Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
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 | ' | 39,252,081 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $97,589 | $66,794 |
Restricted cash (includes $52,470 and $52,897 related to CFVs) | 87,477 | 87,903 |
Bonds available-for-sale (includes $134,753 and $134,769 pledged as collateral and/or restricted) | 184,883 | 195,332 |
Investments in Lower Tier Property Partnerships related to CFVs | 274,229 | 286,007 |
SA Fund investments related to CFVs | 162,667 | 158,325 |
Real estate held-for-use, net (includes $15,550 and $15,644 pledged as collateral and $91,171 and $102,314 related to CFVs) | 109,340 | 120,576 |
Real estate held-for-sale, net | 20,872 | 24,090 |
Investment in preferred stock (pledged as collateral) | 31,371 | 31,371 |
Other assets (includes $6,584 and $11,907 pledged as collateral and $22,693 and $23,664 related to CFVs) | 45,655 | 44,960 |
Total assets | 1,014,083 | 1,015,358 |
LIABILITIES AND EQUITY | ' | ' |
Debt (includes $91,312 and $91,602 related to CFVs) | 436,984 | 441,963 |
Accounts payable and accrued expenses | 6,941 | 8,723 |
Unfunded equity commitments to Lower Tier Property Partnerships related to CFVs | 13,461 | 13,461 |
Other liabilities (includes $4,957 and $4,043 related to CFVs) | 13,245 | 12,352 |
Total liabilities | 470,631 | 476,499 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Noncontrolling interests in CFVs and IHS (net of $575 of subscriptions receivable) | 462,714 | 473,513 |
Common shareholders' equity: | ' | ' |
Common shares, no par value (39,497,235 and 39,279,596 shares issued and outstanding and 522,846 and 1,281,080 non-employee directors’ and employee deferred shares issued at March 31, 2014 and December 31, 2013, respectively) | 41,303 | 28,687 |
Accumulated other comprehensive income | 39,435 | 36,659 |
Total common shareholders’ equity | 80,738 | 65,346 |
Total equity | 543,452 | 538,859 |
Total liabilities and equity | 1,014,083 | 1,015,358 |
Consolidated Funds and Ventures [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash (includes $52,470 and $52,897 related to CFVs) | 52,470 | 52,897 |
Real estate held-for-use, net (includes $15,550 and $15,644 pledged as collateral and $91,171 and $102,314 related to CFVs) | 91,171 | 102,314 |
Other assets (includes $6,584 and $11,907 pledged as collateral and $22,693 and $23,664 related to CFVs) | 22,693 | 23,664 |
LIABILITIES AND EQUITY | ' | ' |
Debt (includes $91,312 and $91,602 related to CFVs) | 91,312 | 91,602 |
Other liabilities (includes $4,957 and $4,043 related to CFVs) | $4,957 | $4,043 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Bonds available-for-sale, pledged as collateral (in dollars) | $134,753 | $134,769 |
Real estate held-for-use, net, pledged as collateral (in dollars) | 15,550 | 15,644 |
Other assets, pledged as collateral (in dollars) | 6,584 | 11,907 |
Noncontrolling interests in consolidated funds and ventures, subscriptions receivable (in dollars) | $575 | $575 |
Common shares, shares issued (in shares) | 39,497,235 | 39,279,596 |
Common shares, shares outstanding (in shares) | 39,497,235 | 39,279,596 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 522,846 | 1,281,080 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Interest income | ' | ' | ||
Interest income | $5,305 | $15,938 | ||
Interest expense | ' | ' | ||
Interest expense | 1,203 | [1] | 6,289 | [1] |
Net interest income | 4,102 | 9,649 | ||
Non-interest revenue | ' | ' | ||
Income on preferred stock investment | 1,297 | 1,297 | ||
Other income | 853 | 541 | ||
Total non-interest revenue | 7,200 | 4,626 | ||
Total revenues, net of interest expense | 11,302 | 14,275 | ||
Operating and other expenses | ' | ' | ||
Interest expense | 3,573 | [2] | 4,129 | [2] |
Salaries and benefits | 3,329 | 3,888 | ||
General and administrative | 963 | 1,293 | ||
Professional fees | 1,382 | 2,344 | ||
Total other-than-temporary impairment on bonds | 2 | 353 | ||
Portion of other-than-temporary impairment recognized in AOCI | -2 | 0 | ||
Net impairment of bonds recognized in earnings | 0 | 353 | ||
Other expenses | 911 | 1,934 | ||
Total operating and other expenses | 21,807 | 25,372 | ||
Net (losses) gains on assets and derivatives | -365 | 1,184 | ||
Net gains on early extinguishment of liabilities | 0 | 36,263 | ||
Net gains due to initial real estate consolidation and foreclosure | 2,003 | 0 | ||
Net gains related to CFVs | 4,813 | 19,962 | ||
Equity in losses from Lower Tier Property Partnerships of CFVs | -7,539 | -6,405 | ||
Net (loss) income from continuing operations before income taxes | -11,486 | 34,919 | ||
Income tax benefit | 554 | 1,527 | ||
Income from discontinued operations, net of tax | 14,479 | 5,061 | ||
Net income | 3,547 | 41,507 | ||
Net income to common shareholders | 13,606 | 39,276 | ||
Basic income per common share: | ' | ' | ||
(Loss) income from continuing operations (in dollars per share) | ($0.02) | $0.84 | ||
Income from discontinued operations (in dollars per share) | $0.36 | $0.09 | ||
Income per common share (in dollars per share) | $0.34 | $0.93 | ||
Diluted income per common share: | ' | ' | ||
(Loss) income from continuing operations (adjusted for liability classified awards) (in dollars per share) | ($0.01) | $0.83 | ||
Income from discontinued operations (in dollars per share) | $0.35 | $0.09 | ||
Income per common share (in dollars per share) | $0.34 | $0.92 | ||
Weighted-average common shares outstanding: | ' | ' | ||
Basic (in shares) | 40,207 | [3] | 42,445 | [3] |
Diluted (in shares) | 41,664 | 43,717 | ||
Bonds [Member] | ' | ' | ||
Interest income | ' | ' | ||
Interest income | 5,160 | 15,795 | ||
Interest expense | ' | ' | ||
Interest expense | 1,005 | [1] | 5,751 | [1] |
Loans [Member] | ' | ' | ||
Interest income | ' | ' | ||
Interest income | 145 | 143 | ||
Non Bond [Member] | ' | ' | ||
Interest expense | ' | ' | ||
Interest expense | 198 | [1] | 538 | [1] |
Consolidated Funds and Ventures [Member] | ' | ' | ||
Non-interest revenue | ' | ' | ||
Revenue from CFVs | 5,050 | 2,788 | ||
Operating and other expenses | ' | ' | ||
Expenses from CFVs | 11,649 | 11,431 | ||
Net gains related to CFVs | 4,809 | 14,987 | ||
Equity in losses from Lower Tier Property Partnerships of CFVs | -7,428 | -6,418 | ||
Consolidated Funds and Ventures [Member] | Continuing Operations [Member] | ' | ' | ||
Operating and other expenses | ' | ' | ||
Income allocable to noncontrolling interests: | 9,909 | 810 | ||
Consolidated Funds and Ventures [Member] | Discontinued Operations [Member] | ' | ' | ||
Operating and other expenses | ' | ' | ||
Income allocable to noncontrolling interests: | 150 | -1,036 | ||
Subsidiaries [Member] | ' | ' | ||
Operating and other expenses | ' | ' | ||
Income allocable to noncontrolling interests: | $0 | ($2,005) | ||
[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 INCOME (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Net income to common shareholders | $13,606 | $39,276 | |
Net (loss) income allocable to noncontrolling interests | -10,059 | 2,231 | |
Net income | 3,547 | 41,507 | |
Bond related changes: | ' | ' | |
Net unrealized gains arising during the period | 4,906 | 10,829 | |
Reversal of net unrealized gains on sold/redeemed bonds | 0 | -182 | [1] |
Reclassification of unrealized bond losses to operations due to impairment | 0 | 353 | |
Reclassification of unrealized bond gains to operations due to consolidation and foreclosure | -2,003 | 0 | |
Net changes in other comprehensive income due to bonds | 2,903 | 11,000 | |
Income tax expense | -129 | 0 | |
Foreign currency translation adjustment | 2 | -13 | |
Other comprehensive income allocable to common shareholders | 2,776 | 10,987 | |
Other comprehensive loss allocable to noncontrolling interests: | ' | ' | |
Foreign currency translation adjustment for SA Fund and IHS | -988 | -10,463 | |
Comprehensive income to common shareholders | 16,382 | 50,263 | |
Comprehensive loss to noncontrolling interests | -11,047 | -8,232 | |
Comprehensive income | $5,335 | $42,031 | |
[1] | Realized gains on bond redemptions included in “Net gains on bonds†in the Consolidated Statement of Operations. There is no applicable income tax on the realized gains. |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Noncontrolling Interest [Member] |
In Thousands | |||||
Balance at Dec. 31, 2013 | $538,859 | $28,687 | $36,659 | $65,346 | $473,513 |
Balance (in shares) at Dec. 31, 2013 | ' | 40,561 | ' | ' | ' |
Net income (loss) | 3,547 | 13,606 | 0 | 13,606 | -10,059 |
Other comprehensive income (loss) | 1,788 | 0 | 2,776 | 2,776 | -988 |
Distributions | -22 | 0 | 0 | 0 | -22 |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | 116 | 116 | 0 | 116 | 0 |
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | ' | 139 | ' | ' | ' |
Mark-to-market activity for liability classified awards previously classified as equity | 33 | 33 | 0 | 33 | 0 |
Net change due to consolidation | 0 | -270 | 0 | -270 | 270 |
Common share repurchases | -869 | -869 | 0 | -869 | 0 |
Common share repurchases (in shares) | ' | -680 | ' | ' | ' |
Balance at Mar. 31, 2014 | $543,452 | $41,303 | $39,435 | $80,738 | $462,714 |
Balance (in shares) at Mar. 31, 2014 | ' | 40,020 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $3,547 | $41,507 |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ' | ' |
Net losses (gains) on sales of bonds and loans | 9 | -1,351 |
Net gains due to real estate consolidation and foreclosure | -2,003 | 0 |
Net gains related to CFVs | -4,813 | -19,962 |
Provisions for credit losses and impairment | 5,164 | 3,628 |
Equity in losses from Lower Tier Property Partnerships of CFVs | 7,539 | 6,405 |
Subordinate debt effective yield amortization and interest accruals | 1,743 | 2,965 |
Net gains on early extinguishment of liabilities | 0 | -36,263 |
Net gains on sales of real estate and other investments | -15,037 | 0 |
Depreciation and other amortization | 2,465 | 2,164 |
Foreign currency loss | 439 | 4,354 |
Stock-based compensation expense | 979 | 1,104 |
Other | -3,161 | 2,920 |
Net cash (used in)/provided by operating activities | -3,129 | 7,471 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Principal payments and sales proceeds received on bonds | 741 | 6,841 |
Advances on and originations of loans held for investment | 0 | -62 |
Principal payments received on loans held for investment | 33 | 95 |
Investments in property partnerships and real estate | -4,856 | -4,841 |
Proceeds from the sale of real estate and other investments | 37,705 | 20,125 |
Decrease (increase) in restricted cash and cash of CFVs | 673 | -15,448 |
Capital distributions received from investments in partnerships | 4,199 | 1,107 |
Net cash provided by investing activities | 38,495 | 7,817 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from borrowing activity | 0 | 109,874 |
Repayment of borrowings | -3,740 | -87,435 |
Payment of debt issuance costs | 0 | -1,074 |
Distributions paid to holders of noncontrolling interests | -22 | 0 |
Purchase of treasury stock | -809 | -36 |
Distributions paid to perpetual preferred shareholders of a subsidiary company | 0 | -2,807 |
Redemption of perpetual preferred shares | 0 | -26,672 |
Net cash used in financing activities | -4,571 | -8,150 |
Net increase in cash and cash equivalents | 30,795 | 7,138 |
Cash and cash equivalents at beginning of period | 66,794 | 50,857 |
Cash and cash equivalents at end of period | 97,589 | 57,995 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Interest paid | 3,923 | 8,464 |
Income taxes paid | 165 | 42 |
Non-cash investing and financing activities: | ' | ' |
Unrealized gains included in other comprehensive income | 2,903 | 11,000 |
Debt and liabilities extinguished through sales and collections on bonds and loans | 2,804 | 3,862 |
Increase decrease in real estate assets and bond assets due to foreclosure or initial consolidation of funds and ventures | $11,058 | $0 |
DESCRIPTION_OF_THE_BUSINESS_AN
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
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. | |
Description of the Business | |
The Company operates through two reportable segments: US Operations and International Operations. | |
We own and manage a portfolio of real estate related assets. Our primary holdings include a portfolio of bonds and bond-related investments (“bonds”), a substantial portion of which are tax-exempt and 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 primarily in affordable for-sale and rental housing primarily in South Africa. | |
US Operations | |
The Company’s bond portfolio consisted of 33 bonds totaling $224.7 million (based on fair value and including $39.8 million of bonds eliminated due to consolidation), collateralized by 20 real estate properties at March 31, 2014. This bond portfolio is comprised primarily of multifamily tax-exempt bonds as well as community development district (“CDD”) bonds. | |
MuniMae is also the general partner (“GP”) and manager of 13 low-income housing tax credit funds (“LIHTC Funds”) which had $852.5 million of capital invested at March 31, 2014. These funds hold limited partnership interests in 117 affordable multifamily rental properties in the US. The Company’s ownership interest in the LIHTC Funds is nominal (ranging from 0.01% to 0.04%); 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. | |
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 that invest in affordable for-sale and rental housing primarily in South Africa. At March 31, 2014, the Company’s ownership interest in IHS was 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 one multi-investor fund (South Africa Workforce Housing Fund SA I - “SA Fund”) and a real estate partnership for a single investor (International Housing Solutions Residential Partners Partnership – “SA Partnership”), and is in the process of raising capital for a second multi-investor fund. | |
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. | |
The Company consolidates IHS and eliminates all intercompany transactions and balances in consolidation. The activity and balances for IHS are reflected in the Company’s consolidated financial statements. Because the Company has a majority interest in IHS, the activity and balances for IHS are not identified as part of the Company’s CFVs. The balances and activity items identified as part of the Company’s CFVs are for funds and ventures for which the Company has minimal to no ownership interests, but the Company has consolidated them due to the Company being the primary beneficiary. | |
The Company consolidates the SA Fund because IHS is deemed to be the primary beneficiary, and we therefore eliminate all intercompany transactions balances in consolidation. The activity and balances for the SA Fund are identified as part of the Company’s CFVs because the Company has a minimal ownership interest in the SA Fund. See Note 1, “Description of Business and Basis of Presentation” to the consolidated financial statements in our 2013 Form 10-K, which discusses our consolidation presentation and our significant accounting policies. | |
Reclassifications | |
The Company made reclassifications to discontinued operations on its previously issued 2013 consolidated statements of operations as a result of certain discontinued operations occurring in 2014. | |
BONDS_AVAILABLEFORSALE
BONDS AVAILABLE-FOR-SALE | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Available-For-Sale Securities [Abstract] | ' | ||||||||||||||||
Available-for-sale Securities Disclosure [Text Block] | ' | ||||||||||||||||
Note 2—BONDs available-for-sale | |||||||||||||||||
Bonds Available-for-Sale | |||||||||||||||||
The following table summarizes the Company’s bonds and related unrealized losses and unrealized gains at March 31, 2014 and December 31, 2013. | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
(in thousands) | Unpaid Principal | Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||
Balance | Losses (2), (3) | ||||||||||||||||
Mortgage revenue bonds | $ | 131,378 | $ | 92,407 | $ | 19,197 | $ | -692 | $ | 110,912 | |||||||
Other bonds | 77,257 | 52,705 | 21,266 | - | 73,971 | ||||||||||||
Total | $ | 208,635 | $ | 145,112 | $ | 40,463 | $ | -692 | $ | 184,883 | |||||||
December 31, 2013 | |||||||||||||||||
(in thousands) | Unpaid Principal | Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||
Balance | Losses (4), (5) | ||||||||||||||||
Mortgage revenue bonds | $ | 143,617 | $ | 103,194 | $ | 19,245 | $ | -1,085 | $ | 121,354 | |||||||
Other bonds | 79,970 | 55,270 | 19,540 | -832 | 73,978 | ||||||||||||
Total | $ | 223,587 | $ | 158,464 | $ | 38,785 | $ | -1,917 | $ | 195,332 | |||||||
-1 | Represents the unpaid principal balance (“UPB”), net of discounts, deferred costs and fees as well as impairments recognized in earnings. | ||||||||||||||||
-2 | At March 31, 2014, the majority of this amount represents the non-credit loss component for certain unrealized losses deemed to be other-than-temporarily impaired; however, this amount also includes unrealized losses that were not considered other-than-temporarily impaired. | ||||||||||||||||
-3 | These bonds had been in a gross unrealized loss position for less than 12 consecutive months and had a fair value of $16.3 million at March 31, 2014. | ||||||||||||||||
-4 | At December 31, 2013, the majority of this amount represents unrealized losses that were not considered other-than-temporarily impaired; however, this amount also includes the non-credit loss component for certain unrealized losses deemed to be other-than-temporarily impaired. | ||||||||||||||||
-5 | These bonds had been in a gross unrealized loss position for less than 12 consecutive months and had a fair value of $40.1 million at December 31, 2013 ($16.2 million for mortgage revenue bonds and $23.9 million for other bonds). | ||||||||||||||||
In addition, the Company had bonds with an UPB of $56.9 million ($39.8 million fair value) and $68.0 million ($50.3 million fair value) at March 31, 2014 and December 31, 2013, respectively, which were eliminated due to consolidation of the real estate partnerships where the real estate served as collateral for the Company’s bonds and thus not included in the table above. See Note 15, “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 either 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. | |||||||||||||||||
At March 31, 2014, the Company’s subordinate bonds had an aggregate unpaid principal balance of $9.5 million. The payment of debt service on our subordinate bonds occurs only after payment of senior obligations which have priority to the cash flow of the underlying collateral. | |||||||||||||||||
The interest income from the mortgage revenue 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. | |||||||||||||||||
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. At March 31, 2014, only two bonds (amortized cost and fair value of $1.4 million) were non-amortizing with principal due in full during 2030 and 2033. The remaining bonds are amortizing with stated maturity dates between September 2017 and June 2056. | |||||||||||||||||
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 March 31, 2014, as well as the year in which the remaining portfolio becomes prepayable without restriction, premium or penalty at each period presented. | |||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | |||||||||||||||
31-Mar-14 | $ | - | $ | 1,294 | |||||||||||||
April 1 through December 31, 2014 | - | - | |||||||||||||||
2015 | - | - | |||||||||||||||
2016 | 10,264 | 14,074 | |||||||||||||||
2017 | 5,651 | 6,429 | |||||||||||||||
2018 | 15,963 | 23,034 | |||||||||||||||
Thereafter | 78,673 | 94,572 | |||||||||||||||
Bonds that may not be prepaid | 34,561 | 45,480 | |||||||||||||||
Total | $ | 145,112 | $ | 184,883 | |||||||||||||
Non-Accrual Bonds | |||||||||||||||||
The carrying value of bonds on non-accrual was $80.1 million and $122.3 million for the three months ended March 31, 2014 and 2013, respectively (or $102.3 million at March 31, 2014 including those bonds eliminated in consolidation). During the period in which these bonds were on non-accrual, the Company recognized interest income of $3.0 million (or $3.0 million including those bonds eliminated in consolidation) and $1.6 million for the three months ended March 31, 2014 and 2013, respectively. Interest income not recognized on the non-accrual bonds was $1.4 million (or $1.9 million including those bonds eliminated in consolidation) and $2.0 million for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||
Bond Aging Analysis | |||||||||||||||||
The following table provides the fair value of bonds available-for-sale that are current with respect to their principal and interest payments, as well as those that are past due at March 31, 2014 and December 31, 2013. | |||||||||||||||||
(in thousands) | March 31, | December 31, 2013 | |||||||||||||||
2014 | |||||||||||||||||
Total current | $ | 130,867 | $ | 117,666 | |||||||||||||
30-59 days past due | - | - | |||||||||||||||
60-89 days past due | - | - | |||||||||||||||
Greater than 90 days | 54,016 | 77,666 | |||||||||||||||
Total | $ | 184,883 | $ | 195,332 | |||||||||||||
Bond Sales and Redemptions | |||||||||||||||||
There were no sales or redemptions of bonds for the three months ended March 31, 2014. The Company recorded cash proceeds on sales and redemptions of bonds of $4.6 million for the three months ended March 31, 2013. | |||||||||||||||||
Provided in the table below are unrealized losses and realized gains and losses recorded through “Net impairment on bonds recognized in earnings” and “Net (losses) gains on assets and derivatives,” respectively for bonds sold or redeemed during the three months ended March 31, 2014 and 2013, as well as for bonds still in the Company’s portfolio at March 31, 2014 and 2013, respectively. | |||||||||||||||||
For the three months ended March 31, | |||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Net bond impairment recognized in earnings on bonds held at each period-end | $ | - | $ | -353 | |||||||||||||
Gains recognized at time of sale/redemption | - | 182 | |||||||||||||||
Total net losses on bonds | $ | - | $ | -171 | |||||||||||||
During the first quarter of 2014, the Company foreclosed on a multifamily real estate property serving as collateral to one of its bonds. The fair value of the Company’s bond was $11.1 million at the foreclosure date. See Note 4, “Real Estate” for more information. | |||||||||||||||||
INVESTMENTS_IN_PREFERRED_STOCK
INVESTMENTS IN PREFERRED STOCK | 3 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014, 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 14.37%. 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 three months ended March 31, 2014 and 2013. | |
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 (“TRS”) 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 14.37% at March 31, 2014, and the Company pays a quarterly rate of 3-month London Interbank Offered Rate (“LIBOR”) plus a spread of 400 bps, 4.23% at March 31, 2014, on the notional amount, currently an aggregate of $36.6 million. The TRS interest payments settle on a “net” basis. If and when the preferred stock is redeemed in part or in full, the notional amount on the TRS will be reduced by the same amount. At March 31, 2014, 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 | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Real Estate Held For Use [Abstract] | ' | |||||||
Real Estate Disclosure [Text Block] | ' | |||||||
Note 4—Real estate | ||||||||
The following table summarizes the Company’s real estate at March 31, 2014 and December 31, 2013. | ||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||
2014 | ||||||||
Real estate held-for-use | ||||||||
Real estate held-for-use (1) | $ | 18,169 | $ | 18,262 | ||||
Real estate held-for-use related to CFVs (2) | 91,171 | 102,314 | ||||||
Total real estate held-for-use | $ | 109,340 | $ | 120,576 | ||||
Real estate held-for-sale | ||||||||
Real estate held-for-sale | $ | 20,872 | $ | 24,090 | ||||
Real estate held-for-sale related to CFVs (2) | - | - | ||||||
Total real estate held-for-sale | $ | 20,872 | $ | 24,090 | ||||
-1 | MuniMae’s real estate held-for-use was comprised of three investments in undeveloped land with a carrying value of $7.5 million and $7.9 million at March 31, 2014 and December 31, 2013, and an affordable multifamily property with a carrying value of $10.7 million and $10.4 million, at March 31, 2014 and December 31, 2013, respectively. | |||||||
-2 | For more information see Note 15, “Consolidated Funds and Ventures.” | |||||||
During the first quarter of 2014, the Company sold the two real estate properties and related assets and obligations that were classified as held-for-sale at December 31, 2013 for $35.8 million which resulted in a gain on sale of real estate of $14.0 million, and is reported through discontinued operations. The sales proceeds paid the Company’s related unpaid bond principal in full and approximately 80% of the interest due on these debt financings. | ||||||||
Also during the first quarter of 2014, the Company foreclosed on two properties that serve as collateral to two of the Company’s bonds, which have been eliminated in consolidation. Prior to the foreclosure, these properties had been reported as real estate held-for-use related to Consolidated Funds and Ventures. At the time of foreclosure, the two real estate properties had a carrying amount of $9.8 million and a net equity deficit attributable to a non-controlling interest holder in Consolidated Funds and Ventures of $0.3 million. As a result of this foreclosure, the Company reclassified the real estate from real estate related to Consolidated Funds and Ventures to real estate related to MuniMae and also reclassified the equity deficit from a non-controlling interest holder to the common shareholders. | ||||||||
Additionally, during the first quarter of 2014, the Company foreclosed on a multifamily real estate property serving as collateral to one of its bonds. The fair value of the Company’s bond was $11.1 million at the foreclosure date. | ||||||||
OTHER_ASSETS
OTHER ASSETS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Other assets: | ||||||||
Investments in real estate partnerships | $ | 7,340 | $ | 7,464 | ||||
Solar facilities (includes other assets such as cash and other receivables) | 5,110 | 5,344 | ||||||
Debt issuance costs, net | 3,434 | 3,579 | ||||||
Accrued interest receivable | 2,768 | 1,250 | ||||||
Loans receivable | 1,174 | 1,210 | ||||||
Other assets | 3,136 | 2,449 | ||||||
Other assets held by CFVs (1) | 22,693 | 23,664 | ||||||
Total other assets | $ | 45,655 | $ | 44,960 | ||||
-1 | For more information see Note 15, “Consolidated Funds and Ventures.” | |||||||
Investments in Real Estate Partnerships | ||||||||
The Company’s investments in real estate partnerships of $7.3 million includes a 33% 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 carried at $6.2 million. The Company accounts for its 33% interest as an equity investment and does not consolidate the partnership because the Company was not deemed to be the primary beneficiary. The remaining $1.1 million represents our investment in the SA Partnership. IHS holds a 5% interest in the partnership while the third party limited partner holds a 95% interest in the partnership. IHS provides asset management services to the SA Partnership in return for asset management fees. IHS also has rights to investment returns on its 5% equity interest as well as carried interest which is contingent upon the residual values of the assets held by the partnership. The Company consolidates IHS because of its controlling majority interest in IHS. However, IHS and the Company account for its interest in the SA Partnership as an equity investment and do not consolidate the SA Partnership or the general partner because neither IHS nor the Company was deemed to be the primary beneficiary. | ||||||||
The following table displays the total assets and liabilities held by the real estate partnerships in which the Company held an equity investment at March 31, 2014 and December 31, 2013: | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Investment in a real estate partnership: | ||||||||
Total assets (primarily real estate) | $ | 88,580 | $ | 86,439 | ||||
Total liabilities (primarily debt) | 45,045 | 44,538 | ||||||
The following table displays the net (loss) income for the three months ended March 31, 2014 and 2013, for the real estate partnerships: | ||||||||
For the three months ended | ||||||||
March 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Net (loss) income | $ | -86 | $ | 37 | ||||
Solar Facilities | ||||||||
At March 31, 2014, the Company had a solar investment fund and four solar facilities. 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 first quarter of 2014, the Company repaid $0.7 million of outstanding debt relating to one of the four solar facilities. The lender and the Company agreed to an additional payment of $0.2 million in contingent interest which resulted in a $0.2 million loss which was recognized during the first quarter of 2014. | ||||||||
The Company has two additional solar facilities which are fully impaired. | ||||||||
At March 31, 2014, the Company had $1.5 million of non-recourse debt associated with two of the remaining six solar facilities. | ||||||||
DEBT
DEBT | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||||||
(dollars in thousands) | March 31, | Weighted-Average Effective | December 31, 2013 | Weighted-Average Effective | ||||||||||||||
2014 | Interest Rate at | Interest Rate at | ||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||
Asset Related Debt (1) | ||||||||||||||||||
Notes payable and other debt – bond related (2) | ||||||||||||||||||
Due within one year | $ | 19,922 | 1.90% | $ | 21,261 | 1.80% | ||||||||||||
Due after one year | 110,253 | 3.3 | 111,705 | 3.2 | ||||||||||||||
Notes payable and other debt – non-bond related | ||||||||||||||||||
Due within one year | 1,098 | 9.7 | 1,667 | 9.1 | ||||||||||||||
Due after one year | 6,333 | 10 | 6,613 | 9.9 | ||||||||||||||
Total asset related debt | $ | 137,606 | 3.5 | $ | 141,246 | 3.4 | ||||||||||||
Other Debt (1) | ||||||||||||||||||
Subordinate debentures (3) | ||||||||||||||||||
Due within one year | $ | 772 | 8.1 | $ | 757 | 8.1 | ||||||||||||
Due after one year | 145,197 | 7.2 | 143,664 | 7.2 | ||||||||||||||
Notes payable and other debt | ||||||||||||||||||
Due within one year (4) | 15,360 | 8 | 4,521 | 9.6 | ||||||||||||||
Due after one year | 46,737 | 4.5 | 60,173 | 5.2 | ||||||||||||||
Total other debt | $ | 208,066 | 6.7 | $ | 209,115 | 6.7 | ||||||||||||
Total asset related debt and other debt | $ | 345,672 | 5.4 | $ | 350,361 | 5.3 | ||||||||||||
Debt related to CFVs (5) | ||||||||||||||||||
Due within one year | $ | 293 | 6.5 | $ | 14 | 6 | ||||||||||||
Due after one year | 91,019 | 4.3 | 91,588 | 4.3 | ||||||||||||||
Total debt related to CFVs | $ | 91,312 | 4.3 | $ | 91,602 | 4.3 | ||||||||||||
Total debt | $ | 436,984 | 5.2 | $ | 441,963 | 5.1 | ||||||||||||
-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 $1.6 million at March 31, 2014 and December 31, 2013. | |||||||||||||||||
-3 | Included in the subordinate debt balance were $4.8 million and $3.0 million of net premiums and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||
-4 | This amount includes $2.6 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 15, “Consolidated Funds and Ventures” for more information. | |||||||||||||||||
Covenant Compliance and Debt Maturities | ||||||||||||||||||
The following table summarizes principal payment commitments across all debt agreements at March 31, 2014: | ||||||||||||||||||
(in thousands) | Asset Related Debt and Other | CFVs | Total Debt | |||||||||||||||
Debt | Related Debt | |||||||||||||||||
2014 | $ | 24,654 | $ | 230 | $ | 24,884 | ||||||||||||
2015 | 68,124 | 258 | 68,382 | |||||||||||||||
2016 | 34,029 | 275 | 34,304 | |||||||||||||||
2017 | 4,539 | 294 | 4,833 | |||||||||||||||
2018 | 51,581 | 50,200 | 101,781 | |||||||||||||||
Thereafter | 159,643 | 38,787 | 198,430 | |||||||||||||||
Net premium | 3,102 | 1,268 | 4,370 | |||||||||||||||
Total | $ | 345,672 | $ | 91,312 | $ | 436,984 | ||||||||||||
Included in the 2014 principal payments for asset related debt and other debt is $2.6 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 | ||||||||||||||||||
Notes Payable and Other Debt – Bond Related | ||||||||||||||||||
This debt is primarily comprised of TRS financing agreements on bonds available-for-sale ($99.4 million at March 31, 2014). This amount also includes secured borrowings of $30.8 million related to two bonds transferred with a performance guarantee that failed to receive accounting sale treatment. | ||||||||||||||||||
Interest expense on notes payable and other debt – bond related totaled $1.0 million and $0.8 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||||
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 March 31, 2014: | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Issuer | Principal | Net Premium | Carrying Value | Interim Principal Payments | Maturity Date | Coupon Interest Rate | ||||||||||||
MFI | $ | 29,287 | $ | - | $ | 29,287 | Amortizing | December 2027 and December 2033 | 8.00% | |||||||||
MFH | 33,286 | 1,614 | 34,900 | $4,689 due April 2015 | 30-Mar-35 | 0.75% to March 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
MFH | 30,116 | 1,275 | 31,391 | $4,242 due May 2015 | 30-Apr-35 | 0.75% to April 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
MFH | 17,219 | 662 | 17,881 | $2,305 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
MFH | 31,307 | 1,203 | 32,510 | $4,191 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
$ | 141,215 | $ | 4,754 | $ | 145,969 | |||||||||||||
-1 | The pay rate on this debt is currently 75 bps; however, we recognize interest expense on an effective yield basis which was approximately 6.9% at March 31, 2014. See the first table within this note that provides weighted-average effective rate information for all of our debt. | |||||||||||||||||
Interest expense on the subordinate debt totaled $2.5 million and $3.3 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||||
Notes Payable and Other Debt | ||||||||||||||||||
At March 31, 2014, this debt includes $36.6 million of TRS financing agreements on the Company’s 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 (4.23% at March 31, 2014), 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 | ||||||||||||||||||
The Company had no letters of credit outstanding at March 31, 2014. | ||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' |
Note 7—DERIVATIVE FINANCIAL INSTRUMENTS | |
Interest rate swap | |
The Company’s interest rate swap agreements were entered into under the International Swap Dealer Association’s standard master agreement (“ISDA”), including supplemental schedules and confirmations to these agreements. At March 31, 2014 and December 31, 2013, the Company had one interest rate swap contract with a total notional of $7.8 million. The net fair value liability for this interest rate swap was $0.7 million and $0.6 million at March 31, 2014 and December 31, 2013, respectively. The cash paid and received on the interest rate swap is settled on a net basis and recorded through “Net (losses) gains on assets and derivatives.” Net cash interest paid was $0.1 million and $0.3 million for the three months ended March 31, 2014 and 2013, respectively. The Company recorded net losses for the three months ended March 31, 2014 and 2013, of $0.1 million and $0.2 million, respectively. | |
Interest rate cap | |
On January 2, 2014, the Company bought for $0.8 million an interest rate cap that terminates on January 2, 2019 to protect the Company against rising interest rates associated with six TRS agreements. The notional amount on the interest rate cap was $45.0 million at March 31, 2014 and protects us on $45.0 million of our floating rate debt in the event the Securities Industry and Financial Markets Association (“SIFMA”) 7-day municipal swap index rises to 250 bps or higher. Net losses recognized for the three months ended March 31, 2014 were $0.3 million. | |
Total return swaps | |
In April 2014, the Company entered into nine TRS agreements with a notional amount of $75.2 million related to bonds that were previously sold to the purchaser of MuniMae TE Bond Subsidiary, LLC (“TEB”) in July 2013. Under the terms of the TRS agreements, the purchaser is required to pay the Company an amount equal to the interest payments received on the nine bonds and the Company is required to pay the purchaser a rate of SIFMA plus a spread of 135 bps on the notional amount of the TRS. The Company expects to account for these TRS agreements as derivatives. In addition, the Company repurchased four bonds from the purchaser for $25.1 million plus accrued interest. These investments will be used to collateralize the TRS agreements referenced above. | |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 generally accepted accounting principles (“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. | |||||||||||||
March 31, 2014 | ||||||||||||||
Carrying | Fair Value | |||||||||||||
(in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Investments in preferred stock | $ | 31,371 | $ | - | $ | - | $ | 36,613 | ||||||
Loans receivable | 1,174 | - | - | 239 | ||||||||||
Liabilities: | ||||||||||||||
Notes payable and other debt, bond related | 130,175 | - | - | 131,413 | ||||||||||
Notes payable and other debt, non-bond related | 69,528 | - | - | 62,154 | ||||||||||
Notes payable and other debt related to CFVs | 91,312 | - | 50,285 | 40,089 | ||||||||||
Subordinate debt issued by MFH | 116,682 | - | - | 42,869 | ||||||||||
Subordinate debt issued by MFI | 29,287 | - | - | 29,287 | ||||||||||
December 31, 2013 | ||||||||||||||
Carrying | Fair Value | |||||||||||||
(in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Investments in preferred stock | $ | 31,371 | $ | - | $ | - | $ | 36,613 | ||||||
Loans receivable | 1,200 | - | - | 271 | ||||||||||
Liabilities: | ||||||||||||||
Senior interests in and debt owed to securitization trusts | - | - | - | - | ||||||||||
Mandatorily redeemable preferred shares | - | - | - | - | ||||||||||
Notes payable and other debt, bond related | 132,966 | - | - | 131,321 | ||||||||||
Notes payable and other debt, non-bond related | 72,974 | - | - | 65,253 | ||||||||||
Notes payable and other debt related to CFVs | 91,602 | - | 50,338 | 40,178 | ||||||||||
Subordinate debt issued by MFH | 114,950 | - | - | 42,869 | ||||||||||
Subordinate debt issued by MFI | 29,471 | - | - | 29,471 | ||||||||||
Investment in preferred stock –The Company estimates fair value by using the terms and conditions of the preferred stock as compared to other, best available market benchmarks. | ||||||||||||||
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 Company estimates fair value by 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 Company estimates fair value by using best available market benchmarks, taking into account credit risk. There can be no assurance that the Company could repurchase the subordinated debt issued by MFH at the estimated fair value reflected in the table above. | ||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||
Fair Value Measurement Levels | ||||||||||||||
(in thousands) | March 31, | Level 1 | Level 2 | Level 3 | ||||||||||
2014 | ||||||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 184,883 | $ | - | $ | - | $ | 184,883 | ||||||
Derivative assets | 541 | - | 541 | - | ||||||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 653 | $ | - | $ | - | $ | 653 | ||||||
Fair Value Measurement Levels | ||||||||||||||
(in thousands) | December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 195,332 | $ | - | $ | - | $ | 195,332 | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 626 | $ | - | $ | - | $ | 626 | ||||||
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 March 31, 2014. | ||||||||||||||
(in thousands) | Bonds Available-for-sale | Derivative Liabilities | ||||||||||||
Balance, January 1, 2014 | $ | 195,332 | $ | -626 | ||||||||||
Net losses included in earnings | -948 | -27 | ||||||||||||
Net gains included in other comprehensive income (1) | 4,906 | - | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -11,058 | - | ||||||||||||
Impact from settlements | -3,349 | - | ||||||||||||
Balance, March 31, 2014 | $ | 184,883 | $ | -653 | ||||||||||
-1 | This amount represents $4.9 million of unrealized net holding gains arising during the period. | |||||||||||||
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 derivative settlement for the three months ended March 31, 2014. | ||||||||||||||
(in thousands) | Equity in Losses from Lower Tier | Net losses on derivatives (1) | ||||||||||||
Property Partnerships | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at March 31, 2014 | $ | -948 | $ | -27 | ||||||||||
Additional realized losses recognized | - | -78 | ||||||||||||
Total losses reported in earnings | $ | -948 | $ | -105 | ||||||||||
-1 | Amounts are reflected through “Net (losses) gains 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 March 31, 2013. | ||||||||||||||
(in thousands) | Bonds Available-for-sale | Derivative Liabilities | ||||||||||||
Balance, January 1, 2013 | $ | 969,394 | $ | -1,067 | ||||||||||
Net losses included in earnings | -1,851 | -85 | ||||||||||||
Net gains included in other comprehensive income (1) | 11,000 | - | ||||||||||||
Impact from redemption | -4,395 | - | ||||||||||||
Impact from settlements | -5,334 | 146 | ||||||||||||
Balance, March 31, 2013 | $ | 968,814 | $ | -1,006 | ||||||||||
-1 | This amount includes $10.8 million of unrealized net holding gains arising during the period, which is then increased by $0.4 million of unrealized bond losses reclassified into operations. This amount is then reduced by $0.2 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 redemption and derivative settlement for the three months ended March 31, 2013. | ||||||||||||||
(in thousands) | Net losses on | Equity in Losses from Lower Tier | Net losses on | |||||||||||
bonds (1) | Property Partnerships | derivatives (2) | ||||||||||||
Change in unrealized losses related to assets and liabilities still held at March 31, 2013 | $ | -353 | $ | -1,498 | $ | -85 | ||||||||
Additional realized gains (losses) recognized | 182 | - | -77 | |||||||||||
Total losses reported in earnings | $ | -171 | $ | -1,498 | $ | -162 | ||||||||
-1 | Amounts are reflected through “Impairment on bonds” and “Net (losses) gains on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
-2 | Amounts are reflected through “Net (losses) gains 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 – If a bond is performing and payment of full principal and interest is not deemed at risk, then 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 is based on expected investor yield requirements adjusted for bond attributes such as the expected term of the bond, debt service coverage ratio, geographic location and bond size. The weighted average discount rate for the performing bond portfolio was 6.58% and 6.60% at March 31, 2014 and December 31, 2013, respectively, for performing bonds still held in the portfolio at March 31, 2014. If observable market quotes are available, the Company will estimate the fair value based on such quoted prices. | ||||||||||||||
For non-performing bonds and certain performing bonds where payment of full principal and interest is deemed at risk, 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 8.5% at March 31, 2014 and December 31, 2013 for the bonds remaining in our portfolio at March 31, 2014. The capitalization rate averaged 6.8% and 6.7% at March 31, 2014 and December 31, 2013, respectively, for the bonds remaining in our portfolio at March 31, 2014. 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. | ||||||||||||||
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 March 31, 2014, the Company had one interest rate swap contract and an interest rate cap contract. The interest rate swap contract was valued using an internal valuation model, taking into consideration credit risk. The interest rate cap contract was measured by a third party using observable market data, resulting in a Level 2 classification of the valuation hierarchy. | ||||||||||||||
Non-recurring Valuations | ||||||||||||||
At March 31, 2014 and December 31, 2013, the Company had assets that were measured at fair value using a Level 3 fair value measurement on a non-recurring basis. At each period, the Company held loans with non-recurring valuations; however, these loans were de minimis. During the first quarter of 2014, the Company foreclosed on real estate previously classified as real estate held-for-use by a consolidated fund and venture. As a result of the foreclosure and the expected future sale, the Company reclassified the real estate to held-for-sale by MuniMae. Upon reclassification, it was determined that the carrying value was more than fair value resulting in a $0.2 million impairment to bring the real estate down to its fair value less estimated costs to sell. | ||||||||||||||
GUARANTEES_AND_COLLATERAL
GUARANTEES AND COLLATERAL | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||
(in thousands) | Maximum Exposure | Carrying Amount | Maximum Exposure | Carrying Amount | ||||||||||||||||||
Indemnification contracts | $ | 20,224 | $ | 1,114 | $ | 20,224 | $ | 1,198 | ||||||||||||||
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 (“LTPPs”). The Company made no cash payments related to these indemnification agreements for the three months ended March 31, 2014 and 2013. 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. | ||||||||||||||||||||||
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 LIHTC Funds that were not sold to the purchaser of the TCE business. See Note 15, “Consolidated Funds and Ventures” for information on these guarantees. | ||||||||||||||||||||||
Collateral and restricted assets | ||||||||||||||||||||||
The following table summarizes assets that are either pledged or restricted for the Company’s use at March 31, 2014 and December 31, 2013. This table also reflects certain assets held by CFVs in order to reconcile to the Company’s consolidated balance sheets. | ||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||
(in thousands) | Note Ref. | Restricted Cash | Bonds Available- for-sale | Real Estate Held-for-Use | Investment in Preferred stock | Other Assets | Total Assets Pledged | |||||||||||||||
Debt - notes payable | $ | - | $ | - | $ | 1,271 | $ | - | $ | 6,322 | $ | 7,593 | ||||||||||
Debt – total return swap financing | 20,007 | 104,257 | - | 31,371 | - | 155,635 | ||||||||||||||||
Other | -1 | 15,000 | 30,496 | 14,279 | - | 262 | 60,037 | |||||||||||||||
CFVs | -2 | 52,470 | - | 91,171 | - | 22,693 | 166,334 | |||||||||||||||
Total | $ | 87,477 | $ | 134,753 | $ | 106,721 | $ | 31,371 | $ | 29,277 | $ | 389,599 | ||||||||||
December 31, 2013 | ||||||||||||||||||||||
(in thousands) | Note Ref. | Restricted Cash | Bonds Available- for-sale | Real Estate Held-for-Use | Investment in Preferred stock | Other Assets | Total | |||||||||||||||
Assets Pledged | ||||||||||||||||||||||
Debt - notes payable | $ | - | $ | - | $ | 1,735 | $ | - | $ | 11,613 | $ | 13,348 | ||||||||||
Debt – total return swap financing | 20,006 | 105,511 | - | 31,371 | - | 156,888 | ||||||||||||||||
Other | -1 | 15,000 | 29,258 | 13,909 | - | 294 | 58,461 | |||||||||||||||
CFVs | -2 | 52,897 | - | 102,314 | - | 23,664 | 178,875 | |||||||||||||||
Total | $ | 87,903 | $ | 134,769 | $ | 117,958 | $ | 31,371 | $ | 35,571 | $ | 407,572 | ||||||||||
-1 | The Company pledges collateral in connection with various guarantees that it has provided. | |||||||||||||||||||||
-2 | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. | |||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 three months ended March 31, 2014 and 2013 reported through “General and administrative” on the consolidated statements of operations: | ||||||||
For the three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Rental expense | $ | -210 | $ | -534 | ||||
Rental income | 112 | 327 | ||||||
Net rental expense | $ | -98 | $ | -207 | ||||
The following table summarizes the future minimum rental commitments on non-cancelable operating leases at | ||||||||
March 31, 2014: | ||||||||
(in thousands) | ||||||||
2014 | $ | 314 | ||||||
2015 | 425 | |||||||
2016 | 430 | |||||||
2017 | 104 | |||||||
2018 | 39 | |||||||
Total minimum future rental commitments | $ | 1,312 | ||||||
During the first quarter of 2014, the Company terminated an office lease and a related sublease. The Company paid $0.3 million in fees to the landlord to terminate the office lease. | ||||||||
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 March 31, 2014. 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 plaintiffs appealed the Court’s ruling and on March 7, 2014, the United States Court of Appeals for the Fourth Circuit unanimously affirmed the lower Court’s ruling. As a result of these rulings, the only counts remaining in the case relate to the Company’s dividend reinvestment plan. | ||||||||
EQUITY
EQUITY | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 months ended March 31, 2014 and 2013. | ||||||||||||||
For the three months ended | ||||||||||||||
March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Net (loss) income from continuing operations | $ | -1,023 | $ | 35,251 | ||||||||||
Net income from discontinued operations | 14,629 | 4,025 | ||||||||||||
Net income to common shareholders | $ | 13,606 | $ | 39,276 | ||||||||||
Basic weighted-average shares (1) | 40,207 | 42,445 | ||||||||||||
Common stock equivalents (2) (3) (4) | 1,457 | 1,272 | ||||||||||||
Diluted weighted-average shares | 41,664 | 43,717 | ||||||||||||
-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 March 31, 2014, 2.0 million stock options were in the money and had a dilutive impact of 1.4 million shares. In addition, 0.2 million unvested employee deferred shares had a dilutive impact of 0.1 million shares for the three months ended March 31, 2014. | |||||||||||||
-3 | At March 31, 2013, 2.1 million stock options were in the money and had a dilutive impact of 1.3 million shares. | |||||||||||||
-4 | For the three months ended March 31, 2014 and 2013, the average number of options excluded from the calculations of diluted earnings per share was 0.3 million because of their anti-dilutive effect. | |||||||||||||
Common Shares | ||||||||||||||
As of March 31, 2014, through a series of actions, our Board of Directors authorized a stock repurchase program of up to 5.0 million shares at a price of up to 95% of the Company’s reported common shareholders’ equity per share as shown on the Company’s most recent filed periodic report at the time of repurchase. On May 8, 2014, the Board of Directors further amended the plan to increase the number of shares authorized to be repurchased under the plan from 5.0 million to 7.0 million, while maintaining the maximum price at 95% of the Company’s reported common shareholders’ equity per share as of the most recent filed periodic report. | ||||||||||||||
During the three months ended March 31, 2014, the Company repurchased 0.7 million shares at an average price of $1.28. On April 2, 2014, the Company acquired 0.8 million shares at $1.53 per share from an unaffiliated seller, in a block purchase pursuant to the Company’s stock repurchase program. As of May 9, 2014, the Company has capacity to repurchase an additional 3.5 million shares. | ||||||||||||||
The Company’s common equity at March 31, 2014 was $80.7 million resulting in an equity per common share of $2.02. As a result, the maximum price the Company may pay to repurchase stock upon the filing of this report until the maximum price is reset upon the filing of its 2014 second quarter filing, or the plan is amended, is $1.92. | ||||||||||||||
Noncontrolling Interests | ||||||||||||||
A significant component of equity is comprised of outside investor interests in entities that the Company consolidates. The Company reported the following noncontrolling interests within equity in entities that the Company did not wholly own at March 31, 2014 and December 31, 2013: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Noncontrolling interests in: | ||||||||||||||
LIHTC Funds | $ | 315,810 | $ | 328,236 | ||||||||||
SA Fund | 133,914 | 130,839 | ||||||||||||
Consolidated Lower Tier Property Partnerships | 14,685 | 16,086 | ||||||||||||
IHS | -1,695 | -1,648 | ||||||||||||
Total | $ | 462,714 | $ | 473,513 | ||||||||||
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 15, “Consolidated Funds and Ventures” for more 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. At March 31, 2014, there were $13.5 million of unfunded equity commitments. 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 quarter of 2014. During the first quarter of 2014, the Funds’ investment balance declined by $11.8 million and the noncontrolling interest balance declined by $12.4 million. See Note 15, “Consolidated Funds and Ventures” for more 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 quarter of 2014, the SA Fund’s noncontrolling interest balance increased by $3.1 million, which was due to $4.1 million of net operating income offset by $1.0 million of foreign currency translation loss adjustments for the three months ended March 31, 2014. 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 three months ended March 31, 2014 were a result of the weakening of the South African rand as compared to the US dollar. The Company recorded a de minimis amount of foreign currency translation losses through accumulated other comprehensive income allocable to common shareholders for the three months ended March 31, 2014. | ||||||||||||||
Consolidated Lower Tier Property Partnerships | ||||||||||||||
At March 31, 2014 and December 31, 2013, 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 consolidated nine and 11 Lower Tier Property Partnerships at March 31, 2014 and December 31, 2013, respectively, of which all of the Lower Tier Property Partnerships were classified as held-for-use at both period ends. | ||||||||||||||
IHS | ||||||||||||||
At March 31, 2014 and December 31, 2013, 17% of IHS was held by third parties. | ||||||||||||||
Accumulated Other Comprehensive Income Allocable to Common Shareholders | ||||||||||||||
The following table summarizes the net change in accumulated other comprehensive income allocable to common shareholders and amounts reclassified out of accumulated other comprehensive income for the three months ended March 31, 2014. | ||||||||||||||
(in thousands) | Net Unrealized Gains on Bonds | Income Tax Expense | Foreign Currency Translation | Accumulated Other Comprehensive | ||||||||||
Available-for-Sale | Income | |||||||||||||
Balance at January 1, 2014 | $ | 36,868 | $ | - | $ | -209 | $ | 36,659 | ||||||
Unrealized net holding gains arising during period | 4,906 | - | 2 | 4,908 | ||||||||||
Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -2,003 | - | - | -2,003 | ||||||||||
Other | - | -129 | - | -129 | ||||||||||
Net current period other comprehensive income | 2,903 | -129 | 2 | 2,776 | ||||||||||
Balance at March 31, 2014 | $ | 39,771 | $ | -129 | $ | -207 | $ | 39,435 | ||||||
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 March 31, 2013. | ||||||||||||||
Unrealized Gains on Bonds Available- | Foreign Currency Translation | Accumulated Other Comprehensive | ||||||||||||
for-Sale | Income | |||||||||||||
Balance at January 1, 2013 | $ | 139,021 | $ | -334 | $ | 138,687 | ||||||||
Unrealized net holding gains (losses) arising during period | 10,829 | -13 | 10,816 | |||||||||||
Reversal of unrealized gains on sold/redeemed bonds | (182) | -1 | - | -182 | ||||||||||
Reclassification of unrealized losses to income | 353 | - | 353 | |||||||||||
Net current period other comprehensive income | 11,000 | -13 | 10,987 | |||||||||||
Balance at March 31, 2013 | $ | 150,021 | $ | -347 | $ | 149,674 | ||||||||
-1 | Realized gains on bond redemptions included in “Net gains on bonds” in the Consolidated Statement of Operations. There is no applicable income tax on the realized gains. | |||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 ended March 31, 2014 and 2013: | |||||||||||||||||
For the three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Employees’ Stock-Based Compensation Plan | $ | 942 | $ | 1,041 | |||||||||||||
Non-employee Directors’ Stock-Based Compensation Plan | 75 | 63 | |||||||||||||||
Total | $ | 1,017 | $ | 1,104 | |||||||||||||
Employees’ Stock-Based Compensation Plan | |||||||||||||||||
As of March 31, 2014, there were approximately 1.9 million share awards available to be issued under Employees’ Stock-Based Compensation Plans. While each existing Employees’ Stock-Based Compensation Plan has been approved by the Company’s Board of Directors, not all of the Plans have been approved by the Company’s shareholders; the non-shareholder approved Plans are currently restricted to the issuance of stock options. As a result, of the 1.9 million shares available under the plans, only 0.1 million are available to be issued in the form of either stock options or shares; all remaining share awards must be issued in the form of stock options. | |||||||||||||||||
Employee Common Stock Options | |||||||||||||||||
The Company measures the fair value of options granted with solely time-based vesting and options granted with a specific stock price that have vested because the performance condition has been achieved, 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, according to FASB’s Accounting Standards Codification Topic 718, “the design of a lattice model more fully reflects the substantive characteristics of a particular employee share option.” The Company measures the fair value of unvested 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 probabilities of stock price outcomes. | |||||||||||||||||
The following table summarizes option activity under the Employees’ Stock-Based Compensation Plans: | |||||||||||||||||
(in thousands, except per option data) | Number of Options | Weighted- average | Weighted- average | Aggregate Intrinsic Value | Period End Liability (2) | ||||||||||||
Exercise Price per Option | Remaining Contractual | -1 | |||||||||||||||
Life per Option | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at January 1, 2013 (1) | 2,345 | $ | 3.61 | 7.8 | $ | 58 | $ | 355 | |||||||||
Forfeited/Expired in 2013 | -264 | 26.5 | |||||||||||||||
Outstanding at December 31, 2013 (1) | 2,081 | 0.7 | 7.3 | 1,644 | 1,785 | ||||||||||||
Forfeited/Expired in 2014 | - | ||||||||||||||||
Outstanding at March 31, 2014 (1) | 2,081 | 0.7 | 7.1 | 2,516 | 2,612 | ||||||||||||
Number of options that were exercisable at: | |||||||||||||||||
31-Dec-13 | 1,436 | 0.86 | 6.9 | ||||||||||||||
31-Mar-14 | 1,624 | 0.8 | 6.9 | ||||||||||||||
-1 | Intrinsic value is based on outstanding options. | ||||||||||||||||
-2 | Only options that were amortized based on a vesting schedule have a liability balance. These options were 2.0 million; 1.9 million; and 1.5 million at March 31, 2014, December 31, 2013 and January 1, 2013, respectively. | ||||||||||||||||
The value of employee options increased by $0.8 million during the three months ended March 31, 2014 and was recognized as additional compensation expense. | |||||||||||||||||
Employee Deferred Shares | |||||||||||||||||
The following table summarizes the deferred shares granted to employees. The grants outstanding at March 31, 2014, have both time and price vesting requirements. A portion of the shares vest over the next two years and a portion of the shares vest if the average price requirement of $2.00 per share and $2.50 per share is met, respectively. | |||||||||||||||||
(in thousands, except per share data) | Deferred Share Grants | Weighted- average Grant Date | Period End Liability | ||||||||||||||
Share Price | |||||||||||||||||
Balance, January 1, 2014 | 289 | $ | 3.29 | $ | 218 | ||||||||||||
Granted in 2014 | - | ||||||||||||||||
Issued in 2014 | -81 | 9.48 | |||||||||||||||
Balance, March 31, 2014 | 208 | 0.88 | 221 | ||||||||||||||
The Company recognized $0.1 million of additional compensation expense related to employee deferred shares, mainly driven by the increase in MuniMae’s share price and amortization of the 2013 grants. | |||||||||||||||||
Non-employee Directors’ Stock-Based Compensation Plan | |||||||||||||||||
The Non-employee Directors’ Stock-based Compensation Plans authorize a total of 5.6 million shares for issuance, of which 2.2 million were available to be issued at March 31, 2014. The Non-employee Directors’ Stock-based Compensation Plans provide for grants of non-qualified common stock options, common shares, restricted shares and deferred shares. | |||||||||||||||||
At December 31, 2013 there were 78,125 director options that were vested and outstanding with a weighted average strike price of $0.36 and an aggregate intrinsic value of $58,984. All of these options were exercised on March 25, 2014 leaving no outstanding director options as of March 31, 2014. | |||||||||||||||||
See the table below which summarizes the director options that vested as well as the common shares and deferred shares granted to the directors for services rendered for the three months ended March 31, 2014 and 2013. The directors are fully vested in the deferred shares at the grant date. | |||||||||||||||||
(in thousands, except share price | Common Shares Granted | Deferred Shares Granted | Weighted- average Grant Date | Options Vested | Directors’ Fees Expense | ||||||||||||
data) | Share Price | ||||||||||||||||
31-Mar-14 | 19 | 9 | $ | 1.32 | - | $ | 75 | ||||||||||
31-Mar-13 | - | 25 | 1.01 | 20 | 63 | ||||||||||||
For the three months ended March 31, 2014 and 2013, the Company recognized $75,000 and $62,500 in Director fees, of which $37,500 and $31,250 was paid in cash and the balance in common shares, deferred shares and vested options. Director fees are reflected in “General and administrative” on the consolidated statements of operations. | |||||||||||||||||
The Company incurred Director fees for six and five independent directors during the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||
Note 14—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 from discontinued operations, net of tax” and “Net losses (income) allocable to noncontrolling interests in CFVs and IHS – related to discontinued operations” on the consolidated statements of operations. | ||||||||
Three rental properties with a carrying value of $20.9 million were classified as real estate held-for-sale at March 31, 2014. The revenues, expenses and all other statement of operations amounts were reclassified to “Income from discontinued operations, net of tax.” | ||||||||
During the first quarter of 2014, the Company sold the two real estate properties and related assets and obligations that were classified as held-for-sale at December 31, 2013 for $35.8 million which resulted in a gain on sale of real estate of $14.0 million. | ||||||||
For the three months ended | ||||||||
March 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Sublease income | $ | - | $ | 369 | ||||
Income from CFVs (primarily rental income) | 279 | 3,924 | ||||||
Income from REO operations | 302 | - | ||||||
Rent expense | - | -369 | ||||||
Expenses from CFVs (primarily operating expenses) | -244 | -3,670 | ||||||
Expenses from REO operations | -451 | - | ||||||
Other income | 83 | 90 | ||||||
Other expense | -28 | -279 | ||||||
Income tax expense | -504 | - | ||||||
Net (loss) income before disposal activity | -563 | 65 | ||||||
Disposal: | ||||||||
Net gains related to REO | 15,037 | - | ||||||
Net gains related to CFVs | 5 | 4,996 | ||||||
Net income from discontinued operations | 14,479 | 5,061 | ||||||
Loss (income) from discontinued operations allocable to noncontrolling interests | 150 | -1,036 | ||||||
Net income to common shareholders from discontinued operations | $ | 14,629 | $ | 4,025 | ||||
The details of net income to common shareholders from discontinued operations for the three months ended March 31, 2014 and 2013 are as follows: | ||||||||
For the three months ended | ||||||||
March 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Interest income | $ | 185 | $ | 615 | ||||
Other income | 385 | 459 | ||||||
Other expense | -479 | -698 | ||||||
Income tax expense | -504 | - | ||||||
Net gains on disposal of REO | 15,037 | - | ||||||
Net gains on redemption of bonds | 5 | 3,649 | ||||||
Net income to common shareholders from discontinued operations | $ | 14,629 | $ | 4,025 | ||||
CONSOLIDATED_FUNDS_AND_VENTURE
CONSOLIDATED FUNDS AND VENTURES | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Consolidated Funds and Ventures [Abstract] | ' | |||||||||||||
Consolidated Funds and Ventures [Text Block] | ' | |||||||||||||
Note 15—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 March 31, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||
(in thousands) | March 31, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
LIHTC Funds | $ | 316,764 | $ | 329,033 | ||||||||||
SA Fund | 188,099 | 184,649 | ||||||||||||
Consolidated Lower Tier Property Partnerships | 96,259 | 107,362 | ||||||||||||
Other consolidated entities | 2,108 | 2,163 | ||||||||||||
Total assets of CFVs | $ | 603,230 | $ | 623,207 | ||||||||||
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. At March 31, 2014 and December 31, 2013, the Company owned the GP interest in thirteen LIHTC Funds. The Company continues to consolidate 11 of these funds at March 31, 2014 and December 31, 2013. The Company’s GP ownership interests of the funds remaining at March 31, 2014 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 March 31, 2014 and December 31, 2013, the Company’s maximum exposure under these guarantees is estimated to be approximately $614.4 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 primarily in South Africa (see SA Fund investments in the Asset Summary below). The SA Fund has $119.5 million in equity commitments from investors, of which $114.2 million has been funded at March 31, 2014. As a 2.7% limited partner of the SA Fund, the Company’s portion of this equity commitment is $3.2 million. At March 31, 2014, 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 at March 31, 2014. 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 | ||||||||||||||
The Company consolidates two non-profit entities for which it is deemed the primary beneficiary (see Other Consolidated Entities below). These non-profit entities consolidate certain Lower Tier Property Partnerships because they are deemed to be the primary beneficiary. The Company does not have an equity interest in the Consolidated Lower Tier Property Partnerships or the non-profit entities. Generally, the assets held by these Consolidated Lower Tier Property Partnerships are affordable multifamily housing properties financed with tax credit equity and/or tax-exempt bonds. In many cases, the Company owns an interest in the tax credit equity investment and/or the bond used to finance the property. The REO, which is the primary asset of the Consolidated Lower Tier Property Partnerships is reported in “Real estate held-for-use, net” and “Real estate held-for-sale related to CFV” on the consolidated balance sheets. See 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 March 31, 2014, 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 March 31, 2014 and December 31, 2013. | ||||||||||||||
Asset Summary: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 52,470 | $ | 52,897 | ||||||||||
Investments in Lower Tier Property Partnerships | 274,229 | 286,007 | ||||||||||||
SA Fund investments | 162,667 | 158,325 | ||||||||||||
Real estate held-for-use, net | 91,171 | 102,314 | ||||||||||||
Other assets | 22,693 | 23,664 | ||||||||||||
Total assets of CFVs | $ | 603,230 | $ | 623,207 | ||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
LIHTC Funds’ investment in Lower Tier Property Partnerships | $ | 274,229 | $ | 286,007 | ||||||||||
Total assets of Lower Tier Property Partnerships (1) | $ | 1,313,875 | $ | 1,324,704 | ||||||||||
Total liabilities of Lower Tier Property Partnerships (1) | 1,041,395 | 1,038,983 | ||||||||||||
-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 owed by certain LTPPs of the LIHTC Funds. The fair value of the Company’s bonds secured by properties owned by the Lower Tier Property Partnerships at March 31, 2014 and December 31, 2013, was $64.5 million and $64.9 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 $162.7 million and $158.3 million at March 31, 2014 and December 31, 2013, respectively and are considered Level 3 valuations. As noted in the following table, during the first three months of 2014, the Fund recorded fair value gains of $4.9 million based on internal fair value estimates; however, these gains were offset by $1.2 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 during the first three months of 2014 were a result of the weakening of the South African rand as compared to the US dollar. The Company’s economic share of the SA Fund’s operating activities and the related foreign currency translation loss was 2.7%, resulting in $0.1 million of net comprehensive income allocable to the common shareholders for the first three months of 2014. | ||||||||||||||
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 March 31, 2014 and 2013: | ||||||||||||||
For the three months ended | ||||||||||||||
March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Balance, January 1, | $ | 158,325 | $ | 161,433 | ||||||||||
Net gains included in earnings related to CFVs | 4,867 | 11,356 | ||||||||||||
Net foreign currency translation losses included in other comprehensive income attributable to CFVs | -1,192 | -13,940 | ||||||||||||
Impact from purchases | 4,606 | 3,709 | ||||||||||||
Impact from sales and distributions | -3,939 | -972 | ||||||||||||
Balance, March 31, | $ | 162,667 | $ | 161,586 | ||||||||||
The SA Fund has committed $166.6 million of capital to the project entities who in turn invest that capital into affordable for-sale and rental properties of which $136.7 million was funded at March 31, 2014. | ||||||||||||||
Consolidated Lower Tier Property Partnerships’ Real estate held-for-use, net | ||||||||||||||
The real estate held-for-use by Consolidated Lower Tier Property Partnerships was comprised of the following at March 31, 2014 and December 31, 2013: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Building, furniture and fixtures | $ | 99,299 | $ | 108,424 | ||||||||||
Accumulated depreciation | -19,315 | -17,997 | ||||||||||||
Land | 11,187 | 11,887 | ||||||||||||
Total | $ | 91,171 | $ | 102,314 | ||||||||||
Depreciation expense was $1.7 million and $2.0 million for the three months ended March 31, 2014 and 2013, respectively, of which $0.1 million and $0.8 million was recorded in discontinued operations for the three months ended March 31, 2014 and 2013, 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 three months ended March 31, 2014 and 2013. | ||||||||||||||
The Consolidated 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 Consolidated Lower Tier Property Partnerships or the non-profit entities. However, the Company provided debt financing to the Consolidated Lower Tier Property Partnerships. In consolidation, because the Company consolidates the Lower Tier Property Partnerships, the real estate held by the Consolidated 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 Consolidated Lower Tier Property Partnerships. The Company’s maximum loss exposure is the fair value of its bonds. At March 31, 2014, the fair value of these bonds was $39.8 million, including $2.0 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. | ||||||||||||||
During the first quarter of 2014, the Company foreclosed on two properties that were reported as real estate held-for-use related to Consolidated Funds and Ventures at December 31, 2013. At the time of transfer, the two real estate properties had a carrying amount of $9.8 million. As a result of this foreclosure, the Company reclassified the real estate from real estate related to Consolidated Funds and Ventures to real estate related to MuniMae. | ||||||||||||||
Liability Summary: | ||||||||||||||
The following section provides more information related to the liabilities of the CFVs at March 31, 2014 and December 31, 2013. | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Liabilities of CFVs: | ||||||||||||||
Debt | $ | 91,312 | $ | 91,602 | ||||||||||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 13,461 | ||||||||||||
Other liabilities | 4,957 | 4,043 | ||||||||||||
Total liabilities of CFVs | $ | 109,730 | $ | 109,106 | ||||||||||
Debt | ||||||||||||||
At March 31, 2014 and December 31, 2013, the debt of the CFVs had the following terms: | ||||||||||||||
March 31, 2014 | ||||||||||||||
(in thousands) | Carrying Amount | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Effective Interest Rates | ||||||||||||||
SA Fund (1) | $ | 49,886 | $ | 49,886 | 2.6 | % | Apr-18 | |||||||
Consolidated Lower Tier Property Partnerships | 41,426 | 40,513 | 6.3 | Various dates through March 2049 | ||||||||||
Total | $ | 91,312 | $ | 90,399 | ||||||||||
December 31, 2013 | ||||||||||||||
(in thousands) | Carrying Amount | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Effective Interest Rates | ||||||||||||||
SA Fund (1) | $ | 49,886 | $ | 49,886 | 2.6 | % | Apr-18 | |||||||
Consolidated Lower Tier Property Partnerships | 41,716 | 40,987 | 6.3 | Various dates through March 2049 | ||||||||||
Total | $ | 91,602 | $ | 90,873 | ||||||||||
-1 | This amount includes $0.8 million of capitalized interest for the period ended March 31, 2014 and December 31, 2013. | |||||||||||||
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 March 31, 2014. 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 “Net gains related to CFVs” on the consolidated statements of operations. The change of value in the debt obligation due to currency fluctuation is recognized through “Expenses from CFVs” on 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 $8.4 million and $8.5 million at March 31, 2014 and December 31, 2013, respectively based on Level 2 Fair Value measurements as determined by a third party. The SA Fund derivatives increase in value when the South African rand declines in value in comparison to the US dollar. The South African rand is the functional currency of the Fund; as such, the derivatives (as well as all SA Fund assets) are subject to foreign currency translation adjustment when translated to the Company’s dollar denominated balance sheet and lose value as the South African rand declines in value in comparison to the US dollar. | ||||||||||||||
At March 31, 2014, the SA Fund had $3.3 million of cash pledged as collateral for the foreign exchange derivative contracts. | ||||||||||||||
Other | ||||||||||||||
The following section provides more information related to the income statement of the CFVs for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Income Statement Summary: | ||||||||||||||
For the three months ended March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Revenue: | ||||||||||||||
Rental and other income from real estate | $ | 3,624 | $ | 2,164 | ||||||||||
Interest and other income | 1,426 | 624 | ||||||||||||
Total revenue from CFVs | 5,050 | 2,788 | ||||||||||||
Expenses: | ||||||||||||||
Depreciation and amortization | 2,218 | 1,726 | ||||||||||||
Interest expense | 1,069 | 498 | ||||||||||||
Other operating expenses | 2,952 | 2,028 | ||||||||||||
Foreign currency loss | 410 | 4,155 | ||||||||||||
Asset impairments | 5,000 | 3,024 | ||||||||||||
Total expenses from CFVs | 11,649 | 11,431 | ||||||||||||
Net gains (losses) related to CFVs: | ||||||||||||||
Investment gains | 4,867 | 11,356 | ||||||||||||
Derivative (losses) gains | -58 | 3,631 | ||||||||||||
Equity in losses from Lower Tier Property Partnerships of CFVs | -7,428 | -6,418 | ||||||||||||
Net loss | -9,218 | -74 | ||||||||||||
Net losses allocable to noncontrolling interests in CFVs (1) | 9,853 | 660 | ||||||||||||
Net income allocable to the common shareholders related to CFVs | $ | 635 | $ | 586 | ||||||||||
-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 ended March 31, 2014 and 2013 are as follows: | ||||||||||||||
For the three months ended | ||||||||||||||
March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Interest income | $ | 343 | $ | 685 | ||||||||||
Asset management fees | 841 | 858 | ||||||||||||
Guarantee fees | 331 | 331 | ||||||||||||
Equity in losses from Lower Tier Property Partnerships | -949 | -1,499 | ||||||||||||
Equity in income from SA Fund | 128 | 282 | ||||||||||||
Other expense | -59 | -71 | ||||||||||||
Net income allocable to the common shareholders | $ | 635 | $ | 586 | ||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||||||||
Note 16—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 primarily in South Africa. The Company’s International Operations take place through a subsidiary, IHS. | ||||||||||||||||||||
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 (primarily from interest on bonds) and guarantee fees. | ||||||||||||||||||||
The following tables reflect the results of the business segments for the three months ended March 31, 2014 and 2013. 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. We have revised the presentation for the three months ended March 31, 2013 for comparability purposes. This presentation change had no impact on “Net income (loss) to common shareholders.” | ||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | US Operations | International Operations | CFVs | Income Allocation Reclasses | MMA Consolidated | |||||||||||||||
Total interest income | $ | 5,638 | $ | 10 | $ | - | $ | (343) | -1 | $ | 5,305 | |||||||||
Total interest expense | -1,203 | - | - | - | -1,203 | |||||||||||||||
Net interest income | 4,435 | 10 | - | -343 | 4,102 | |||||||||||||||
Total fee and other income | 2,276 | 1,046 | - | (1,172) | -2 | 2,150 | ||||||||||||||
Revenue from CFVs | - | - | 5,050 | - | 5,050 | |||||||||||||||
Total non-interest revenue | 2,276 | 1,046 | 5,050 | -1,172 | 7,200 | |||||||||||||||
Total revenues, net of interest expense | 6,711 | 1,056 | 5,050 | -1,515 | 11,302 | |||||||||||||||
Operating and other expenses: | ||||||||||||||||||||
Interest expense | -3,536 | -37 | - | - | -3,573 | |||||||||||||||
Operating expenses | -4,463 | -1,211 | - | - | -5,674 | |||||||||||||||
Other expenses, net | -888 | -82 | - | 59 | -3 | -911 | ||||||||||||||
Expenses from CFVs | - | - | -13,233 | 1,584 | -5 | -11,649 | ||||||||||||||
Total operating and other expenses | -8,887 | -1,330 | -13,233 | 1,643 | -21,807 | |||||||||||||||
Net losses on assets, derivatives and extinguishment of liabilities | -365 | - | - | - | -365 | |||||||||||||||
Net gains due to real estate consolidation and foreclosure | 2,003 | - | - | - | 2,003 | |||||||||||||||
Net gains related to CFVs | - | - | 4,809 | - | 4,809 | |||||||||||||||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (949) | -6 | 128 | -6,479 | -6 | (128) | -4 | -7,428 | ||||||||||||
Loss from continuing operations before income taxes | -1,487 | -146 | -9,853 | - | -11,486 | |||||||||||||||
Income tax benefit | 554 | - | - | - | 554 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | 14,629 | - | -150 | - | 14,479 | |||||||||||||||
Net income (loss) | 13,696 | -146 | -10,003 | - | 3,547 | |||||||||||||||
Income allocable to noncontrolling interests: | ||||||||||||||||||||
Net losses allocable to noncontrolling interests in CFVs: | ||||||||||||||||||||
Related to continuing operations operations | - | 56 | 9,853 | - | 9,909 | |||||||||||||||
Related to discontinued operations operations | - | - | 150 | - | 150 | |||||||||||||||
Net income (loss) to common shareholders shareholders | $ | 13,696 | $ | -90 | $ | - | $ | - | $ | 13,606 | ||||||||||
-1 | Represents interest on bonds that the Company recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.3 million is reflected in total interest income for the US Operations. | |||||||||||||||||||
-2 | This amount includes $0.7 million of asset management fees recognized by IHS through an income allocation (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.7 million is reflected in total fee and other income for the International Operations. This amount also includes $0.2 million of asset management fees and $0.3 million of guarantee fees both related to the Company’s LIHTC Funds and both recognized during the first quarter of 2014 through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, both are included in total fee and other income for the US Operations. | |||||||||||||||||||
-3 | Represents net expenses recognized by the Company through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, these expenses are reflected as additional other expenses for the US Operations. | |||||||||||||||||||
-4 | Represents the Company’s share of its equity interest in the SA Fund (i.e., 2.7% of the SA Fund’s first quarter of 2014 net income) which is recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.1 million is reflected as equity in income of unconsolidated ventures for the International Operations. | |||||||||||||||||||
-5 | The sum of the income highlighted in notes 1, 2 and 4 above, partially offset by the expenses discussed in note 3 above, total $1.6 million of net income to the Company which is then reflected as an overall net expense to the CFVs. | |||||||||||||||||||
-6 | Represents equity in losses from the Lower Tier Property Partnerships that the Company recognized as an allocation (see Note 15, “Consolidated Funds and Ventures”) because of bonds held by the Company associated with the Lower Tier Property Partnerships in situations where the carrying amount of the limited partnership investment had reached zero. For purposes of the table above, the Company recognized $0.9 million of losses in US Operations and reduced the CFVs losses by the same amount. | |||||||||||||||||||
For the three months ended March 31, 2013 | ||||||||||||||||||||
(in thousands) | US Operations | International Operations | CFVs | Income Allocation | MMA Consolidated | |||||||||||||||
Reclasses | ||||||||||||||||||||
Total interest income | $ | 16,616 | $ | 7 | $ | - | $ | -685 | -1 | $ | 15,938 | |||||||||
Total interest expense | -6,289 | - | - | - | -6,289 | |||||||||||||||
Net interest income | 10,327 | 7 | - | -685 | 9,649 | |||||||||||||||
Total fee and other income | 2,216 | 811 | - | -1,189 | -2 | 1,838 | ||||||||||||||
Revenue from CFVs | - | - | 2,788 | - | 2,788 | |||||||||||||||
Total non-interest revenue | 2,216 | 811 | 2,788 | -1,189 | 4,626 | |||||||||||||||
Total revenues, net of interest expense | 12,543 | 818 | 2,788 | -1,874 | 14,275 | |||||||||||||||
Operating and other expenses: | ||||||||||||||||||||
Interest expense | -4,096 | -33 | - | - | -4,129 | |||||||||||||||
Operating expenses | -6,001 | -1,524 | - | - | -7,525 | |||||||||||||||
Impairment on bonds and recovery of loan losses | -353 | - | - | - | -353 | |||||||||||||||
Other expenses | -1,792 | -213 | - | 71 | -3 | -1,934 | ||||||||||||||
Expenses from CFVs | - | - | -13,516 | 2,085 | -5 | -11,431 | ||||||||||||||
Total operating and other expenses | -12,242 | -1,770 | -13,516 | 2,156 | -25,372 | |||||||||||||||
Net gains on assets, derivatives and extinguishment of liabilities | 37,447 | - | - | - | 37,447 | |||||||||||||||
Net gains related to CFVs | - | - | 14,987 | - | 14,987 | |||||||||||||||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | -1,499 | -6 | 282 | -4,919 | -6 | -282 | -4 | -6,418 | ||||||||||||
Income (loss) from continuing operations before income taxes | 36,249 | -670 | -660 | - | 34,919 | |||||||||||||||
Income tax benefit | 1,527 | - | - | - | 1,527 | |||||||||||||||
Income from discontinued operations, net of tax | 4,025 | - | 1,036 | - | 5,061 | |||||||||||||||
Net income (loss) | 41,801 | -670 | 376 | - | 41,507 | |||||||||||||||
Income allocable to noncontrolling interests: | ||||||||||||||||||||
Income allocable to perpetual preferred shareholders of a subsidiary company | -2,005 | - | - | - | -2,005 | |||||||||||||||
Net losses (income) allocable to noncontrolling interests in CFVs: | ||||||||||||||||||||
Related to continuing operations | - | 150 | 660 | - | 810 | |||||||||||||||
Related to discontinued operations | - | - | -1,036 | - | -1,036 | |||||||||||||||
Net income (loss) to common shareholders | $ | 39,796 | $ | -520 | $ | - | $ | - | $ | 39,276 | ||||||||||
-1 | Represents interest on bonds that the Company recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.7 million is reflected in total interest income for the US Operations. | |||||||||||||||||||
-2 | This amount includes $0.7 million of asset management fees recognized by IHS through an income allocation (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.7 million is reflected in total fee and other income for the International Operations. This amount also includes $0.2 million of asset management fees and $0.3 million of guarantee fees both related to the Company’s LIHTC Funds and both recognized during the first quarter of 2013 through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, both are included in total fee and other income for the US Operations. | |||||||||||||||||||
-3 | Represents net expenses recognized by the Company through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, these expenses are reflected as additional other expenses for the US Operations. | |||||||||||||||||||
-4 | Represents the Company’s share of its equity interest in the SA Fund (i.e., 2.7% of the SA Fund’s first quarter of 2013 net income) which is recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.3 million is reflected as equity in income of unconsolidated ventures for the International Operations. | |||||||||||||||||||
-5 | The sum of the income highlighted in notes 1, 2 and 4 above, partially offset by the expenses discussed in note 3 above, total $2.1 million of net income to the Company which is then reflected as an overall net expense to the CFVs. | |||||||||||||||||||
-6 | Represents equity in losses from the Lower Tier Property Partnerships that the Company recognized as an allocation (see Note 15, “Consolidated Funds and Ventures”) because of bonds held by the Company associated with the Lower Tier Property Partnerships in situations where the carrying amount of the limited partnership investment had reached zero. For purposes of the table above, the Company recognized $1.5 million of losses in US Operations and reduced the CFVs losses by the same amount. | |||||||||||||||||||
The total assets by segment at March 31, 2014 and December 31, 2013 are presented in the table below: | ||||||||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||||||||
2014 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
US Operations | $ | 450,586 | $ | 443,664 | ||||||||||||||||
International Operations | 7,762 | 6,681 | ||||||||||||||||||
Total segment assets | 458,348 | 450,345 | ||||||||||||||||||
Bonds eliminated in consolidation | -37,730 | -47,745 | ||||||||||||||||||
Net unrealized mark-to-market gains not recorded in consolidation | -2,037 | -2,543 | ||||||||||||||||||
Other adjustments | -7,728 | -7,906 | ||||||||||||||||||
Assets of CFVs | 603,230 | 623,207 | ||||||||||||||||||
Total MMA consolidated assets | $ | 1,014,083 | $ | 1,015,358 | ||||||||||||||||
DESCRIPTION_OF_THE_BUSINESS_AN1
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
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. | |
The Company consolidates IHS and eliminates all intercompany transactions and balances in consolidation. The activity and balances for IHS are reflected in the Company’s consolidated financial statements. Because the Company has a majority interest in IHS, the activity and balances for IHS are not identified as part of the Company’s CFVs. The balances and activity items identified as part of the Company’s CFVs are for funds and ventures for which the Company has minimal to no ownership interests, but the Company has consolidated them due to the Company being the primary beneficiary. | |
The Company consolidates the SA Fund because IHS is deemed to be the primary beneficiary, and we therefore eliminate all intercompany transactions balances in consolidation. The activity and balances for the SA Fund are identified as part of the Company’s CFVs because the Company has a minimal ownership interest in the SA Fund. See Note 1, “Description of Business and Basis of Presentation” to the consolidated financial statements in our 2013 Form 10-K, which discusses our consolidation presentation and our significant accounting policies. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
The Company made reclassifications to discontinued operations on its previously issued 2013 consolidated statements of operations as a result of certain discontinued operations occurring in 2014. | |
BONDS_AVAILABLEFORSALE_Tables
BONDS AVAILABLE-FOR-SALE (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Available-For-Sale Securities [Abstract] | ' | ||||||||||||||||
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 March 31, 2014 and December 31, 2013. | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
(in thousands) | Unpaid Principal | Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||
Balance | Losses (2), (3) | ||||||||||||||||
Mortgage revenue bonds | $ | 131,378 | $ | 92,407 | $ | 19,197 | $ | -692 | $ | 110,912 | |||||||
Other bonds | 77,257 | 52,705 | 21,266 | - | 73,971 | ||||||||||||
Total | $ | 208,635 | $ | 145,112 | $ | 40,463 | $ | -692 | $ | 184,883 | |||||||
December 31, 2013 | |||||||||||||||||
(in thousands) | Unpaid Principal | Amortized Cost (1) | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||
Balance | Losses (4), (5) | ||||||||||||||||
Mortgage revenue bonds | $ | 143,617 | $ | 103,194 | $ | 19,245 | $ | -1,085 | $ | 121,354 | |||||||
Other bonds | 79,970 | 55,270 | 19,540 | -832 | 73,978 | ||||||||||||
Total | $ | 223,587 | $ | 158,464 | $ | 38,785 | $ | -1,917 | $ | 195,332 | |||||||
-1 | Represents the unpaid principal balance (“UPB”), net of discounts, deferred costs and fees as well as impairments recognized in earnings. | ||||||||||||||||
-2 | At March 31, 2014, the majority of this amount represents the non-credit loss component for certain unrealized losses deemed to be other-than-temporarily impaired; however, this amount also includes unrealized losses that were not considered other-than-temporarily impaired. | ||||||||||||||||
-3 | These bonds had been in a gross unrealized loss position for less than 12 consecutive months and had a fair value of $16.3 million at March 31, 2014. | ||||||||||||||||
-4 | At December 31, 2013, the majority of this amount represents unrealized losses that were not considered other-than-temporarily impaired; however, this amount also includes the non-credit loss component for certain unrealized losses deemed to be other-than-temporarily impaired. | ||||||||||||||||
-5 | These bonds had been in a gross unrealized loss position for less than 12 consecutive months and had a fair value of $40.1 million at December 31, 2013 ($16.2 million for mortgage revenue bonds and $23.9 million for other bonds). | ||||||||||||||||
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 March 31, 2014, as well as the year in which the remaining portfolio becomes prepayable without restriction, premium or penalty at each period presented. | |||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | |||||||||||||||
31-Mar-14 | $ | - | $ | 1,294 | |||||||||||||
April 1 through December 31, 2014 | - | - | |||||||||||||||
2015 | - | - | |||||||||||||||
2016 | 10,264 | 14,074 | |||||||||||||||
2017 | 5,651 | 6,429 | |||||||||||||||
2018 | 15,963 | 23,034 | |||||||||||||||
Thereafter | 78,673 | 94,572 | |||||||||||||||
Bonds that may not be prepaid | 34,561 | 45,480 | |||||||||||||||
Total | $ | 145,112 | $ | 184,883 | |||||||||||||
Past Due Analysis of Available-for-sale Securities Bonds, Current [Table Text Block] | ' | ||||||||||||||||
The following table provides the fair value of bonds available-for-sale that are current with respect to their principal and interest payments, as well as those that are past due at March 31, 2014 and December 31, 2013. | |||||||||||||||||
(in thousands) | March 31, | December 31, 2013 | |||||||||||||||
2014 | |||||||||||||||||
Total current | $ | 130,867 | $ | 117,666 | |||||||||||||
30-59 days past due | - | - | |||||||||||||||
60-89 days past due | - | - | |||||||||||||||
Greater than 90 days | 54,016 | 77,666 | |||||||||||||||
Total | $ | 184,883 | $ | 195,332 | |||||||||||||
Gain (Loss) on Investments [Table Text Block] | ' | ||||||||||||||||
Provided in the table below are unrealized losses and realized gains and losses recorded through “Net impairment on bonds recognized in earnings” and “Net (losses) gains on assets and derivatives,” respectively for bonds sold or redeemed during the three months ended March 31, 2014 and 2013, as well as for bonds still in the Company’s portfolio at March 31, 2014 and 2013, respectively. | |||||||||||||||||
For the three months ended March 31, | |||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Net bond impairment recognized in earnings on bonds held at each period-end | $ | - | $ | -353 | |||||||||||||
Gains recognized at time of sale/redemption | - | 182 | |||||||||||||||
Total net losses on bonds | $ | - | $ | -171 | |||||||||||||
REAL_ESTATE_Tables
REAL ESTATE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Real Estate Held For Use [Abstract] | ' | |||||||
Schedule Of Real Estate Investments [Table Text Block] | ' | |||||||
The following table summarizes the Company’s real estate at March 31, 2014 and December 31, 2013. | ||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||
2014 | ||||||||
Real estate held-for-use | ||||||||
Real estate held-for-use (1) | $ | 18,169 | $ | 18,262 | ||||
Real estate held-for-use related to CFVs (2) | 91,171 | 102,314 | ||||||
Total real estate held-for-use | $ | 109,340 | $ | 120,576 | ||||
Real estate held-for-sale | ||||||||
Real estate held-for-sale | $ | 20,872 | $ | 24,090 | ||||
Real estate held-for-sale related to CFVs (2) | - | - | ||||||
Total real estate held-for-sale | $ | 20,872 | $ | 24,090 | ||||
-1 | MuniMae’s real estate held-for-use was comprised of three investments in undeveloped land with a carrying value of $7.5 million and $7.9 million at March 31, 2014 and December 31, 2013, and an affordable multifamily property with a carrying value of $10.7 million and $10.4 million, at March 31, 2014 and December 31, 2013, respectively. | |||||||
-2 | For more information see Note 15, “Consolidated Funds and Ventures.” | |||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Schedule of Other Assets [Table Text Block] | ' | |||||||
The following table summarizes other assets at March 31, 2014 and December 31, 2013: | ||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||
2014 | ||||||||
Other assets: | ||||||||
Investments in real estate partnerships | $ | 7,340 | $ | 7,464 | ||||
Solar facilities (includes other assets such as cash and other receivables) | 5,110 | 5,344 | ||||||
Debt issuance costs, net | 3,434 | 3,579 | ||||||
Accrued interest receivable | 2,768 | 1,250 | ||||||
Loans receivable | 1,174 | 1,210 | ||||||
Other assets | 3,136 | 2,449 | ||||||
Other assets held by CFVs (1) | 22,693 | 23,664 | ||||||
Total other assets | $ | 45,655 | $ | 44,960 | ||||
-1 | For more information see Note 15, “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 partnerships in which the Company held an equity investment at March 31, 2014 and December 31, 2013: | ||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||
2014 | ||||||||
Investment in a real estate partnership: | ||||||||
Total assets (primarily real estate) | $ | 88,580 | $ | 86,439 | ||||
Total liabilities (primarily debt) | 45,045 | 44,538 | ||||||
Schedule of Income (Loss) in Earnings of Unconsolidated Venture [Table Text Block] | ' | |||||||
The following table displays the net (loss) income for the three months ended March 31, 2014 and 2013, for the real estate partnerships: | ||||||||
For the three months ended | ||||||||
March 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Net (loss) income | $ | -86 | $ | 37 | ||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||||||
(dollars in thousands) | March 31, | Weighted-Average Effective | December 31, 2013 | Weighted-Average Effective | ||||||||||||||
2014 | Interest Rate at | Interest Rate at | ||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||
Asset Related Debt (1) | ||||||||||||||||||
Notes payable and other debt – bond related (2) | ||||||||||||||||||
Due within one year | $ | 19,922 | 1.90% | $ | 21,261 | 1.80% | ||||||||||||
Due after one year | 110,253 | 3.3 | 111,705 | 3.2 | ||||||||||||||
Notes payable and other debt – non-bond related | ||||||||||||||||||
Due within one year | 1,098 | 9.7 | 1,667 | 9.1 | ||||||||||||||
Due after one year | 6,333 | 10 | 6,613 | 9.9 | ||||||||||||||
Total asset related debt | $ | 137,606 | 3.5 | $ | 141,246 | 3.4 | ||||||||||||
Other Debt (1) | ||||||||||||||||||
Subordinate debentures (3) | ||||||||||||||||||
Due within one year | $ | 772 | 8.1 | $ | 757 | 8.1 | ||||||||||||
Due after one year | 145,197 | 7.2 | 143,664 | 7.2 | ||||||||||||||
Notes payable and other debt | ||||||||||||||||||
Due within one year (4) | 15,360 | 8 | 4,521 | 9.6 | ||||||||||||||
Due after one year | 46,737 | 4.5 | 60,173 | 5.2 | ||||||||||||||
Total other debt | $ | 208,066 | 6.7 | $ | 209,115 | 6.7 | ||||||||||||
Total asset related debt and other debt | $ | 345,672 | 5.4 | $ | 350,361 | 5.3 | ||||||||||||
Debt related to CFVs (5) | ||||||||||||||||||
Due within one year | $ | 293 | 6.5 | $ | 14 | 6 | ||||||||||||
Due after one year | 91,019 | 4.3 | 91,588 | 4.3 | ||||||||||||||
Total debt related to CFVs | $ | 91,312 | 4.3 | $ | 91,602 | 4.3 | ||||||||||||
Total debt | $ | 436,984 | 5.2 | $ | 441,963 | 5.1 | ||||||||||||
-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 $1.6 million at March 31, 2014 and December 31, 2013. | |||||||||||||||||
-3 | Included in the subordinate debt balance were $4.8 million and $3.0 million of net premiums and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||
-4 | This amount includes $2.6 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 15, “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 March 31, 2014: | ||||||||||||||||||
(in thousands) | Asset Related Debt and Other | CFVs | Total Debt | |||||||||||||||
Debt | Related Debt | |||||||||||||||||
2014 | $ | 24,654 | $ | 230 | $ | 24,884 | ||||||||||||
2015 | 68,124 | 258 | 68,382 | |||||||||||||||
2016 | 34,029 | 275 | 34,304 | |||||||||||||||
2017 | 4,539 | 294 | 4,833 | |||||||||||||||
2018 | 51,581 | 50,200 | 101,781 | |||||||||||||||
Thereafter | 159,643 | 38,787 | 198,430 | |||||||||||||||
Net premium | 3,102 | 1,268 | 4,370 | |||||||||||||||
Total | $ | 345,672 | $ | 91,312 | $ | 436,984 | ||||||||||||
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 March 31, 2014: | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Issuer | Principal | Net Premium | Carrying Value | Interim Principal Payments | Maturity Date | Coupon Interest Rate | ||||||||||||
MFI | $ | 29,287 | $ | - | $ | 29,287 | Amortizing | December 2027 and December 2033 | 8.00% | |||||||||
MFH | 33,286 | 1,614 | 34,900 | $4,689 due April 2015 | 30-Mar-35 | 0.75% to March 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
MFH | 30,116 | 1,275 | 31,391 | $4,242 due May 2015 | 30-Apr-35 | 0.75% to April 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
MFH | 17,219 | 662 | 17,881 | $2,305 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
MFH | 31,307 | 1,203 | 32,510 | $4,191 due May 2015 | 30-Jul-35 | 0.75% to April 2015, then | ||||||||||||
3-month LIBOR plus 3.3% (1) | ||||||||||||||||||
$ | 141,215 | $ | 4,754 | $ | 145,969 | |||||||||||||
-1 | The pay rate on this debt is currently 75 bps; however, we recognize interest expense on an effective yield basis which was approximately 6.9% at March 31, 2014. See the first table within this note that provides weighted-average effective rate information for all of our debt. | |||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||
March 31, 2014 | ||||||||||||||
Carrying | Fair Value | |||||||||||||
(in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Investments in preferred stock | $ | 31,371 | $ | - | $ | - | $ | 36,613 | ||||||
Loans receivable | 1,174 | - | - | 239 | ||||||||||
Liabilities: | ||||||||||||||
Notes payable and other debt, bond related | 130,175 | - | - | 131,413 | ||||||||||
Notes payable and other debt, non-bond related | 69,528 | - | - | 62,154 | ||||||||||
Notes payable and other debt related to CFVs | 91,312 | - | 50,285 | 40,089 | ||||||||||
Subordinate debt issued by MFH | 116,682 | - | - | 42,869 | ||||||||||
Subordinate debt issued by MFI | 29,287 | - | - | 29,287 | ||||||||||
December 31, 2013 | ||||||||||||||
Carrying | Fair Value | |||||||||||||
(in thousands) | Amount | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Investments in preferred stock | $ | 31,371 | $ | - | $ | - | $ | 36,613 | ||||||
Loans receivable | 1,200 | - | - | 271 | ||||||||||
Liabilities: | ||||||||||||||
Senior interests in and debt owed to securitization trusts | - | - | - | - | ||||||||||
Mandatorily redeemable preferred shares | - | - | - | - | ||||||||||
Notes payable and other debt, bond related | 132,966 | - | - | 131,321 | ||||||||||
Notes payable and other debt, non-bond related | 72,974 | - | - | 65,253 | ||||||||||
Notes payable and other debt related to CFVs | 91,602 | - | 50,338 | 40,178 | ||||||||||
Subordinate debt issued by MFH | 114,950 | - | - | 42,869 | ||||||||||
Subordinate debt issued by MFI | 29,471 | - | - | 29,471 | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||
Fair Value Measurement Levels | ||||||||||||||
(in thousands) | March 31, | Level 1 | Level 2 | Level 3 | ||||||||||
2014 | ||||||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 184,883 | $ | - | $ | - | $ | 184,883 | ||||||
Derivative assets | 541 | - | 541 | - | ||||||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 653 | $ | - | $ | - | $ | 653 | ||||||
Fair Value Measurement Levels | ||||||||||||||
(in thousands) | December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Bonds available-for-sale | $ | 195,332 | $ | - | $ | - | $ | 195,332 | ||||||
Liabilities: | ||||||||||||||
Derivative liabilities | $ | 626 | $ | - | $ | - | $ | 626 | ||||||
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 March 31, 2014. | ||||||||||||||
(in thousands) | Bonds Available-for-sale | Derivative Liabilities | ||||||||||||
Balance, January 1, 2014 | $ | 195,332 | $ | -626 | ||||||||||
Net losses included in earnings | -948 | -27 | ||||||||||||
Net gains included in other comprehensive income (1) | 4,906 | - | ||||||||||||
Bonds eliminated due to real estate consolidation and foreclosure | -11,058 | - | ||||||||||||
Impact from settlements | -3,349 | - | ||||||||||||
Balance, March 31, 2014 | $ | 184,883 | $ | -653 | ||||||||||
-1 | This amount represents $4.9 million of unrealized net holding gains arising during the period. | |||||||||||||
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 March 31, 2013. | ||||||||||||||
(in thousands) | Bonds Available-for-sale | Derivative Liabilities | ||||||||||||
Balance, January 1, 2013 | $ | 969,394 | $ | -1,067 | ||||||||||
Net losses included in earnings | -1,851 | -85 | ||||||||||||
Net gains included in other comprehensive income (1) | 11,000 | - | ||||||||||||
Impact from redemption | -4,395 | - | ||||||||||||
Impact from settlements | -5,334 | 146 | ||||||||||||
Balance, March 31, 2013 | $ | 968,814 | $ | -1,006 | ||||||||||
-1 | This amount includes $10.8 million of unrealized net holding gains arising during the period, which is then increased by $0.4 million of unrealized bond losses reclassified into operations. This amount is then reduced by $0.2 million of unrealized gains related to bonds that were redeemed. | |||||||||||||
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 recognized at derivative settlement for the three months ended March 31, 2014. | ||||||||||||||
(in thousands) | Equity in Losses from Lower Tier | Net losses on derivatives (1) | ||||||||||||
Property Partnerships | ||||||||||||||
Change in unrealized losses related to assets and liabilities still held at March 31, 2014 | $ | -948 | $ | -27 | ||||||||||
Additional realized losses recognized | - | -78 | ||||||||||||
Total losses reported in earnings | $ | -948 | $ | -105 | ||||||||||
-1 | Amounts are reflected through “Net (losses) gains 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 redemption and derivative settlement for the three months ended March 31, 2013. | ||||||||||||||
(in thousands) | Net losses on | Equity in Losses from Lower Tier | Net losses on | |||||||||||
bonds (1) | Property Partnerships | derivatives (2) | ||||||||||||
Change in unrealized losses related to assets and liabilities still held at March 31, 2013 | $ | -353 | $ | -1,498 | $ | -85 | ||||||||
Additional realized gains (losses) recognized | 182 | - | -77 | |||||||||||
Total losses reported in earnings | $ | -171 | $ | -1,498 | $ | -162 | ||||||||
-1 | Amounts are reflected through “Impairment on bonds” and “Net (losses) gains on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
-2 | Amounts are reflected through “Net (losses) gains on assets and derivatives” on the consolidated statements of operations. | |||||||||||||
GUARANTEES_AND_COLLATERAL_Tabl
GUARANTEES AND COLLATERAL (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Guarantees [Abstract] | ' | |||||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] | ' | |||||||||||||||||||||
The following table summarizes guarantees, by type, at March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||
(in thousands) | Maximum Exposure | Carrying Amount | Maximum Exposure | Carrying Amount | ||||||||||||||||||
Indemnification contracts | $ | 20,224 | $ | 1,114 | $ | 20,224 | $ | 1,198 | ||||||||||||||
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 March 31, 2014 and December 31, 2013. This table also reflects certain assets held by CFVs in order to reconcile to the Company’s consolidated balance sheets. | ||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||
(in thousands) | Note Ref. | Restricted Cash | Bonds Available- for-sale | Real Estate Held-for-Use | Investment in Preferred stock | Other Assets | Total Assets Pledged | |||||||||||||||
Debt - notes payable | $ | - | $ | - | $ | 1,271 | $ | - | $ | 6,322 | $ | 7,593 | ||||||||||
Debt – total return swap financing | 20,007 | 104,257 | - | 31,371 | - | 155,635 | ||||||||||||||||
Other | -1 | 15,000 | 30,496 | 14,279 | - | 262 | 60,037 | |||||||||||||||
CFVs | -2 | 52,470 | - | 91,171 | - | 22,693 | 166,334 | |||||||||||||||
Total | $ | 87,477 | $ | 134,753 | $ | 106,721 | $ | 31,371 | $ | 29,277 | $ | 389,599 | ||||||||||
December 31, 2013 | ||||||||||||||||||||||
(in thousands) | Note Ref. | Restricted Cash | Bonds Available- for-sale | Real Estate Held-for-Use | Investment in Preferred stock | Other Assets | Total | |||||||||||||||
Assets Pledged | ||||||||||||||||||||||
Debt - notes payable | $ | - | $ | - | $ | 1,735 | $ | - | $ | 11,613 | $ | 13,348 | ||||||||||
Debt – total return swap financing | 20,006 | 105,511 | - | 31,371 | - | 156,888 | ||||||||||||||||
Other | -1 | 15,000 | 29,258 | 13,909 | - | 294 | 58,461 | |||||||||||||||
CFVs | -2 | 52,897 | - | 102,314 | - | 23,664 | 178,875 | |||||||||||||||
Total | $ | 87,903 | $ | 134,769 | $ | 117,958 | $ | 31,371 | $ | 35,571 | $ | 407,572 | ||||||||||
-1 | The Company pledges collateral in connection with various guarantees that it has provided. | |||||||||||||||||||||
-2 | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. | |||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 three months ended March 31, 2014 and 2013 reported through “General and administrative” on the consolidated statements of operations: | ||||||||
For the three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Rental expense | $ | -210 | $ | -534 | ||||
Rental income | 112 | 327 | ||||||
Net rental expense | $ | -98 | $ | -207 | ||||
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 | ||||||||
March 31, 2014: | ||||||||
(in thousands) | ||||||||
2014 | $ | 314 | ||||||
2015 | 425 | |||||||
2016 | 430 | |||||||
2017 | 104 | |||||||
2018 | 39 | |||||||
Total minimum future rental commitments | $ | 1,312 | ||||||
EQUITY_Tables
EQUITY (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 months ended March 31, 2014 and 2013. | ||||||||||||||
For the three months ended | ||||||||||||||
March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Net (loss) income from continuing operations | $ | -1,023 | $ | 35,251 | ||||||||||
Net income from discontinued operations | 14,629 | 4,025 | ||||||||||||
Net income to common shareholders | $ | 13,606 | $ | 39,276 | ||||||||||
Basic weighted-average shares (1) | 40,207 | 42,445 | ||||||||||||
Common stock equivalents (2) (3) (4) | 1,457 | 1,272 | ||||||||||||
Diluted weighted-average shares | 41,664 | 43,717 | ||||||||||||
-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 March 31, 2014, 2.0 million stock options were in the money and had a dilutive impact of 1.4 million shares. In addition, 0.2 million unvested employee deferred shares had a dilutive impact of 0.1 million shares for the three months ended March 31, 2014. | |||||||||||||
-3 | At March 31, 2013, 2.1 million stock options were in the money and had a dilutive impact of 1.3 million shares. | |||||||||||||
-4 | For the three months ended March 31, 2014 and 2013, the average number of options excluded from the calculations of diluted earnings per share was 0.3 million 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. The Company reported the following noncontrolling interests within equity in entities that the Company did not wholly own at March 31, 2014 and December 31, 2013: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Noncontrolling interests in: | ||||||||||||||
LIHTC Funds | $ | 315,810 | $ | 328,236 | ||||||||||
SA Fund | 133,914 | 130,839 | ||||||||||||
Consolidated Lower Tier Property Partnerships | 14,685 | 16,086 | ||||||||||||
IHS | -1,695 | -1,648 | ||||||||||||
Total | $ | 462,714 | $ | 473,513 | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||
The following table summarizes the net change in accumulated other comprehensive income allocable to common shareholders and amounts reclassified out of accumulated other comprehensive income for the three months ended March 31, 2014. | ||||||||||||||
(in thousands) | Net Unrealized Gains on Bonds | Income Tax Expense | Foreign Currency Translation | Accumulated Other Comprehensive | ||||||||||
Available-for-Sale | Income | |||||||||||||
Balance at January 1, 2014 | $ | 36,868 | $ | - | $ | -209 | $ | 36,659 | ||||||
Unrealized net holding gains arising during period | 4,906 | - | 2 | 4,908 | ||||||||||
Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -2,003 | - | - | -2,003 | ||||||||||
Other | - | -129 | - | -129 | ||||||||||
Net current period other comprehensive income | 2,903 | -129 | 2 | 2,776 | ||||||||||
Balance at March 31, 2014 | $ | 39,771 | $ | -129 | $ | -207 | $ | 39,435 | ||||||
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 March 31, 2013. | ||||||||||||||
Unrealized Gains on Bonds Available- | Foreign Currency Translation | Accumulated Other Comprehensive | ||||||||||||
for-Sale | Income | |||||||||||||
Balance at January 1, 2013 | $ | 139,021 | $ | -334 | $ | 138,687 | ||||||||
Unrealized net holding gains (losses) arising during period | 10,829 | -13 | 10,816 | |||||||||||
Reversal of unrealized gains on sold/redeemed bonds | (182) | -1 | - | -182 | ||||||||||
Reclassification of unrealized losses to income | 353 | - | 353 | |||||||||||
Net current period other comprehensive income | 11,000 | -13 | 10,987 | |||||||||||
Balance at March 31, 2013 | $ | 150,021 | $ | -347 | $ | 149,674 | ||||||||
-1 | Realized gains on bond redemptions included in “Net gains on bonds” in the Consolidated Statement of Operations. There is no applicable income tax on the realized gains. | |||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 ended March 31, 2014 and 2013: | |||||||||||||||||
For the three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Employees’ Stock-Based Compensation Plan | $ | 942 | $ | 1,041 | |||||||||||||
Non-employee Directors’ Stock-Based Compensation Plan | 75 | 63 | |||||||||||||||
Total | $ | 1,017 | $ | 1,104 | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
The following table summarizes option activity under the Employees’ Stock-Based Compensation Plans: | |||||||||||||||||
(in thousands, except per option data) | Number of Options | Weighted- average | Weighted- average | Aggregate Intrinsic Value | Period End Liability (2) | ||||||||||||
Exercise Price per Option | Remaining Contractual | -1 | |||||||||||||||
Life per Option | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding at January 1, 2013 (1) | 2,345 | $ | 3.61 | 7.8 | $ | 58 | $ | 355 | |||||||||
Forfeited/Expired in 2013 | -264 | 26.5 | |||||||||||||||
Outstanding at December 31, 2013 (1) | 2,081 | 0.7 | 7.3 | 1,644 | 1,785 | ||||||||||||
Forfeited/Expired in 2014 | - | ||||||||||||||||
Outstanding at March 31, 2014 (1) | 2,081 | 0.7 | 7.1 | 2,516 | 2,612 | ||||||||||||
Number of options that were exercisable at: | |||||||||||||||||
31-Dec-13 | 1,436 | 0.86 | 6.9 | ||||||||||||||
31-Mar-14 | 1,624 | 0.8 | 6.9 | ||||||||||||||
-1 | Intrinsic value is based on outstanding options. | ||||||||||||||||
-2 | Only options that were amortized based on a vesting schedule have a liability balance. These options were 2.0 million; 1.9 million; and 1.5 million at March 31, 2014, December 31, 2013 and January 1, 2013, 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 grants outstanding at March 31, 2014, have both time and price vesting requirements. A portion of the shares vest over the next two years and a portion of the shares vest if the average price requirement of $2.00 per share and $2.50 per share is met, respectively. | |||||||||||||||||
(in thousands, except per share data) | Deferred Share Grants | Weighted- average Grant Date | Period End Liability | ||||||||||||||
Share Price | |||||||||||||||||
Balance, January 1, 2014 | 289 | $ | 3.29 | $ | 218 | ||||||||||||
Granted in 2014 | - | ||||||||||||||||
Issued in 2014 | -81 | 9.48 | |||||||||||||||
Balance, March 31, 2014 | 208 | 0.88 | 221 | ||||||||||||||
Schedule of Share-based Compensation, Nonemployee Director Stock Award Plan, Activity [Table Text Block] | ' | ||||||||||||||||
See the table below which summarizes the director options that vested as well as the common shares and deferred shares granted to the directors for services rendered for the three months ended March 31, 2014 and 2013. The directors are fully vested in the deferred shares at the grant date. | |||||||||||||||||
(in thousands, except share price | Common Shares Granted | Deferred Shares Granted | Weighted- average Grant Date | Options Vested | Directors’ Fees Expense | ||||||||||||
data) | Share Price | ||||||||||||||||
31-Mar-14 | 19 | 9 | $ | 1.32 | - | $ | 75 | ||||||||||
31-Mar-13 | - | 25 | 1.01 | 20 | 63 | ||||||||||||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 | ||||||||
March 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Sublease income | $ | - | $ | 369 | ||||
Income from CFVs (primarily rental income) | 279 | 3,924 | ||||||
Income from REO operations | 302 | - | ||||||
Rent expense | - | -369 | ||||||
Expenses from CFVs (primarily operating expenses) | -244 | -3,670 | ||||||
Expenses from REO operations | -451 | - | ||||||
Other income | 83 | 90 | ||||||
Other expense | -28 | -279 | ||||||
Income tax expense | -504 | - | ||||||
Net (loss) income before disposal activity | -563 | 65 | ||||||
Disposal: | ||||||||
Net gains related to REO | 15,037 | - | ||||||
Net gains related to CFVs | 5 | 4,996 | ||||||
Net income from discontinued operations | 14,479 | 5,061 | ||||||
Loss (income) from discontinued operations allocable to noncontrolling interests | 150 | -1,036 | ||||||
Net income to common shareholders from discontinued operations | $ | 14,629 | $ | 4,025 | ||||
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 ended March 31, 2014 and 2013 are as follows: | ||||||||
For the three months ended | ||||||||
March 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Interest income | $ | 185 | $ | 615 | ||||
Other income | 385 | 459 | ||||||
Other expense | -479 | -698 | ||||||
Income tax expense | -504 | - | ||||||
Net gains on disposal of REO | 15,037 | - | ||||||
Net gains on redemption of bonds | 5 | 3,649 | ||||||
Net income to common shareholders from discontinued operations | $ | 14,629 | $ | 4,025 | ||||
CONSOLIDATED_FUNDS_AND_VENTURE1
CONSOLIDATED FUNDS AND VENTURES (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 March 31, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||
(in thousands) | March 31, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
LIHTC Funds | $ | 316,764 | $ | 329,033 | ||||||||||
SA Fund | 188,099 | 184,649 | ||||||||||||
Consolidated Lower Tier Property Partnerships | 96,259 | 107,362 | ||||||||||||
Other consolidated entities | 2,108 | 2,163 | ||||||||||||
Total assets of CFVs | $ | 603,230 | $ | 623,207 | ||||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||
Asset Summary: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 52,470 | $ | 52,897 | ||||||||||
Investments in Lower Tier Property Partnerships | 274,229 | 286,007 | ||||||||||||
SA Fund investments | 162,667 | 158,325 | ||||||||||||
Real estate held-for-use, net | 91,171 | 102,314 | ||||||||||||
Other assets | 22,693 | 23,664 | ||||||||||||
Total assets of CFVs | $ | 603,230 | $ | 623,207 | ||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
LIHTC Funds’ investment in Lower Tier Property Partnerships | $ | 274,229 | $ | 286,007 | ||||||||||
Total assets of Lower Tier Property Partnerships (1) | $ | 1,313,875 | $ | 1,324,704 | ||||||||||
Total liabilities of Lower Tier Property Partnerships (1) | 1,041,395 | 1,038,983 | ||||||||||||
-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 March 31, 2014 and 2013: | ||||||||||||||
For the three months ended | ||||||||||||||
March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Balance, January 1, | $ | 158,325 | $ | 161,433 | ||||||||||
Net gains included in earnings related to CFVs | 4,867 | 11,356 | ||||||||||||
Net foreign currency translation losses included in other comprehensive income attributable to CFVs | -1,192 | -13,940 | ||||||||||||
Impact from purchases | 4,606 | 3,709 | ||||||||||||
Impact from sales and distributions | -3,939 | -972 | ||||||||||||
Balance, March 31, | $ | 162,667 | $ | 161,586 | ||||||||||
Real Estate Held for Use, Net [Table Text Block] | ' | |||||||||||||
The real estate held-for-use by Consolidated Lower Tier Property Partnerships was comprised of the following at March 31, 2014 and December 31, 2013: | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Building, furniture and fixtures | $ | 99,299 | $ | 108,424 | ||||||||||
Accumulated depreciation | -19,315 | -17,997 | ||||||||||||
Land | 11,187 | 11,887 | ||||||||||||
Total | $ | 91,171 | $ | 102,314 | ||||||||||
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 March 31, 2014 and December 31, 2013. | ||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||
2014 | ||||||||||||||
Liabilities of CFVs: | ||||||||||||||
Debt | $ | 91,312 | $ | 91,602 | ||||||||||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 13,461 | ||||||||||||
Other liabilities | 4,957 | 4,043 | ||||||||||||
Total liabilities of CFVs | $ | 109,730 | $ | 109,106 | ||||||||||
Schedule of Long-term Debt of Consolidated Funds and Ventures [Table Text Block] | ' | |||||||||||||
At March 31, 2014 and December 31, 2013, the debt of the CFVs had the following terms: | ||||||||||||||
March 31, 2014 | ||||||||||||||
(in thousands) | Carrying Amount | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Effective Interest Rates | ||||||||||||||
SA Fund (1) | $ | 49,886 | $ | 49,886 | 2.6 | % | Apr-18 | |||||||
Consolidated Lower Tier Property Partnerships | 41,426 | 40,513 | 6.3 | Various dates through March 2049 | ||||||||||
Total | $ | 91,312 | $ | 90,399 | ||||||||||
December 31, 2013 | ||||||||||||||
(in thousands) | Carrying Amount | Face Amount | Weighted-average | Maturity Dates | ||||||||||
Effective Interest Rates | ||||||||||||||
SA Fund (1) | $ | 49,886 | $ | 49,886 | 2.6 | % | Apr-18 | |||||||
Consolidated Lower Tier Property Partnerships | 41,716 | 40,987 | 6.3 | Various dates through March 2049 | ||||||||||
Total | $ | 91,602 | $ | 90,873 | ||||||||||
-1 | This amount includes $0.8 million of capitalized interest for the period ended March 31, 2014 and December 31, 2013. | |||||||||||||
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 ended March 31, 2014 and 2013. | ||||||||||||||
Income Statement Summary: | ||||||||||||||
For the three months ended March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Revenue: | ||||||||||||||
Rental and other income from real estate | $ | 3,624 | $ | 2,164 | ||||||||||
Interest and other income | 1,426 | 624 | ||||||||||||
Total revenue from CFVs | 5,050 | 2,788 | ||||||||||||
Expenses: | ||||||||||||||
Depreciation and amortization | 2,218 | 1,726 | ||||||||||||
Interest expense | 1,069 | 498 | ||||||||||||
Other operating expenses | 2,952 | 2,028 | ||||||||||||
Foreign currency loss | 410 | 4,155 | ||||||||||||
Asset impairments | 5,000 | 3,024 | ||||||||||||
Total expenses from CFVs | 11,649 | 11,431 | ||||||||||||
Net gains (losses) related to CFVs: | ||||||||||||||
Investment gains | 4,867 | 11,356 | ||||||||||||
Derivative (losses) gains | -58 | 3,631 | ||||||||||||
Equity in losses from Lower Tier Property Partnerships of CFVs | -7,428 | -6,418 | ||||||||||||
Net loss | -9,218 | -74 | ||||||||||||
Net losses allocable to noncontrolling interests in CFVs (1) | 9,853 | 660 | ||||||||||||
Net income allocable to the common shareholders related to CFVs | $ | 635 | $ | 586 | ||||||||||
-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 ended March 31, 2014 and 2013 are as follows: | ||||||||||||||
For the three months ended | ||||||||||||||
March 31, | ||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||
Interest income | $ | 343 | $ | 685 | ||||||||||
Asset management fees | 841 | 858 | ||||||||||||
Guarantee fees | 331 | 331 | ||||||||||||
Equity in losses from Lower Tier Property Partnerships | -949 | -1,499 | ||||||||||||
Equity in income from SA Fund | 128 | 282 | ||||||||||||
Other expense | -59 | -71 | ||||||||||||
Net income allocable to the common shareholders | $ | 635 | $ | 586 | ||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule Of Income Statement By Reporting Segments [Table Text Block] | ' | |||||||||||||||||||
The following tables reflect the results of the business segments for the three months ended March 31, 2014 and 2013. 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. We have revised the presentation for the three months ended March 31, 2013 for comparability purposes. This presentation change had no impact on “Net income (loss) to common shareholders.” | ||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||
(in thousands) | US Operations | International Operations | CFVs | Income Allocation Reclasses | MMA Consolidated | |||||||||||||||
Total interest income | $ | 5,638 | $ | 10 | $ | - | $ | (343) | -1 | $ | 5,305 | |||||||||
Total interest expense | -1,203 | - | - | - | -1,203 | |||||||||||||||
Net interest income | 4,435 | 10 | - | -343 | 4,102 | |||||||||||||||
Total fee and other income | 2,276 | 1,046 | - | (1,172) | -2 | 2,150 | ||||||||||||||
Revenue from CFVs | - | - | 5,050 | - | 5,050 | |||||||||||||||
Total non-interest revenue | 2,276 | 1,046 | 5,050 | -1,172 | 7,200 | |||||||||||||||
Total revenues, net of interest expense | 6,711 | 1,056 | 5,050 | -1,515 | 11,302 | |||||||||||||||
Operating and other expenses: | ||||||||||||||||||||
Interest expense | -3,536 | -37 | - | - | -3,573 | |||||||||||||||
Operating expenses | -4,463 | -1,211 | - | - | -5,674 | |||||||||||||||
Other expenses, net | -888 | -82 | - | 59 | -3 | -911 | ||||||||||||||
Expenses from CFVs | - | - | -13,233 | 1,584 | -5 | -11,649 | ||||||||||||||
Total operating and other expenses | -8,887 | -1,330 | -13,233 | 1,643 | -21,807 | |||||||||||||||
Net losses on assets, derivatives and extinguishment of liabilities | -365 | - | - | - | -365 | |||||||||||||||
Net gains due to real estate consolidation and foreclosure | 2,003 | - | - | - | 2,003 | |||||||||||||||
Net gains related to CFVs | - | - | 4,809 | - | 4,809 | |||||||||||||||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (949) | -6 | 128 | -6,479 | -6 | (128) | -4 | -7,428 | ||||||||||||
Loss from continuing operations before income taxes | -1,487 | -146 | -9,853 | - | -11,486 | |||||||||||||||
Income tax benefit | 554 | - | - | - | 554 | |||||||||||||||
Income (loss) from discontinued operations, net of tax | 14,629 | - | -150 | - | 14,479 | |||||||||||||||
Net income (loss) | 13,696 | -146 | -10,003 | - | 3,547 | |||||||||||||||
Income allocable to noncontrolling interests: | ||||||||||||||||||||
Net losses allocable to noncontrolling interests in CFVs: | ||||||||||||||||||||
Related to continuing operations operations | - | 56 | 9,853 | - | 9,909 | |||||||||||||||
Related to discontinued operations operations | - | - | 150 | - | 150 | |||||||||||||||
Net income (loss) to common shareholders shareholders | $ | 13,696 | $ | -90 | $ | - | $ | - | $ | 13,606 | ||||||||||
-1 | Represents interest on bonds that the Company recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.3 million is reflected in total interest income for the US Operations. | |||||||||||||||||||
-2 | This amount includes $0.7 million of asset management fees recognized by IHS through an income allocation (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.7 million is reflected in total fee and other income for the International Operations. This amount also includes $0.2 million of asset management fees and $0.3 million of guarantee fees both related to the Company’s LIHTC Funds and both recognized during the first quarter of 2014 through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, both are included in total fee and other income for the US Operations. | |||||||||||||||||||
-3 | Represents net expenses recognized by the Company through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, these expenses are reflected as additional other expenses for the US Operations. | |||||||||||||||||||
-4 | Represents the Company’s share of its equity interest in the SA Fund (i.e., 2.7% of the SA Fund’s first quarter of 2014 net income) which is recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.1 million is reflected as equity in income of unconsolidated ventures for the International Operations. | |||||||||||||||||||
-5 | The sum of the income highlighted in notes 1, 2 and 4 above, partially offset by the expenses discussed in note 3 above, total $1.6 million of net income to the Company which is then reflected as an overall net expense to the CFVs. | |||||||||||||||||||
-6 | Represents equity in losses from the Lower Tier Property Partnerships that the Company recognized as an allocation (see Note 15, “Consolidated Funds and Ventures”) because of bonds held by the Company associated with the Lower Tier Property Partnerships in situations where the carrying amount of the limited partnership investment had reached zero. For purposes of the table above, the Company recognized $0.9 million of losses in US Operations and reduced the CFVs losses by the same amount. | |||||||||||||||||||
For the three months ended March 31, 2013 | ||||||||||||||||||||
(in thousands) | US Operations | International Operations | CFVs | Income Allocation | MMA Consolidated | |||||||||||||||
Reclasses | ||||||||||||||||||||
Total interest income | $ | 16,616 | $ | 7 | $ | - | $ | -685 | -1 | $ | 15,938 | |||||||||
Total interest expense | -6,289 | - | - | - | -6,289 | |||||||||||||||
Net interest income | 10,327 | 7 | - | -685 | 9,649 | |||||||||||||||
Total fee and other income | 2,216 | 811 | - | -1,189 | -2 | 1,838 | ||||||||||||||
Revenue from CFVs | - | - | 2,788 | - | 2,788 | |||||||||||||||
Total non-interest revenue | 2,216 | 811 | 2,788 | -1,189 | 4,626 | |||||||||||||||
Total revenues, net of interest expense | 12,543 | 818 | 2,788 | -1,874 | 14,275 | |||||||||||||||
Operating and other expenses: | ||||||||||||||||||||
Interest expense | -4,096 | -33 | - | - | -4,129 | |||||||||||||||
Operating expenses | -6,001 | -1,524 | - | - | -7,525 | |||||||||||||||
Impairment on bonds and recovery of loan losses | -353 | - | - | - | -353 | |||||||||||||||
Other expenses | -1,792 | -213 | - | 71 | -3 | -1,934 | ||||||||||||||
Expenses from CFVs | - | - | -13,516 | 2,085 | -5 | -11,431 | ||||||||||||||
Total operating and other expenses | -12,242 | -1,770 | -13,516 | 2,156 | -25,372 | |||||||||||||||
Net gains on assets, derivatives and extinguishment of liabilities | 37,447 | - | - | - | 37,447 | |||||||||||||||
Net gains related to CFVs | - | - | 14,987 | - | 14,987 | |||||||||||||||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | -1,499 | -6 | 282 | -4,919 | -6 | -282 | -4 | -6,418 | ||||||||||||
Income (loss) from continuing operations before income taxes | 36,249 | -670 | -660 | - | 34,919 | |||||||||||||||
Income tax benefit | 1,527 | - | - | - | 1,527 | |||||||||||||||
Income from discontinued operations, net of tax | 4,025 | - | 1,036 | - | 5,061 | |||||||||||||||
Net income (loss) | 41,801 | -670 | 376 | - | 41,507 | |||||||||||||||
Income allocable to noncontrolling interests: | ||||||||||||||||||||
Income allocable to perpetual preferred shareholders of a subsidiary company | -2,005 | - | - | - | -2,005 | |||||||||||||||
Net losses (income) allocable to noncontrolling interests in CFVs: | ||||||||||||||||||||
Related to continuing operations | - | 150 | 660 | - | 810 | |||||||||||||||
Related to discontinued operations | - | - | -1,036 | - | -1,036 | |||||||||||||||
Net income (loss) to common shareholders | $ | 39,796 | $ | -520 | $ | - | $ | - | $ | 39,276 | ||||||||||
-1 | Represents interest on bonds that the Company recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.7 million is reflected in total interest income for the US Operations. | |||||||||||||||||||
-2 | This amount includes $0.7 million of asset management fees recognized by IHS through an income allocation (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.7 million is reflected in total fee and other income for the International Operations. This amount also includes $0.2 million of asset management fees and $0.3 million of guarantee fees both related to the Company’s LIHTC Funds and both recognized during the first quarter of 2013 through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, both are included in total fee and other income for the US Operations. | |||||||||||||||||||
-3 | Represents net expenses recognized by the Company through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, these expenses are reflected as additional other expenses for the US Operations. | |||||||||||||||||||
-4 | Represents the Company’s share of its equity interest in the SA Fund (i.e., 2.7% of the SA Fund’s first quarter of 2013 net income) which is recognized through an allocation of income (see Note 15, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.3 million is reflected as equity in income of unconsolidated ventures for the International Operations. | |||||||||||||||||||
-5 | The sum of the income highlighted in notes 1, 2 and 4 above, partially offset by the expenses discussed in note 3 above, total $2.1 million of net income to the Company which is then reflected as an overall net expense to the CFVs. | |||||||||||||||||||
-6 | Represents equity in losses from the Lower Tier Property Partnerships that the Company recognized as an allocation (see Note 15, “Consolidated Funds and Ventures”) because of bonds held by the Company associated with the Lower Tier Property Partnerships in situations where the carrying amount of the limited partnership investment had reached zero. For purposes of the table above, the Company recognized $1.5 million of losses in US Operations and reduced the CFVs losses by the same amount. | |||||||||||||||||||
Schedule of Total Assets by Reporting Segments [Table Text Block] | ' | |||||||||||||||||||
The total assets by segment at March 31, 2014 and December 31, 2013 are presented in the table below: | ||||||||||||||||||||
(in thousands) | March 31, | December 31, 2013 | ||||||||||||||||||
2014 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
US Operations | $ | 450,586 | $ | 443,664 | ||||||||||||||||
International Operations | 7,762 | 6,681 | ||||||||||||||||||
Total segment assets | 458,348 | 450,345 | ||||||||||||||||||
Bonds eliminated in consolidation | -37,730 | -47,745 | ||||||||||||||||||
Net unrealized mark-to-market gains not recorded in consolidation | -2,037 | -2,543 | ||||||||||||||||||
Other adjustments | -7,728 | -7,906 | ||||||||||||||||||
Assets of CFVs | 603,230 | 623,207 | ||||||||||||||||||
Total MMA consolidated assets | $ | 1,014,083 | $ | 1,015,358 | ||||||||||||||||
DESCRIPTION_OF_THE_BUSINESS_AN2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Bond Investment Fair Value | $39.80 |
Investment Tax Credit | 852.5 |
Bonds [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Bond Investment Fair Value | $224.70 |
International Housing Solutions Sarl [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 83.00% |
LIHTC [Member] | Maximum [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 0.04% |
LIHTC [Member] | Minimum [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 0.01% |
BONDS_AVAILABLEFORSALE_Details
BONDS AVAILABLE-FOR-SALE (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Unpaid Principal Balance | $208,635 | $223,587 | ||
Amortized Cost | 145,112 | [1] | 158,464 | [1] |
Gross Unrealized Gains | 40,463 | 38,785 | ||
Gross Unrealized Losses | -692 | [2],[3] | -1,917 | [4],[5] |
Fair Value | 184,883 | 195,332 | ||
Mortgage Revenue Bonds [Member] | ' | ' | ||
Unpaid Principal Balance | 131,378 | 143,617 | ||
Amortized Cost | 92,407 | [1] | 103,194 | [1] |
Gross Unrealized Gains | 19,197 | 19,245 | ||
Gross Unrealized Losses | -692 | [2],[3] | -1,085 | [4],[5] |
Fair Value | 110,912 | 121,354 | ||
Other Bonds [Member] | ' | ' | ||
Unpaid Principal Balance | 77,257 | 79,970 | ||
Amortized Cost | 52,705 | [1] | 55,270 | [1] |
Gross Unrealized Gains | 21,266 | 19,540 | ||
Gross Unrealized Losses | 0 | [2],[3] | -832 | [4],[5] |
Fair Value | $73,971 | $73,978 | ||
[1] | Represents the unpaid principal balance (“UPBâ€), net of discounts, deferred costs and fees as well as impairments recognized in earnings. | |||
[2] | At March 31, 2014, the majority of this amount represents the non-credit loss component for certain unrealized losses deemed to be other-than-temporarily impaired; however, this amount also includes unrealized losses that were not considered other-than-temporarily impaired. | |||
[3] | These bonds had been in a gross unrealized loss position for less than 12 consecutive months and had a fair value of $16.3 million at March 31, 2014. | |||
[4] | At December 31, 2013, the majority of this amount represents unrealized losses that were not considered other-than-temporarily impaired; however, this amount also includes the non-credit loss component for certain unrealized losses deemed to be other-than-temporarily impaired. | |||
[5] | These bonds had been in a gross unrealized loss position for less than 12 consecutive months and had a fair value of $40.1 million at December 31, 2013 ($16.2 million for mortgage revenue bonds and $23.9 million for other bonds). |
BONDS_AVAILABLEFORSALE_Details1
BONDS AVAILABLE-FOR-SALE (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost, Bonds that may be prepaid without restrictions, premiums or penalties at March 31, 2014 | ' | ' |
Amortized Cost, at March 31, 2014 | $0 | ' |
Amortized Cost, April 1 through December 31, 2014 | 0 | ' |
Amortized Cost, 2015 | 0 | ' |
Amortized Cost, 2016 | 10,264 | ' |
Amortized Cost, 2017 | 5,651 | ' |
Amortized Cost, 2018 | 15,963 | ' |
Amortized Cost, Thereafter | 78,673 | ' |
Amortized Cost, Bonds that may not be prepaid | 34,561 | ' |
Amortized Cost, Total | 145,112 | ' |
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties at March 31, 2014 | ' | ' |
Fair Value, at March 31, 2014 | 1,294 | ' |
Fair Value, April 1 through December 31, 2014 | 0 | ' |
Fair Value, 2015 | 0 | ' |
Fair Value, 2016 | 14,074 | ' |
Fair Value, 2017 | 6,429 | ' |
Fair Value, 2018 | 23,034 | ' |
Fair Value, Thereafter | 94,572 | ' |
Fair Value, Bonds that may not be prepaid | 45,480 | ' |
Fair Value, Total | $184,883 | $195,332 |
BONDS_AVAILABLEFORSALE_Details2
BONDS AVAILABLE-FOR-SALE (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total current | $130,867 | $117,666 |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days | 54,016 | 77,666 |
Fair Value, Total | $184,883 | $195,332 |
BONDS_AVAILABLEFORSALE_Details3
BONDS AVAILABLE-FOR-SALE (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net bond impairment recognized in earnings on bonds held at each period-end | $0 | ($353) |
Gains recognized at time of sale/redemption | 0 | 182 |
Total net losses on bonds | $0 | ($171) |
BONDS_AVAILABLEFORSALE_Details4
BONDS AVAILABLE-FOR-SALE (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Unpaid Principal Balance of Bond Investment Eliminated Due to Consolidation | $56.90 | ' | $68 |
Available For Sale Debt Securities Eliminated Due To Consolidation | 39.8 | ' | 50.3 |
Non Accrual Bonds | 80.1 | 122.3 | ' |
Non Accrual Bonds Interest Income Cash Basis Method | 3 | 1.6 | ' |
Interest Income Non Accrual Bonds Not Recognized | 1.4 | 2 | ' |
Repayments of Debt from Sales and Redemptions of Bonds | 0 | 4.6 | ' |
Subordinate Bond Investments Un Paid Principal Balance | 9.5 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 16.3 | ' | 40.1 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 1.4 | ' | ' |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 1.4 | ' | ' |
Non Accrual Bonds Including Bonds Eliminated In Consolidation | 102.3 | ' | ' |
Interest Income Non Accrual Bonds Including Bonds Eliminated In Consolidation Not Recognized | 1.9 | ' | ' |
Non Accrual Bonds Including Bonds Eliminated In Consolidation Interest Income Cash Basis Method | 3 | ' | ' |
Bonds [Member] | ' | ' | ' |
Real Estate Acquired Through Foreclosure | 11.1 | ' | ' |
Mortgage Revenue Bonds [Member] | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | ' | ' | 16.2 |
Other Bonds [Member] | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | ' | ' | $23.90 |
INVESTMENTS_IN_PREFERRED_STOCK1
INVESTMENTS IN PREFERRED STOCK (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
Preferred Stock, Dividend Rate, Percentage | 14.37% | ' | ' |
Investment in preferred stock, Carrying value | $31,371,000 | $31,371,000 | ' |
Investment in preferred stock, Estimated fair value | 36,600,000 | ' | 36,600,000 |
Common Stockholders Equity, Percentage | ' | ' | 100.00% |
Derivative, Description of Variable Rate Basis | 'the Company pays a quarterly rate of 3-month London Interbank Offered Rate (LIBOR) plus a spread of 400 bps, 4.23% at March 31, 2014 | ' | ' |
Total Return Swaps [Member] | ' | ' | ' |
Derivative, Average Fixed Interest Rate | 14.37% | ' | ' |
Derivative Notional Amount | 12,400,000 | ' | ' |
Derivative, Maturity Date | 31-Mar-15 | ' | ' |
Termination Fee Percentage | 1.00% | ' | ' |
Proceeds from Convertible Debt | 36,600,000 | ' | ' |
Mma Mortgage Investment Corporation [Member] | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount | $36,600,000 | ' | ' |
REAL_ESTATE_Details
REAL ESTATE (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Real Estate Held-for-Use | $109,340 | $120,576 | ||
Real estate held-for-sale | 20,872 | 24,090 | ||
MuniMae's [Member] | ' | ' | ||
Real Estate Held-for-Use | 18,169 | [1] | 18,262 | [1] |
Real estate held-for-sale | 20,872 | 24,090 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Real Estate Held-for-Use | 91,171 | [2] | 102,314 | [2] |
Real estate held-for-sale | $0 | [2] | $0 | [2] |
[1] | MuniMae’s real estate held-for-use was comprised of three investments in undeveloped land with a carrying value of $7.5 million and $7.9 million at March 31, 2014 and December 31, 2013, and an affordable multifamily property with a carrying value of $10.7 million and $10.4 million, at March 31, 2014 and December 31, 2013, respectively. | |||
[2] | For more information see Note 15, “Consolidated Funds and Ventures.†|
REAL_ESTATE_Details_Textual
REAL ESTATE (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Undeveloped Land [Member] | Undeveloped Land [Member] | Multifamily Property [Member] | Multifamily Property [Member] | Real estate held-for-sale related to CFVs [Member] | First quarter of 2014 [Member] | Bond [Member] | ||||
Inventory, Real Estate, Other | $109,340,000 | ' | $120,576,000 | $7,500,000 | $7,900,000 | $10,700,000 | $10,400,000 | $9,800,000 | ' | ' |
Proceeds from Sale of Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | 35,800,000 | ' |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | 14,629,000 | 4,025,000 | ' | ' | ' | ' | ' | ' | 14,000,000 | ' |
Partners Capital Attributable to Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' |
Percentage Of Interest Due On Debt Financing Paid | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real Estate Held-For-Sale | $20,872,000 | ' | $24,090,000 | ' | ' | ' | ' | ' | ' | $11,100,000 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other assets: | ' | ' | ||
Solar facilities (includes other assets such as cash and other receivables) | $5,110 | $5,344 | ||
Debt issuance costs, net | 3,434 | 3,579 | ||
Accrued interest receivable | 2,768 | 1,250 | ||
Loans receivable | 1,174 | 1,210 | ||
Other assets | 3,136 | 2,449 | ||
Total other assets | 45,655 | 44,960 | ||
Real Estate Partnership [Member] | ' | ' | ||
Other assets: | ' | ' | ||
Investments in real estate partnerships | 7,340 | 7,464 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Other assets: | ' | ' | ||
Other assets | $22,693 | [1] | $23,664 | [1] |
[1] | For more information see Note 15, “Consolidated Funds and Ventures.†|
OTHER_ASSETS_Details_1
OTHER ASSETS (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in a real estate partnership: | ' | ' |
Total assets (primarily real estate) | $88,580 | $86,439 |
Total liabilities (primarily debt) | $45,045 | $44,538 |
OTHER_ASSETS_Details_2
OTHER ASSETS (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net (loss) income | ($86) | $37 |
OTHER_ASSETS_Details_Textual
OTHER ASSETS (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Land [Member] | International Housing Solutions [Member] | International Housing Solutions [Member] | SA Partnership [Member] | Related party [Member] | Solar Fund [Member] | |||
Third Party [Member] | International Housing Solutions [Member] | |||||||
Non-Recourse Debt | ' | ' | ' | ' | ' | ' | ' | $1,500,000 |
Contingent Interest Related To Termination | ' | ' | ' | ' | ' | ' | ' | 700,000 |
Contingent Liability | ' | ' | ' | ' | ' | ' | ' | 200,000 |
Investments | 162,667,000 | 158,325,000 | 6,200,000 | ' | ' | 1,100,000 | ' | ' |
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | ' | ' | ' | ' | 95.00% | ' | 5.00% | ' |
Real Estate Investments, Net, Total | ' | ' | ' | 7,300,000 | ' | ' | ' | ' |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | ' | ' | ' | 33.00% | ' | ' | ' | ' |
Loss Contingency, Loss in Period | ' | ' | ' | ' | ' | ' | ' | $200,000 |
DEBT_Details
DEBT (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt, Carrying Value | $436,984 | $441,963 | ||
Debt, Weighted Average Effective Interest Rate | 5.20% | 5.10% | ||
Senior Interest in and Debt Owed to Securitization Trusts [Member] | ' | ' | ||
Debt, Carrying Value | ' | 0 | ||
Mandatorily Redeemable Preferred Shares [Member] | ' | ' | ||
Debt, Carrying Value | ' | 0 | ||
Subordinated Debt [Member] | ' | ' | ||
Debt, Carrying Value | 145,969 | ' | ||
Asset Related Debt [Member] | ' | ' | ||
Debt, Carrying Value | 137,606 | [1] | 141,246 | [1] |
Debt, Weighted Average Effective Interest Rate | 3.50% | [1] | 3.40% | [1] |
Asset Related Debt [Member] | Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 19,922 | [1],[2] | 21,261 | [1],[2] |
Debt, Weighted Average Effective Interest Rate | 1.90% | [1],[2] | 1.80% | [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 | 110,253 | [1],[2] | 111,705 | [1],[2] |
Debt, Weighted Average Effective Interest Rate | 3.30% | [1],[2] | 3.20% | [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 | 1,098 | [1] | 1,667 | [1] |
Debt, Weighted Average Effective Interest Rate | 9.70% | [1] | 9.10% | [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 | 6,333 | [1] | 6,613 | [1] |
Debt, Weighted Average Effective Interest Rate | 10.00% | [1] | 9.90% | [1] |
Other Debt [Member] | ' | ' | ||
Debt, Carrying Value | 208,066 | [2] | 209,115 | [2] |
Debt, Weighted Average Effective Interest Rate | 6.70% | [2] | 6.70% | [2] |
Other Debt [Member] | Notes Payable and Other Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 15,360 | [2],[3] | 4,521 | [2],[3] |
Debt, Weighted Average Effective Interest Rate | 8.00% | [2],[3] | 9.60% | [2],[3] |
Other Debt [Member] | Notes Payable and Other Debt [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 46,737 | [1],[3] | 60,173 | [1],[3] |
Debt, Weighted Average Effective Interest Rate | 4.50% | [1],[3] | 5.20% | [1],[3] |
Other Debt [Member] | Subordinated Debt [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 772 | [2],[4] | 757 | [2],[4] |
Debt, Weighted Average Effective Interest Rate | 8.10% | [2],[4] | 8.10% | [2],[4] |
Other Debt [Member] | Subordinated Debt [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 145,197 | [2],[4] | 143,664 | [2],[4] |
Debt, Weighted Average Effective Interest Rate | 7.20% | [2],[4] | 7.20% | [2],[4] |
Debt Related to Consolidated Funds and Ventures [Member] | ' | ' | ||
Debt, Carrying Value | 91,312 | [5] | 91,602 | [5] |
Debt, Weighted Average Effective Interest Rate | 4.30% | [5] | 4.30% | [5] |
Debt Related to Consolidated Funds and Ventures [Member] | Due Within One Year [Member] | ' | ' | ||
Outstanding Debt Balances, Current | 293 | [5] | 14 | [5] |
Debt, Weighted Average Effective Interest Rate | 6.50% | [5] | 6.00% | [5] |
Debt Related to Consolidated Funds and Ventures [Member] | Due After One Year [Member] | ' | ' | ||
Long Term Debt, Excluding Current Maturities | 91,019 | [5] | 91,588 | [5] |
Debt, Weighted Average Effective Interest Rate | 4.30% | [5] | 4.30% | [5] |
Asset Related Debt And Other Debt [Member] | ' | ' | ||
Debt, Carrying Value | $345,672 | $350,361 | ||
Debt, Weighted Average Effective Interest Rate | 5.40% | 5.30% | ||
[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 $1.6 million at March 31, 2014 and December 31, 2013. | |||
[3] | This amount includes $2.6 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 $4.8 million and $3.0 million of net premiums and effective interest rate payable (i.e., the difference between the current pay rate and the effective interest rate) at March 31, 2014 and December 31, 2013, respectively. | |||
[5] | See Note 15, “Consolidated Funds and Ventures†for more information. |
DEBT_Details_1
DEBT (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
2014 | $24,884 | ' |
2015 | 68,382 | ' |
2016 | 34,304 | ' |
2017 | 4,833 | ' |
2018 | 101,781 | ' |
Thereafter | 198,430 | ' |
Net premium | 4,370 | ' |
Total | 436,984 | 441,963 |
Asset Related Debt And Other Debt [Member] | ' | ' |
2014 | 24,654 | ' |
2015 | 68,124 | ' |
2016 | 34,029 | ' |
2017 | 4,539 | ' |
2018 | 51,581 | ' |
Thereafter | 159,643 | ' |
Net premium | 3,102 | ' |
Total | 345,672 | ' |
Consolidated Funds and Ventures [Member] | ' | ' |
2014 | 230 | ' |
2015 | 258 | ' |
2016 | 275 | ' |
2017 | 294 | ' |
2018 | 50,200 | ' |
Thereafter | 38,787 | ' |
Net premium | 1,268 | ' |
Total | $91,312 | $91,602 |
DEBT_Details_2
DEBT (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | ||||
In Thousands, unless otherwise specified | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | Subordinated Debt [Member] | ||||||
MFI issuer [Member] | MFH Issuer 1 [Member] | MFH Issuer 2 [Member] | MFH Issuer 3 [Member] | MFH Issuer 4 [Member] | ||||||||
Principal | ' | ' | $141,215 | $29,287 | $33,286 | $30,116 | $17,219 | $31,307 | ||||
Net premium | 4,370 | ' | 4,754 | 0 | 1,614 | 1,275 | 662 | 1,203 | ||||
Carrying Value | $436,984 | $441,963 | $145,969 | $29,287 | $34,900 | $31,391 | $17,881 | $32,510 | ||||
Interim Principal Payment | ' | ' | ' | 'Amortizing | '$4,689 due April 2015 | '$4,242 due May 2015 | '$2,305 due May 2015 | '$4,191 due May 2015 | ||||
Maturity Date | ' | ' | ' | 'December 2027 and December 2033 | 'March 30, 2035 | 'April 30, 2035 | 'July 30, 2035 | 'July 30, 2035 | ||||
Coupon Interest Rate | ' | ' | ' | '8.0% | '0.75% to March 2015, then 3-month LIBOR plus 3.3% | [1] | '0.75% to April 2015, then 3-month LIBOR plus 3.3% | [1] | '0.75% to April 2015, then 3-month LIBOR plus 3.3% | [1] | '0.75% to April 2015, then 3-month LIBOR plus 3.3% | [1] |
[1] | The pay rate on this debt is currently 75 bps; however, we recognize interest expense on an effective yield basis which was approximately 6.9% at March 31, 2014. See the first table within this note that provides weighted-average effective rate information for all of our debt. |
DEBT_Details_Textual
DEBT (Details Textual) (USD $) | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |||
Interest expense | $1,203,000 | [1] | $6,289,000 | [1] | ' |
Available-For-Sale Securities, Debt Securities | 184,883,000 | ' | 195,332,000 | ||
Line of Credit Facility, Amount Outstanding | 0 | ' | ' | ||
Notes Payable and Other Debt [Member] | ' | ' | ' | ||
Debt Instrument, Debt Default, Amount | 2,600,000 | ' | 2,600,000 | ||
Notes Payable and Other Debt [Member] | Paid at Inception [Member] | ' | ' | ' | ||
Debt Issuance Cost | 400,000 | ' | ' | ||
Notes Payable and Other Debt [Member] | Payable at Termination [Member] | ' | ' | ' | ||
Debt Issuance Cost | 400,000 | ' | ' | ||
Subordinated Debt [Member] | ' | ' | ' | ||
Net Premiums and Effective Interest Rate Payable | 4,800,000 | ' | 3,000,000 | ||
Interest expense | 2,500,000 | 3,300,000 | ' | ||
Interest Expense Effective Yield Rate | 6.90% | ' | ' | ||
Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | ' | ' | ' | ||
Debt Instrument, Unamortized Discount | 1,600,000 | ' | 1,600,000 | ||
Interest expense | 1,000,000 | 800,000 | ' | ||
Available-For-Sale Securities, Debt Securities | 99,400,000 | ' | ' | ||
Secured Debt | 30,800,000 | ' | ' | ||
Non Bond Related Debt [Member] | Notes Payable and Other Debt [Member] | ' | ' | ' | ||
Debt Instrument, Interest Rate During Period | 4.23% | ' | ' | ||
Preferred Stock, Liquidation Preference, Value | 36,600,000 | ' | ' | ||
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 | $800,000 | ' | ' | ||
[1] | Represents interest expense related to debt which finances interest-bearing assets. See Note 6, “Debt.†|
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textual) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jan. 02, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Subsequent Event [Member] | MuniMae TE Bond Subsidiary, LLC [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Cap [Member] | Interest Rate Cap [Member] |
Subsequent Event [Member] | |||||||
Net Interest Payments on Derivatives | ' | ' | $0.10 | $0.30 | ' | ' | ' |
Derivative, Notional Amount | ' | 75.2 | 7.8 | ' | 7.8 | ' | 45 |
Derivative, Loss on Derivative | ' | ' | 0.1 | 0.2 | ' | ' | 0.3 |
Interest Rate Fair Value, Derivative Liabilities | ' | ' | 0.7 | ' | 0.6 | ' | ' |
Derivative Interest Rate Cap Bought | ' | ' | ' | ' | ' | 0.8 | ' |
Derivative, Maturity Date | ' | ' | ' | ' | ' | 2-Jan-19 | ' |
Debt Instrument, Repurchase Amount | 25.1 | ' | ' | ' | ' | ' | ' |
Debt instrument floating rate | ' | ' | ' | ' | ' | ' | $45 |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
In Thousands, unless otherwise specified | ||||
Investments in preferred stock, Carrying Amount | $31,371 | $31,371 | ' | |
Investments in preferred stock, Fair Value | 36,600 | ' | 36,600 | |
Loans receivable, Carrying Amount | 1,174 | 1,200 | ' | |
Long Term Debt, Carrying Amount | 436,984 | 441,963 | ' | |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |
Investments in preferred stock, Fair Value | 0 | 0 | ' | |
Loans receivable, Fair Value | 0 | 0 | ' | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |
Investments in preferred stock, Fair Value | 0 | 0 | ' | |
Loans receivable, Fair Value | 0 | 0 | ' | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | |
Investments in preferred stock, Fair Value | 36,613 | 36,613 | ' | |
Loans receivable, Fair Value | 239 | 271 | ' | |
Senior Interest in and Debt Owed to Securitization Trusts [Member] | ' | ' | ' | |
Long Term Debt, Carrying Amount | ' | 0 | ' | |
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 | ' | |
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 | 130,175 | 132,966 | ' | |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Notes Payable and Other Debt [Member] | Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 131,413 | 131,321 | ' | |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | ' | ' | ' | |
Long Term Debt, Carrying Amount | 69,528 | 72,974 | ' | |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Notes Payable and Other Debt [Member] | Non Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 62,154 | 65,253 | ' | |
Subordinated Debt [Member] | ' | ' | ' | |
Long Term Debt, Carrying Amount | 145,969 | ' | ' | |
Subordinated Debt [Member] | Mma Financial Holdings, Inc [Member] | ' | ' | ' | |
Long Term Debt, Carrying Amount | 29,287 | 29,471 | ' | |
Subordinated Debt [Member] | MMA Financial Inc [Member] | ' | ' | ' | |
Long Term Debt, Carrying Amount | 116,682 | 114,950 | ' | |
Subordinated Debt [Member] | Fair Value, Inputs, Level 1 [Member] | Mma Financial Holdings, Inc [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Subordinated Debt [Member] | Fair Value, Inputs, Level 1 [Member] | MMA Financial Inc [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Subordinated Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Mma Financial Holdings, Inc [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Subordinated Debt [Member] | Fair Value, Inputs, Level 2 [Member] | MMA Financial Inc [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Subordinated Debt [Member] | Fair Value, Inputs, Level 3 [Member] | Mma Financial Holdings, Inc [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 29,287 | 29,471 | ' | |
Subordinated Debt [Member] | Fair Value, Inputs, Level 3 [Member] | MMA Financial Inc [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 42,869 | 42,869 | ' | |
Liabilities of consolidated funds and ventures, Notes payable [Member] | ' | ' | ' | |
Investments in preferred stock, Carrying Amount | 0 | [1] | 0 | ' |
Long Term Debt, Carrying Amount | 91,312 | 91,602 | ' | |
Liabilities of consolidated funds and ventures, Notes payable [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 0 | 0 | ' | |
Liabilities of consolidated funds and ventures, Notes payable [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | 50,285 | 50,338 | ' | |
Liabilities of consolidated funds and ventures, Notes payable [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | |
Long Term Debt, Fair Value | $40,089 | $40,178 | ' | |
[1] | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Bonds available-for-sale | $184,883 | $195,332 |
Derivative assets | 541 | ' |
Liabilities: | ' | ' |
Derivative liabilities | 653 | 626 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Bonds available-for-sale | 0 | 0 |
Derivative assets | 0 | ' |
Liabilities: | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Bonds available-for-sale | 0 | 0 |
Derivative assets | 541 | ' |
Liabilities: | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Bonds available-for-sale | 184,883 | 195,332 |
Derivative assets | 0 | ' |
Liabilities: | ' | ' |
Derivative liabilities | $653 | $626 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Available-for-sale Securities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Bonds Available-for-Sale, Beginning Balance | $195,332 | $969,394 | ||
Bonds Available-for-Sale , Net losses included in earnings | -948 | -1,851 | ||
Bonds Available-for-Sale, Net gains (losses) included in other comprehensive lncome | 4,906 | [1] | 11,000 | [2] |
Bonds Available-for-Sale, Impact from redemptions | ' | -4,395 | ||
Bonds Available-for Sale, Bonds eliminated due to real estate consolidation and foreclosure | -11,058 | ' | ||
Bonds Available-for Sale, Impact from settlements | -3,349 | -5,334 | ||
Bonds Available-for-Sale, Ending Balance | 184,883 | 968,814 | ||
Derivative Financial Instruments, Liabilities [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivative Liabilities, Beginning Balance | -626 | -1,067 | ||
Derivative Liabilities, Net losses included in earnings | -27 | -85 | ||
Derivative Liabilities, Net gains (losses) included in other comprehensive lncome | 0 | [1] | 0 | [2] |
Derivative Liabilities, Bonds eliminated due to real estate consolidation and foreclosure | 0 | ' | ||
Derivative Liabilities, Impact from sales/redemptions | ' | 0 | ||
Derivative Liabilities, Impact from settlements | 0 | 146 | ||
Derivative Liabilities, Ending Balance | ($653) | ($1,006) | ||
[1] | This amount represents $4.9 million of unrealized net holding gains arising during the period. | |||
[2] | This amount includes $10.8 million of unrealized net holding gains arising during the period, which is then increased by $0.4 million of unrealized bond losses reclassified into operations. This amount is then reduced by $0.2 million of unrealized gains related to bonds that were redeemed. |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Net (Losses) gains on bonds [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Change in unrealized losses related to assets and liabilities | ' | ($353) | [1] | |
Additional realized gains (losses) recognized | ' | 182 | [1] | |
Total losses reported in earnings | ' | -171 | [1] | |
Equity in Losses from Lower Tier Property Partnerships [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Change in unrealized losses related to assets and liabilities | -948 | -1,498 | ||
Additional realized gains (losses) recognized | 0 | 0 | ||
Total losses reported in earnings | -948 | -1,498 | ||
Net losses on derivatives [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Change in unrealized losses related to assets and liabilities | -27 | [2] | -85 | [2] |
Additional realized gains (losses) recognized | -78 | [2] | -77 | [2] |
Total losses reported in earnings | ($105) | [2] | ($162) | [2] |
[1] | Amounts are reflected through “Impairment on bonds†and “Net (losses) gains on assets and derivatives†on the consolidated statements of operations. | |||
[2] | Amounts are reflected through “Net (losses) gains on assets and derivatives†on the consolidated statements of operations. |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 4,906,000 | $10,829,000 | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment for Write-down of Securities Included in Net Income, Net of Tax | 0 | 353,000 | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 182,000 | [1] | ' |
Impairment of Real Estate | 200,000 | ' | ' | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ' | 10,800,000 | ' | |
Bonds [Member] | ' | ' | ' | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment for Write-down of Securities Included in Net Income, Net of Tax | ' | 400,000 | ' | |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | ' | $200,000 | ' | |
Weighted Average Discount Rate, Percent | 6.80% | ' | 6.70% | |
Performing Bond Portfolio [Member] | ' | ' | ' | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | |
Weighted Average Discount Rate, Percent | 6.58% | ' | 6.60% | |
Non Performing Bond Portfolio [Member] | ' | ' | ' | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | |
Weighted Average Discount Rate, Percent | 8.50% | ' | 8.50% | |
[1] | Realized gains on bond redemptions included in “Net gains on bonds†in the Consolidated Statement of Operations. There is no applicable income tax on the realized gains. |
GUARANTEES_AND_COLLATERAL_Deta
GUARANTEES AND COLLATERAL (Details) (Indemnification Agreement [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Indemnification Agreement [Member] | ' | ' |
Maximum Exposure | $20,224 | $20,224 |
Carrying Amount | $1,114 | $1,198 |
GUARANTEES_AND_COLLATERAL_Deta1
GUARANTEES AND COLLATERAL (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Restricted Cash | $87,477 | $87,903 | ||
Bonds Available-for-Sale | 134,753 | 134,769 | ||
Real Estate Held-for-Use | 109,340 | 120,576 | ||
Investment in preferred stock (pledged as collateral) | 31,371 | 31,371 | ||
Other Assets | 29,277 | 35,571 | ||
Total Assets Pledged | 389,599 | 407,572 | ||
Total Return Swap [Member] | ' | ' | ||
Restricted Cash | 20,007 | 20,006 | ||
Bonds Available-for-Sale | 104,257 | 105,511 | ||
Real Estate Held-for-Use | 0 | 0 | ||
Investment in preferred stock (pledged as collateral) | 31,371 | 31,371 | ||
Other Assets | 0 | 0 | ||
Total Assets Pledged | 155,635 | 156,888 | ||
Notes Payable, Other Payables [Member] | ' | ' | ||
Restricted Cash | 0 | 0 | ||
Bonds Available-for-Sale | 0 | 0 | ||
Real Estate Held-for-Use | 1,271 | 1,735 | ||
Investment in preferred stock (pledged as collateral) | 0 | 0 | ||
Other Assets | 6,322 | 11,613 | ||
Total Assets Pledged | 7,593 | 13,348 | ||
Other Assets [Member] | ' | ' | ||
Restricted Cash | 15,000 | [1] | 15,000 | [1] |
Bonds Available-for-Sale | 30,496 | [1] | 29,258 | [1] |
Real Estate Held-for-Use | 14,279 | [1] | 13,909 | [1] |
Investment in preferred stock (pledged as collateral) | 0 | [1] | 0 | |
Other Assets | 262 | [1] | 294 | [1] |
Total Assets Pledged | 60,037 | [1] | 58,461 | [1] |
Consolidated Funds and Ventures [Member] | ' | ' | ||
Restricted Cash | 52,470 | [2] | 52,897 | [2] |
Bonds Available-for-Sale | 0 | [2] | 0 | [2] |
Real Estate Held-for-Use | 91,171 | [2] | 102,314 | [2] |
Investment in preferred stock (pledged as collateral) | 0 | [2] | 0 | |
Other Assets | 22,693 | [2] | 23,664 | [2] |
Total Assets Pledged | $166,334 | [2] | $178,875 | [2] |
[1] | The Company pledges collateral in connection with various guarantees that it has provided. | |||
[2] | These are assets held by CFVs. The real estate serves as collateral to bonds eliminated in consolidation. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (General and Administrative Expense [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
General and Administrative Expense [Member] | ' | ' |
Rental expense | ($210) | ($534) |
Rental income | 112 | 327 |
Net rental expense | ($98) | ($207) |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 1) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
2014 | $314 |
2015 | 425 |
2016 | 430 |
2017 | 104 |
2018 | 39 |
Total minimum future rental commitments | $1,312 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Lease Expiration Period | '2018 |
Fee Paid To Terminate Office Leases | $0.30 |
EQUITY_Details
EQUITY (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ||
Net (loss) income from continuing operations | ($1,023) | $35,251 | ||
Net income from discontinued operations | 14,629 | 4,025 | ||
Net income to common shareholders | $13,606 | $39,276 | ||
Basic weighted-average shares | 40,207 | [1] | 42,445 | [1] |
Common stock equivalents | 1,457 | [2],[3],[4] | 1,272 | [2],[3],[4] |
Diluted weighted-average shares | 41,664 | 43,717 | ||
[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 March 31, 2014, 2.0 million stock options were in the money and had a dilutive impact of 1.4 million shares. In addition, 0.2 million unvested employee deferred shares had a dilutive impact of 0.1 million shares for the three months ended March 31, 2014. | |||
[3] | At March 31, 2013, 2.1 million stock options were in the money and had a dilutive impact of 1.3 million shares. | |||
[4] | For the three months ended March 31, 2014 and 2013, the average number of options excluded from the calculations of diluted earnings per share was 0.3 million because of their anti-dilutive effect. |
EQUITY_Details_1
EQUITY (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Noncontrolling interests in: | ' | ' |
Minority Interest | $462,714 | $473,513 |
IHS [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | -1,695 | -1,648 |
LIHTC Funds [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | 315,810 | 328,236 |
SA Fund [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | 133,914 | 130,839 |
Lower Tier Property Partnerships [Member] | ' | ' |
Noncontrolling interests in: | ' | ' |
Minority Interest | $14,685 | $16,086 |
EQUITY_Details_2
EQUITY (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | |
Unrealized Gains on Bonds Available-for-Sale, Balance at beginning period | $36,868 | $139,021 | |
Net unrealized gains arising during the period | 4,906 | 10,829 | |
Unrealized Gains on Bonds Available-for-Sale, Reversal of unrealized gains on sold/redeemed bonds | 0 | -182 | [1] |
Unrealized Gains on Bonds Available-for-Sale, Reclassification of unrealized losses to income | 0 | 353 | |
Unrealized Gains on Bonds Available-for-Sale, Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -2,003 | 0 | |
Net Unrealized Gains on Bonds Available for Sale Other | 0 | ' | |
Unrealized Gains on Bonds Available-for-Sale, Net current period other comprehensive income | 2,903 | 11,000 | |
Unrealized Gains on Bonds Available-for-Sale, Balance at ending period | 39,771 | 150,021 | |
Income Tax Expense, Balance at beginning period | 0 | ' | |
Income Tax Expense Unrealized net holding gains arising during period | 0 | ' | |
Income Tax Expense Reclassification of unrealized gains to operations due to consolidation of funds and ventures | 0 | ' | |
Income Tax Expense Other | -129 | ' | |
Income Tax Expense Net current period other comprehensive income | -129 | ' | |
Income Tax Expense, Balance at ending period | -129 | ' | |
Foreign Currency Translation, Balance at beginning period | -209 | -334 | |
Foreign Currency Translation, Unrealized net holding gains (losses) arising during period | 2 | -13 | |
Foreign Currency Translation, Reversal of unrealized gains on sold/redeemed bonds | ' | 0 | |
Foreign Currency Translation, Reclassification of unrealized losses to income | ' | 0 | |
Foreign Currency Translation, Reclassification of unrealized gains to operations due to consolidation of funds and ventures | 0 | ' | |
Foreign Currency Translation, Other | 0 | ' | |
Foreign Currency Translation, Net current period other comprehensive income | 2 | -13 | |
Foreign Currency Translation, Balance at ending period | -207 | -347 | |
Accumulated Other Comprehensive Income, Balance at beginning period | 36,659 | 138,687 | |
Accumulated Other Comprehensive Income, Unrealized net holding gains (losses) arising during period | 4,908 | 10,816 | |
Accumulated Other Comprehensive Income, Reversal of unrealized gains on sold/redeemed bonds | ' | -182 | |
Accumulated Other Comprehensive Income, Reclassification of unrealized losses to income | ' | 353 | |
Accumulated Other Comprehensive Income, Reclassification of unrealized gains to operations due to consolidation of funds and ventures | -2,003 | ' | |
Accumulated Other Comprehensive Income, other | -129 | ' | |
Accumulated Other Comprehensive Income, Net current period other comprehensive income | 2,776 | 10,987 | |
Accumulated Other Comprehensive Income, Balance at ending period | $39,435 | $149,674 | |
[1] | Realized gains on bond redemptions included in “Net gains on bonds†in the Consolidated Statement of Operations. There is no applicable income tax on the realized gains. |
EQUITY_Details_Textual
EQUITY (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Apr. 02, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Scenario, Forecast [Member] | Subsequent Event [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | LIHTC Funds [Member] | Sa Fund [Member] | IHS [Member] | IHS [Member] | Maximum [Member] | Minimum [Member] | ||||
LIHTC Funds [Member] | LIHTC Funds [Member] | ||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Equivalents Employee Options | 2,000,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Common Shares Attributable to Call Options and Warrants | 1,400,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested Employee Deferred Shares | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Value | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 700,000 | ' | ' | 800,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Issuance, Per Share Amount | $1.28 | ' | ' | $1.53 | $1.92 | $2.02 | ' | ' | ' | ' | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | ' | ' | ' | ' | ' | ' | ' | ' | 2.70% | 17.00% | 17.00% | 0.04% | 0.01% |
Noncontrolling Interest, Period Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | 3,100,000 | ' | ' | ' | ' |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' |
Translation Adjustment Functional to Reporting Currency, Loss (Gain), Reclassified to Earnings, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' |
Unfunded Equity Commitments | 13,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total common shareholders' equity | 80,738,000 | ' | 65,346,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Balance Declined | ' | ' | ' | ' | ' | ' | ' | $11,800,000 | ' | ' | ' | ' | ' |
Stock Repurchase Program Increase In Number Of Shares Authorized To Be Repurchased | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Employees' Stock-Based Compensation Plan | $942 | $1,041 |
Non-employee Directors' Stock-Based Compensation Plan | 75 | 63 |
Total | $1,017 | $1,104 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ||
Number of Options Outstanding at beginning of period | 2,081 | [1] | 2,345 | [1] |
Number of Options Forfeited/Expired | 0 | -264 | ||
Number of Options Outstanding at end of period | 2,081 | [1] | 2,081 | [1] |
Number of options that were exercisable | 1,624 | 1,436 | ||
Weighted average Exercise Price per Option Outstanding at beginning of period | $0.70 | [1] | $3.61 | [1] |
Weighted average Exercise Price per Option Forfeited/Expired | ' | $26.50 | ||
Weighted average Exercise Price per Option Outstanding at end of period | $0.70 | [1] | $0.70 | [1] |
Weighted average Exercise Price per Option Exercisable | $0.80 | $0.86 | ||
Weighted Average Remaining Contractual Life per Option (in years) Outstanding at beginning of period | ' | '7 years 9 months 18 days | [1] | |
Weighted Average Remaining Contractual Life per Option (in years) Outstanding at end of period | '7 years 1 month 6 days | [1] | '7 years 3 months 18 days | [1] |
Weighted average Remaining Contractual Life per Option (in years) Exercisable | '6 years 10 months 24 days | '6 years 10 months 24 days | ||
Aggregate Intrinsic Value Outstanding at beginning of period | $1,644 | [1] | $58 | [1] |
Aggregate Intrinsic Value Outstanding at end of period | 2,516 | [1] | 1,644 | [1] |
Period End Liability Outstanding at beginning of period | 1,785 | [1],[2] | 355 | [1],[2] |
Period End Liability Outstanding at end of period | $2,612 | [1],[2] | $1,785 | [1],[2] |
[1] | Intrinsic value is based on outstanding options. | |||
[2] | Only options that were amortized based on a vesting schedule have a liability balance. These options were 2.0 million; 1.9 million; and 1.5 million at March 31, 2014, December 31, 2013 and January 1, 2013, respectively. |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ||
Deferred Share Grants, Granted | 19 | 0 | ||
Period End Liability Outstanding at beginning of period | $1,785 | [1],[2] | $355 | [1],[2] |
Period End Liability Outstanding at end of period | 2,612 | [1],[2] | ' | |
Employee Deferred Shares [Member] | ' | ' | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ||
Number of Deferred Shares Outstanding at beginning of period | 289,000 | ' | ||
Deferred Share Grants, Granted | 0 | ' | ||
Deferred Share Grants, Issued | -81,000 | ' | ||
Number of Deferred Shares Outstanding at end of period | 208,000 | ' | ||
Weighted Average Excercise Price Per Deferred Shares Outstanding at beginning of period | $3.29 | ' | ||
Weighted-average Grant Date Share Price, Issued | $9.48 | ' | ||
Weighted Average Excercise Price Per Deferred Shares Outstanding at end of period | $0.88 | ' | ||
Period End Liability Outstanding at beginning of period | 218 | ' | ||
Period End Liability Outstanding at end of period | $221 | ' | ||
[1] | Intrinsic value is based on outstanding options. | |||
[2] | Only options that were amortized based on a vesting schedule have a liability balance. These options were 2.0 million; 1.9 million; and 1.5 million at March 31, 2014, December 31, 2013 and January 1, 2013, respectively. |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 02, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Common Shares Granted | ' | 19 | 0 | ' |
Deferred Share Grants | ' | 9 | 25 | ' |
Weighted - average Grant Date Share Price | ' | $1.32 | $1.01 | ' |
Options Vested | 1,500,000 | 0 | 20 | 1,900,000 |
Directors'Fees Expense | ' | $75 | $63 | ' |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 02, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Employee Benefits and Share-based Compensation | ' | $800,000 | ' | ' |
Deferred Compensation Arrangement with Individual, Compensation Expense | ' | ' | ' | 100,000 |
Non Employee Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares, Authorized | ' | 5,600,000 | ' | ' |
Share-based Compensation Plans and Nonemployee Services Transaction, Shares Issued | ' | 2,200,000 | ' | ' |
Noninterest Expense Directors Fees | ' | 75,000 | 63,000 | ' |
Noninterest Expense Directors Fees Cash Paid | ' | 37,500 | 31,250 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | 1,900,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | 100,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | 'The grants outstanding at March 31, 2014, have both time and price vesting requirements. A portion of the shares vest over the next two years and a portion of the shares vest if the average price requirement of $2.00 per share and $2.50 per share is met, respectively. | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | ' | ' | ' | 78,125 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | ' | ' | ' | $0.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | ' | ' | ' | $58,984 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 1,500,000 | 0 | 20 | 1,900,000 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Sublease income | $0 | $369 |
Income from REO operations | 302 | 0 |
Rent expense | 0 | -369 |
Expenses from REO operations | -451 | 0 |
Other income | 83 | 90 |
Other expense | -28 | -279 |
Net (loss) income before disposal activity | -563 | 65 |
Disposal: | ' | ' |
Net gains related to REO | 15,037 | 0 |
Net income from discontinued operations | 14,479 | 5,061 |
Loss (income) from discontinued operations allocable to noncontrolling interests | 150 | -1,036 |
Net income to common shareholders from discontinued operations | 14,629 | 4,025 |
Income tax expense | -554 | -1,527 |
Consolidated Funds and Ventures [Member] | ' | ' |
Income from CFVs (primarily rental income) | 279 | 3,924 |
Expenses from CFVs (primarily operating expenses) | -244 | -3,670 |
Disposal: | ' | ' |
Net gains related to CFVs | $5 | $4,996 |
DISCONTINUED_OPERATIONS_Detail1
DISCONTINUED OPERATIONS (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest income | $185 | $615 |
Other income | 385 | 459 |
Other expense | -479 | -698 |
Income tax (expense) benefit | -504 | 0 |
Net gains on disposal of REO | 15,037 | 0 |
Net gains on redemption of bonds | 5 | 3,649 |
Net income to common shareholders from discontinued operations | $14,629 | $4,025 |
DISCONTINUED_OPERATIONS_Detail2
DISCONTINUED OPERATIONS (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | $15,037,000 | $0 |
Rental Properties | 20,900,000 | ' |
Real Estate [Member] | ' | ' |
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | 14,000,000 | ' |
Proceeds from Sale of Property Held-for-sale | $35,800,000 | ' |
CONSOLIDATED_FUNDS_AND_VENTURE2
CONSOLIDATED FUNDS AND VENTURES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Total assets of consolidated funds and ventures | $1,014,083 | $1,015,358 |
Consolidated Funds and Ventures [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Total assets of consolidated funds and ventures | 603,230 | 623,207 |
Consolidated Funds and Ventures [Member] | LIHTC Funds [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Total assets of consolidated funds and ventures | 316,764 | 329,033 |
Consolidated Funds and Ventures [Member] | SA Fund [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Total assets of consolidated funds and ventures | 188,099 | 184,649 |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Total assets of consolidated funds and ventures | 96,259 | 107,362 |
Consolidated Funds and Ventures [Member] | Other Consolidated Entities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Total assets of consolidated funds and ventures | $2,108 | $2,163 |
CONSOLIDATED_FUNDS_AND_VENTURE3
CONSOLIDATED FUNDS AND VENTURES (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Investments in Lower Tier Property Partnerships | $274,229 | $286,007 |
SA Fund investments | 162,667 | 158,325 |
Real estate held-for-use, net | 109,340 | 120,576 |
Other assets | 45,655 | 44,960 |
Total assets of CFVs | 1,014,083 | 1,015,358 |
Consolidated Funds and Ventures [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Cash, cash equivalents and restricted cash | 52,470 | 52,897 |
Investments in Lower Tier Property Partnerships | 274,229 | 286,007 |
SA Fund investments | 162,667 | 158,325 |
Real estate held-for-use, net | 91,171 | 102,314 |
Other assets | 22,693 | 23,664 |
Total assets of CFVs | $603,230 | $623,207 |
CONSOLIDATED_FUNDS_AND_VENTURE4
CONSOLIDATED FUNDS AND VENTURES (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Investment [Line Items] | ' | ' | ||
LIHTC Funds' investment in Lower Tier Property Partnerships | $274,229 | $286,007 | ||
Total assets of Lower Tier Property Partnerships | 88,580 | 86,439 | ||
Total liabilities of Lower Tier Property Partnerships | 45,045 | 44,538 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Investment [Line Items] | ' | ' | ||
LIHTC Funds' investment in Lower Tier Property Partnerships | 274,229 | 286,007 | ||
Total assets of Lower Tier Property Partnerships | 1,313,875 | [1] | 1,324,704 | [1] |
Total liabilities of Lower Tier Property Partnerships | $1,041,395 | [1] | $1,038,983 | [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) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | SA Fund [Member] | SA Fund [Member] | Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | ||
SA Fund [Member] | SA Fund [Member] | Foreign Currency Gain (Loss) [Member] | Foreign Currency Gain (Loss) [Member] | |||||||
SA Fund [Member] | SA Fund [Member] | |||||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SA Fund investments, Balance, January 1, | $162,667 | $158,325 | $158,325 | $161,433 | $162,667 | $158,325 | ' | ' | ' | ' |
Net gains included in earnings related to CFVs | ' | ' | ' | ' | ' | ' | 4,867 | 11,356 | ' | ' |
Net foreign currency translation losses included in other comprehensive income attributable to CFVs | ' | ' | ' | ' | ' | ' | ' | ' | -1,192 | -13,940 |
Impact from purchases | ' | ' | 4,606 | 3,709 | ' | ' | ' | ' | ' | ' |
Impact from sales and distributions | ' | ' | -3,939 | -972 | ' | ' | ' | ' | ' | ' |
SA Fund investments, Balance, March 31, | $162,667 | $158,325 | $162,667 | $161,586 | $162,667 | $158,325 | ' | ' | ' | ' |
CONSOLIDATED_FUNDS_AND_VENTURE6
CONSOLIDATED FUNDS AND VENTURES (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Building, furniture and fixtures | $99,299 | $108,424 |
Accumulated depreciation | -19,315 | -17,997 |
Land | 11,187 | 11,887 |
Total | $91,171 | $102,314 |
CONSOLIDATED_FUNDS_AND_VENTURE7
CONSOLIDATED FUNDS AND VENTURES (Details 5) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities of CFVs: | ' | ' |
Debt | $436,984 | $441,963 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 13,461 |
Other liabilities | 13,245 | 12,352 |
Total liabilities of CFVs | 470,631 | 476,499 |
Consolidated Funds and Ventures [Member] | ' | ' |
Liabilities of CFVs: | ' | ' |
Debt | 91,312 | 91,602 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 13,461 | 13,461 |
Other liabilities | 4,957 | 4,043 |
Total liabilities of CFVs | $109,730 | $109,106 |
CONSOLIDATED_FUNDS_AND_VENTURE8
CONSOLIDATED FUNDS AND VENTURES (Details 6) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Investment [Line Items] | ' | ' | ||
Debt, Carrying Amount | $436,984 | $441,963 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Debt, Carrying Amount | 91,312 | 91,602 | ||
Face Amount | 90,399 | 90,873 | ||
Consolidated Funds and Ventures [Member] | SA Fund [Member] | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Debt, Carrying Amount | 49,886 | [1] | 49,886 | [1] |
Face Amount | 49,886 | [1] | 49,886 | [1] |
Weighted-average Effective Interest Rates | 2.60% | [1] | 2.60% | [1] |
Maturity Dates | 'April 2018 | [1] | 'April 2018 | [1] |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | ' | ' | ||
Investment [Line Items] | ' | ' | ||
Debt, Carrying Amount | 41,426 | 41,716 | ||
Face Amount | $40,513 | $40,987 | ||
Weighted-average Effective Interest Rates | 6.30% | 6.30% | ||
Maturity Dates | 'Various dates through March 2049 | 'Various dates through March 2049 | ||
[1] | This amount includes $0.8 million of capitalized interest for the period ended March 31, 2014 and December 31, 2013. |
CONSOLIDATED_FUNDS_AND_VENTURE9
CONSOLIDATED FUNDS AND VENTURES (Details 7) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Expenses: | ' | ' | ||
Interest expense | $1,203 | [1] | $6,289 | [1] |
Net gains (losses) related to CFVs: | ' | ' | ||
Equity in losses from Lower Tier Property Partnerships of CFVs | -7,539 | -6,405 | ||
Net loss | 3,547 | 41,507 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Revenue: | ' | ' | ||
Rental and other income from real estate | 3,624 | 2,164 | ||
Interest and other income | 1,426 | 624 | ||
Total revenue from CFVs | 5,050 | 2,788 | ||
Expenses: | ' | ' | ||
Depreciation and amortization | 2,218 | 1,726 | ||
Interest expense | 1,069 | 498 | ||
Other operating expenses | 2,952 | 2,028 | ||
Foreign currency loss | 410 | 4,155 | ||
Asset impairments | 5,000 | 3,024 | ||
Total expenses from CFVs | 11,649 | 11,431 | ||
Net gains (losses) related to CFVs: | ' | ' | ||
Investment gains | 4,867 | 11,356 | ||
Derivative (losses) gains | -58 | 3,631 | ||
Equity in losses from Lower Tier Property Partnerships of CFVs | -7,428 | -6,418 | ||
Net loss | -9,218 | -74 | ||
Net losses allocable to noncontrolling interests in CFVs | 9,853 | [2] | 660 | [2] |
Net income allocable to the common shareholders related to CFVs | $635 | $586 | ||
[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_Sheet1
CONSOLIDATED FUNDS AND VENTURES (Details 8) (Consolidated Funds and Ventures [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | $635 | $586 |
Interest Income [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 343 | 685 |
Asset Management Fees [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 841 | 858 |
Guarantee Fees [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 331 | 331 |
Equity In Losses From Lower Tier Property Partnerships [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | -949 | -1,499 |
Equity In Income From SA Fund [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | 128 | 282 |
Other Expense [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Net income allocable to the common shareholders related to consolidated funds and ventures | ($59) | ($71) |
Recovered_Sheet2
CONSOLIDATED FUNDS AND VENTURES (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Number | Number | ||
Number of Consolidated Funds | 11 | ' | 11 |
Bond Investment in Lower Tier Property Partnerships | $64,500,000 | ' | $64,900,000 |
Depreciation | 1,700,000 | 2,000,000 | ' |
Investment in Funds Formed to Invest in Housing Development Projects and Housing Sector Companies | 162,700,000 | ' | 158,300,000 |
Derivative assets | 541,000 | ' | ' |
Derivative, Collateral, Right to Reclaim Cash | 3,200,000 | ' | ' |
Available-for-sale Debt Securities, Fair Value Disclosure | 184,883,000 | ' | 195,332,000 |
Depreciation and Amortization, Discontinued Operations | 100,000 | 800,000 | ' |
Real Estate Held-for-Sale | 20,872,000 | ' | 24,090,000 |
Interest Costs Capitalized | 800,000 | ' | 800,000 |
Lower Tier Property Partnerships Real Estate Held For Use [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
Available-for-sale Debt Securities, Fair Value Disclosure | 39,800,000 | ' | ' |
Available-for-sale Debt Securities Gross Unrealized Gain | 2,000,000 | ' | ' |
SA Fund [Member] | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 2.70% | ' | ' |
SA Fund [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
General Partners Contributed Capital Funded | 114,200,000 | ' | ' |
General Partners Contributed Capital | 119,500,000 | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 2.70% | ' | ' |
Capital Contributed to Sale and Rental Properties | 166,600,000 | ' | ' |
Capital Contributed to Sale and Rental Properties Funded | 136,700,000 | ' | ' |
Maximum Amount of Debt Allowed | 80,000,000 | ' | ' |
Proceeds from Issuance of Long-term Debt | 49,100,000 | ' | ' |
Derivative, Collateral, Right to Reclaim Cash | 3,300,000 | ' | ' |
Unrealized Gain (Loss) on Investments, Total | 4,867,000 | 11,356,000 | ' |
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | 1,200,000 | ' | ' |
Percentage of Foreign Currency Translation Loss | 2.70% | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Total | 100,000 | ' | ' |
LIHTC Funds [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 614,400,000 | ' | 614,400,000 |
Limited Partner of SA Fund [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
General Partners Contributed Capital Funded | 3,200,000 | ' | ' |
Lower Tier Property Partnerships [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
Real Estate Held-for-Sale | 9,800,000 | ' | ' |
Overseas Private Investment Corporation [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 2.70% | ' | ' |
Maximum Amount of Debt Allowed | 80,000,000 | ' | ' |
Proceeds from Issuance of Long-term Debt | 49,100,000 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | SA Fund [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
Derivative assets | $8,400,000 | ' | $8,500,000 |
Real Estate Investment [Member] | Building [Member] | Consolidated Funds and Ventures [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
Minimum [Member] | LIHTC Funds [Member] | ' | ' | ' |
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] | ' | ' | ' |
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 | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Total interest income | $5,305 | $15,938 | ||
Total interest expense | 1,203 | [1] | 6,289 | [1] |
Net interest income | 4,102 | 9,649 | ||
Total fee and other income | 853 | 541 | ||
Total non-interest revenue | 7,200 | 4,626 | ||
Total revenues, net of interest expense | 11,302 | 14,275 | ||
Operating and other expenses: | ' | ' | ||
Interest expense | 3,573 | [2] | 4,129 | [2] |
Other expenses, net | 911 | 1,934 | ||
Total operating and other expenses | 21,807 | 25,372 | ||
Net gains due to real estate consolidation and foreclosure | 2,003 | 0 | ||
Net gains (losses) related to CFVs | 4,813 | 19,962 | ||
Equity in (losses) and gains from Lower Tier Property Partnerships of CFVs | -7,539 | -6,405 | ||
Income (loss) from continuing operations before income taxes | -11,486 | 34,919 | ||
Income tax benefit | -554 | -1,527 | ||
Income from discontinued operations, net of tax | 14,479 | 5,061 | ||
Net income (loss) | 3,547 | 41,507 | ||
Net income (loss) to common shareholders | 13,606 | 39,276 | ||
US Operations [Member] | ' | ' | ||
Total interest income | 5,638 | 16,616 | ||
Total interest expense | -1,203 | -6,289 | ||
Net interest income | 4,435 | 10,327 | ||
Total fee and other income | 2,276 | 2,216 | ||
Revenue from CFVs | 0 | 0 | ||
Total non-interest revenue | 2,276 | 2,216 | ||
Total revenues, net of interest expense | 6,711 | 12,543 | ||
Operating and other expenses: | ' | ' | ||
Interest expense | -3,536 | -4,096 | ||
Operating expenses | -4,463 | -6,001 | ||
Impairment on bonds and recovery of loan losses | ' | -353 | ||
Other expenses, net | -888 | -1,792 | ||
Expenses from CFVs | 0 | 0 | ||
Total operating and other expenses | -8,887 | -12,242 | ||
Net gains (losses) on assets, derivatives and extinguishment of liabilities | -365 | 37,447 | ||
Net gains due to real estate consolidation and foreclosure | 2,003 | ' | ||
Net gains (losses) related to CFVs | 0 | 0 | ||
Equity in (losses) and gains from Lower Tier Property Partnerships of CFVs | -949 | [3] | -1,499 | [4] |
Income (loss) from continuing operations before income taxes | -1,487 | 36,249 | ||
Income tax benefit | 554 | 1,527 | ||
Income from discontinued operations, net of tax | 14,629 | 4,025 | ||
Net income (loss) | 13,696 | 41,801 | ||
(Income) loss allocable to noncontrolling interests | ' | -2,005 | ||
Net income (loss) to common shareholders | 13,696 | 39,796 | ||
US Operations [Member] | Continuing Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 0 | 0 | ||
US Operations [Member] | Discontinued Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 0 | 0 | ||
International Operations [Member] | ' | ' | ||
Total interest income | 10 | 7 | ||
Total interest expense | 0 | 0 | ||
Net interest income | 10 | 7 | ||
Total fee and other income | 1,046 | 811 | ||
Revenue from CFVs | 0 | 0 | ||
Total non-interest revenue | 1,046 | 811 | ||
Total revenues, net of interest expense | 1,056 | 818 | ||
Operating and other expenses: | ' | ' | ||
Interest expense | -37 | -33 | ||
Operating expenses | -1,211 | -1,524 | ||
Impairment on bonds and recovery of loan losses | ' | 0 | ||
Other expenses, net | -82 | -213 | ||
Expenses from CFVs | 0 | 0 | ||
Total operating and other expenses | -1,330 | -1,770 | ||
Net gains (losses) on assets, derivatives and extinguishment of liabilities | 0 | 0 | ||
Net gains due to real estate consolidation and foreclosure | 0 | ' | ||
Net gains (losses) related to CFVs | 0 | 0 | ||
Equity in (losses) and gains from Lower Tier Property Partnerships of CFVs | 128 | 282 | ||
Income (loss) from continuing operations before income taxes | -146 | -670 | ||
Income tax benefit | 0 | 0 | ||
Income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | -146 | -670 | ||
(Income) loss allocable to noncontrolling interests | ' | 0 | ||
Net income (loss) to common shareholders | -90 | -520 | ||
International Operations [Member] | Continuing Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 56 | 150 | ||
International Operations [Member] | Discontinued Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 0 | 0 | ||
Consolidated Funds and Ventures [Member] | ' | ' | ||
Total interest income | 0 | 0 | ||
Total interest expense | 0 | 0 | ||
Net interest income | 0 | 0 | ||
Total fee and other income | 0 | 0 | ||
Revenue from CFVs | 5,050 | 2,788 | ||
Total non-interest revenue | 5,050 | 2,788 | ||
Total revenues, net of interest expense | 5,050 | 2,788 | ||
Operating and other expenses: | ' | ' | ||
Interest expense | 0 | 0 | ||
Operating expenses | 0 | 0 | ||
Impairment on bonds and recovery of loan losses | ' | 0 | ||
Other expenses, net | 0 | 0 | ||
Expenses from CFVs | -13,233 | -13,516 | ||
Total operating and other expenses | -13,233 | -13,516 | ||
Net gains (losses) on assets, derivatives and extinguishment of liabilities | 0 | 0 | ||
Net gains due to real estate consolidation and foreclosure | 0 | ' | ||
Net gains (losses) related to CFVs | 4,809 | 14,987 | ||
Equity in (losses) and gains from Lower Tier Property Partnerships of CFVs | -6,479 | [3] | -4,919 | [4] |
Income (loss) from continuing operations before income taxes | -9,853 | -660 | ||
Income tax benefit | 0 | 0 | ||
Income from discontinued operations, net of tax | -150 | 1,036 | ||
Net income (loss) | -10,003 | 376 | ||
(Income) loss allocable to noncontrolling interests | ' | 0 | ||
Net income (loss) to common shareholders | 0 | 0 | ||
Consolidated Funds and Ventures [Member] | Continuing Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 9,853 | 660 | ||
Consolidated Funds and Ventures [Member] | Discontinued Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 150 | -1,036 | ||
Income Allocation Reclasses [Member] | ' | ' | ||
Total interest income | -343 | [5] | -685 | [6] |
Total interest expense | 0 | 0 | ||
Net interest income | -343 | -685 | ||
Total fee and other income | -1,172 | [7] | -1,189 | [8] |
Revenue from CFVs | 0 | 0 | ||
Total non-interest revenue | -1,172 | -1,189 | ||
Total revenues, net of interest expense | -1,515 | -1,874 | ||
Operating and other expenses: | ' | ' | ||
Interest expense | 0 | 0 | ||
Operating expenses | 0 | 0 | ||
Impairment on bonds and recovery of loan losses | ' | 0 | ||
Other expenses, net | 59 | [9] | 71 | [9] |
Expenses from CFVs | 1,584 | [10] | 2,085 | [11] |
Total operating and other expenses | 1,643 | 2,156 | ||
Net gains (losses) on assets, derivatives and extinguishment of liabilities | 0 | 0 | ||
Net gains due to real estate consolidation and foreclosure | 0 | ' | ||
Net gains (losses) related to CFVs | 0 | 0 | ||
Equity in (losses) and gains from Lower Tier Property Partnerships of CFVs | -128 | [12] | -282 | [13] |
Income (loss) from continuing operations before income taxes | 0 | 0 | ||
Income tax benefit | 0 | 0 | ||
Income from discontinued operations, net of tax | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
(Income) loss allocable to noncontrolling interests | ' | 0 | ||
Net income (loss) to common shareholders | 0 | 0 | ||
Income Allocation Reclasses [Member] | Continuing Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 0 | 0 | ||
Income Allocation Reclasses [Member] | Discontinued Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 0 | 0 | ||
MMA Consolidated [Member] | ' | ' | ||
Total interest income | 5,305 | 15,938 | ||
Total interest expense | -1,203 | -6,289 | ||
Net interest income | 4,102 | 9,649 | ||
Total fee and other income | 2,150 | 1,838 | ||
Revenue from CFVs | 5,050 | 2,788 | ||
Total non-interest revenue | 7,200 | 4,626 | ||
Total revenues, net of interest expense | 11,302 | 14,275 | ||
Operating and other expenses: | ' | ' | ||
Interest expense | -3,573 | -4,129 | ||
Operating expenses | -5,674 | -7,525 | ||
Impairment on bonds and recovery of loan losses | ' | -353 | ||
Other expenses, net | -911 | -1,934 | ||
Expenses from CFVs | -11,649 | -11,431 | ||
Total operating and other expenses | -21,807 | -25,372 | ||
Net gains (losses) on assets, derivatives and extinguishment of liabilities | -365 | 37,447 | ||
Net gains due to real estate consolidation and foreclosure | 2,003 | ' | ||
Net gains (losses) related to CFVs | 4,809 | 14,987 | ||
Equity in (losses) and gains from Lower Tier Property Partnerships of CFVs | -7,428 | -6,418 | ||
Income (loss) from continuing operations before income taxes | -11,486 | 34,919 | ||
Income tax benefit | 554 | 1,527 | ||
Income from discontinued operations, net of tax | 14,479 | 5,061 | ||
Net income (loss) | 3,547 | 41,507 | ||
(Income) loss allocable to noncontrolling interests | ' | -2,005 | ||
Net income (loss) to common shareholders | 13,606 | 39,276 | ||
MMA Consolidated [Member] | Continuing Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | 9,909 | 810 | ||
MMA Consolidated [Member] | Discontinued Operations [Member] | ' | ' | ||
Operating and other expenses: | ' | ' | ||
(Income) loss allocable to noncontrolling interests | $150 | ($1,036) | ||
[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] | Represents equity in losses from the Lower Tier Property Partnerships that the Company recognized as an allocation (see Note 15, “Consolidated Funds and Venturesâ€) because of bonds held by the Company associated with the Lower Tier Property Partnerships in situations where the carrying amount of the limited partnership investment had reached zero. For purposes of the table above, the Company recognized $0.9 million of losses in US Operations and reduced the CFVs losses by the same amount. | |||
[4] | Represents equity in losses from the Lower Tier Property Partnerships that the Company recognized as an allocation (see Note 15, “Consolidated Funds and Venturesâ€) because of bonds held by the Company associated with the Lower Tier Property Partnerships in situations where the carrying amount of the limited partnership investment had reached zero. For purposes of the table above, the Company recognized $1.5 million of losses in US Operations and reduced the CFVs losses by the same amount. | |||
[5] | Represents interest on bonds that the Company recognized through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, the $0.3 million is reflected in total interest income for the US Operations. | |||
[6] | Represents interest on bonds that the Company recognized through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, the $0.7 million is reflected in total interest income for the US Operations. | |||
[7] | This amount includes $0.7 million of asset management fees recognized by IHS through an income allocation (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, the $0.7 million is reflected in total fee and other income for the International Operations. This amount also includes $0.2 million of asset management fees and $0.3 million of guarantee fees both related to the Company’s LIHTC Funds and both recognized during the first quarter of 2014 through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, both are included in total fee and other income for the US Operations. | |||
[8] | This amount includes $0.7 million of asset management fees recognized by IHS through an income allocation (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, the $0.7 million is reflected in total fee and other income for the International Operations. This amount also includes $0.2 million of asset management fees and $0.3 million of guarantee fees both related to the Company’s LIHTC Funds and both recognized during the first quarter of 2013 through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, both are included in total fee and other income for the US Operations. | |||
[9] | Represents net expenses recognized by the Company through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, these expenses are reflected as additional other expenses for the US Operations. | |||
[10] | The sum of the income highlighted in notes 1, 2 and 4 above, partially offset by the expenses discussed in note 3 above total $1.6 million of net income to the Company which is then reflected as an overall net expense to the CFVs. | |||
[11] | The sum of the income highlighted in notes 1, 2 and 4 above, partially offset by the expenses discussed in note 3 above total $2.1 million of net income to the Company which is then reflected as an overall net expense to the CFVs. | |||
[12] | Represents the Company’s share of its equity interest in the SA Fund (i.e., 2.7% of the SA Fund’s first quarter of 2014 net income) which is recognized through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, the $0.1 million is reflected as equity in income of unconsolidated ventures for the International Operations. | |||
[13] | Represents the Company’s share of its equity interest in the SA Fund (i.e., 2.7% of the SA Fund’s first quarter of 2013 net income) which is recognized through an allocation of income (see Note 15, “Consolidated Funds and Venturesâ€) and for purposes of the table above, the $0.3 million is reflected as equity in income of unconsolidated ventures for the International Operations. |
SEGMENT_INFORMATION_Details_1
SEGMENT INFORMATION (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | $1,014,083 | $1,015,358 |
Total Segment [Member] | ' | ' |
ASSETS | 458,348 | 450,345 |
US Operations [Member] | ' | ' |
ASSETS | 450,586 | 443,664 |
International Operations [Member] | ' | ' |
ASSETS | 7,762 | 6,681 |
Bonds Eliminated in Consolidation [Member] | ' | ' |
ASSETS | -37,730 | -47,745 |
Net unrealized mark to market gains not recorded in consolidation [Member] | ' | ' |
ASSETS | -2,037 | -2,543 |
Other adjustments [Member] | ' | ' |
ASSETS | -7,728 | -7,906 |
Consolidated Funds and Ventures [Member] | ' | ' |
ASSETS | $603,230 | $623,207 |
SEGMENT_INFORMATION_Details_Te
SEGMENT INFORMATION (Details Textual) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
SA Fund [Member] | ' | ' |
Limited Liability Company (Llc) Or Limited Partnership (Lp), Members Or Limited Partners, Ownership Interest | 2.70% | ' |
Income Allocation Reclasses [Member] | ' | ' |
Limited Liability Company (Llc) Or Limited Partnership (Lp), Members Or Limited Partners, Ownership Interest | 2.70% | 2.70% |