6 million and represents the fair value of the bonds sold on July 3, 2013. |
INVESTMENTS_IN_PREFERRED_STOCK1
INVESTMENTS IN PREFERRED STOCK (Details Textual) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||
31-May-09 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-09 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | |
Maximum [Member] | Guarantee Obligation to Specific Loans [Member] | Cover Losses on Specific Loans [Member] | Total Return Swaps [Member] | Mma Mortgage Investment Corporation [Member] | ||||
Preferred Stock, Dividend Rate, Percentage | ' | 14.40% | ' | ' | ' | ' | ' | ' |
Maximum Exposure of Reimbursements Under Loss Sharing Arrangements | ' | ' | ' | $30,000,000 | ' | ' | ' | ' |
Loss Sharing Arrangements, Expiration Date | ' | ' | ' | 15-May-13 | ' | ' | ' | ' |
Reimbursements Loss Sharing Obligation | 3,400,000 | ' | ' | ' | ' | ' | ' | ' |
Investment in preferred stock, Carrying value | ' | 31,371,000 | 31,371,000 | ' | ' | ' | ' | ' |
Investment in preferred stock, Estimated fair value | ' | 36,600,000 | 35,807,000 | ' | ' | ' | ' | ' |
Payments of Loan Costs | ' | ' | ' | ' | 200,000 | 1,800,000 | ' | ' |
Common Stockholders Equity, Percentage | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Debt Conversion, Converted Instrument, Amount | ' | ' | ' | ' | ' | ' | ' | 36,600,000 |
Derivative, Average Fixed Interest Rate | ' | ' | ' | ' | ' | ' | 14.40% | ' |
Derivative, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | 'Company pays a quarterly rate of 3-month LIBOR plus a spread of 400 bps, 4.25% at September 30, 2013 | ' |
Derivative Notional Amount | ' | ' | ' | ' | ' | ' | 12,400,000 | ' |
Derivative, Maturity Date | ' | ' | ' | ' | ' | ' | 31-Mar-15 | ' |
Termination Fee Percentage | ' | ' | ' | ' | ' | ' | 1.00% | ' |
Proceeds from Convertible Debt | ' | ' | ' | ' | ' | ' | $36,600,000 | ' |
REAL_ESTATE_Details
REAL ESTATE (Details ) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Real estate held-for-use | $121,863 | $129,687 | ||
MuniMae’s [Member] | ' | ' | ||
Real estate held-for-use | 18,214 | 17,756 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Real estate held-for-use | $103,649 | [1] | $111,931 | [1] |
[1] | For more information see Note 16, “Consolidated Funds and Ventures.†|
REAL_ESTATE_Details_Textual
REAL ESTATE (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | |
Inventory, Real Estate, Other | $121,863,000 | ' | ' | $121,863,000 | ' | $129,687,000 | ' |
Fair Value Of Bond Investments In Real Estate | 10,400,000 | ' | ' | 10,400,000 | ' | ' | 7,300,000 |
Proceeds from Sale of Real Estate | 10,700,000 | 7,300,000 | ' | ' | ' | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain, Total | ' | ' | ' | 36,147,000 | ' | 139,022,000 | ' |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | 274,000 | ' | -393,000 | 5,215,000 | 1,342,000 | ' | ' |
Undeveloped Land [Member] | ' | ' | ' | ' | ' | ' | ' |
Inventory, Real Estate, Other | 7,900,000 | ' | ' | 7,900,000 | ' | 7,900,000 | ' |
Number of Investments | 3 | ' | ' | 3 | ' | 3 | ' |
Multifamily Property [Member] | ' | ' | ' | ' | ' | ' | ' |
Inventory, Real Estate, Other | 10,300,000 | ' | ' | 10,300,000 | ' | 9,900,000 | ' |
Real estate held-for-sale [Member] | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain, Total | 2,400,000 | 1,200,000 | ' | ' | ' | ' | ' |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | $300,000 | ' | ' | ' | ' | ' | ' |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Other assets: | ' | ' | ||
Solar facilities (includes other assets such as cash and other receivables) | $5,640 | $7,960 | ||
Accrued interest receivable | 1,461 | 6,035 | ||
State tax receivables, net | 219 | 2,403 | ||
Debt issuance costs, net | 3,705 | 10,199 | ||
Loans receivable | 1,188 | 1,165 | ||
Other assets | 2,210 | 3,428 | ||
Total other assets | 44,226 | 55,024 | ||
Real Estate Partnership [Member] | ' | ' | ||
Other assets: | ' | ' | ||
Investment in a real estate partnership | 6,089 | 6,266 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Other assets: | ' | ' | ||
Other assets | $23,714 | [1] | $17,568 | [1] |
[1] | For more information see Note 16, “Consolidated Funds and Ventures.†|
OTHER_ASSETS_Details_1
OTHER ASSETS (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment in a real estate partnership: | ' | ' |
Total liabilities | $447 | $0 |
Primary Real Estate [Member] | ' | ' |
Investment in a real estate partnership: | ' | ' |
Total assets (primarily real estate) | $18,800 | $18,820 |
OTHER_ASSETS_Details_2
OTHER ASSETS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net (loss) income | ($194) | ($38) | ($583) | $302 |
OTHER_ASSETS_Details_Textual
OTHER ASSETS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | |
Commonwealth of Massachusetts [Member] | Commonwealth of Massachusetts [Member] | Solar Fund [Member] | Solar Fund [Member] | |||||
Termination Fee | ' | ' | ' | ' | ' | ' | ' | $1,300,000 |
Non-Recourse Debt | ' | ' | ' | ' | ' | ' | 800,000 | ' |
Contingent Interest Related To Termination | ' | ' | ' | ' | ' | ' | ' | 300,000 |
Contingent Liability | ' | 500,000 | ' | ' | ' | ' | 1,300,000 | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | ' | 33.30% | ' | ' | ' | ' | ' | ' |
Proceeds from Income Tax Refunds | ' | ' | ' | ' | 1,800,000 | ' | ' | ' |
Liability for Uncertain Tax Positions, Current | ' | 700,000 | ' | 2,300,000 | ' | 1,600,000 | ' | ' |
Debt Instrument, Unpaid Principal Balance | 695,700,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits | ' | ' | 1,600,000 | ' | ' | ' | ' | ' |
Interest and Debt Expense | 5,500,000 | ' | ' | ' | ' | ' | ' | ' |
Investments | ' | $157,791,000 | ' | $161,433,000 | ' | ' | $4,900,000 | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | '20 years | ' |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Debt, Carrying Value | $461,126 | $1,042,959 | ||
Debt, Weighted Average Effective Interest Rate | 5.70% | 4.10% | ||
Senior Interest in and Debt Owed to Securitization Trusts [Member] | ' | ' | ||
Debt, Carrying Value | 0 | 589,592 | ||
Mandatorily Redeemable Preferred Shares [Member] | ' | ' | ||
Debt, Carrying Value | 0 | 88,720 | ||
Subordinated Debt [Member] | ' | ' | ||
Debt, Carrying Value | 142,899 | ' | ||
Asset Related Debt [Member] | ' | ' | ||
Debt, Carrying Value | 154,906 | [1] | 761,948 | [1] |
Debt, Weighted Average Effective Interest Rate | 5.20% | [1] | 3.20% | [1] |
Asset Related Debt [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 0 | [1] | 0 | [1] |
Debt, Weighted Average Effective Interest Rate | 0.00% | [1] | 0.00% | [1] |
Asset Related Debt [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 0 | [1] | 589,592 | [1] |
Debt, Weighted Average Effective Interest Rate | 0.00% | [1] | 2.10% | [1] |
Asset Related Debt [Member] | Mandatorily Redeemable Preferred Shares [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 0 | [1] | 4,901 | [1] |
Debt, Weighted Average Effective Interest Rate | 0.00% | [1] | 7.50% | [1] |
Asset Related Debt [Member] | Mandatorily Redeemable Preferred Shares [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 0 | [1] | 83,819 | [1] |
Debt, Weighted Average Effective Interest Rate | 0.00% | [1] | 7.40% | [1] |
Asset Related Debt [Member] | Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 21,261 | [1],[2] | 0 | [1],[2] |
Debt, Weighted Average Effective Interest Rate | 1.80% | [1],[2] | 0.00% | [1],[2] |
Asset Related Debt [Member] | Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 125,043 | [1],[2] | 57,729 | [1],[2] |
Debt, Weighted Average Effective Interest Rate | 5.50% | [1],[2] | 5.00% | [1],[2] |
Asset Related Debt [Member] | Non Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 1,446 | [1] | 17,617 | [1] |
Debt, Weighted Average Effective Interest Rate | 9.20% | [1] | 9.90% | [1] |
Asset Related Debt [Member] | Non Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 7,156 | [1] | 8,290 | [1] |
Debt, Weighted Average Effective Interest Rate | 9.90% | [1] | 9.80% | [1] |
Other Debt [Member] | ' | ' | ||
Debt, Carrying Value | 210,078 | [1] | 225,578 | [1] |
Debt, Weighted Average Effective Interest Rate | 6.70% | [1] | 7.20% | [1] |
Other Debt [Member] | Notes Payable and Other Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 5,342 | [1],[3] | 10,444 | [1],[3] |
Debt, Weighted Average Effective Interest Rate | 10.00% | [1],[3] | 13.50% | [1],[3] |
Other Debt [Member] | Notes Payable and Other Debt [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 61,837 | [1] | 20,634 | [1] |
Debt, Weighted Average Effective Interest Rate | 5.30% | [1] | 6.40% | [1] |
Other Debt [Member] | Subordinated Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 742 | [1],[4] | 529 | [1],[4] |
Debt, Weighted Average Effective Interest Rate | 8.10% | [1],[4] | 8.10% | [1],[4] |
Other Debt [Member] | Subordinated Debt [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 142,157 | [1],[4] | 193,971 | [1],[4] |
Debt, Weighted Average Effective Interest Rate | 7.20% | [1],[4] | 6.90% | [1],[4] |
Debt Related to Consolidated Funds and Ventures [Member] | ' | ' | ||
Debt, Carrying Value | 96,142 | [5] | 55,433 | [5] |
Debt, Weighted Average Effective Interest Rate | 4.50% | [5] | 3.50% | [5] |
Debt Related to Consolidated Funds and Ventures [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 35 | [5] | 5,908 | [5] |
Debt, Weighted Average Effective Interest Rate | 6.00% | [5] | 10.00% | [5] |
Debt Related to Consolidated Funds and Ventures [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 96,107 | [5] | 49,525 | [5] |
Debt, Weighted Average Effective Interest Rate | 4.50% | [5] | 2.70% | [5] |
Asset Related Debt And Other Debt [Member] | ' | ' | ||
Debt, Carrying Value | $364,984 | [1] | $987,526 | [1] |
Debt, Weighted Average Effective Interest Rate | 6.10% | [1] | 4.10% | [1] |
[1] | Asset related debt is debt which finances interest-bearing assets and the interest expense from this debt is included in “Net interest income†on the consolidated statements of operations. Other debt is debt which does not finance interest-bearing assets and the interest expense from this debt is included in “Interest expense†under “Operating and other expenses†on the consolidated statements of operations. | |||
[2] | Included in notes payable and other debt were unamortized discounts of $1.7 million at December 31, 2012. | |||
[3] | This amount includes $3.8 million of debt that has come due and remains payable; however, the Company has a forbearance agreement with the lender such that it is not pursuing any remedies. | |||
[4] | Included in the subordinate debt balance were $1.3 million of net discounts and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) and $7.1 million of net premiums and effective interest rate payable at September 30, 2013 and December 31, 2012, respectively. | |||
[5] | See Note 16, “Consolidated Funds and Ventures†for more information. |
DEBT_Details_1
DEBT (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total | $461,126 | $1,042,959 |
Asset Related Debt And Other Debt [Member] | ' | ' |
2013 | 4,754 | ' |
2014 | 25,157 | ' |
2015 | 67,007 | ' |
2016 | 34,133 | ' |
2017 | 3,737 | ' |
Thereafter | 228,985 | ' |
Net Discount | 1,211 | ' |
Total | 364,984 | ' |
Consolidated Funds and Ventures [Member] | ' | ' |
2013 | 133 | ' |
2014 | 469 | ' |
2015 | 403 | ' |
2016 | 435 | ' |
2017 | 469 | ' |
Thereafter | 92,974 | ' |
Net Discount | 1,259 | ' |
Total | $96,142 | $55,433 |
DEBT_Details_2
DEBT (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Carrying Amount | $461,126 | $1,042,959 |
Maturity Date | 'bonds that are 30 days or greater past due in either principal or interest | ' |
Subordinated Debt [Member] | ' | ' |
Principal | 141,580 | ' |
Net Premium/ (Discount) | 1,319 | ' |
Carrying Amount | 142,899 | ' |
Subordinated Debt [Member] | MFI issuer [Member] | ' | ' |
Principal | 29,651 | ' |
Carrying Amount | 29,651 | ' |
Interim Principal Payment | '0 | ' |
Maturity Date | 'Various dates through December 2033 | ' |
Coupon Interest Rate | '8.0% | ' |
Subordinated Debt [Member] | MFH Issuer 1 [Member] | ' | ' |
Principal | 33,286 | ' |
Net Premium/ (Discount) | 565 | ' |
Carrying Amount | 33,851 | ' |
Interim Principal Payment | '$4,689 due April 2015 | ' |
Maturity Date | 'March 30, 2035 | ' |
Coupon Interest Rate | '0.75% to March 2015, then 3-month LIBOR plus 3.3% | ' |
Subordinated Debt [Member] | MFH Issuer 2 [Member] | ' | ' |
Principal | 30,116 | ' |
Net Premium/ (Discount) | 331 | ' |
Carrying Amount | 30,447 | ' |
Interim Principal Payment | '$4,242 due May 2015 | ' |
Maturity Date | 'April 30, 2035 | ' |
Coupon Interest Rate | '0.75% to April 2015, then 3-month LIBOR plus 3.3% | ' |
Subordinated Debt [Member] | MFH Issuer 3 [Member] | ' | ' |
Principal | 17,219 | ' |
Net Premium/ (Discount) | 150 | ' |
Carrying Amount | 17,369 | ' |
Interim Principal Payment | '$2,305 due May 2015 | ' |
Maturity Date | 'July 30, 2035 | ' |
Coupon Interest Rate | '0.75% to April 2015, then 3-month LIBOR plus 3.3% | ' |
Subordinated Debt [Member] | MFH Issuer 4 [Member] | ' | ' |
Principal | 31,308 | ' |
Net Premium/ (Discount) | 273 | ' |
Carrying Amount | $31,581 | ' |
Interim Principal Payment | '$4,191 due May 2015 | ' |
Maturity Date | 'July 30, 2035 | ' |
Coupon Interest Rate | '0.75% to April 2015, then 3-month LIBOR plus 3.3% | ' |
DEBT_Details_Textual
DEBT (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 03, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 03, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |||||
Standby Letters of Credit [Member] | Standby Letters of Credit [Member] | Mma Realty Capital Llc [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Mandatorily Redeemable Preferred Shares [Member] | Mandatorily Redeemable Preferred Shares [Member] | Mandatorily Redeemable Preferred Shares [Member] | Mandatorily Redeemable Preferred Shares [Member] | Mandatorily Redeemable Preferred Shares [Member] | Notes Payable and Other Debt [Member] | Notes Payable and Other Debt [Member] | Notes Payable and Other Debt [Member] | Notes Payable and Other Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Bond Related Debt [Member] | Bond Related Debt [Member] | Bond Related Debt [Member] | Non Bond Related Debt [Member] | ||||||||||||
Mature July 2013 [Member] | TE Bond Subsidiary LLC [Member] | TE Bond Subsidiary LLC [Member] | Paid at Inception [Member] | Payable at Termination [Member] | MFH Issuer [Member] | Senior Interest in and Debt Owed to Securitization Trusts [Member] | Mandatorily Redeemable Preferred Shares [Member] | Notes Payable and Other Debt [Member] | Notes Payable and Other Debt [Member] | ||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | $900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000 | $1,700,000 | ' | ||||
Debt Instrument, Debt Default, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net Discount and Effective Interest Rate Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | 1,300,000 | ' | ' | ' | ' | ' | ||||
Net Premiums and Effective Interest Rate Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,100,000 | ' | 7,100,000 | ' | ' | ' | ' | ' | ||||
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25% | ||||
Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,900,000 | ' | ' | ' | ' | ||||
Interest expense | 2,199,000 | [1] | 6,547,000 | [1] | 22,213,000 | [1] | 20,090,000 | [1] | ' | ' | ' | ' | ' | ' | ' | 11,300,000 | 9,600,000 | ' | ' | 6,500,000 | 6,400,000 | ' | ' | ' | ' | ' | ' | 8,200,000 | 11,400,000 | ' | ' | ' | ' | ' | ' |
Preferred Stock, Liquidation Preference, Value | ' | ' | ' | ' | 121,000,000 | ' | 159,000,000 | ' | ' | ' | ' | ' | ' | ' | 43,200,000 | ' | ' | ' | 121,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,600,000 | ||||
Preferred Stock, Dividend Rate, Percentage | ' | ' | 14.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Quarterly Distribution Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt Instrument, Unpaid Principal Balance | ' | ' | ' | ' | ' | 695,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 45,500,000 | 577,100,000 | ' | ' | ' | ||||
Subordinated Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,400,000 | ' | ' | ' | ' | ||||
Gains (Losses) on Extinguishment of Debt | ' | ' | 36,179,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 37,900,000 | ' | ' | ' | ' | ||||
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The debt is non-amortizing, matures on March 31, 2015 and bears an interest rate of 3-month LIBOR plus 400 bps | ||||
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | 400,000 | ' | ' | ' | 1,600,000 | ' | ' | ' | 800,000 | ||||
Line of Credit Facility, Collateral Fees, Amount | ' | ' | ' | ' | ' | ' | ' | 100,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt Not Assumed By Purchaser | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Acceleration Of Debt issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,600,000 | ' | ' | ' | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Represents interest expense related to debt which finances interest-bearing assets. See Note 6, “Debt.†|
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Liabilities | $662 | $3,544 |
Interest Rate Swap [Member] | ' | ' |
Fair Value Liabilities | 662 | 3,184 |
Other Contract [Member] | ' | ' |
Fair Value Liabilities | $0 | $360 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) (Interest Rate Swap [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap [Member] | ' | ' |
Derivative Notional Amount | $7,837 | $24,885 |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Realized/Unrealized (Losses) Gains | ($76) | ($658) | $59 | ($2,134) | ||||
Interest Rate Swap [Member] | ' | ' | ' | ' | ||||
Realized/Unrealized (Losses) Gains | -76 | [1] | -655 | [1] | -156 | [1] | -2,336 | [1] |
Other Contract [Member] | ' | ' | ' | ' | ||||
Realized/Unrealized (Losses) Gains | $0 | ($3) | $215 | $202 | ||||
[1] | The cash paid and received on interest rate swaps is settled on a net basis and recorded through “Net gains (losses) on assets and derivatives.†Net cash interest paid was $0.1 million and $1.0 million for the three months ended September 30, 2013 and 2012, respectively. Net cash paid was $0.7 million and $3.2 million for the nine months ended September 30, 2013 and 2012, respectively. |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Interest Payments on Derivatives | $0.10 | $1 | $0.70 | $3.20 |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments in preferred stock, Carrying Amount | $31,371 | $31,371 |
Investments in preferred stock, Fair Value | 36,600 | 35,807 |
Loans receivable, Carrying Amount | 1,174 | 1,072 |
Loans receivable, Fair Value | ' | 383 |
Long Term Debt, Carrying Amount | 461,126 | 1,042,959 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Investments in preferred stock, Fair Value | 0 | ' |
Loans receivable, Fair Value | 0 | ' |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Investments in preferred stock, Fair Value | 0 | ' |
Loans receivable, Fair Value | 0 | ' |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Investments in preferred stock, Fair Value | 36,613 | ' |
Loans receivable, Fair Value | 302 | ' |
Senior Interest in and Debt Owed to Securitization Trusts [Member] | ' | ' |
Long Term Debt, Carrying Amount | 0 | 589,592 |
Long Term Debt, Fair Value | ' | 589,778 |
Senior Interest in and Debt Owed to Securitization Trusts [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Senior Interest in and Debt Owed to Securitization Trusts [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Senior Interest in and Debt Owed to Securitization Trusts [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Mandatorily Redeemable Preferred Shares [Member] | ' | ' |
Long Term Debt, Carrying Amount | 0 | 88,720 |
Long Term Debt, Fair Value | ' | 91,517 |
Mandatorily Redeemable Preferred Shares [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Mandatorily Redeemable Preferred Shares [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Mandatorily Redeemable Preferred Shares [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | ' | ' |
Long Term Debt, Carrying Amount | 146,304 | 57,729 |
Long Term Debt, Fair Value | ' | 59,001 |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Long Term Debt, Fair Value | 145,091 | ' |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | ' | ' |
Long Term Debt, Carrying Amount | 75,781 | 56,985 |
Long Term Debt, Fair Value | ' | 48,696 |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Long Term Debt, Fair Value | 67,851 | ' |
Subordinated Debt [Member] | ' | ' |
Long Term Debt, Carrying Amount | 142,899 | ' |
Subordinated Debt [Member] | Mma Financial Holdings, Inc [Member] | ' | ' |
Long Term Debt, Carrying Amount | 113,248 | 164,500 |
Long Term Debt, Fair Value | ' | 47,219 |
Subordinated Debt [Member] | MMA Financial Inc [Member] | ' | ' |
Long Term Debt, Carrying Amount | 29,651 | 30,000 |
Long Term Debt, Fair Value | ' | 30,000 |
Subordinated Debt [Member] | Fair Value, Inputs, Level 1 [Member] | Mma Financial Holdings, Inc [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Subordinated Debt [Member] | Fair Value, Inputs, Level 1 [Member] | MMA Financial Inc [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Subordinated Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Mma Financial Holdings, Inc [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Subordinated Debt [Member] | Fair Value, Inputs, Level 2 [Member] | MMA Financial Inc [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Subordinated Debt [Member] | Fair Value, Inputs, Level 3 [Member] | Mma Financial Holdings, Inc [Member] | ' | ' |
Long Term Debt, Fair Value | 42,869 | ' |
Subordinated Debt [Member] | Fair Value, Inputs, Level 3 [Member] | MMA Financial Inc [Member] | ' | ' |
Long Term Debt, Fair Value | 29,651 | ' |
Liabilities of consolidated funds and ventures, Notes payable [Member] | ' | ' |
Long Term Debt, Carrying Amount | 96,142 | 55,433 |
Long Term Debt, Fair Value | ' | 55,580 |
Liabilities of consolidated funds and ventures, Notes payable [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Long Term Debt, Fair Value | 0 | ' |
Liabilities of consolidated funds and ventures, Notes payable [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Long Term Debt, Fair Value | 49,745 | ' |
Liabilities of consolidated funds and ventures, Notes payable [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Long Term Debt, Fair Value | $44,977 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Bonds available-for-sale | $196,485 | $969,394 |
Liabilities: | ' | ' |
Derivative liabilities | 662 | 3,544 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Bonds available-for-sale | 0 | 0 |
Liabilities: | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Bonds available-for-sale | 0 | 0 |
Liabilities: | ' | ' |
Derivative liabilities | 0 | 2,477 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Bonds available-for-sale | 196,485 | 969,394 |
Liabilities: | ' | ' |
Derivative liabilities | $662 | $1,067 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Available-for-sale Securities [Member] | ' | ' | ' | ' | ||||
Bonds Available-for-Sale, Beginning Balance | $896,322 | $1,006,539 | $969,394 | $1,021,628 | ||||
Bonds Available-for-Sale , Net losses included in earnings | -1,321 | -3,373 | -4,589 | -6,397 | ||||
Bonds Available-for-Sale, Net gains (losses) included in other comprehensive lncome | -80,682 | [1] | 15,085 | [2] | -91,980 | [3] | 31,806 | [4] |
Bonds Available-for Sale, Impact from purchases | ' | 0 | ' | 6,189 | ||||
Bonds Available-for Sale, Impact from sales/redemptions | -606,121 | 0 | -612,154 | -8,172 | ||||
Bonds Available-for Sale, Bonds eliminated due to real estate consolidation and foreclosure | 10,168 | 21,545 | 55,275 | 34,108 | ||||
Bonds Available-for Sale, Impact from settlements | -1,545 | -2,419 | -8,911 | -16,659 | ||||
Bonds Available-for Sale, Transfer into Level 3 | ' | ' | ' | 0 | ||||
Bonds Available-for-Sale, Ending Balance | 196,485 | 994,287 | 196,485 | 994,287 | ||||
Derivative Financial Instruments, Liabilities [Member] | ' | ' | ' | ' | ||||
Derivative Liabilities, Beginning Balance | -694 | -1,192 | -1,067 | -1,167 | ||||
Derivative Liabilities, Net losses included in earnings | 32 | -27 | 259 | 429 | ||||
Derivative Liabilities, Net gains (losses) included in other comprehensive lncome | 0 | [1] | 0 | [2] | 0 | [3] | 0 | [4] |
Derivative Liabilities, Impact from purchases | ' | 0 | ' | 0 | ||||
Derivative Liabilities, Impact from sales/redemptions | 0 | 0 | 0 | 0 | ||||
Derivative Liabilities, Bonds eliminated due to real estate consolidation and foreclosure | 0 | 0 | 0 | 0 | ||||
Derivative Liabilities, Impact from settlements | 0 | 0 | 146 | 128 | ||||
Derivative Liabilities, Transfer into Level 3 | ' | ' | ' | -609 | ||||
Derivative Liabilities, Ending Balance | ($662) | ($1,219) | ($662) | ($1,219) | ||||
[1] | This amount includes $5.2 million of unrealized net holding losses arising during the period, which is then reduced by $0.9 million of unrealized bond losses reclassified into operations. This amount is then increased by $76.4 million of unrealized gains related to bonds that were redeemed. | |||||||
[2] | This amount includes $12.8 million of unrealized net holding gains arising during the period, which is then increased by $2.3 million of unrealized bond losses reclassified into operations. | |||||||
[3] | This amount includes $16.8 million of unrealized net holding losses arising during the period, which is then reduced by $1.8 million of unrealized bond losses reclassified into operations. This amount is then increased by $77.0 million of unrealized gains related to bonds that were redeemed | |||||||
[4] | This amount includes $28.4 million of unrealized net holding gains arising during the period, which is then increased by $3.4 million of unrealized bond losses reclassified into operations. |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net (Losses) gains on bonds [Member] | ' | ' | ' | ' | ||||
Change in realized gains related to assets and liabilities | $0 | [1] | $0 | [1] | ($530) | [1] | $0 | [1] |
Change in unrealized losses related to assets and liabilities | -939 | [1] | -2,282 | [1] | -1,242 | [1] | -3,369 | [1] |
Additional realized gains (losses) recognized | 76,362 | [1] | 2 | [1] | 76,960 | [1] | 54 | [1] |
Total (losses) gains reported in earnings | 75,423 | [1] | -2,280 | [1] | 75,188 | [1] | -3,315 | [1] |
Equity in Losses from Lower Tier Property Partnerships [Member] | ' | ' | ' | ' | ||||
Change in realized gains related to assets and liabilities | 0 | 0 | 0 | 0 | ||||
Change in unrealized losses related to assets and liabilities | -382 | -1,091 | -2,817 | -3,028 | ||||
Additional realized gains (losses) recognized | 0 | 0 | 0 | 0 | ||||
Total (losses) gains reported in earnings | -382 | -1,091 | -2,817 | -3,028 | ||||
Net losses on derivatives [Member] | ' | ' | ' | ' | ||||
Change in realized gains related to assets and liabilities | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Change in unrealized losses related to assets and liabilities | 32 | [2] | -27 | [2] | 259 | [2] | -180 | [2] |
Additional realized gains (losses) recognized | -77 | [2] | -76 | [2] | -230 | [2] | -228 | [2] |
Total (losses) gains reported in earnings | ($45) | ($103) | $29 | ($408) | ||||
[1] | Amounts are reflected through “Impairment on bonds†and “Net gains (losses) on assets and derivatives†on the consolidated statements of operations. | |||||||
[2] | Amounts are reflected through “Net gains (losses) on assets and derivatives†on the consolidated statements of operations. |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||
Performing Bond Portfolio [Member] | Performing Bond Portfolio [Member] | Non Performing Bond Portfolio [Member] | Non Performing Bond Portfolio [Member] | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ($5,259) | $12,803 | ($16,792) | $28,489 | ' | ' | ' | ' | ' | ||
Other Comprehensive Income (Loss), Reclassification Adjustment for Write-down of Securities Included in Net Income, Net of Tax | 939 | 2,282 | 1,772 | 3,369 | ' | ' | ' | ' | ' | ||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | $76,362 | [1] | $0 | $76,960 | [1] | $52 | ' | ' | ' | ' | ' |
Weighted Average Discount Rate, Percent | ' | ' | ' | ' | ' | 7.36% | 7.45% | 8.60% | 8.20% | ||
Capitalized Interest Rate | 6.60% | ' | 6.60% | ' | 6.90% | ' | ' | ' | ' | ||
[1] | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives†on the consolidated statements of operations. |
GUARANTEES_AND_COLLATERAL_Deta
GUARANTEES AND COLLATERAL (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Maximum Exposure | $26,178 | $26,554 |
Carrying Amount | 1,281 | 1,565 |
Indemnification Agreement [Member] | ' | ' |
Maximum Exposure | 26,178 | 26,178 |
Carrying Amount | 1,281 | 1,531 |
Other guarantees [Member] | ' | ' |
Maximum Exposure | 0 | 376 |
Carrying Amount | $0 | $34 |
GUARANTEES_AND_COLLATERAL_Deta1
GUARANTEES AND COLLATERAL (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Restricted Cash | $90,949 | $55,313 | ||
Bonds Available-for-Sale | 132,930 | 925,346 | ||
Real estate held-for-use | 121,863 | 129,687 | ||
Real Estate Held-For-Sale | 51,836 | 15,338 | ||
Investment in Preferred stock | 31,371 | ' | ||
Other Assets | 35,768 | 32,259 | ||
Total Assets Pledged | 462,098 | 1,142,605 | ||
Notes Payable, Other Payables [Member] | ' | ' | ||
Restricted Cash | 0 | [1] | 13 | [1] |
Bonds Available-for-Sale | 0 | [1] | 0 | [1] |
Real estate held-for-use | 1,735 | [1] | 1,735 | [1] |
Real Estate Held-For-Sale | 0 | ' | ||
Investment in Preferred stock | 0 | [1] | ' | |
Other Assets | 11,728 | [1] | 14,302 | [1] |
Total Assets Pledged | 13,463 | [1] | 16,050 | [1] |
Other Assets [Member] | ' | ' | ||
Restricted Cash | 35,004 | [2] | 1,341 | [2] |
Bonds Available-for-Sale | 132,930 | [2] | 59,354 | [2] |
Real estate held-for-use | 13,860 | [2] | 13,402 | [2] |
Real Estate Held-For-Sale | 0 | ' | ||
Investment in Preferred stock | 31,371 | [2] | ' | |
Other Assets | 326 | [2] | 389 | [2] |
Total Assets Pledged | 213,491 | [2] | 74,486 | [2] |
Consolidated Funds and Ventures [Member] | ' | ' | ||
Restricted Cash | 55,945 | [3],[4] | 53,957 | [3] |
Bonds Available-for-Sale | 0 | [3],[4] | 0 | [3] |
Real estate held-for-use | 103,649 | [3],[4] | 111,931 | [3] |
Real Estate Held-For-Sale | 51,836 | [3] | ' | |
Investment in Preferred stock | 0 | [3],[4] | ' | |
Other Assets | 23,714 | [3],[4] | 17,568 | [3] |
Total Assets Pledged | 235,144 | [3],[4] | 183,456 | [3] |
Senior Interests in and Debt Owed to Securitization Trusts [Member] | ' | ' | ||
Restricted Cash | ' | 2 | [5] | |
Bonds Available-for-Sale | ' | 865,992 | [5] | |
Real estate held-for-use | ' | 2,619 | [5] | |
Other Assets | ' | 0 | [5] | |
Total Assets Pledged | ' | $868,613 | [5] | |
[1] | The Company pledges bonds, loans, investments in preferred stock, investments in solar facilities and an investment in a mixed-use real estate development as collateral for notes payable. | |||
[2] | The Company pledges collateral in connection with secured borrowings, derivative transactions, other liabilities, guarantee exposure and leases. The Company may elect to pledge collateral on behalf of the Company’s customers in order to facilitate credit and other collateral requirements. In addition, cash may be restricted for funding obligations. | |||
[3] | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. | |||
[4] | These are assets held by non-profit entities which are consolidated by the Company. The real estate serves as collateral to bonds eliminated in consolidation. | |||
[5] | Includes assets held by bond securitization trusts as well as assets pledged as collateral for bond securitizations. |
GUARANTEES_AND_COLLATERAL_Deta2
GUARANTEES AND COLLATERAL (Details Textual) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Liabilities Indemnification Agreements Payables | $1.50 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
General and Administrative Expense [Member] | ' | ' |
Rental expense | ($1,537) | ($1,660) |
Rental income | 976 | 1,173 |
Net rental expense | -561 | -487 |
Discontinued Operations [Member] | ' | ' |
Rental expense | -492 | -1,107 |
Rental income | 492 | 1,107 |
Net rental expense | $0 | $0 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 1) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
2013 | $457 |
2014 | 1,182 |
2015 | 1,146 |
2016 | 676 |
2017 | 108 |
2018 | 40 |
Total minimum future rental commitments | $3,609 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Lease Expiration Period | '2018 |
Operating Leases Future Minimum Payments Due Excluded From Payment Calculation | $1.80 |
Contingent Liability | $0.50 |
EQUITY_Details
EQUITY (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income from continuing operations | $73,042 | $1,111 | $106,927 | $5,632 | ||||
Net income (loss) from discontinued operations | 274 | -393 | 5,215 | 1,342 | ||||
Net income to common shareholder | $73,316 | $718 | $112,142 | $6,974 | ||||
Basic weighted-average shares | 42,290 | [1] | 42,304 | [1] | 42,380 | [1] | 42,207 | [1] |
Common stock equivalents | 1,626 | [2],[3],[4] | 76 | [2],[3],[4] | 1,443 | [2],[3],[4] | 207 | [2],[3],[4] |
Diluted weighted-average shares | 43,916 | 42,380 | 43,823 | 42,414 | ||||
[1] | Includes common shares issued and outstanding, as well as non-employee directors’ and employee deferred shares that have vested, but are not issued and outstanding. | |||||||
[2] | At September 30, 2013, 2,128,125 stock options were in the money and had a dilutive impact of 1,470,198 shares and 1,373,840 shares for the three months and nine months ended September 30, 2013, respectively. In addition, 260,417 unvested employee deferred shares had a dilutive impact of 156,251 and 69,826 shares for the three and nine months ended September 30, 2013, respectively. | |||||||
[3] | At September 30, 2012, 850,000 stock options were in the money and had a dilutive impact of 75,508 shares and 206,967 shares for the three months and nine months ended September 30, 2012, respectively. There were no unvested employee deferred shares at September 30, 2012. | |||||||
[4] | For the three months and nine months ended September 30, 2013, the average number of options excluded from the calculations of diluted earnings per share was 302,287 and 456,803, respectively, because of their anti-dilutive effect. For the three months and nine months ended September 30, 2012, the average number of options excluded from the calculations of diluted earnings per share was 1,512,031 and 1,060,535, respectively, because of their anti-dilutive effect. |
EQUITY_Details_1
EQUITY (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Noncontrolling interests in: | ' | ' |
Minority Interest | $487,896 | $511,791 |
LIHTC Funds [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | 343,962 | 379,407 |
SA Fund [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | 130,915 | 122,641 |
Lower Tier Property Partnerships [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | 14,470 | 10,777 |
Other Consolidated Entities [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | ($1,451) | ($1,034) |
EQUITY_Details_2
EQUITY (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Unrealized Gains on Bonds Available-for-Sale, Balance at begining period | $119,239 | ' | $139,021 | ' | ||
Unrealized Gains on Bonds Available-for-Sale, Unrealized net holding (losses) gains arising during period | -5,259 | ' | -16,792 | ' | ||
Unrealized Gains on Bonds Available-for-Sale, Reversal of unrealized gains on sold/redeemed bonds | -76,362 | [1] | 0 | -76,960 | [1] | -52 |
Unrealized Gains on Bonds Available-for-Sale, Reclassification of unrealized losses to income | 939 | 2,282 | 1,772 | 3,369 | ||
Unrealized Gains on Bonds Available-for-Sale, Reclassification of unrealized gains to operations due to consolidation of funds and ventures | 2,411 | [1] | 2,853 | 10,895 | [1] | 5,404 |
Unrealized Gains on Bonds Available-for-Sale, Net current period other comprehensive income | -83,093 | ' | -102,875 | ' | ||
Unrealized Gains on Bonds Available-for-Sale, Balance at ending period | 36,146 | ' | 36,146 | ' | ||
Foreign Currency Translation, Balance at begining period | -333 | ' | -334 | ' | ||
Foreign Currency Translation, Unrealized net holding (losses) gains arising during period | 43 | ' | 44 | ' | ||
Foreign Currency Translation, Reversal of unrealized gains on sold/redeemed bonds | 0 | ' | 0 | ' | ||
Foreign Currency Translation, Reclassification of unrealized losses to income | 0 | ' | 0 | ' | ||
Foreign Currency Translation, Reclassification of unrealized gains to operations due to consolidation of funds and ventures | 0 | ' | 0 | ' | ||
Foreign Currency Translation, Net current period other comprehensive income | 43 | -24 | 44 | 97 | ||
Foreign Currency Translation, Balance at ending period | -290 | ' | -290 | ' | ||
Accumulated Other Comprehensive Income, Balance at beginning period | 118,906 | ' | 138,687 | ' | ||
Accumulated Other Comprehensive Income, Unrealized net holding (losses) gains arising during period | -5,216 | ' | -16,748 | ' | ||
Number of Options Expired/Forfeited | -76,362 | ' | -76,960 | ' | ||
Accumulated Other Comprehensive Income, Reclassification of unrealized losses to income | 939 | ' | 1,772 | ' | ||
Accumulated Other Comprehensive Income, Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -2,411 | ' | -10,895 | ' | ||
Accumulated Other Comprehensive Income, Net current period other comprehensive income | -83,050 | 12,208 | -102,831 | 26,499 | ||
Accumulated Other Comprehensive Income, Balance at ending period | $35,856 | ' | $35,856 | ' | ||
[1] | Realized gains on bond redemptions included in “Net gains (losses) on assets and derivatives†on the consolidated statements of operations. |
EQUITY_Details_Textual
EQUITY (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||
Aug. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 26, 2013 | Aug. 16, 2013 | Jul. 03, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | ||
Mandatorily Redeemable Preferred Shares [Member] | Perpetual Preferred Stock [Member] | Board of Directors Chairman [Member] | LIHTC Funds [Member] | Sa Fund [Member] | IHS [Member] | IHS [Member] | TE Bond Subsidiary LLC [Member] | Maximum [Member] | Minimum [Member] | MuniMae TE Bond Subsidiary, LLC [Member] | MuniMae TE Bond Subsidiary, LLC [Member] | MuniMae TE Bond Subsidiary, LLC [Member] | MuniMae TE Bond Subsidiary, LLC [Member] | |||||||||||
LIHTC Funds [Member] | LIHTC Funds [Member] | Mandatorily Redeemable Preferred Shares [Member] | Second Quarter of 2013 [Member] | Second Quarter of 2013 [Member] | Second Quarter of 2013 [Member] | |||||||||||||||||||
Series D Perpetual Preferred Share [Member] | Series C-1 Cumulative Perpetual Preferred Shares [Member] | |||||||||||||||||||||||
Common Stock Equivalents Employee Options | ' | ' | ' | 2,128,125 | 850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Incremental Common Shares Attributable to Call Options and Warrants | ' | 1,470,198 | 75,508 | 1,373,840 | 206,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements | ' | 156,251 | ' | 69,826 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unvested Employee Deferred Shares | ' | ' | ' | 260,417 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 302,287 | 1,512,031 | 456,803 | 1,060,535 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Repurchased During Period, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | ' | ' | ' | 5,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | ' | 386,236 | ' | 386,236 | ' | 800,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Equity Issuance, Per Share Amount | ' | ' | ' | $1.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Equity, Fair Value Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | |
Preferred Stock, Liquidation Preference, Value (in dollars) | ' | ' | ' | ' | ' | ' | ' | 121,000,000 | 159,000,000 | 43,200,000 | 27,000,000 | ' | ' | ' | ' | ' | 118,000,000 | ' | ' | 74,000,000 | 9,500,000 | 6,000,000 | 5,000,000 | |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | 14.40% | ' | ' | ' | ' | ' | 7.50% | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | |
Stockholders Equity, Period Increase (Decrease) | ' | ' | ' | -3,022,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' |
Proceeds from Issuance of Preferred Stock and Preference Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | |
Preferred Stock Redemption Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.70% | 17.00% | 17.00% | ' | 0.04% | 0.01% | ' | ' | ' | ' | |
Decline in LIHTC Funds' Investment Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Noncontrolling Interest, Period Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,400,000 | 8,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Noncontrolling Interests | ' | ' | ' | 8,051,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Translation Adjustment Functional to Reporting Currency, Loss (Gain), Reclassified to Earnings, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Foreign Currency Transaction Gain (Loss), before Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reduction Due To Unamortized Issuance Discounts And Net Premiums Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Repurchase Program, Shares Authorized To Be Repurchased | 'the Company to purchase up to four million shares, and up to 800,000 shares in any one calendar month at a price up to 100% of its common shareholders equity per share as shown on its most recently filed periodic report. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Represents the difference between the Company’s carrying value of the perpetual preferred shares on June 30, 2013 of $118.0 million as compared to the liquidation preference amount assumed in the sale on July 3, 2013 of $121.0 million. |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employees’ Stock-Based Compensation Plan | $279 | $22 | $1,937 | $106 |
Non-employee Directors’ Stock-Based Compensation Plan | 75 | 63 | 200 | 188 |
Total | $354 | $85 | $2,137 | $294 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (Employee Stock Option [Member], USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Employee Stock Option [Member] | ' | ' | ||
Number of Options Outstanding at beginning of period | 2,345 | [1] | 1,145 | [1] |
Number of Options Granted | ' | 1,200 | ||
Number of Options Forfeited/Expired | -264 | ' | ||
Number of Options Outstanding at end of period | 2,081 | [1] | 2,345 | [1] |
Number of options that were exercisable | 1,436 | 1,333 | ||
Weighted average Exercise Price per Option Outstanding at beginning of period | $3.61 | [1] | $7.01 | [1] |
Weighted average Exercise Price per Option Granted | ' | $0.36 | ||
Weighted average Exercise Price per Option Forfeited/Expired | $26.50 | ' | ||
Weighted average Exercise Price per Option Outstanding at end of period | $0.70 | [1] | $3.61 | [1] |
Weighted average Exercise Price per Option Exercisable | $0.86 | $6.08 | ||
Weighted Average Remaining Contractual Life per Option (in years) Outstanding at beginning of period | ' | '7 years 2 months 12 days | [1] | |
Weighted Average Remaining Contractual Life per Option (in years) Outstanding at end of period | '7 years 7 months 6 days | [1] | '7 years 9 months 18 days | [1] |
Weighted average Remaining Contractual Life per Option (in years) Exercisable | '7 years 2 months 12 days | '6 years 7 months 6 days | ||
Aggregate Intrinsic Value Outstanding at beginning of period | $58 | [1] | $0 | [1] |
Aggregate Intrinsic Value Outstanding at end of period | 2,024 | [1] | 58 | [1] |
Period End Liability Outstanding at beginning of period | 355 | [1],[2] | 181 | [1],[2] |
Period End Liability Outstanding at end of period | $2,076 | [1],[2] | $355 | [1],[2] |
[1] | Intrinsic value is based on outstanding shares. | |||
[2] | Only options that were amortized based on a vesting schedule have a liability balance. These options were 1,812,118; 1,486,345; and 818,556 at September 30, 2013, December 31, 2012 and January 1, 2012, respectively. |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred Share Grants, Granted | 5 | 0 |
Employee Deferred Shares [Member] | ' | ' |
Number of Options Outstanding at beginning of period | 29 | ' |
Deferred Share Grants, Granted | 312 | ' |
Number of Options Outstanding at end of period | 341 | ' |
Weighted average Exercise Price per Option Outstanding at beginning of period | 24.98 | ' |
Weighted-average Grant Date Share Price, Granted | 0.88 | ' |
Weighted average Exercise Price per Option Outstanding at end of period | 2.92 | ' |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Number of Options Outstanding at beginning of period | 95,100 | 27,000 |
Number of Options Expired/Forfeited | -17,000 | -10,000 |
Number of Options Granted | ' | 78,100 |
Number of Options Outstanding at end of period | 78,100 | 95,100 |
Number of options that were exercisable | 58,600 | 17,000 |
Weighted average Exercise Price per Option Outstanding at beginning of period | $4.70 | $24.69 |
Weighted average Exercise Price per Option Expired/Forfeited | $24.67 | $24.74 |
Weighted average Exercise Price per Option Granted | ' | $0.36 |
Weighted average Exercise Price per Option Outstanding at end of period | $0.36 | $4.70 |
Weighted average exercise price per Option exercisable | $0.36 | $24.67 |
Weighted- average Remaining Contractual Life per Option (in years) Outstanding at beginning of period | '8 years 3 months 18 days | '1 year 1 month 6 days |
Weighted- average Remaining Contractual Life per Option (in years) Granted | ' | '9 years 9 months 18 days |
Weighted-average Remaining Contractual Life per Option (in years) Outstanding at end of period | '9 years 2 months 12 days | '8 years 3 months 18 days |
Weighted average Remaining Contractual Life per Option exercisable | '9 years 2 months 12 days | '4 months 24 days |
Aggregate Intrinsic Value Outstanding at beginning of period | $0 | $0 |
Aggregate Intrinsic Value Outstanding at end of period | $73 | $0 |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details 4) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Shares Granted | 5 | 0 |
Deferred Share Grants | 62 | 292 |
Weighted - average Grant Date Share Price | $1.21 | $0.32 |
Options Vested | 59 | 0 |
Directors’Fees Expense | $200 | $188 |
STOCKBASED_COMPENSATION_Detail5
STOCK-BASED COMPENSATION (Details Textual) (USD $) | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 02, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | 6,722,033 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | 1,870,936 | ' | ' | ' |
Share based Compensation Arrangement by Share based Payment Award, Options, Vested Number | ' | 1,812,118 | ' | 1,486,345 | 818,556 |
Employee Benefits and Share-based Compensation | ' | $1,700,000 | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Compensation Expense | 200,000 | ' | ' | ' | ' |
Non Employee Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares, Authorized | ' | 5,650,000 | ' | ' | ' |
Share-based Compensation Plans and Nonemployee Services Transaction, Shares Issued | ' | 2,270,735 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | 25,000 | ' | ' | ' |
Noninterest Expense Directors Fees | ' | 200,000 | 188,000 | ' | ' |
Payments for Fees | ' | $100,000 | $93,750 | ' | ' |
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES (Details Textual) (Shelter Group [Member], USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Shelter Group [Member] | ' | ' |
Revenue from Related Parties | $0.20 | $0.40 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Sublease income | $0 | $369 | $492 | $1,107 |
Income from REO operations | 0 | 0 | 0 | 57 |
Rent expense | 0 | -369 | -492 | -1,107 |
Other income | 46 | 113 | 44 | 345 |
Net gains on property acquisition | 320 | 0 | 320 | 0 |
Net income before disposal activity | 283 | 602 | 1,180 | 694 |
Disposal: | ' | ' | ' | ' |
Net gains related to REO | 95 | 0 | 95 | 0 |
Net income from discontinued operations | 403 | 602 | 6,527 | 694 |
(Income) loss from discontinued operations allocable to noncontrolling interests | -129 | -995 | -1,312 | 648 |
Net income (loss) to common shareholders fromdiscontinued operations | 274 | -393 | 5,215 | 1,342 |
Consolidated Funds and Ventures [Member] | ' | ' | ' | ' |
Income from CFVs (primarily rental income) | 3,511 | 5,034 | 10,968 | 14,999 |
Expenses from CFVs (primarily operating expenses) | -3,594 | -4,545 | -10,152 | -14,707 |
Disposal: | ' | ' | ' | ' |
Net gains related to CFVs | $25 | $0 | $5,252 | $0 |
DISCONTINUED_OPERATIONS_Detail1
DISCONTINUED OPERATIONS (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income | $0 | $765 | $1,108 | $2,349 |
Other income | 399 | 478 | 1,268 | 1,476 |
Other expense | 245 | 1,636 | 1,161 | 2,483 |
Net gains on disposal of REO | 95 | 0 | 95 | 0 |
Net gains on redemption of bonds | 25 | 0 | 3,905 | 0 |
Net income (loss) to common shareholders fromdiscontinued operations | $274 | ($393) | $5,215 | $1,342 |
DISCONTINUED_OPERATIONS_Detail2
DISCONTINUED OPERATIONS (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disposal Group, Including Discontinued Operation, Cash Flows of Disposal Group | ' | ' | 'The sale generated $20.1 million of net cash proceeds. | ' |
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | $95,000 | $0 | $95,000 | $0 |
Loss from discontinued operations allocable to noncontrolling interests | -129,000 | -995,000 | -1,312,000 | 648,000 |
Rental Properties | 51,800,000 | ' | 51,800,000 | ' |
Real Estate [Member] | ' | ' | ' | ' |
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | ' | ' | 5,000,000 | ' |
Loss from discontinued operations allocable to noncontrolling interests | ' | ' | $1,400,000 | ' |
CONSOLIDATED_FUNDS_AND_VENTURE2
CONSOLIDATED FUNDS AND VENTURES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total assets of consolidated funds and ventures | $1,039,856 | $1,801,752 |
LIHTC Funds [Member] | ' | ' |
Total assets of consolidated funds and ventures | 343,544 | 381,394 |
SA Fund [Member] | ' | ' |
Total assets of consolidated funds and ventures | 184,770 | 175,572 |
Lower Tier Property Partnerships [Member] | ' | ' |
Total assets of consolidated funds and ventures | 162,286 | 135,674 |
Other Consolidated Entities [Member] | ' | ' |
Total assets of consolidated funds and ventures | 2,065 | 922 |
Consolidated Funds and Ventures [Member] | ' | ' |
Total assets of consolidated funds and ventures | $692,665 | $693,562 |
CONSOLIDATED_FUNDS_AND_VENTURE3
CONSOLIDATED FUNDS AND VENTURES (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments in Lower Tier Property Partnerships | $299,730 | $333,335 |
SA Fund investments | 157,791 | 161,433 |
Real estate held-for-use, net | 121,863 | 129,687 |
Real estate held-for-sale | 51,836 | 15,338 |
Other assets | 44,226 | 55,024 |
Total assets of CFVs | 1,039,856 | 1,801,752 |
Consolidated Funds and Ventures [Member] | ' | ' |
Cash, cash equivalents and restricted cash | 55,945 | 53,957 |
Investments in Lower Tier Property Partnerships | 299,730 | 333,335 |
SA Fund investments | 157,791 | 161,433 |
Real estate held-for-use, net | 103,649 | 111,931 |
Real estate held-for-sale | 51,836 | 15,338 |
Other assets | 23,714 | 17,568 |
Total assets of CFVs | $692,665 | $693,562 |
CONSOLIDATED_FUNDS_AND_VENTURE4
CONSOLIDATED FUNDS AND VENTURES (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
LIHTC Funds' investment in Lower Tier Property Partnerships | $299,730 | $333,335 | ||
Total liabilities of Lower Tier Property Partnerships | 447 | 0 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
LIHTC Funds' investment in Lower Tier Property Partnerships | 299,730 | 333,335 | ||
Total assets of Lower Tier Property Partnerships | 1,335,223 | [1] | 1,371,880 | [1] |
Total liabilities of Lower Tier Property Partnerships | $1,039,405 | [1] | $1,041,961 | [1] |
[1] | The assets of the Lower Tier Property Partnerships are primarily real estate and the liabilities are predominantly mortgage debt. |
CONSOLIDATED_FUNDS_AND_VENTURE5
CONSOLIDATED FUNDS AND VENTURES (Details 3) (Consolidated Funds and Ventures [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Bonds Available-for-Sale, Beginning Balance | $156,723 | $126,950 | $161,433 | $108,329 |
Net gains (losses) included in earnings | 2,882 | -4,511 | 20,178 | 5,480 |
Impact from purchases | 8,029 | 22,713 | 15,699 | 42,449 |
Impact from sales | -7,185 | -73 | -12,293 | -7,496 |
Bonds Available-for-Sale, Ending Balance | 157,791 | 144,926 | 157,791 | 144,926 |
Foreign Currency Gain (Loss) [Member] | ' | ' | ' | ' |
Net foreign currency translation losses included in other comprehensive income | ($2,658) | ($153) | ($27,226) | ($3,836) |
CONSOLIDATED_FUNDS_AND_VENTURE6
CONSOLIDATED FUNDS AND VENTURES (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Building, furniture and fixtures | $108,036 | $116,320 |
Accumulated depreciation | -16,274 | -15,598 |
Land | 11,887 | 11,209 |
Total | $103,649 | $111,931 |
CONSOLIDATED_FUNDS_AND_VENTURE7
CONSOLIDATED FUNDS AND VENTURES (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Land | $11,887 | $11,209 |
Total | 51,836 | 15,338 |
Consolidated Fund And Ventures [Member] | ' | ' |
Cash | 4,216 | 318 |
Building, furniture and fixtures | 48,133 | 14,740 |
Accumulated depreciation | -5,786 | -959 |
Land | 5,111 | 1,215 |
Other assets | 162 | 24 |
Total | $51,836 | $15,338 |
CONSOLIDATED_FUNDS_AND_VENTURE8
CONSOLIDATED FUNDS AND VENTURES (Details 6) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities of CFVs: | ' | ' |
Debt | $461,126 | $1,042,959 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 15,881 |
Other liabilities | 17,281 | 15,145 |
Total liabilities of CFVs | 500,363 | 1,090,027 |
Consolidated Funds and Ventures [Member] | ' | ' |
Liabilities of CFVs: | ' | ' |
Debt | 96,142 | 55,433 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 15,881 |
Other liabilities | 10,167 | 6,150 |
Total liabilities of CFVs | $119,770 | $77,464 |
CONSOLIDATED_FUNDS_AND_VENTURE9
CONSOLIDATED FUNDS AND VENTURES (Details 7) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt, Carrying Amount | $461,126 | $1,042,959 |
Maturity Date, Description | 'bonds that are 30 days or greater past due in either principal or interest | ' |
Consolidated Funds and Ventures [Member] | ' | ' |
Debt, Carrying Amount | 96,142 | 55,433 |
Consolidated Funds and Ventures [Member] | SA Fund [Member] | ' | ' |
Debt, Carrying Amount | 49,621 | 49,352 |
Face Amount | 49,621 | 49,352 |
Weighted-average Effective Interest Rates | 2.60% | 2.60% |
Maturity Date, Description | 'April 2018 | 'April 2018 |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | ' | ' |
Debt, Carrying Amount | 46,521 | 6,081 |
Face Amount | $46,648 | $7,289 |
Weighted-average Effective Interest Rates | 6.40% | 10.40% |
Maturity Date, Description | 'Various dates through March 2049 | 'Various dates through October 2021 |
Recovered_Sheet1
CONSOLIDATED FUNDS AND VENTURES (Details 8) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Expenses: | ' | ' | ' | ' | ||||
Interest expense | $2,199 | [1] | $6,547 | [1] | $22,213 | [1] | $20,090 | [1] |
Net gains (losses) related to CFVs: | ' | ' | ' | ' | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | ' | ' | -20,323 | -25,917 | ||||
Net loss | 62,295 | -13,410 | 98,253 | -23,706 | ||||
Consolidated Funds and Ventures [Member] | ' | ' | ' | ' | ||||
Revenue: | ' | ' | ' | ' | ||||
Rental and other income from real estate | 3,736 | 1,800 | 9,096 | 3,715 | ||||
Interest and other income | 3,739 | 2,267 | 7,784 | 4,743 | ||||
Total revenue from CFVs | 7,475 | 4,067 | 16,880 | 8,458 | ||||
Expenses: | ' | ' | ' | ' | ||||
Depreciation and amortization | 2,386 | 1,525 | 6,169 | 4,056 | ||||
Interest expense | 1,253 | 441 | 2,228 | 1,237 | ||||
Other operating expenses | 3,696 | 1,923 | 8,602 | 4,580 | ||||
Foreign currency loss | 840 | 330 | 8,390 | 1,148 | ||||
Asset impairments | 6,679 | 4,820 | 14,559 | 10,102 | ||||
Total expenses from CFVs | 14,854 | 9,039 | 39,948 | 21,123 | ||||
Net gains (losses) related to CFVs: | ' | ' | ' | ' | ||||
Investment gains (losses) | 3,554 | -4,511 | 20,849 | 5,479 | ||||
Derivative gains (losses) | 258 | -97 | 6,883 | 98 | ||||
Net loss on sale of properties | 0 | 0 | 0 | -170 | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | -6,343 | -6,486 | -20,129 | -25,917 | ||||
Net loss | -9,910 | -16,066 | -15,465 | -33,175 | ||||
Net losses allocable to noncontrolling interests in CFVs | 11,046 | [2] | 17,268 | [2] | 18,426 | [2] | 36,526 | [2] |
Net income allocable to the common shareholders related to CFVs | $1,136 | $1,202 | $2,961 | $3,351 | ||||
[1] | Represents interest expense related to debt which finances interest-bearing assets. See Note 6, “Debt.†| |||||||
[2] | Net losses allocable to noncontrolling interests in CFVs have been adjusted to exclude noncontrolling interests related to IHS because the Company’s equity interest in IHS is substantial. The Company has little to no equity interest in the other CFVs including the two non-profits, the LTPPs, the LIHTC Funds and the SA Fund. |
Recovered_Sheet2
CONSOLIDATED FUNDS AND VENTURES (Details 9) (Consolidated Funds and Ventures [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income allocable to the common shareholders related to consolidated funds and ventures | $1,136 | $1,202 | $2,961 | $3,351 |
Interest Income [Member] | ' | ' | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 274 | 1,169 | 1,779 | 1,789 |
Asset Management Fees [Member] | ' | ' | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 888 | 937 | 2,629 | 3,521 |
Guarantee Fees [Member] | ' | ' | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 331 | 331 | 993 | 1,042 |
Equity In Losses From Lower Tier Property Partnerships [Member] | ' | ' | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | -383 | -1,092 | -2,821 | -3,031 |
Equity In Income From SA Fund [Member] | ' | ' | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 151 | -99 | 643 | 165 |
Other Expense [Member] | ' | ' | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | ($125) | ($44) | ($262) | ($135) |
Recovered_Sheet3
CONSOLIDATED FUNDS AND VENTURES (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 03, 2013 | Dec. 31, 2012 | |
Number | Number | Number | ||||
Number of Consolidated Funds | 11 | ' | 11 | ' | ' | 11 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $26,178,000 | ' | $26,178,000 | ' | ' | $26,554,000 |
Bond Investment in Lower Tier Property Partnerships | 63,600,000 | ' | 63,600,000 | ' | ' | 421,300,000 |
Depreciation | 6,500,000 | 5,800,000 | 2,000,000 | 3,700,000 | ' | ' |
Real Estate, Investments Held-for-sale, Fair Value | 83,700,000 | ' | 83,700,000 | ' | ' | ' |
Unrealized Mark to Market Gains in Real Estate Investments Held-for-sale | ' | ' | 33,100,000 | ' | ' | ' |
Investment in Funds Formed to Invest in Housing Development Projects and Housing Sector Companies | 157,800,000 | ' | 157,800,000 | ' | ' | 161,400,000 |
Foreign Currency Transaction Gain (Loss), Realized | 0 | ' | 0 | ' | ' | ' |
Rental Properties | 51,800,000 | ' | 51,800,000 | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | ' | ' | 848,600,000 | ' |
Lower Tier Property Partnerships Real Estate Held For Use [Member] | ' | ' | ' | ' | ' | ' |
Sale Of Number Of Bonds | ' | ' | 10 | ' | ' | ' |
Long-term Debt, Gross | 75,200,000 | ' | 75,200,000 | ' | ' | ' |
Rental Properties | 51,800,000 | ' | 51,800,000 | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | 50,500,000 | ' | 50,500,000 | ' | ' | ' |
Available-for-sale Debt Securities Gross Unrealized Gain | ' | ' | 2,700,000 | ' | ' | ' |
Lower Tier Property Partnerships Real Estate Held For Use [Member] | TE Bond Subsidiary LLC [Member] | ' | ' | ' | ' | ' | ' |
Debt Instrument, Increase (Decrease), Net, Total | ' | ' | 28,900,000 | ' | ' | ' |
Lower Tier Property Partnerships Real Estate Held For Use [Member] | Consolidated Properties [Member] | ' | ' | ' | ' | ' | ' |
Rental Properties | 42,900,000 | ' | 42,900,000 | ' | ' | ' |
SA Fund [Member] | ' | ' | ' | ' | ' | ' |
General Partners Contributed Capital Funded | 115,300,000 | ' | 115,300,000 | ' | ' | ' |
General Partners Contributed Capital | 125,800,000 | ' | 125,800,000 | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | ' | ' | 2.70% | ' | ' | ' |
Capital Contributed to Sale and Rental Properties | 171,300,000 | ' | 171,300,000 | ' | ' | ' |
Capital Contributed to Sale and Rental Properties Funded | 132,300,000 | ' | 132,300,000 | ' | ' | ' |
Maximum Amount of Debt Allowed | 80,000,000 | ' | 80,000,000 | ' | ' | ' |
Proceeds from Issuance of Long-term Debt | ' | ' | 49,100,000 | ' | ' | ' |
Derivative, Collateral, Right to Reclaim Cash | 3,400,000 | ' | 3,400,000 | ' | ' | ' |
Unrealized Gain (Loss) on Investments, Total | ' | ' | 20,200,000 | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | ' | ' | 27,200,000 | ' | ' | ' |
LIHTC Funds [Member] | ' | ' | ' | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 659,700,000 | ' | 659,700,000 | ' | ' | 659,700,000 |
Limited Partner of SA Fund [Member] | ' | ' | ' | ' | ' | ' |
General Partners Contributed Capital Funded | 3,200,000 | ' | 3,200,000 | ' | ' | ' |
Solar Fund [Member] | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '20 years | ' | ' | ' |
Overseas Private Investment Corporation [Member] | ' | ' | ' | ' | ' | ' |
General Partners Contributed Capital Funded | 49,100,000 | ' | 49,100,000 | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | ' | ' | 2.70% | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | SA Fund [Member] | ' | ' | ' | ' | ' | ' |
Derivative assets | $7,200,000 | ' | $7,200,000 | ' | ' | $1,000,000 |
Real Estate Investment [Member] | Building [Member] | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '40 years | ' | ' | ' |
Minimum [Member] | LIHTC Funds [Member] | ' | ' | ' | ' | ' | ' |
General Partner Ownership Interests of Funds Remaining | 0.01% | ' | 0.01% | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | ' | ' | 0.01% | ' | ' | ' |
Minimum [Member] | Real Estate Investment [Member] | Furniture and Fixtures [Member] | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '6 years | ' | ' | ' |
Maximum [Member] | LIHTC Funds [Member] | ' | ' | ' | ' | ' | ' |
General Partner Ownership Interests of Funds Remaining | 0.04% | ' | 0.04% | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | ' | ' | 0.04% | ' | ' | ' |
Maximum [Member] | Real Estate Investment [Member] | Furniture and Fixtures [Member] | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '7 years | ' | ' | ' |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Total interest income | $4,380 | $16,225 | $35,177 | $50,187 | ||||
Total interest expense | 2,199 | [1] | 6,547 | [1] | 22,213 | [1] | 20,090 | [1] |
Net interest income | 2,181 | 9,678 | 12,964 | 30,097 | ||||
Total fee and other income | 809 | 489 | 1,866 | 1,662 | ||||
Total non-interest revenue | 9,610 | 5,896 | 22,681 | 14,549 | ||||
Total revenues, net of interest expense | 11,791 | 15,574 | 35,645 | 44,646 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 3,628 | [2] | 4,639 | [2] | 11,374 | [2] | 14,179 | [2] |
Other expenses | 1,178 | 955 | 4,965 | 2,950 | ||||
Total operating and other expenses | 25,976 | 20,820 | 78,414 | 52,708 | ||||
Net gains due to real estate consolidation and foreclosure | 2,411 | 2,853 | 10,895 | 5,404 | ||||
Net gains (losses) related to CFVs | ' | ' | 32,964 | 5,407 | ||||
Equity in losses from Lower Tier Property Partnerships | ' | ' | -20,323 | -25,917 | ||||
Income (loss) from continuing operations before income taxes | 62,015 | -13,988 | 90,417 | -24,335 | ||||
Income tax (expense) benefit | -123 | -24 | 1,309 | -65 | ||||
Income from discontinued operations, net of tax | 403 | 602 | 6,527 | 694 | ||||
Net income (loss) | 62,295 | -13,410 | 98,253 | -23,706 | ||||
Net income (loss) to common shareholders | 73,316 | 718 | 112,142 | 6,974 | ||||
US Operations [Member] | ' | ' | ' | ' | ||||
Total interest income | 4,644 | [3] | 17,387 | [3] | 36,931 | 51,946 | [3] | |
Total interest expense | 2,199 | [3] | 6,547 | [3] | 22,213 | [3] | 20,090 | [3] |
Net interest income | 2,445 | 10,840 | 14,718 | 31,856 | ||||
Total fee and other income | 2,651 | [4] | 2,336 | [4] | 7,203 | [4] | 7,690 | [4] |
Revenue from CFVs | 0 | 0 | 0 | 0 | ||||
Total non-interest revenue | 2,651 | 2,336 | 7,203 | 7,690 | ||||
Total revenues, net of interest expense | 5,096 | 13,176 | 21,921 | 39,546 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 3,593 | 4,607 | 11,273 | 14,074 | ||||
Operating expenses | 4,016 | [4] | 3,722 | [4] | 15,843 | [4] | 11,948 | [4] |
Impairment on bonds and provision for loan losses | 939 | 919 | 1,772 | -2,278 | ||||
Other expenses | 1,463 | [5],[6] | 2,038 | [5],[6] | 7,265 | [5],[6] | 5,993 | [5],[6] |
Expenses from CFVs | 0 | 0 | 0 | 0 | ||||
Total operating and other expenses | 10,011 | 11,286 | 36,153 | 29,737 | ||||
Net gains on assets, derivatives and extinguishment of liabilities | 76,304 | -501 | 114,672 | -1,167 | ||||
Net gains due to real estate consolidation and foreclosure | 2,411 | 2,853 | 10,895 | 5,404 | ||||
Net gains (losses) related to CFVs | 0 | 0 | 0 | 0 | ||||
Equity in losses from Lower Tier Property Partnerships | 0 | [5] | 0 | [5] | 0 | [5] | 0 | [5] |
Income (loss) from continuing operations before income taxes | 73,800 | 4,242 | 111,335 | 14,046 | ||||
Income tax (expense) benefit | -123 | -24 | 1,309 | -65 | ||||
Income from discontinued operations, net of tax | 274 | -393 | 5,215 | 1,342 | ||||
Net income (loss) | 73,951 | 3,825 | 117,859 | 15,323 | ||||
(Income) loss allocable to noncontrolling interests | -36 | -2,284 | -3,714 | -6,852 | ||||
Net income (loss) to common shareholders | 73,915 | 1,541 | 114,145 | 8,471 | ||||
US Operations [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 0 | [6] | 0 | [6] | 0 | [6] | 0 | [6] |
US Operations [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
International Operations [Member] | ' | ' | ' | ' | ||||
Total interest income | 10 | [3] | 7 | [3] | 25 | [3] | 30 | [3] |
Total interest expense | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] |
Net interest income | 10 | 7 | 25 | 30 | ||||
Total fee and other income | 703 | [4] | 761 | [4] | 2,220 | [4] | 2,964 | [4] |
Revenue from CFVs | 0 | 0 | 0 | 0 | ||||
Total non-interest revenue | 703 | 761 | 2,220 | 2,964 | ||||
Total revenues, net of interest expense | 713 | 768 | 2,245 | 2,994 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 35 | 32 | 101 | 105 | ||||
Operating expenses | 1,356 | [4] | 1,546 | [4] | 4,507 | [4] | 4,786 | [4] |
Impairment on bonds and provision for loan losses | 5 | 0 | 5 | 0 | ||||
Other expenses | 72 | [5],[6] | 152 | [5],[6] | 140 | [5],[6] | -42 | [5],[6] |
Expenses from CFVs | 0 | 0 | 0 | 0 | ||||
Total operating and other expenses | 1,468 | 1,730 | 4,753 | 4,849 | ||||
Net gains on assets, derivatives and extinguishment of liabilities | 16 | 0 | 16 | 0 | ||||
Net gains due to real estate consolidation and foreclosure | 0 | 0 | 0 | 0 | ||||
Net gains (losses) related to CFVs | 0 | 0 | 0 | 0 | ||||
Equity in losses from Lower Tier Property Partnerships | 0 | [5] | 0 | [5] | 0 | [5] | 0 | [5] |
Income (loss) from continuing operations before income taxes | -739 | -962 | -2,492 | -1,855 | ||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income (loss) | -739 | -962 | -2,492 | -1,855 | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net income (loss) to common shareholders | -599 | -823 | -2,003 | -1,497 | ||||
International Operations [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 140 | [6] | 139 | [6] | 489 | [6] | 358 | [6] |
International Operations [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Consolidated Funds and Ventures [Member] | ' | ' | ' | ' | ||||
Total interest income | 3,739 | [3] | 2,267 | [3] | 7,784 | [3] | 4,743 | [3] |
Total interest expense | 1,527 | [3] | 1,610 | [3] | 4,007 | [3] | 3,026 | [3] |
Net interest income | 2,212 | 657 | 3,777 | 1,717 | ||||
Total fee and other income | 3,736 | [4] | 1,800 | [4] | 9,096 | [4] | 3,715 | [4] |
Revenue from CFVs | 0 | 0 | 0 | 0 | ||||
Total non-interest revenue | 3,736 | 1,800 | 9,096 | 3,715 | ||||
Total revenues, net of interest expense | 5,948 | 2,457 | 12,873 | 5,432 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Operating expenses | 4,915 | [4] | 3,191 | [4] | 12,224 | [4] | 9,143 | [4] |
Impairment on bonds and provision for loan losses | 0 | 0 | 0 | 0 | ||||
Other expenses | 9,905 | [5],[6] | 6,675 | [5],[6] | 29,118 | [5],[6] | 15,306 | [5],[6] |
Expenses from CFVs | 0 | 0 | 0 | 0 | ||||
Total operating and other expenses | 14,820 | 9,866 | 41,342 | 24,449 | ||||
Net gains on assets, derivatives and extinguishment of liabilities | 3,812 | -4,608 | 27,732 | 5,407 | ||||
Net gains due to real estate consolidation and foreclosure | 0 | 0 | 0 | 0 | ||||
Net gains (losses) related to CFVs | 0 | 0 | 0 | 0 | ||||
Equity in losses from Lower Tier Property Partnerships | -6,111 | [5] | -5,295 | [5] | -17,951 | -23,051 | [5] | |
Income (loss) from continuing operations before income taxes | -11,171 | -17,312 | -18,688 | -36,661 | ||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||
Income from discontinued operations, net of tax | 129 | 995 | 1,312 | -648 | ||||
Net income (loss) | -11,042 | -16,317 | -17,376 | -37,309 | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net income (loss) to common shareholders | 0 | 0 | 0 | 0 | ||||
Consolidated Funds and Ventures [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 11,171 | [6] | 17,312 | [6] | 18,688 | [6] | 36,661 | [6] |
Consolidated Funds and Ventures [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | -129 | -995 | -1,312 | 648 | ||||
Income Allocation Reclasses [Member] | ' | ' | ' | ' | ||||
Total interest income | -274 | [3] | -1,169 | [3] | -1,779 | [3] | -1,789 | [3] |
Total interest expense | -274 | [3] | -1,169 | [3] | -1,779 | [3] | -1,789 | [3] |
Net interest income | 0 | 0 | 0 | 0 | ||||
Total fee and other income | -1,219 | [4] | -1,268 | [4] | -3,622 | [4] | -4,563 | [4] |
Revenue from CFVs | 0 | 0 | 0 | 0 | ||||
Total non-interest revenue | -1,219 | -1,268 | -3,622 | -4,563 | ||||
Total revenues, net of interest expense | -1,219 | -1,268 | -3,622 | -4,563 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Operating expenses | -1,219 | [4] | -1,268 | [4] | -3,622 | [4] | -4,563 | [4] |
Impairment on bonds and provision for loan losses | 0 | 0 | 0 | 0 | ||||
Other expenses | -357 | [5],[6] | -1,235 | [5],[6] | -2,440 | [5],[6] | -3,001 | [5],[6] |
Expenses from CFVs | 0 | 0 | 0 | 0 | ||||
Total operating and other expenses | -1,576 | -2,503 | -6,062 | -7,564 | ||||
Net gains on assets, derivatives and extinguishment of liabilities | 0 | 0 | 0 | 0 | ||||
Net gains due to real estate consolidation and foreclosure | 0 | 0 | 0 | 0 | ||||
Net gains (losses) related to CFVs | 0 | 0 | 0 | 0 | ||||
Equity in losses from Lower Tier Property Partnerships | -232 | [5] | -1,191 | [5] | -2,178 | [5] | -2,866 | [5] |
Income (loss) from continuing operations before income taxes | 125 | 44 | 262 | 135 | ||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 125 | 44 | 262 | 135 | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net income (loss) to common shareholders | 0 | 0 | 0 | 0 | ||||
Income Allocation Reclasses [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | -125 | [6] | -44 | [6] | -262 | [6] | -135 | [6] |
Income Allocation Reclasses [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
CFVs Adjustments [Member] | ' | ' | ' | ' | ||||
Total interest income | -3,739 | [3] | -2,267 | [3] | -7,784 | -4,743 | [3] | |
Total interest expense | -1,253 | [3] | -441 | [3] | -2,228 | [3] | -1,237 | [3] |
Net interest income | -2,486 | -1,826 | -5,556 | -3,506 | ||||
Total fee and other income | -3,736 | [4] | -1,800 | [4] | -9,096 | [4] | -3,715 | [4] |
Revenue from CFVs | 7,475 | 4,067 | 16,880 | 8,458 | ||||
Total non-interest revenue | 3,739 | 2,267 | 7,784 | 4,743 | ||||
Total revenues, net of interest expense | 1,253 | 441 | 2,228 | 1,237 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Operating expenses | -3,696 | [4] | -1,923 | [4] | -8,602 | [4] | -4,580 | [4] |
Impairment on bonds and provision for loan losses | 0 | 0 | 0 | 0 | ||||
Other expenses | -9,905 | [5],[6] | -6,675 | [5],[6] | -29,118 | [5],[6] | -15,306 | [5],[6] |
Expenses from CFVs | 14,854 | 9,039 | 39,948 | 21,123 | ||||
Total operating and other expenses | 1,253 | 441 | 2,228 | 1,237 | ||||
Net gains on assets, derivatives and extinguishment of liabilities | -3,812 | 4,608 | -27,732 | -5,407 | ||||
Net gains due to real estate consolidation and foreclosure | 0 | 0 | 0 | 0 | ||||
Net gains (losses) related to CFVs | 3,812 | -4,608 | 27,732 | 5,407 | ||||
Equity in losses from Lower Tier Property Partnerships | 0 | [5] | 0 | [5] | 0 | [5] | 0 | [5] |
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | 0 | ||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 0 | 0 | 0 | 0 | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net income (loss) to common shareholders | 0 | 0 | 0 | 0 | ||||
CFVs Adjustments [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 0 | [6] | 0 | [6] | 0 | [6] | 0 | [6] |
CFVs Adjustments [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
MMA Consolidated [Member] | ' | ' | ' | ' | ||||
Total interest income | 4,380 | [3] | 16,225 | [3] | 35,177 | [3] | 50,187 | [3] |
Total interest expense | 2,199 | [3] | 6,547 | [3] | 22,213 | [3] | 20,090 | [3] |
Net interest income | 2,181 | 9,678 | 12,964 | 30,097 | ||||
Total fee and other income | 2,135 | [4] | 1,829 | [4] | 5,801 | [4] | 6,091 | [4] |
Revenue from CFVs | 7,475 | 4,067 | 16,880 | 8,458 | ||||
Total non-interest revenue | 9,610 | 5,896 | 22,681 | 14,549 | ||||
Total revenues, net of interest expense | 11,791 | 15,574 | 35,645 | 44,646 | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
Interest expense | 3,628 | 4,639 | 11,374 | 14,179 | ||||
Operating expenses | 5,372 | [4] | 5,268 | [4] | 20,350 | [4] | 16,734 | [4] |
Impairment on bonds and provision for loan losses | 944 | 919 | 1,777 | -2,278 | ||||
Other expenses | 1,178 | [5],[6] | 955 | [5],[6] | 4,965 | [5],[6] | 2,950 | [5],[6] |
Expenses from CFVs | 14,854 | 9,039 | 39,948 | 21,123 | ||||
Total operating and other expenses | 25,976 | 20,820 | 78,414 | 52,708 | ||||
Net gains on assets, derivatives and extinguishment of liabilities | 76,320 | -501 | 114,688 | -1,167 | ||||
Net gains due to real estate consolidation and foreclosure | 2,411 | 2,853 | 10,895 | 5,404 | ||||
Net gains (losses) related to CFVs | 3,812 | -4,608 | 27,732 | 5,407 | ||||
Equity in losses from Lower Tier Property Partnerships | -6,343 | [5] | -6,486 | [5] | -20,129 | [5] | -25,917 | [5] |
Income (loss) from continuing operations before income taxes | 62,015 | -13,988 | 90,417 | -24,335 | ||||
Income tax (expense) benefit | -123 | -24 | 1,309 | -65 | ||||
Income from discontinued operations, net of tax | 403 | 602 | 6,527 | 694 | ||||
Net income (loss) | 62,295 | -13,410 | 98,253 | -23,706 | ||||
(Income) loss allocable to noncontrolling interests | -36 | -2,284 | -3,714 | -6,852 | ||||
Net income (loss) to common shareholders | 73,316 | 718 | 112,142 | 6,974 | ||||
MMA Consolidated [Member] | Continuing Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | 11,186 | [6] | 17,407 | [6] | 18,915 | [6] | 36,884 | [6] |
MMA Consolidated [Member] | Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Operating and other expenses: | ' | ' | ' | ' | ||||
(Income) loss allocable to noncontrolling interests | ($129) | ($995) | ($1,312) | $648 | ||||
[1] | Represents interest expense related to debt which finances interest-bearing assets. See Note 6, “Debt.†| |||||||
[2] | Represents interest expense related to debt which does not finance interest-bearing assets. See Note 6, “Debt.†| |||||||
[3] | Primarily related to interest on bonds that the Company earned by holding the bond but which is eliminated because the Company consolidates two non-profits and the associated Lower Tier Property Partnerships and its related real estate. These Lower Tier Property Partnerships each have a mortgage debt obligation that collateralizes a bond. | |||||||
[4] | Primarily related to asset management fees earned by the Company for asset management services provided to the SA Fund and LIHTC Funds. | |||||||
[5] | Primarily relates to equity in losses from the Lower Tier Property Partnerships associated with the Company’s LIHTC Funds for which the Company has provided bond financing to the Lower Tier Property Partnerships. | |||||||
[6] | Includes losses recorded by the Company related to guarantees provided by the Company associated with third party debt obligations of certain Lower Tier Property Partnerships. |
SEGMENT_INFORMATION_Details_1
SEGMENT INFORMATION (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | $1,039,856 | $1,801,752 |
Total Segment [Member] | ' | ' |
ASSETS | 480,170 | 1,240,932 |
US Operations [Member] | ' | ' |
ASSETS | 474,884 | 1,236,288 |
International Operations [Member] | ' | ' |
ASSETS | 5,286 | 4,644 |
Bonds Eliminated in Consolidation [Member] | ' | ' |
ASSETS | -92,429 | -114,529 |
Net unrealized mark to market gains not recorded in consolidation [Member] | ' | ' |
ASSETS | -32,336 | -10,585 |
Other adjustments [Member] | ' | ' |
ASSETS | -8,214 | -7,628 |
Consolidated Funds and Ventures [Member] | ' | ' |
ASSETS | $692,665 | $693,562 |