Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MMA CAPITAL MANAGEMENT, LLC | |
Entity Central Index Key | 1,003,201 | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Trading Symbol | mmac | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Common Stock, Shares Outstanding | 6,099,535 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 18,283 | $ 21,843 |
Restricted cash (includes $23,220 and $22,992 related to consolidated funds and ventures ("CFVs")) | 42,060 | 40,033 |
Bonds available-for-sale (includes $154,433 and $174,961 pledged as collateral) | 182,831 | 218,439 |
Investments in partnerships (includes $155,518 and $177,786 related to CFVs) | 237,474 | 260,441 |
Other assets (includes $2,742 and $6,417 pledged as collateral and $32,497 and $18,834 related to CFVs) | 87,398 | 58,315 |
Total assets | 568,046 | 599,071 |
LIABILITIES AND EQUITY | ||
Debt (includes $9,848 and $9,883 related to CFVs) | 226,278 | 242,095 |
Accounts payable and accrued expenses | 3,907 | 5,001 |
Unfunded equity commitments to lower tier property partnerships related to CFVs | 8,103 | 8,203 |
Other liabilities (includes $30,165 and $28,233 related to CFVs) | 51,838 | 47,551 |
Total liabilities | 290,126 | 302,850 |
Commitments and contingencies | ||
Equity | ||
Noncontrolling interests in CFVs and IHS Property Management ("IHS PM") | 155,806 | 180,051 |
Common shareholders’ equity: | ||
Common shares, no par value (6,118,535 and 6,516,275 shares issued and outstanding and 76,999 and 72,476 non-employee directors' and employee deferred shares issued at June 30, 2016 and December 31, 2015, respectively) | 70,325 | 54,961 |
Accumulated other comprehensive income ("AOCI") | 51,789 | 61,209 |
Total common shareholders’ equity | 122,114 | 116,170 |
Total equity | 277,920 | 296,221 |
Total liabilities and equity | $ 568,046 | $ 599,071 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Restricted cash (includes $23,220 and $22,992 related to consolidated funds and ventures ("CFVs")) | $ 42,060 | $ 40,033 |
Bonds available-for-sale, pledged as collateral | 154,433 | 174,961 |
Investments in partnerships (includes $155,518 and $177,786 related to CFVs) | 237,474 | 260,441 |
Other assets, pledged as collateral | 2,742 | 6,417 |
Other assets | 87,398 | 58,315 |
Debt | 226,278 | 242,095 |
Other Liabilities | $ 51,838 | $ 47,551 |
Common stock, no par value | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 6,118,535 | 6,516,275 |
Common shares, shares outstanding (in shares) | 6,516,275 | 6,516,275 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 76,999 | 72,476 |
Consolidated Funds and Ventures [Member] | ||
Restricted cash (includes $23,220 and $22,992 related to consolidated funds and ventures ("CFVs")) | $ 23,220 | $ 22,992 |
Investments in partnerships (includes $155,518 and $177,786 related to CFVs) | 155,518 | 177,786 |
Other assets | 32,497 | 18,834 |
Debt | 9,848 | 9,883 |
Other Liabilities | $ 30,165 | $ 28,233 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income | ||||
Interest on bonds | $ 2,705 | $ 3,281 | $ 5,959 | $ 7,307 |
Interest on loans and short-term investments | 886 | 803 | 1,323 | 1,544 |
Total interest income | 3,591 | 4,084 | 7,282 | 8,851 |
Interest expense | ||||
Bond related debt | 335 | 379 | 630 | 705 |
Non-bond related debt | 217 | 132 | 471 | 280 |
Total interest expense | 552 | 511 | 1,101 | 985 |
Net interest income | 3,039 | 3,573 | 6,181 | 7,866 |
Non-interest revenue | ||||
Income on preferred stock investment | 1,311 | 2,608 | ||
Asset management fees and reimbursements | 2,261 | 1,575 | 4,153 | 2,996 |
Other income | 954 | 810 | 1,601 | 1,533 |
Revenue from CFVs | 726 | 133 | 1,545 | 200 |
Total non-interest revenue | 3,941 | 3,829 | 7,299 | 7,337 |
Total revenues, net of interest expense | 6,980 | 7,402 | 13,480 | 15,203 |
Operating and other expenses | ||||
Interest expense | 1,075 | 1,708 | 2,117 | 4,904 |
Salaries and benefits | 3,919 | 3,911 | 7,999 | 7,183 |
General and administrative | 655 | 773 | 1,355 | 1,636 |
Professional fees | 1,005 | 881 | 2,440 | 2,025 |
Other expenses | 735 | 1,722 | 783 | 1,829 |
Expenses from CFVs | 9,014 | 9,014 | 17,382 | 18,330 |
Total operating and other expenses | 16,403 | 18,009 | 32,076 | 35,907 |
Net gains on sale of real estate | 5,622 | 116 | 5,622 | |
Net gains on bonds | 28 | 3,792 | 2,323 | 4,375 |
Net gains on derivatives and loans | 1,424 | 928 | 2,106 | 1,913 |
Net gains transferred into net income from AOCI due to real estate foreclosure | 4,205 | 15,647 | ||
Net losses related to CFVs | (598) | (598) | ||
Equity in gains (losses) from equity method investments | (4,036) | (12,254) | ||
Net gain (loss) from continuing operations before income taxes | (7,175) | (6,899) | (3,038) | (21,048) |
Income tax expense | (34) | (61) | (106) | (132) |
Net income from discontinued operations, net of tax | 83 | 83 | 166 | 161 |
Net income (loss) | (7,126) | (6,877) | (2,978) | (21,019) |
Loss allocable to noncontrolling interests: | ||||
Net loss allocable to noncontrolling interests | (12,256) | (14,168) | (24,713) | (28,472) |
Net income allocable to common shareholders | $ 5,130 | $ 7,291 | $ 21,735 | $ 7,453 |
Basic income (loss) per common share: | ||||
Income from continuing operations (in dollars per share) | $ 0.80 | $ 1.04 | $ 3.37 | $ 1.03 |
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.02 |
Income per common share (in dollars per share) | 0.81 | 1.05 | 3.39 | 1.05 |
Diluted income (loss) per common share: | ||||
Income from continuing operations (in dollars per share) | 0.80 | 1.04 | 3.37 | 1.03 |
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.02 |
Income per common share (in dollars per share) | $ 0.81 | $ 1.05 | $ 3.39 | $ 1.05 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 6,289 | 6,955 | 6,406 | 7,084 |
Diluted (in shares) | 6,289 | 6,955 | 6,410 | 7,084 |
Continuing Operations [Member] | ||||
Loss allocable to noncontrolling interests: | ||||
Net loss allocable to noncontrolling interests | $ 12,256 | $ 14,168 | $ 24,713 | $ 28,472 |
Consolidated Funds and Ventures [Member] | ||||
Non-interest revenue | ||||
Revenue from CFVs | 726 | 133 | 1,545 | 200 |
Operating and other expenses | ||||
Equity in gains (losses) from equity method investments | (4,937) | (6,654) | (10,623) | (12,347) |
Unconsolidated Funds and Ventures [Member] | ||||
Operating and other expenses | ||||
Equity in gains (losses) from equity method investments | $ 2,126 | $ 20 | $ 6,587 | $ 93 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net income allocable to common shareholders | $ 5,130 | $ 7,291 | $ 21,735 | $ 7,453 |
Net loss allocable to noncontrolling interests | (12,256) | (14,168) | (24,713) | (28,472) |
Net income (loss) | (7,126) | (6,877) | (2,978) | (21,019) |
Bond related changes: | ||||
Unrealized net gains | 4,460 | 2,994 | 8,251 | 5,040 |
Reversal of net unrealized gains on sold or redeemed bonds | (3,395) | (2,055) | (3,866) | |
Reversal of unrealized gains from AOCI to Net Income due to consolidation and foreclosure | (4,205) | (15,647) | ||
Reclassification of unrealized losses to operations due to impairment | 179 | 179 | ||
Net change in other comprehensive income due to bonds | 255 | (222) | (9,451) | 1,353 |
Foreign currency translation adjustment | 10 | 42 | 31 | (90) |
Other comprehensive (loss) income allocable to common shareholders | 265 | (180) | (9,420) | 1,263 |
Comprehensive income to common shareholders | 5,395 | 7,111 | 12,315 | 8,716 |
Comprehensive loss to noncontrolling interests | (12,256) | (14,168) | (24,713) | (28,472) |
Comprehensive loss | $ (6,861) | $ (7,057) | $ (12,398) | $ (19,756) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | AOCI [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Net income (loss) | $ (21,019) | ||||
Other comprehensive loss | 4,950 | ||||
Balance at Jun. 30, 2015 | $ 43,887 | $ 51,392 | |||
Balance at Dec. 31, 2015 | $ 54,961 | 61,209 | $ 116,170 | $ 180,051 | 296,221 |
Balance (in shares) at Dec. 31, 2015 | 6,588 | ||||
Net income (loss) | $ 21,735 | 21,735 | (24,713) | (2,978) | |
Other comprehensive loss | (9,420) | (9,420) | (9,420) | ||
Distributions | (1,415) | (1,415) | |||
Purchases of shares in a subsidiary (including price adjustments on prior purchases) | (45) | (45) | (45) | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 218 | 218 | 218 | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 15 | ||||
Net change due to consolidation | 1,883 | 1,883 | |||
Common share repurchases | $ (6,544) | (6,544) | (6,544) | ||
Common share repurchases (in shares) | (407) | ||||
Balance at Jun. 30, 2016 | $ 70,325 | $ 51,789 | $ 122,114 | $ 155,806 | $ 277,920 |
Balance (in shares) at Jun. 30, 2016 | 6,196 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (2,978) | $ (21,019) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provisions for credit losses and impairment | 12,769 | 14,753 |
Net equity in losses from equity investments in partnerships | 4,036 | 12,254 |
Net gains on bonds | (2,323) | (4,375) |
Net losses related to CFVs | 598 | |
Net gains on real estate | (116) | (5,770) |
Net losses (gains) on derivatives and loans | 11 | (67) |
Net losses due to consolidation | (15,647) | |
Advances on and originations of loans held for sale | (4,243) | |
Distributions received from investments in partnerships | 5,862 | |
Net gains due to initial real estate consolidation and foreclosure | (15,647) | |
Subordinate debt effective yield amortization and interest accruals | 334 | 2,163 |
Depreciation and other amortization | 673 | 483 |
Foreign currency loss | (157) | (113) |
Stock-based compensation expense | 1,622 | 1,374 |
Other | (2,335) | (3,108) |
Net cash provided by/(used in) operating activities | 4,042 | (12,877) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments and sales proceeds received on bonds and loans held for investment | 16,984 | 16,740 |
Advances on and originations of loans held for investment | (23,470) | (418) |
Investments in property partnerships and real estate | (1,615) | (1,120) |
Proceeds from the sale of real estate and other investments | 17,804 | 29,662 |
Decrease in restricted cash and cash of CFVs | (2,497) | (819) |
Capital distributions received from investments in property partnerships | 3,407 | 6,135 |
Net cash provided by investing activities | 10,613 | 50,180 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowing activity | 25,585 | |
Repayment of borrowings | (10,256) | (30,004) |
Distributions paid to holders of noncontrolling interests | (1,415) | (159) |
Purchase of treasury stock | (6,544) | (4,668) |
Other | 447 | |
Net cash (used in)/provided by financing activities | (18,215) | (8,799) |
Net increase (decrease) in cash and cash equivalents | (3,560) | 28,504 |
Cash and cash equivalents at beginning of period | 21,843 | 29,619 |
Cash and cash equivalents at end of period | 18,283 | 58,123 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 2,784 | 3,983 |
Income taxes paid | 174 | 139 |
Non-cash investing and financing activities: | ||
Unrealized gains (losses) included in other comprehensive income | (9,420) | 1,287 |
Debt and liabilities extinguished through sales and collections on bonds and loans | 1,657 | 16,672 |
Increase in debt through loan fundings | 3,674 | |
Increase in real estate assets and decrease in bond assets due to foreclosure or initial consolidation of funds and ventures | 30,299 | |
Decrease in common equity and increase in noncontrolling equity due to purchase of noncontrolling interest | 397 | |
Consolidated Funds and Ventures [Member] | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Net equity in losses from equity investments in partnerships | 10,623 | 12,347 |
Change in asset management fees payable related to CFVs | $ 1,693 | $ (5,209) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | MMA Capital Management, LLC NOTES TO CONSOLIDA T ED FINANCIAL STATEMENTS NOTE 1— S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization MMA Capital Management, LLC, the registrant, was organized in 1996 as a Delaware limited liability company. Unless the context otherwise requires, and w hen used in this Report , the “ Company, ” “ MMA, ” “ we, ” “ our ” or “ us ” refer s to MMA Capital Management, LLC and its subsidiaries . The Company partners with institutional capital to create and manage investments in affordable housing and renewable energy. The Company operates through three reportable segments – United States (“ U . S . ”) Operations, International Operations and Corporate Operations. U.S. Operations Our U.S. Operations segment consists of three business lines: Leveraged Bonds, Low-Income Housing Tax Credits (“ LIHTC ”) and Energy Capital and Other Investments (previously referred to as “Other Investments and Obligations” in the Company’s 2015 Quarterly Reports on Form 10-Q). In our Leveraged Bonds business line , we primarily own and manage bonds that financ e affordable housing and infrastructure in the U . S. Within this business line, we manage most of the Company’s bonds and associated financings. The bond portfolio is comprised primarily of multifamily tax-exempt bonds and total return swaps (“ TRS ”) that are referenced to these types of bonds, but also includes other real estate related bond investments. In our LIHTC business line, we primarily own and manage limited partner (“ LP ”) and general partner (“ GP ”) investments in affordable housing communities in the U.S. We provide asset management and administrative services to a limited liability company formed by the Company and a commercial bank (“ TC Fund I ”) and have provided a limited guarantee of the tax credits expected to be generated by TC Fund I’s portfolio of investments. As part of this business line, we have made other guarantees to third parties related to the receipt of tax credits and the performance of the underlying assets and we have loan receivables from, and an option to purchase, a tax credit asset manager . In our Energy Capital and Other Investments business line, our wholly owned subsidiary MMA Energy Capital (“ MEC ”) provides project capital to develop and build renewable energy systems primarily through a joint venture that we have with an alternative asset manager (our “ Solar Joint Venture ”). Within this business line, we also manage equity investments in real estate, land and solar assets retained from the sale of legacy businesses. International Operations We manage our International Operations segment through our wholly owned subsidiary, International Housing Solutions S.à r.l. (“ IHS ”). IHS’s strategy is to raise, invest in and manage private real estate funds that invest in residential real estate. IHS currently manages three funds: the South Africa Workforce Housing Fund (“ SAWHF ”), which is a multi-investor fund and is fully invested; International Housing Solutions Residential Partners Partnership (“ IHS Residential Partners ”) , which is a single-investor fund targeted at the emerging middle class in South Africa; and IHS Fund II (“ IHS Fund II ”), which is a multi-investor funds targeting investments in affordable housing, including green housing projects, within South Africa and Sub-Saharan Africa. MMA also owns a 60% interest in IHS Property Management Proprietary Limited (“ IHS PM ”), which provides property management services to the properties of IHS-managed funds. Corporate Operations Our Corporate Operations segment is responsible for accounting, reporting, compliance and planning, which are fundamental to our success as a global fund manager and publicly traded company in the U.S. Basis of Presentation and Significant Accounting Policies The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“ GAAP ”) in the U.S. To conform to our current period presentation, we have reclassified certain amounts reported in our prior periods’ consolidated financial statements. The consolidated financial statements include the accounts of the Company and of entities that are considered to be variable interest entities (“ VIEs ”) 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. Equity investments in unconsolidated entities where the Company has the ability to exercise significant influence over the operations of the entity, but is not considered the primary beneficiary, are accounted for using the equity method of accounting. The unaudited interim consolidated financial statements as of, and for the three months and six months ended June 30 2016, should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 (“ 2015 Form 10-K ”). The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The Company evaluates subsequent events through the date of filing with the Securities and Exchange Commission (“ SEC ”). 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 instruments, guarantee obligations, and certain assets and liabilities of 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. Prior Period Correction of an Immaterial Error In the first quarter of 2016, the Company determined that, in connection with two bond investments that were acquired in 2006 and 2007, it had understated the recognition of interest income and had overstated the recognition of unrealized holding gains on such investments in other comprehensive income by an equal and offsetting amount. This financial statement error, which had no impact on total common shareholders’ equit y or diluted common shareholder s ’ equity per share, was attributable to the Company’s use of a method that was used to reduce the reported balance of investment-related cost basis adjustments into interest income . The method used in this case was determined not to be c ompliant with GAAP. We assessed the materiality of the identified error on our financial statements for prior periods in accordance with SEC Staff Accounting Bulletin (“ SAB ”) No. 99, “ Materiality, ” which is codified in Accounting Standards Codification (“ ASC ”) 250, “ Presentation of Financial Statements ,” and concluded it was not material to any prior annual or interim periods. However, the aggregate amount of the prior period corrections of $7.2 million if corrected in the current period would be material to our projected annual results of consolidated operations. Consequently, in accordance with ASC 250 (specifically SAB No. 108, “ Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements ”), we have corrected these errors for all prior years and interim periods presented by revising the consolidated financial statements and other financial information included herein. Periods not presented herein will be revised, as applicable, in future filings. The effects of the revisions on our Consolidated Balance Sheet were as follows: As Previously Reported As Revised December 31, December 31, (in thousands) 2015 Adjustment 2015 Common shareholders’ equity: Common shares, no par value (6,118,535 and 6,516,275 shares issued and outstanding and 76,999 and 72,476 non-employee directors' and employee deferred shares issued at June 30, 2016 and December 31, 2015, respectively) $ 47,755 $ 7,206 $ 54,961 Accumulated other comprehensive income 68,415 (7,206) 61,209 Total common shareholders’ equity $ 116,170 $ ─ $ 116,170 The effects of the revisions on our Consolidated Statements of Equity were as follows: Common Equity Before (in thousands) AOCI AOCI As previously reported six months ended June 30, 2015 $ 36,859 $ 58,420 Cumulative adjustment at December 31, 2014 6,323 (6,323) Adjustment 705 (705) As revised six months ended June 30, 2015 $ 43,887 $ 51,392 The effects of the revisions on our Consolidated Statements of Operations were as follows: Net income Basic Diluted from income income Income tax discontinued per per Interest on benefit operations common common (in thousands, except per share data) Bonds (expense) net of tax share share As previously reported three months ended June 30, 2015 $ 3,270 $ (278) $ 89 $ 1.02 $ 1.02 Adjustment 11 217 (6) 0.03 0.03 As revised three months ended June 30, 2015 $ 3,281 $ (61) $ 83 $ 1.05 $ 1.05 As previously reported six months ended June 30, 2015 $ 6,602 $ (132) $ 161 $ 0.95 $ 0.95 Adjustment 705 ─ ─ 0.10 0.10 As revised six months ended June 30, 2015 $ 7,307 $ (132) $ 161 $ 1.05 $ 1.05 New Accounting Guidance Accounting for Consolidation Effective January 1, 2016, we prospectively adopted guidance issued by the Financial Accounting Standards Board (“ FASB ”) regarding consolidation of legal entities such as limited partnerships, limited liability companies and securitization structures. The guidance removed the specialized consolidation model surrounding limited partnerships and similar entities and amended the requirements that such entities must meet to qualify as voting interest entities. In addition, the guidance eliminated certain of the conditions for evaluating whether fees paid to a decision maker or service provider represented a variable interest. The adoption of this guidance resulted in the Company expanding disclosures for interests we have in various entities that are considered to be variable interest entities; however, it did not impact the number of entities consolidated by the Company. Accounting for Financial Instruments In January 2016, the FASB issued Accounting Standards Update (“ ASU ”) No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. This new guidance, which is effective for us on January 1, 2018, with early adoption permitted, also amends certain disclosure requirements associated with the fair value of financial instruments. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Improvements.” This guidance is intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. This guidance adds to U.S. GAAP an impairment model that is based on expected losses rather than incurred losses. This new guidance is effective for us on January 1, 2020, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This guidance introduces a lessee model that brings most leases on the balance sheet, as well as aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard. This new guidance, which is effective for us on January 1, 2019, with early adoption permitted, also requires lessors to increase the transparency of their exposure to changes in value of their residual assets and how they manage that exposure. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Revenue from Contracts with Customers In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net.” The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expected to be entitled in exchange for those goods or services. This guidance clarifies the implementation of principal versus agent considerations. This new guidance is effective for us on January 1, 2018. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” This guidance addresses certain implementation issues and clarifies the new revenue standard’s core revenue recognition principal. This new guidance is effective for us on January 1, 2018. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Stock Compensation In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This guidance simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This new guidance is effective for us on January 1, 2017, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. |
BONDS AVAILABLE-FOR-SALE
BONDS AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2016 | |
Bonds Available-For-Sale [Abstract] | |
BONDS AVAILABLE-FOR-SALE | NOTE 2—BONDS AVAILABLE-FOR-SALE Bonds Available-for-Sale The Company’s investments in bond s that are reported in the Consolidated Balance Sheets (as a component of Bonds available-for-sale) are comprised primarily of multifamily tax-exempt bonds, but also include other real estate related bond investments. M ultifamily tax-exempt bonds are issued by state and local governments or their agencies or authorities to finance multifamily rental housing . Generally, the only source of security on these bonds is either a first mortgage or a subordinate d mortgage on the underlying properties. The Company’s investments in other real estate related bonds include municipal bonds that are issued to finance the development of community infrastructure that supports mixed-use and commercial developments and that are secured by incremental tax revenues generated from the development . Investments in other real estate related bonds also include senior investments in a trust collateralized by a pool of tax-exempt municipal bonds that finance a variety of non-profit projects such as hospitals, healthcare facilities, charter schools and airports, as well as a subordinated investment in a collateralized mortgage backed security that finances multifamily housing. The weighted average pay rate on the Company’s bond portfolio was 5.7% and 5.4% at June 30, 2016 and December 3 1 , 2015, respectively . Weighted average pay rate represents the cash interest payments collected on the bonds as a percentage of the bonds’ average unpaid principal balance (“ UPB ”) for the preceding 12 months for the population of bonds at June 30, 2016 and December 3 1, 2015 , respectively. The following tables provide information about the UPB, amortized cost, gross unrealized gains and fair value (“ FV ”) associated with the Company’s investments in bonds that are classified as available-for-sale: At June 30, 2016 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Multifamily tax-exempt bonds $ 123,188 $ 77,324 $ 48,325 $ 125,649 102% Other real estate related bond investments 57,287 50,636 6,546 57,182 100% Total $ 180,475 $ 127,960 $ 54,871 $ 182,831 101% At December 31, 2015 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Multifamily tax-exempt bonds $ 160,974 $ 98,694 $ 57,915 $ 156,609 97% Other real estate related bond investments 62,385 55,423 6,407 61,830 99% Total $ 223,359 $ 154,117 $ 64,322 $ 218,439 98% (1) Consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as other-than-temporary impairments (“ OTTI ”) recognized in earnings. See Note 7 , “Fair Value , ” which describes factors that contribut ed to the $35.6 million decrease in the reported fair value of the Company’s bond portfolio for the six months ended June 30, 2016 . Maturity Principal payments on the Company’s investments in bonds are based on contractual terms that are set forth in the contractual documents governing such investments . If principal payments are not required to be made prior to the contractual maturity of a bond , its UPB is required to be paid in a lump sum payment at contractual maturity or at such earlier time as may be provided under the governing documents. At June 3 0 , 201 6 , five bonds were non-amortizing with principal due in full between November 2044 and August 2048 (the total cost basis and fair value of these bonds were $14.4 million and $25.7 million, respectively, at June 3 0 , 2016). The remaining bonds are amortizing with stated maturity dates between September 2017 and June 2056. Bonds with Prepayment Features The contractual terms of substantially all of the Company’s investments in bonds include provisions that permit such instruments to be prepaid at par after a specified date that is prior to the ir stated maturity date. The following table provides information about the UPB, amortized cost and fair value of the Company’s investments in bonds that were prepayable at par at June 3 0 , 201 6 , as well as stratifies such information for the remainder of the Company’s investments based upon the periods in which such instruments become prepayable at par: (in thousands) UPB Amortized Cost Fair Value June 30, 2016 $ 52,376 $ 40,637 $ 50,526 July 1 through December 31, 2016 ─ ─ ─ 2017 ─ ─ ─ 2018 1,967 528 2,276 2019 ─ ─ ─ 2020 16,553 6,386 17,156 Thereafter 109,422 80,252 112,713 Bonds that may not be prepaid 157 157 160 Total $ 180,475 $ 127,960 $ 182,831 The weighted average expected maturity of the Company’s investments in bonds that are not currently prepayable at par at June 30, 2016 was 5.5 years. Non-Accrual Bonds The fair value of the Company’s investments in bonds that were on non-accrual status was $ 22.4 million and $43.3 million at June 30, 2016 and December 31, 2015, respectively. During the period in which such bonds were on non-accrual status, the Company recognized interest income on a cash basis of $0.2 million and $0.5 million for the three months ended June 30, 2016 and 2015, respectively, and $0.5 million and $1.1 million for the six months ended June 30, 2016 and 2015, respectively. Interest income not recognized during the period in which these investments in bonds were on non-accrual status was $0.4 million and $1.1 million for the three months ended June 30, 2016 and 2015, respectively, and $0.9 million and $2.2 million for the six months ended June 30, 2016 and 2015, respectively . During the six months ended June 30, 2016, bonds that were on non-accrual status that had a fair value of $22.9 million at December 31, 2015 were sold or redeemed. No bonds on non-accrual were sold or redeemed during the three months ended June 30, 2016. Bond Aging Analysis The following table provides information about the fair value of the Company’s investments in bonds that are classified as available-for-sale and that were current with respect to principal and interest payments, as well as information about the fair value of bonds that were past due with respect to principal or interest payments: At At June 30, December 31, (in thousands) 2016 2015 Total current $ 160,409 $ 175,106 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 22,422 43,333 Total $ 182,831 $ 218,439 Bond Sales and Redemptions The Company recognized cash proceeds in connection with sales and redemptions of its investments in bonds of $6.1 million and $1.4 million for the six months ended June 30, 2016 and 2015, respectively and $0.8 million for the three months ended June 30, 2015. No bonds were sold or redeemed during the three months ended June 30, 2016. The following table provides information about net realized gains that were recognized in connection with the Company’s investments in bonds at the time of their sale or redemption (in the Consolidated Statements of Operations as a component of “Other expenses” and “Net gains on bond s” ): For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net impairment recognized on bonds held at each period-end $ ─ $ (179) $ ─ $ (179) Gains recognized at time of sale or redemption (1) 28 3,793 2,323 4,376 Total net gains on bonds $ 28 $ 3,614 $ 2,323 $ 4,197 (1) The amount for the three months ended June 30, 2016, reflects additional cash received for a bond that was previously redeemed in 2015. In addition to gains described above, the Company also recognized in the first six months of 2016 an $11.4 million gain in connection with a nonperforming bond with respect to which the Company had foreclosed upon the multifamily property that secured such investment. |
INVESTMENTS IN PARTNERSHIPS
INVESTMENTS IN PARTNERSHIPS | 6 Months Ended |
Jun. 30, 2016 | |
INVESTMENTS IN PARTNERSHIPS [Abstract] | |
INVESTMENT IN PARTNERSHIPS | NOTE 3— INVESTMENTS IN PARTNERSHIPS The following table provides information about the carrying value of the Company’s investments in partnerships. At At June 30, December 31, (in thousands) 2016 2015 Investments in U.S. real estate partnerships (includes $11,545 and $13,374 related to VIEs) (1) $ 27,974 $ 29,633 Investments in IHS-managed funds (includes $1,593 and $1,388 related to VIEs) (1) 2,734 2,501 Investment in the Solar Joint Venture 51,248 50,521 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) 155,518 177,786 Total investments in partnerships $ 237,474 $ 260,441 (1) We do not consolidate any of the investees that were assessed to meet the definition of a VIE. (2) See Note 13, “Consolidated Funds and Ventures,” for more information. Investments in U.S. Real Estate Partnerships At June 3 0 , 201 6 , $16.4 million of the reported carrying value pertains to an equity investment made by the Company in a real estate venture that was formed during the fourth quarter of 2014. The Company made an initial contribution of $8.8 million , which represent ed 80% of the real estate venture’s initial capital. The Company has rights to a preferred return on its capital contribution, as well as rights to share in excess cash flows of the real estate venture. As this entity was determined not to be a VIE, t he Company accounts for this investment using the equity method of accounting . At June 3 0 , 201 6 , $ 6.2 million of the reported carrying value pertains to an equity investment that represents a 33% ownership 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. Through the governing operating agreement, the Company is obligated to make additional capital contributions representing its proportionate amount of the partnership's obligations as they become due. This contractual commitment does not have a defined contribution limit. While this entity was determined to be a VIE, the Company was deemed not to be its primary beneficiary. Therefore, the Company did not consolidate this entity and accounts for this investment using the equity method of accounting . At June 30, 2016, $5.3 million of the reported carrying value pertains to equity investments acquired by a wholly owned subsidiary of the registrant, MuniMae TEI Holdings, LLC (“ TEI ”), during the fourth quarter of 2015. While these entities are determined to be VIEs, the Company was not deemed to be its primary beneficiary. Therefore, t he Company did not consolidate these entities and accounts for its investments in them using the equity method of accounting. At June 30, 2016 and December 31, 2015, five of the U.S. real estate partnerships in which we have investments were determined to be VIEs. The carrying value of the equity investments in these partnerships was $11.5 million and $13.4 million at June 3 0 , 2016 and December 31, 2015, respectively. Other than as noted above, we are not contractually obligated to commit further capital to these investments. Our maximum exposure to loss due to our involvement with these VIEs was $11.5 million and $20.3 million as of June 3 0 , 2016 and December 31, 2015, respectively. Because we are unable to quantify the maximum amount of additional capital contributions that we may be required to fund in the future associated with our proportionate share of one of the VIEs, we measure our maximum exposure to loss based upon the carrying value of the aforementioned investments and loan receivable. The following table provides information about the total assets and liabilities of the U.S. real estate partnerships in which the Company held an equity investment: At At June 30, December 31, 2016 2015 (in thousands) Total assets $ 101,040 $ 114,697 Total liabilities 49,497 61,007 The following table provides information about the net income (loss) of U.S. real estate partnerships in which the Company had an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net income (loss) $ 506 $ (546) $ 5,624 $ (395) Investments in IHS-managed Funds At June 30, 2016 , the Company held equity co-investments in three IHS-managed funds (SAWHF, IHS Residential Partners and IHS Fund II) that rang e from a 1.8% to a 4.25% ownership interest in such funds . IHS provides asset management services to each of these investment vehicles in return for asset management fees. For each investment vehicle, IHS also has rights to investment returns on its equity co-investment as well as rights to an allocation of profits from such funds (often referred to as “carried interest”), which are contingent upon the investment returns generated by each investment vehicle. At June 3 0 , 201 6 , the carrying value of the Company’s equity investment in SAWHF , IHS Residential Partners and IHS Fund II was $1.1 million, $1.6 million and $0.1 million, respective ly. As the SAWHF and IHS Fund II entities were determined not to be VIEs, the Company accounts for these investments using the equity method of accounting. While IHS Residential Partners was determined to be a VIE, this entity was not consolidated for reporting purposes as the Company was deemed not to be its primary beneficiary. As a result, the Company accounts for this investment using the equity method of accounting. The Company does not expect to make additional capital contributions to Residential Partners I although, through the governing shareholder agreement, IHS could be required to commit up to 180 million rand to such fund. In this regard, our maximum exposure to loss as a result of our involvement in this VIE is approximately $12.0 million and $11.7 million as of June 30, 2016 and December 31, 2015, respectively, based upon foreign currency exchange rates as of such reporting dates. The following table provides information about the carrying value of total assets and liabilities of the IHS-managed funds in which the Company held an equity investment: At At June 30, December 31, 2016 2015 (in thousands) Total assets $ 221,679 $ 235,858 Total liabilities 87,071 103,149 The table that follows provides information about the net (loss) income of the IHS-managed funds in which the Company had an equity investment. For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net (loss) income $ (2,902) $ 1,586 $ (8,712) $ 3,332 Investment in a Solar Joint Venture On July 15, 2015, the Company entered into a joint venture with a third party to provide project capital for the development and construction of solar power and other types of renewable energy projects throughout the U.S. (hereinafter, the “ Solar Joint Venture ”). The Company is responsible for the day-to-day management and operation of the Solar Joint Venture and day-to-day oversight of its investments. In return for providing this service, the Company receives an administrative member cost reimbursement fee that is recognized in the Consolidated Statements of Operations as a component of “Asset management fees and reimbursements.” The Company’s initial capital commitment was $25.0 million, which represented a 50% ownership interest in the Solar Joint Venture. On October 28, 2015, the Operating Agreement of the Solar Joint Venture was amended to increase the capital commitment for each member to $50.0 million . As of June 3 0 , 201 6 , the Company had contributed $50.0 million in capital to the Solar Joint Venture. As this entity was determined to not be a VIE, the Company accounts for this investment using the equity method of accounting. The following table provides information about the carrying amount of total assets and liabilities of the Solar Joint Venture in which the Company held an equity investment: At At June 30, December 31, 2016 2015 (in thousands) Total assets $ 117,880 $ 104,137 Total liabilities 15,879 3,585 The following table displays the net income of the Solar Joint Venture in which the Company held an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net income $ 2,495 $ ─ $ 5,557 $ ─ |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Assets | NOTE 4—OTHER ASSETS The following table provides information related to the carrying value of the Company’s other assets: At At June 30, December 31, (in thousands) 2016 2015 Other assets: Loans held for investment $ 24,754 $ 7,928 Loans held for sale 2,742 6,417 Real estate owned 9,251 8,669 Derivative assets 3,980 3,673 Solar facilities (includes other assets such as cash and other receivables) 1,858 2,073 Accrued interest receivable 2,293 2,115 Asset management fees and reimbursements receivable 1,446 1,121 Other assets 8,577 7,485 Other assets held by CFVs (1) 32,497 18,834 Total other assets $ 87,398 $ 58,315 (1) See Note 13, “Consolidated Funds and Ventures,” for more information. Loans Held for Investment (“HFI”) The Company’s loans that are HFI primarily include solar construction loans. We report the carrying value of HFI loans at their UPB, net of unamortized premiums, discounts and other cost basis adjustments and related allowance for loan losses . However, such loans are reported at fair value to the extent the Company has elected the fair value option for such instruments . The following table provides information about the amortized cost and allowance for loan losses that were recognized in the Company’s Consolidated Balance Sheets related to loans tha t it classified as HFI: At At June 30, December 31, (in thousands) 2016 2015 Amortized cost $ 25,504 $ 8,678 Allowance for loan losses (750) (750) Loans held for investment, net $ 24,754 $ 7,928 At June 30, 2016 and December 31, 2015 , HFI loans had an UPB of $30.5 million and $13.2 million, respectively, as well as deferred fees and other basis adjustments of $5.0 million and $4.5 million, respectively. At June 30, 2016 and December 31, 2015 , HFI loans that were impaired had a UPB of $1.1 million and were not accruing interest. The carrying value for HFI loans on non-accrual status was $0.6 million and $0.3 million at June 30, 2016 and December 31, 2015, respectively . The loan that the Company made to TC Fund I on December 31, 2015 is included among this population of loans. At June 30, 2016 and December 31, 2015 , no HFI loans that were 90 days or more past due in scheduled principal or interest payments were still accruing interest. At June 30, 2016, the Company has one solar construction loan with a UPB of $23.7 million that is classified as held for investment but for which the fair value option (“ FVO ”) was elected to minimize certain operational challenges associated with accounting for this loan. Loans Held for Sale (“HFS”) We report the carrying value of HFS loans at the lower of cost or fair value and report valuation changes as “Other expenses” in our Consolidated Statement of Operations. At June 3 0 , 201 6 , HFS loans primarily included three solar construction and development loans . While these loans were designated as held for sale, the Company elected the fair value option for these loans and, as a result, such assets are subsequently measured on a fair value basis through earnings. At June 3 0 , 201 6 , there were no solar loans that were 90 days or more past due and none of these have been placed on non-accrual status. Unfunded Loan Commitments At December 31, 2015, the Company had unfunded loan commitments totaling $0.5 million. There were no unfunded loan commitments at June 30, 2016. Real Estate Owned (“REO”) The following table provides information about the carrying value of the Company’s REO: At At June 30, December 31, (in thousands) 2016 2015 REO held for use, net $ 3,188 $ 8,669 REO held for sale, net 6,063 ─ Total REO $ 9,251 $ 8,669 REO held for use, net The REO held for use by the Company was comprised of the following: At At June 30, December 31, (in thousands) 2016 2015 Cash $ ─ $ 149 Building, furniture, fixtures and land improvement 569 4,014 Accumulated depreciation ─ ─ Land 2,619 4,496 Other assets ─ 10 Total $ 3,188 $ 8,669 Depreciation expense was $0.1 million for the six months ended June 30, 2015. There was no depreciation expense for the three months ended June 30, 2016 and 2015, and six months ended June 30, 2016. Buildings are depreciated over a period of 40 years. Furniture and fixtures are depreciated over a period of six to seven years and land improvements are depreciated over a period of 15 years. The Company did not recognize any impairment losses for the three months and six months ended June 30, 2016 and 2015. REO held for sale, net The REO held for sale by the Company was comprised of the following: At At June 30, December 31, (in thousands) 2016 2015 Cash $ 139 $ ─ Building, furniture and fixtures 4,014 ─ Land 1,877 ─ Other assets 33 ─ Total $ 6,063 $ ─ Derivative Assets At June 30 2016 and Decem ber 31, 2015, the Company had $4.0 million and $3.7 million, respectively , of recogniz ed derivative assets. See Note 6 , “Derivative Instruments , ” for more information. Solar Facilities At June 3 0 , 201 6 and December 31, 2015 , the Company owned f our and five solar facilities , respectively, that were classified as HFS and had a carrying value of $1.6 million and $2.0 million, respectively . Accumulated depreciation prior to these facilities being classified as HFS was $1.6 million and $3.1 million at June 30, 2016 and December 31, 2015, respectively. These facilities generate energy that is sold under long-term power purchase agreements to the owner or lessee of the properties on which the projects are built. During the first quarter of 2016, the Company sold one of its solar assets and recognized a gain of $0.1 million in its Consolidated Statements of Operations as a component of “Net gains on real estate.” Asset Management Fees and Reimbursements Receivable At June 30, 2016 and December 31, 2015, the Company had $1.4 million and $1.1 million of asset management fees and reimb ursement receivable s, respectively, recognized in its Consolidated Balance Sheets, of which $1.1 million and $0.8 million , respectively, w ere due from IHS-managed funds and ventures. As of June 30, 2016, the Company did not recognize asset management fee income from TC Fund I given uncertainties as of such date associated with when such revenue would be realized. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 5—DEBT The table below provides information about the carrying values and weighted-average effective interest rate s of the Company’s debt obligations that were outstanding : At At June 30, 2016 December 31, 2015 Weighted-Average Weighted-Average Carrying Effective Interest Carrying Effective Interest (dollars in thousands) Value Rate Value Rate Asset Related Debt (1) Notes payable and other debt – bond related (2) Due within one year $ 1,022 1.9 % $ 1,137 1.5 % Due after one year 68,153 1.8 88,131 1.4 Notes payable and other debt – non-bond related Due within one year 4,057 12.0 7,564 13.0 Due after one year 2,451 10.4 3,126 10.4 Total asset related debt $ 75,683 2.6 $ 99,958 2.6 Other Debt (1) Subordinated debt (3) Due within one year $ 3,288 3.6 $ 3,069 3.0 Due after one year 127,547 3.2 129,185 3.0 Notes payable and other debt Due within one year 101 1.8 ─ ─ Due after one year 9,811 1.8 ─ ─ Total other debt $ 140,747 3.1 $ 132,254 3.0 Total asset related debt and other debt $ 216,430 2.9 $ 232,212 2.8 Debt related to CFVs Due within one year $ 6,803 5.5 $ 6,802 5.5 Due after one year 3,045 4.3 3,081 4.3 Total debt related to CFVs $ 9,848 5.1 $ 9,883 5.1 Total debt $ 226,278 3.0 $ 242,095 2.9 (1) Asset related debt is debt that 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 that 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 – bond related were unamortized debt issuance costs of $0.1 million at June 30, 2016 and December 31, 2015. (3) The subordinated debt balances include net cost basis adjustments of $8.9 m illion and $9.2 million at June 30, 2016 and December 31, 2015, respectively, that pertain to issuance-related premiums and debt issuance costs. Covenant Compliance and Debt Maturities The following table provides information about scheduled principal payment s associated with the Company’s debt agreements that were outstanding at June 3 0 , 201 6 : Asset Related Debt CFVs (in thousands) and Other Debt Related Debt Total Debt 2016 $ 5,062 $ 6,741 $ 11,803 2017 8,946 62 9,008 2018 60,583 65 60,648 2019 13,360 69 13,429 2020 10,718 72 10,790 Thereafter 108,965 2,472 111,437 Net premium and debt issue costs 8,796 367 9,163 Total $ 216,430 $ 9,848 $ 226,278 At June 30, 2016 , the Company was in compliance with all covenants under its debt obligations . Asset Related Debt Notes Payable and Other Debt – Bond Related These debt obligations pertain to bonds that are classified as available-for-sale and that were financed by the Company through TRSs . In such transactions, the Company convey s its interest in bonds to a counterparty in exchange for cash consideration while simultaneously executing TRSs with the same counterparty for purposes of retaining the economic risks and returns of such investments. The conveyance of the Company’s interest in bonds was treated for reporting purposes as a secured borrowing while TRSs that were executed simultaneously with such conveyance did not receive financial statement recognition since such derivative instruments caused the conveyance of the Company’s interest in these bonds not to qualify for sale accounting treatment. At June 30, 2016, u nder the terms of these TRSs , the counterparty is required to pay the Company an amount equal to the interest payments received on the underlying bonds (UPB of $67.8 million with a weighted average pay rate of 6.2% at June 3 0 , 201 6 ). The Company is required to pay the counterparty a rate of Securities Industry and Financial Markets Association (“ SIFMA ”) 7-day municipal swap index plus a spread on the TRSs (notional amount of $69.3 million with a weighted average pay rate of 1.7% at June 3 0 , 201 6 ). The Company uses this pay rate on executed TRSs to accrue interest on its secured borrowing obligations to its counterparty. Interest expense on notes payable and other debt – bond related totaled $0.3 million and $0.4 million for the three months ended June 30, 2016 and 2015, respectively, and $0.6 million and $0.7 million for the six months ended June 30, 20 16 and 2015, respectively . Notes Payable and Other Debt – Non-Bond Related At June 3 0 , 201 6 , notes payable and other debt – non-bond related consisted primarily of the debt obligation that the Company recognized in connection with a conveyance of solar loans to the Solar Joint Venture during the third quarter of 2015 that did not qualify for sale accounting treatment. Interest expense on notes payable and other debt – non-bond related totaled $0.2 million and $0.1 million for the three months ended June 30, 2016 and 2015, respectively, and $0.5 million and $0.3 million for the six months ended June 30, 2016 and 2015, respectively . Other Debt Subordinate d Debt The table below provides information about the key terms of the subordinate d debt that was issued by the Company’s wholly owned subsidiaries MMA Financial Inc. (“ MFI ”) and MMA Financial Holdings, Inc. (“ MFH ”) and that was outstanding at June 3 0 , 201 6 : (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFI $ 27,460 $ (156) $ 27,304 Amortizing December 2027 and December 2033 8.00% MFH 27,889 2,770 30,659 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 25,360 2,529 27,889 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 14,618 1,344 15,962 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 26,579 2,442 29,021 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 121,906 $ 8,929 $ 130,835 Interest expense on the subordinate d debt totaled $1.1 million and $1.4 million for the three months ended June 3 0 , 201 6 and 201 5 , respectively, and $2.1 million and $4.1 million for the six months ended June 30, 2016 and 2015, respectively . Notes Payable and Other Debt This debt is comprised of a TRS financing arrangement on a previous bond investment that served as collateral for an affordable multifamily property where the Company acquired the 1.0% general partnership interest in the second quarter of 2016. See Note 13, “Consolidated Funds and Ventures,” for additional information. Letters of Credit The Company had no letters of credit outstanding at June 30, 2016 and December 3 1 , 2015. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | NOTE 6— DERIVATIVE INSTRUMENTS The Company’s derivative instruments include TRSs, an interest rate cap and one interest rate swap. TRSs are used by the Company to obtain, or retain, the economic risks and rewards associated with tax exempt municipal bonds while the interest rate cap and interest rate swap are used by the Company to manage the risk of increases in our cost of funding. Derivative instruments that are recognized in the Consolidated Balance Sheets are measured on a fair value basis. C hanges in fair value of such instruments are recognized in the Consolidated Statements of Operations as a component of “Net gains on derivatives , loans and other assets.” Derivative assets are presented in the Consolidated Balance Sheets as a component of “Other assets” and derivative liabilities are presented in the Consolidated Balance Sheets as a component of “Other liabilities.” The following table provides information about the carrying value of the Company’s derivative instruments: Fair Value At At June 30, 2016 December 31, 2015 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 3,980 $ 1,271 $ 3,658 $ 1,023 Interest rate cap ─ ─ 15 ─ Interest rate swap ─ 767 ─ 690 Total derivative instruments $ 3,980 $ 2,038 $ 3,673 $ 1,713 The following table provides information about the notional amounts of the Company’s derivative instruments: Notional Amounts At At June 30, December 31, (in thousands) 2016 2015 Total return swaps $ 107,892 $ 111,845 Interest rate cap 45,000 45,000 Interest rate swap 7,636 7,675 Total derivative instruments $ 160,528 $ 164,520 The following table provides information about the net gains (losses) that were recognized by the Company in connection with its derivative instruments: Gains (Losses) Gains (Losses) For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Total return swaps (1) $ 1,522 $ 1,013 $ 2,321 $ 2,204 Interest rate cap (4) (41) (14) (120) Interest rate swap (2) (100) (44) (222) (171) Total $ 1,418 $ 928 $ 2,085 $ 1,913 (1) The cash paid and received on TRSs that were reported as derivative instruments is settled on a net basis and recorded through “Net gains on derivatives, loans and other assets” on the Consolidated Statements of Operations. Net cash received was $1.1 million and $1.0 million for the three months ended June 30, 2016 and 2015, respectively. Net cash received was $2.2 million and $2.0 million for the six months ended June 30, 2016 and 2015, respectively. (2) The cash paid and received on the interest rate swap is settled on a net basis and recorded through “Net gains on derivatives, loans and other assets” on the Consolidated Statements of Operations. Net cash paid was $0.1 million for the three months ended June 30, 2016 and 2015. Net cash paid was $0.1 million and $0.2 million for the six months ended June 30, 2016 and 2015, respectively. Total Return Swaps As of June 3 0 , 201 6 , the Company had 10 bond related TRSs agreements that were accounted for as derivatives. Under the terms of the se agreements, the counterparty is required to pay the Company an amount equal to the interest payments received on underlying bonds ( which, at June 30, 2016, had a UPB of $86.4 million and a weighted average pay rate of 6.5% ) while t he Company is required to pay the counterparty a rate of SIFMA 7-day municipal swap index plus a spread ( weighted average pay rate of 2.2% at June 3 0 , 201 6 ). Additionally, the terms of these TRSs require that the change in fair value of reference bonds since the inception of such agreements be factored into their cash settlement upon expiration or early termination. As of June 30, 2016, the Company had a TRS associated with a senior interest in a pool of 2 5 taxab le loans that had a UPB of $20.1 million. Under the terms of this agreement, the counterparty is required to pay the Company an amount equal to the interest payments received on the senior interest, which bears interest at a stated rate of 7.0% , while the Company is required to pay the counterparty a rate of 1 -month LIBOR plus a spread of 400 bps (an increase from 350 bps due to an extension of the maturity date during the second quarter of 2016) . The Company is ac counting for this TRS agreement as a derivative for financial reporting purposes. Interest rate cap At June 3 0 , 2016 and December 31, 2015, the Company had one interest rate cap contract that terminates on January 2, 2019. The notional amount on the interest rate cap was $45.0 million at June 3 0 , 2016 and December 31, 2015 and provides us with interest rate protection on $45.0 million of our floating rate debt in the event the SIFMA 7-day municipal swap index rises to 250 bps or higher. Interest rate swap At June 3 0 2016 and December 31, 2015, the Company had outstanding one interest rate swap agreement pursuant to which the Company’s counterparty is required to make scheduled interest payments to the Company based upon the SIFMA 7-day municipal swap index plus 250 bps while t he Company is required to make interest payments to its counterparty based upon a fixed interest rate of 6.5% . Interest payments that are swapped under this agreement are determined based on an amortizing notional balance that, as of June 30, 2016 and December 31, 2015 , was $7.6 million and $7.7 million , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 7 — FAIR VALUE We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Assets and liabilities recorded at fair value on a recurring basis are presented in the first table below in this Note. From time to time, we may be required to measure at fair value other assets on a nonrecurring basis such as certain loans held for investment or investments in partnerships. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Fair Value Hierarchy The Company measures the fair value of its assets and liabilities based upon their contractual terms and using relevant market information. A description of the methods used by the Company to measure fair value is provided below. Fair value measurements are subjective in nature, involve uncertainties and often require the Company to make significant judgments. Changes in assumptions could significantly affect the Company’s measurement of fair value. GAAP establishes a three-level hierarchy that prioritizes inputs into the valuation techniques used to measure fair value. Fair value measurements associated with assets and liabilities are categorized into one of the following levels of the hierarchy based upon how observable the valuation inputs are that are used in such measurements. · Level 1: Valuation is based upon q uoted prices in active markets for identical instruments. · Level 2: Valuation is based upon q uoted 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: Valuation is generated from techniques that use significant assumptions that are not observable in the market . These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Recurring Changes in Fair Value The following tables present the carrying amounts of assets and liabilities that are measured at fair value on a recurring basis by instrument type and based upon the level of the fair value hierarchy within which fair value measurements of such assets and liabilities are categorized . Fair Value Measurements At June 30, (in thousands) 2016 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 182,831 $ ─ $ ─ $ 182,831 Loans held for investment 23,700 ─ ─ 23,700 Loans held for sale 2,742 ─ ─ 2,742 Derivative instruments 3,980 ─ ─ 3,980 Liabilities: Derivative instruments $ 2,038 $ ─ $ ─ $ 2,038 Fair Value Measurements At December 31, (in thousands) 2015 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 218,439 $ ─ $ ─ $ 218,439 Loans held for sale 6,417 ─ ─ 6,417 Derivative instruments 3,673 ─ 15 3,658 Liabilities: Derivative instruments $ 1,713 $ ─ $ ─ $ 1,713 Changes in Fair Value Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes, but is not limited to, quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between Level 1, Level 2 and Level 3. For the three months ended June 30, 2016 and 2015, there were no individually significant transfers between Levels 1 and 2, or between Levels 2 and 3. Changes in fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the three months ended June 30, 2016: (in thousands) Bonds Available-for-sale Loans Held for Investment Loans Held for Sale Derivative Assets Derivative Liabilities Balance, April 1, 2016 $ 192,928 $ 6,169 $ 3,335 $ 3,952 $ (2,430) Net (losses) gains included in earnings (1,354) ─ ─ 28 392 Net change in other comprehensive income (1) 4,460 ─ ─ ─ ─ Impact from purchases ─ ─ ─ ─ ─ Impact from loan originations ─ 17,531 303 ─ ─ Impact from sales/redemptions ─ ─ (896) ─ ─ Impact from bonds extinguished due to consolidation or real estate foreclosure (12,946) ─ ─ ─ ─ Impact from settlements (257) ─ ─ ─ ─ Balance, June 30, 2016 $ 182,831 $ 23,700 $ 2,742 $ 3,980 $ (2,038) (1) This amount includes $ 4.5 million of unrealized net holding gains arising during the period . The following table provides information about the amount included in earnings related to the activity presented in the table above, as well as additional gains that were recognized by the Company for the three months ended June 3 0 , 2016: (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized gains related to assets and liabilities still held at June 30, 2016 $ ─ $ 1,354 $ 420 Additional realized gains recognized 28 ─ 1,002 Total gains reported in earnings $ 28 $ 1,354 $ 1,422 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. Changes in fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the three months ended June 3 0 , 201 5 : (in thousands) Bonds Available-for-sale Loans Held for Sale Derivative Assets Derivative Liabilities Balance, April 1, 2015 $ 220,129 $ ─ $ 3,276 $ (1,359) Net (losses) gains included in earnings (1,877) ─ 57 (1) Net change in other comprehensive income (1) (222) ─ ─ ─ Impact from purchases ─ ─ ─ ─ Impact from loan originations ─ 4,932 ─ ─ Impact from sales/redemptions (9,874) ─ ─ ─ Impact from settlements (494) ─ ─ ─ Balance, June 30, 2015 $ 207,662 $ 4,932 $ 3,333 $ (1,360) (1) This amount includes the reversal of $3.4 million of unrealized gains related to bonds that were sold/redeemed, offset by $3.0 million of unrealized net holding gains arising during the period, and $0.2 million of unrealized bond losses classified into operations . The following table provides information about the amount included in earnings related to the activity presented in the table above, as well as additional gains that were recognized by the Company for the three months ended June 3 0 , 201 5 : (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2015 $ (179) $ (1,698) $ 56 Additional realized gains recognized 3,792 ─ 913 Total gains (losses) reported in earnings $ 3,613 $ (1,698) $ 969 (1) Amounts are reflected through “Other expenses” and “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. Changes in fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the six months ended June 3 0 , 2016: (in thousands) Bonds Available-for-sale Loans Held for Investment Loans Held for Sale Derivative Assets Derivative Liabilities Balance, January 1, 2016 $ 218,439 $ ─ $ 6,417 $ 3,658 $ (1,713) Net (losses) gains included in earnings (2,483) ─ ─ 322 (325) Net change in other comprehensive income (1) 6,196 ─ ─ ─ ─ Impact from purchases ─ ─ ─ ─ ─ Impact from loan originations ─ 23,700 4,315 ─ ─ Impact from sales/redemptions (3,769) ─ (7,990) ─ ─ Impact from bonds extinguished due to consolidation or real estate foreclosure (30,300) ─ ─ ─ ─ Impact from settlements (5,252) ─ ─ ─ ─ Balance, June 30, 2016 $ 182,831 $ 23,700 $ 2,742 $ 3,980 $ (2,038) (1) This amount includes $8.3 million of unrealized net holding gains arising during the period, partially offset by the reversal of $2.1 million of unrealized gains related to bonds that were sold/redeemed. The following table provides information about the amount included in earnings related to the activity presented in the table above, as well as additional gains that were recognized by the Company for the six months ended June 3 0 , 2016: (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized gains (losses) related to assets and liabilities still held at June 30, 2016 $ ─ $ 2,433 (3) Change in unrealized gains related to assets and liabilities held at January 1, 2016, but settled during 2016 ─ 50 ─ Additional realized gains recognized 2,323 ─ 2,102 Total gains reported in earnings $ 2,323 $ 2,483 $ 2,099 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. Changes in fair value of assets and liabilities that are measured at fair value on a recurring basis and that are categorized as Level 3 within the fair value hierarchy are attributed in the following table to identified activities that occurred during the six months ended June 3 0 , 2015: (in thousands) Bonds Available-for-sale Loans Held for Sale Derivative Assets Derivative Liabilities Balance, January 1, 2015 $ 222,899 $ ─ $ 2,539 $ (753) Net (losses) gains included in earnings (2,846) ─ 794 (607) Net change in other comprehensive income (1) 1,353 ─ ─ ─ Impact from loan originations ─ 4,932 ─ ─ Impact from sales/redemptions (9,874) ─ ─ ─ Impact from settlements (3,870) ─ ─ ─ Balance, June 30, 2015 $ 207,662 $ 4,932 $ 3,333 $ (1,360) (1) This amount represents $ 5.0 million of unrealized net holding gains arising during the period plus $0.2 million of unrealized bond losses reclassified into operations, partially offset by the reversal of $ 3.9 million of unrealized bond 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 gains (losses) that were recognized by the Company for the six months ended June 3 0 , 2015: (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2015 $ (179) $ (2,667) $ 187 Additional realized gains recognized 4,375 ─ 1,846 Total gains (losses) reported in earnings $ 4,196 $ (2,667) $ 2,033 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. Fair Value Measurements of Instruments That Are Classified as Level 3 The tables that follow provide quantitative information about the valuation techniques and the range and weighted average of significant unobservable inputs used in the valuation of substantially all of our Level 3 assets and liabilities measured at fair value on a recurring basis for which we use an internal model to measure fair value. The significant unobservable inputs for Level 3 assets and liabilities that are valued using dealer pricing are not included in the table, as the specific inputs applied are not provided by the dealer. Fair Value Measurement as of June 30, 2016 Significant Significant Valuation Unobservable Weighted (in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Available-for-sale securities: Multifamily tax-exempt bonds Performing $ 84,602 Discounted cash flow Market yield 4.3 - 5.5 % 4.7 % 10,292 Discounted cash flow Market yield 7.8 7.8 Capitalization rate 6.6 6.6 Net operating income ("NOI") annual growth rate 0.3 0.3 Non-performing 22,423 Discounted cash flow Market yield 7.0 - 8.2 7.5 Capitalization rate 6.0 - 6.8 6.3 NOI annual growth rate (0.7) - 1.1 0.5 Subordinated cash flow 8,332 Discounted cash flow Market yield 7.4 7.4 Capitalization rate 6.2 - 6.5 6.3 NOI annual growth rate (0.7) - 0.7 0.4 CDD bonds 9,644 Discounted cash flow Market yield 8.2 8.2 16,910 Dealer pricing Other bonds 30,628 Dealer pricing Loans held for investment 23,700 Discounted cash flow Market yield 13.0 13.0 Loans held for sale 2,742 Discounted cash flow Market yield 10.0 - 15.0 12.7 Derivative instruments: Total return swaps 187 Discounted cash flow Market yield 5.3 5.3 (1,270) Discounted cash flow Market yield 8.6 8.6 Capitalization rate 7.2 7.2 NOI annual growth rate 2.5 2.5 3,792 Dealer pricing Interest rate derivatives (767) Discounted cash flow Market yield 22.9 22.9 (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third party sources or dealers about what a market participant would use in valuing the asset . (2) Weighted averages are calculated using outstanding unpaid principal balance for cash instruments, such as loans and securities, and notional amounts for derivative instruments. Fair Value Measurement as of December 31, 2015 Significant Significant Valuation Unobservable Weighted (in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Available-for-sale securities: Multifamily tax-exempt bonds Performing $ 84,203 Discounted cash flow Market yield 4.6 - 7.1 % 5.6 % 20,226 Discounted cash flow Market yield 8.2 - 8.7 8.4 Capitalization rate 7.0 - 7.5 7.2 NOI annual growth rate 0.4 - 1.4 1.0 Non-performing 43,333 Discounted cash flow Market yield 7.5 - 7.9 7.7 Capitalization rate 6.2 - 6.5 6.3 NOI annual growth rate 0.5 - 1.2 0.9 Subordinated cash flow 8,847 Discounted cash flow Market yield 7.8 - 7.9 7.9 Capitalization rate 6.4 - 6.6 6.5 NOI annual growth rate (0.7) - 0.8 0.4 CDD bonds 9,381 Discounted cash flow Market yield 8.5 8.5 17,475 Dealer pricing Other bonds 34,974 Dealer pricing Loans held for sale 6,417 Discounted cash flow Market yield 10.0 - 15.0 13.5 Derivative instruments: Total return swaps (983) Discounted cash flow Market yield 8.7 8.7 Capitalization rate 7.5 7.5 NOI annual growth rate 2.9 2.9 3,618 Dealer pricing Interest rate derivatives (690) Discounted cash flow Market yield 26.2 26.2 (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third party sources or dealers about what a market participant would use in valuing the asset . (2) Weighted averages are calculated using outstanding unpaid principal balance for cash instruments, such as loans and securities, and notional amounts for derivative instruments. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The valuation techniques used for our Level 3 assets and liabilities are described as follows: · Discounted cash flow – This type of valuation technique involves developing a projection of expected future cash flows of an instrument and then discounting such cash flows using discount factors that consider the relative risk of the cash flows and the time value of money. For instruments that are valued by the Company using a discounted cash flow valuation technique, the rate of return, or discount rate, that is utilized for such purposes reflects specific characteristics of an instrument including, but not limited to the expected term of the instrument, its debt service coverage ratio or credit quality, geographic location, investment size and other attributes. o For performing multifamily and CDD bonds the Company’s projection of expected future cash flows reflects cash flows that are contractually due over the life of an instrument. The Company generally utilizes the AAA Municipal Market Data tax-exempt rate (" MMD ") for each instrument’s specific term and applies a market rate risk premium spread that reflects that instrument’s specific credit characteristics, such as size, debt service coverage, state or bond type. o For non-performing bonds, subordinate cash flow bonds and certain TRS derivatives, the Company’s projection of expected future cash flows reflects internally-generated projections over a 10-year investment period of future net operating income from the underlying properties that serve as collateral for our instruments, less estimated costs of sale. A terminal value is then added to the projected discounted projection to reflect the remaining value that is expected to be generated at the end of the projection period. The Company utilizes geographic and sector specific discount rates that are published by an independent real estate research organization. o For our interest rate swap, the Company’s projection of expected future cash flows reflect s scheduled settlement payments that are expected to be exchanged over the life of such contracts. · Dealer pricing – This valuation technique utilizes one dealer price to estimate fair value. We generally validate these observations of fair value through the use of a discounted cash flow technique whose unobservable inputs are disclosed in the table above. Significant unobservable inputs presented in the preceding tables are those we consider significant to the fair value of the Level 3 asset or liability. We consider unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 asset or liability would be impacted by a predetermined percentage change, or based on qualitative factors, such as nature of the instrument, type of valuation technique used and the significance of the unobservable inputs relative to other inputs used within the valuation. Following is a description of the significant unobservable inputs provided in the table. · Market yield – is a market rate of return used to present value the future expected cash flow to arrive at the fair value of an instrument. The market yield typically consists of a benchmark rate component and a risk premium component. The benchmark rate component, for example, MMD or SIFMA, is generally observable within the market and is necessary to appropriately reflect the time value of money. The risk premium component reflects the amount of compensation market participants require due to the uncertainty inherent in the instrument ’ s cash flows resulting from risks such as credit and liquidity. A significant decrease in this input in isolation would result in a significantly higher fair value measurement. · Capitalization rate – is calculated as the ratio between the net operating income produced by a commercial real estate property and the price for such asset. A significant decrease in this input in isolation would result in a significantly higher fair value measurement. · NOI annual growth rate – is the amount of future growth in net operating income that the Company projects each property to generate on an annual basis. These annual growth estimates take into account the Company’s expectation about the future increases, or decreases, in rental rates, vacancy rates, bad debt expense, concessions and operating expenses for each property. Generally an increase in net operating income will result in an increase to the fair value of the property. Non-Recurring Changes in Fair Value At June 3 0 , 2016, the Company had no assets that were measured at fair value on a non-recurring basis. At the end of the third quarter of 2015, the Company measured its co-investment in SAWHF on a non-recurring basis for the purpose of recognizing an impairment loss. The fair value measurement of this investment, which was categorized as Level 3, was determined using a discounted cash flow methodology . Additional Disclosures Related to the Fair Value of Financial Instruments that are not Carried on the Consolidated Balance Sheets at Fair Value The tables that follow provide information about the carrying amounts and fair values of those financial instruments of the Company for which fair value is not measured on a recurring basis and organizes such information based upon the level of the fair value hierarchy within which fair value measurements are categorized. We have not included in such tables assets and liabilities that are not financial instruments (e.g., premises and equipment). At June 30, 2016 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 18,283 $ 18,283 $ ─ $ ─ Restricted cash 18,840 18,840 ─ ─ Restricted cash related to CFVs 23,220 23,220 ─ ─ Asset management fee receivable from TC Fund I ─ ─ ─ 2,114 Guarantee fee receivable from TC Fund I 4,227 ─ ─ 4,227 Loans held for investment 1,054 ─ ─ 1,515 Loans held for investment related to CFVs 65 ─ ─ 268 Liabilities: Notes payable and other debt, bond related 69,175 ─ ─ 69,288 Notes payable and other debt, non-bond related 16,420 ─ ─ 16,440 Notes payable and other debt related to CFVs 9,848 ─ ─ 3,295 Subordinated debt issued by MFH 103,531 ─ ─ 30,289 Subordinated debt issued by MFI 27,304 ─ ─ 17,891 Guarantee obligations (1) 4,380 ─ ─ 13,569 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $9.2 million as of June 30, 2016, are eliminated for financial reporting purposes . Refer below to “Valuation Techniques” for more information about differences between the carrying value and disclosed fair value of the Company’s guarantee obligations. At December 31, 2015 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 21,843 $ 21,843 $ ─ $ ─ Restricted cash 17,041 17,041 ─ ─ Restricted cash related to CFVs 22,992 22,992 ─ ─ Guarantee fee receivable from TC Fund I 4,227 ─ ─ 4,227 Loans held for investment 7,928 ─ ─ 7,687 Loans held for investment related to CFVs 65 ─ ─ 213 Liabilities: Notes payable and other debt, bond related 89,268 ─ ─ 89,405 Notes payable and other debt, non-bond related 10,690 ─ ─ 10,717 Notes payable and other debt related to CFVs 9,883 ─ ─ 3,171 Subordinated debt issued by MFH 104,736 ─ ─ 29,518 Subordinated debt issued by MFI 27,518 ─ ─ 15,579 Guarantee obligations (1) 4,758 ─ ─ 15,557 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $10.8 million as of December 31, 2015, are eliminated for financial reporting purposes . Refer below to “Valuation Techniques” for more information about differences between the carrying value and disclosed fair value of the Company’s guarantee obligations. Valuation Techniques Cash and cash equivalents and restricted cash – The carrying value of these assets approximate fair value due to the short-term nature and negligible credit risk inherent in them. Accrued interest and accounts receivable – The carrying value of these assets approximate fair value due to the short-term nature and negligible credit risk inherent in them. Asset management fee receivable from TC Fund I – Amounts legally due to the Company approximate the fair value of such receivables due to their short-term nature. Guarantee fee receivable – The carrying value of th is receivable approximate s fair value due to the short-term nature and negligible credit risk inherent in such receivables . Loans held for investment – Fair value is measured using a discounted cash flow methodology pursuant to which contractual payments are discounted based upon market yields for similar loans. Notes payable and other debt – Fair value is measured 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. Subordinated debt – T he Company measures the fair value of the subordinate d debt by discounting contractual cash flows based upon its estimated market yield, which was 17.5% and 20% as of June 30, 2016 and December 31, 2015, respectively . As outlined in the table above, at June 30, 2016, the aggregate fair value was measured at $48.2 million. At June 3 0 , 201 6 , the measured fair value of this debt would have been $55.1 million and $42.8 million using a market yield of 15% and 20% , respectively. The measured fair value of this debt is inherently judgmental and based on management’s assumption of market yields. There can be no assurance that the Company could repurchase the remaining subordinated debt at the measured fair values reflected in the table above or that the debt would trade at that price. Guarantee obligations – The fair value of these obligations represents an estimate of what we would pay to transfer such obligations to a third party in an orderly transaction at the measurement date . The carrying value of these obligations, which reflects the unamortized balance of deferred guarantee fees received by the Company (a systematic and rational method of amortization is used to subsequently measure such liabilities for reporting purposes), approximate s their fair value. However, a s further discussed in Note 8, “Guarantees and Collateral,” the Company has guaranteed minimum yields on investment to investors in 11 LIHTC funds that are consolidated for financial reporting purposes. As a result, the unamortized balance of deferred guarantee fees associated with such funds is eliminated for reporting purposes. Therefore, such amounts are not included in the carrying value of the Company’s guarantee obligations as reported in preceding tables. Nonetheless, the Company believes that, in measuring the fair value of these guarantees, market participants would assume that the unamortized balance of deferred guarantee fees is a reasonable proxy for what the Company would be expected to pay to assign its guarantee obligations to a third party. Accordingly, the unamortized balance of deferred guarantee fees associated with such guarantees, while not included in the reported carrying value of the Company's guarantee obligations, is included in the disclosed fair value of the Company's guarantee obligations. |
GUARANTEES AND COLLATERAL
GUARANTEES AND COLLATERAL | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees And Collateral [Abstract] | |
Guarantees And Collateral | NOTE 8 — GUARANTEES AND COLLATERAL Guarantees The Company has guaranteed minimum yields on investment to investors in 11 consolidated LIHTC funds, along with two additional guaranteed LIHTC funds that are not consolidated for reporting purposes (all 13 LIHTC funds are collectively referred to hereinafter as the “ Guaranteed Funds ”) and has agreed to indemnify the purchaser of the GP interests in those Guaranteed Funds from investor claims related to those guarantees. The Company may have to perform under such guarantees for losses resulting from recapture of tax credits due to foreclosure or difficulties in maintaining occupancy with respect to the LTPPs in which the Guaranteed Funds are invested. Guarantees and i ndemnifications that relate to the 11 Guaranteed Funds that the Company consolidated for reporting purposes will expire in full by the end of 2027 while the balance of the Company’s indemnifications associated with Guaranteed Funds will expire by December 31, 2017. At June 3 0 , 2016 and December 31, 2015, the 11 Guaranteed Funds for which the Company has provided an indemnification to the purchaser of corresponding GP interests held an aggregate of $13.7 million and $13.0 million in reserves, respectively. While these reserves are not cross collateralized, they could be utilized by each Guaranteed Fund to bring projected investor yield to its guaranteed minimum. This could mitigate, or reduce, the amount that the Company could otherwise be required to pay under its contractual obligations. Additionally, because the Company holds a first mortgage revenue bond in certain LTPPs in certain Guaranteed Funds, we have control over the exercis e of default remedies (such as foreclosure) for certain LTPPs, thereby controlling potential exposure that we have under our guarantee and indemnification agreements. As of June 3 0 , 2016 and December 31, 2015, the Company had $16.1 million and $16.4 million, respectively, of collateral pledged towards this guarantee exposure. If we are required to perform under our guarantees, we could, subject to third party consent, access or be reimbursed with this collateral. As bondholder of a defaulted LTPP in which one of the 11 Guaranteed Funds is an LP investor, the Company foreclosed on, and subsequently sold, the property of the defaulted LTPP in the first quarter of 2016. This sale caused the redemption of our bond investment, as well as a loss of future tax credits and the recapture of tax credits previously taken. As a result, the Company made a guarantee payment of $0.9 million during the second quarter of 2016 . The Company made no other guaranteed payments for the three months and six months ended June 30, 2016 and 2015. The Company does not have any recourse provisions that would enable it to recover from third parties any of the amounts that would be required to be paid under either of the aforementioned types of indemnifications. As of June 30, 2016, the Company concluded there were no expected tax credit deficiencies that were both probable and estimable that would require it to make a payment related to these indemnification agreements. At June 30, 2016 and December 31, 2015, the Company had $9.2 million and $10.8 million, respectively, of unamortized fees related to indemnifications associated with the 11 Guaranteed Funds. These unamortized fees are included in the Company’s measurement of its common shareholders’ equity. However, for presentation purposes, these unamortized fees are eliminated in consolidation against the 11 Guaranteed Funds’ prepaid guarantee fees. The Company has agreed to indemnify specific investors in non-Guaranteed Funds related to the performance on certain LTPPs . If a third party fails to perform on its financial obligation relating to the property’s performance, the Company will be required to indemnify impacted investors. Such indemnities will expire by December 31, 2017. On December 29, 2015, as part of TC Fund I’s acquisition of a portfolio of limited partnership investments, TEI agreed to annually make mandatory loans to TC Fund I for distribution to the investor involved in this transaction in the amount of 95% of the excess, if any, of the projected tax credits for years 2016 to 2020 over the tax credits actually allocated to the investor . In addition, until December 31, 2025, TEI agreed to make mandatory loans to TC Fund I for distribution to the bank in the amount of tax credits previously claimed from 2016 to 2020 that are subsequently recaptured or otherwise reduced or lost, together with associated costs. Mandatory loans are limited in amount to 70% of projected tax credits in any year ($109.6 million of total maximum exposure) and may be subject to certain other limitations. In addition to these limitations, the bank will absorb 5% of any loss of tax credits . On this basis, the Company recognized a $4.2 million liability in connection with TEI’s mandatory loan performance obligation . At June 30, 2016, the Company had $4.0 million of unamortized fees related to the mandatory loan performance obligation. However, if the Company were ever required to make a mandatory loan to TC Fund I, the Company would have the right to recover such payment to the extent there were available cash flows from TC Fund I to provide for such reimbursement. As of June 30, 2016, the Company concluded there were no material expected tax credit deficiencies that were both probable and estimable that would require MMA to make a payment in connection with its TC Fund I guarantee. The following table provides information about the maximum exposure associated with the Company’s guarantee and indemnification agreements that we executed in connection with the Guaranteed Funds, TC Fund I and certain LTPPs: At At June 30, 2016 December 31, 2015 Maximum Carrying Maximum Carrying (in thousands) Exposure (1) Amount Exposure (1) Amount Guaranteed Funds (2) $ 490,843 $ 318 $ 490,843 $ 451 TC Fund I 109,599 4,016 109,599 4,227 LTPPs 1,223 46 1,223 80 (1) The Company’s maximum exposure represents the maximum loss the Company could incur under such agreements but is not indicative of the likelihood of expected loss under such agreements. (2) The maximum exposure includes $482.7 million related to the 11 Guaranteed Funds we consolidated at June 30, 2016 and December 31, 2015. See Note 13, “Consolidated Funds and Ventures,” for more information. Collateral and restricted assets The following table summarizes assets that are either pledged or restricted for the Company’s use at June 30, 2016 and December 31, 2015 . This table also reflects certain assets held by CFVs in order to reconcile to the Company’s C onsolidated B alance S heets : At June 30, 2016 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 4,022 $ 143,103 $ ─ $ ─ $ 147,125 Other (1) 14,818 11,330 ─ 2,742 28,890 CFVs (2) 23,220 ─ 155,518 32,497 211,235 Total $ 42,060 $ 154,433 $ 155,518 $ 35,239 $ 387,250 (1) The Company pledges collateral in connection with secured borrowings and various guarantees that it has provided. (2) These are assets held by CFVs. At December 31, 2015 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 4,697 $ 160,876 $ ─ $ ─ $ 165,573 Other (1) 12,344 14,085 ─ 6,417 32,846 CFVs (2) 22,992 ─ 177,786 18,834 219,612 Total $ 40,033 $ 174,961 $ 177,786 $ 25,251 $ 418,031 (1) The Company pledges collateral in connection with secured borrowings and various guarantees that it has provided. (2) These are assets held by CFVs. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 —COMMITMENTS AND CONTINGENCIES Operating Leases As of June 30 , 201 6 , the Company had two non-cancelable operating leases that expir e in 2020 and 2024 . These leases require the Company to pay property taxes, maintenance and other costs. The Company recognized rental expense of $0 .1 million for the three months ended June 30, 2016 and 2015 and $0.1 million and $0.2 million for the six months ended June 30, 2016 and 2015, respectively . The following table summarizes the future minimum rental commitments on the two non-cancelable operating leases at June 3 0 , 201 6 : (in thousands) 2016 $ 125 2017 261 2018 277 2019 294 2020 184 Thereafter 433 Total minimum future rental commitments $ 1,574 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 a loss is probable and can be reasonably estimated. Once established, reserves may be adjusted when new information is obtained. At June 30, 2016, the Company had no significant litigation matters. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 1 0 — EQUITY Common Share Information The following table provides information about net income to common shareholders as well as provides information that pertains to weighted average share counts that were used in per share calculations as presented on the Consolidated Statements of Operations: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net income from continuing operations $ 5,047 $ 7,208 $ 21,569 $ 7,292 Net income from discontinued operations 83 83 166 161 Net income to common shareholders $ 5,130 $ 7,291 $ 21,735 $ 7,453 Basic weighted-average shares (1) 6,289 6,955 6,406 7,084 Common stock equivalents (2), (3), (4) ─ ─ 4 ─ Diluted weighted-average shares 6,289 6,955 6,410 7,084 (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 June 30, 2016, 410,000 stock options were in the money and had a potential dilutive share impact of 371,943 and 369,495 for the three months and six months ended June 30, 2016, respectively. In addition, 9,468 employee deferred shares had a dilutive weighted-average share impact of 4,110 for the six months ended June 30, 2016. There was no dilutive impact for the three months ended June 30, 2016. For the three months and six months ended June 30, 2016, the adjustment to net income for the awards classified as liabilities caused the common stock equivalents to be anti-dilutive. (3) At June 30, 2015, 410,000 stock options were in the money and had a potential dilutive share impact of 321,255 and 317,188 for the three months and six months ended June 30, 2015, respectively . In addition, 19,885 unvested employee def e rred shares had a potential dilutive weighted-average share impact of 9,895 and 15,276 for the three months and six months ended June 30, 2015, respectively. For the three months and six months ended June 30, 2015, the adjustment to net income for the awards classified as liabilities caused the common stock equivalents to be anti-dilutive. (4) For the three months and six months ended June 30, 2016, the weighted average number of options excluded from the calculations of diluted earnings per share was 478 and 3,344 , respectively, either because of their anti-dilutive effect (i.e. options that were not in the money) or because the option had contingent vesting requirements. For the three months and six months ended June 30, 2015, the weighted average number of options excluded from the calculations of diluted earnings per share was 42,221 either because of their anti-dilutive effect (i.e. options that were not in the money) or because the option had contingent vesting requirements. Common Shares On December 14, 2015, the Board authorized a 2016 share repurchase program (“ 2016 Plan ”) for up to 0.6 million shares. During the second quarter of 2016, the Company repurchased 0.3 million shares at an average price of $16.67 . Between July 1, 2016 and August 3, 2016, the Company repurchased 19,000 shares at an average price of $ 18.33 . As of August 3, 2016, the Company had repurchased 0.4 million shares at an average price of $16.17 since the 2016 Plan’s inception. The maximum price at which management is currently authorized to purchase shares is $19.62 per share. Effective May 5, 2015, the Company adopted a Tax Benefits Rights Agreement (“ Rights Plan ”) to help preserve the Company’s net operating losses (“ NOLs ”) . In connection with adopting the Rights Plan, the Company declared a distribution of one right per common share to shareholders of record as of May 15, 2015. The rights do not trade apart from the current common shares until the distribution date, as defined in the Rights Plan. Under the Rights Plan, the acquisition by an investor (or group of related investors) of greater than a 4.9 % stake in the Company, could result in all existing shareholders other than the new 4.9% holder having the right to acquire new shares for a nominal cost, thereby significantly diluting the ownership interest of the acquiring person. The Rights Plan will run for a period of five years, or until the Board determines the plan is no longer required, whichever comes first. Noncontrolling Interests The following table provides information about the noncontrolling interests in CFVs and IHS PM: At At June 30, December 31, (in thousands) 2016 2015 Guaranteed Funds $ 150,026 $ 176,070 Consolidated Property Partnerships 5,640 3,950 IHS PM 140 31 Total $ 155,806 $ 180,051 Guaranteed Funds At June 30, 2016 and December 31, 2015 , the noncontrolling interest holders were comprised of the limited partners as well as the general partner in the 11 Guaranteed Funds that are consolidated for reporting purposes . Consolidated Property Partnerships At June 30, 2016 and December 31, 2015 , the noncontrolling interest holders were comprised of the limited partners as well as the general partner of the partnerships. See Note 13, “Consolidated Funds and Ventures,” for more information. IHS PM During the second quarter of 2015, we formed a company in South Africa, IHS PM, to provide property management services to the properties of IHS- managed funds. At June 30, 2016 and December 31, 2015, the Company owns 60 % of IHS PM and the third party property manager owns the remaining 40% . Accumulated Other Comprehensive Income Allocable to Common Shareholders The following table provides information related to the net change in AOCI that is allocable to common shareholders for the three months ended June 30, 2016: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, April 1, 2016 $ 54,616 $ (3,092) $ 51,524 Unrealized net gains 4,460 10 4,470 Reclassification of unrealized bonds gains into the Consolidated Statement of Operations due to consolidation or real estate foreclosure (4,205) ─ (4,205) Net change in AOCI 255 10 265 Balance, June 30, 2016 $ 54,871 $ (3,082) $ 51,789 The following table provides information related to the net change in AOCI that is allocable to common shareholders for the three months ended June 30, 2015: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, April 1, 2015 $ 52,336 $ (764) $ 51,572 Unrealized net gains 2,994 42 3,036 Reversal of unrealized gains on redeemed bonds (3,395) ─ (3,395) Reclassification of unrealized losses to operations due to impairment 179 ─ 179 Net change in AOCI (222) 42 (180) Balance, June 30, 2015 $ 52,114 $ (722) $ 51,392 The following table provides information related to the net change in AOCI that is allocable to common shareholders for the six months ended June 30, 2016: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, January 1, 2016 $ 64,322 $ (3,113) $ 61,209 Unrealized net gains 8,251 31 8,282 Reclassification of unrealized gains on sold or redeemed bonds into the Consolidated Statements of Operations (2,055) ─ (2,055) Reclassification of unrealized bonds gains into the Consolidated Statement of Operations due to consolidation or real estate foreclosure (15,647) ─ (15,647) Net change in AOCI (9,451) 31 (9,420) Balance, June 30, 2016 $ 54,871 $ (3,082) $ 51,789 The following table provides information related to the net change in AOCI that is allocable to common shareholders for the six months ended June 30, 2015: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, January 1, 2015 $ 50,761 $ (632) $ 50,129 Unrealized net gains (losses) 5,040 (90) 4,950 Reclassification of unrealized gains on sold or redeemed bonds (3,866) ─ (3,866) Reclassification of unrealized losses to operations due to impairment 179 ─ 179 Net change in AOCI 1,353 (90) 1,263 Balance, June 30, 2015 $ 52,114 $ (722) $ 51,392 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 1 1 — STOCK-BASED COMPENSATION The Company has stock-based compensation plans (“ Plans ”) for Non-employee Directors (“ Non-employee Directors’ Stock-Based Compensation Plans ”) and stock-based incentive compensation plans for employees (“ Employees’ Stock-Based Compensation Plans ”). The following table provides information related to t otal compensation expense that was recorded for these Plans: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Employees’ Stock-Based Compensation Plans $ 765 $ 1,001 $ 1,548 $ 1,300 Non-employee Directors’ Stock-Based Compensation Plans 74 74 148 148 Total $ 839 $ 1,075 $ 1,696 $ 1,448 Employees’ Stock-Based Compensation Plans As of June 3 0 , 201 6 , there were 381,345 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 Plans that have not been approved by the Company’s shareholders are currently restricted to the issuance of only stock options. As a result, of the 381,345 shares available under the plans, only 17,205 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 unvested options with time-based vesting and all vested options (both time-based and performance based) 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 these 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.” Because 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 for unvested options granted with specific stock price targets 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. All options with stock price targets are vested as of June 30, 2016. The following table provides information related to option activity under the Employees’ Stock-Based Compensation Plans: Weighted- average Weighted- Remaining average Contractual Exercise Life Aggregate Number of Price per per option Intrinsic Period End (in thousands, except per option data) Options Option (in years) Value (1) Liability (2) Outstanding at January 1, 2015 416 $ 3.52 6.3 $ 3,196 $ 3,281 Forfeited/Expired in 2015 ─ Outstanding at December 31, 2015 416 3.52 5.3 5,283 5,282 Forfeited/Expired in 2016 (6) 132.50 Outstanding at June 30, 2016 410 1.56 4.9 6,800 6,811 Number of options that were exercisable at: December 31, 2015 398 3.60 5.3 June 30, 2016 410 1.56 4.9 (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 410,000 ; 416,211 ; and 412,100 ; at June 30, 2016, December 31, 2015 and January 1, 2015, respectively. The value of employee options increased by $0.8 million and $1.5 million during the three months and six months ended June 30, 2016, respectively, due to the increase in market value of our stock price. This increase was recognized as additional compensation expense. Employee Deferred Shares The following table summarizes the deferred shares granted to employees : Weighted- average Grant Deferred Share Date Share Period End (in thousands, except per share data) Grants Price Liability Balance, January 1, 2016 10 $ 4.40 $ 126 Granted in 2016 ─ ─ Issued in 2016 (10) 4.40 Forfeited in 2016 ─ ─ Balance, June 30, 2016 ─ ─ ─ All employee deferred shares were vested and issued during the first quarter of 2016. The Company recognized $18,741 of additional compensation expense related to employee deferred shares during the first quarter of 2016 mainly driven by the increase in MMA’s share price and amortization of existing grants. Non-employee Directors’ Stock-Based Compensation Plans The Non-employee Directors’ Stock-based Compensation Plans authorize a total of 1,130,000 shares for issuance, of which 421,041 were available to be issued at June 3 0 , 201 6 . The Non-employee Directors’ Stock-based Compensation Plans provide for grants of non-qualified common stock options, common shares, restricted shares and deferred shares. On March 12, 2015, the Board adopted an amendment to the Non-employee Directors ’ Stock-based Compensation Plans providing for directors to be paid $60,000 per year with 50% pa yable in cash and 50% payable in share based grants. In addition, the Chairman receives an additional $20,000 per year, the Audit Committee Chair receives an additional $15,000 per year and the other committee chairs receive an additional $10,000 per year. The table below summarizes director compensation, including cash, vested options and common and deferred shares, for services rendered for the six months ended June 3 0 , 201 6 and 201 5 . The directors are fully vested in the deferred shares at the grant date. Common Deferred Weighted- Shares Shares average Grant Options Directors' Fees Cash Granted Granted Date Share Price Vested Expense June 30, 2016 $ 73,750 ─ 4,523 $ 16.31 ─ $ 147,500 June 30, 2015 73,750 3,391 3,508 10.69 ─ 147,500 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations [Abstract] | |
Disposal Groups | NOTE 1 2 — DISCONTINUED OPERATIONS The table below provides information about income and expenses related to the Company’s discontinued operations. The discontinued operations activity reported during the three months and six months ended June 3 0 , 2015 relates to operations that were disposed of prior to the Company’s adoption of Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) ─ Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Other income $ 84 $ 84 $ 167 $ 167 Other expense (1) (1) (1) (6) Net income from discontinued operations 83 83 166 161 Loss from discontinued operations allocable to noncontrolling interests ─ ─ ─ ─ Net income to common shareholders from discontinued operations $ 83 $ 83 $ 166 $ 161 |
CONSOLIDATED FUNDS AND VENTURES
CONSOLIDATED FUNDS AND VENTURES | 6 Months Ended |
Jun. 30, 2016 | |
Consolidated Funds and Ventures [Abstract] | |
Consolidated Funds and Ventures [Text Block] | NOTE 1 3 — CONSOLIDATED FUNDS AND VENTURES Due to the Company generally having a minimal ownership interest in certain consolidated entities, the assets, liabilities, revenues, expenses, equity in losses from those entities’ unconsolidated LTPPs and the losses allocated to the noncontrolling interests of the consolidated entities have been separately identified in our C onsolidated B alance S heets and Consolidated S tatements of O perations. Third-party ownership in these CFVs is recorded in equity as “Noncontrolling interests in CFVs and IHS PM .” Guaranteed Funds As further discussed in Note 8 , “Guarantees and Collateral,” the Company has guaranteed minimum yields on investment to investors in 11 Guaranteed Funds that are consolidated by the Company for reporting purposes. The Guaranteed Funds’ primary assets are their investments in LTPPs, which are the owners of the affordable housing properties (see Investments in LTPPs in the Asset Summary below). The Guaranteed Funds account for these investments using the equity method of accounting. Consolidated Property Partnerships On October 22, 2015, the Company became the general partner in a LTPP in which it holds a 0.01% equity interest and, on December 31, 2015, in conjunction with TC Fund I's acquisition of a portfolio of low income housing tax credit partnership investments, the Company acquired a 99.89% limited partnership interest in an entity that owns an affordable multifamily property. Because the Company was determined to be the primary beneficiary, both of these entities were consolidated by the Company for financial reporting purposes as of December 31, 2015. The investors in these consolidated entities have no recourse against the assets of the Company. Asset Summary: The following table summarizes the assets of the CFVs: At At June 30, December 31, (in thousands) 2016 2015 Cash, cash equivalents and restricted cash $ 23,220 $ 22,992 Investments in LTPPs 155,518 177,786 Real estate held for use, net 21,206 9,821 Real estate held for sale, net 3,209 ─ Other assets 8,082 9,013 Total assets of CFVs $ 211,235 $ 219,612 T he assets of the CFVs are restricted for use by the specific owner entity and are not available for the Company’s general use. Investments in LTPPs The Guaranteed Funds’ limited partner investments in LTPPs are accounted for using the equity method of accounting . The following table provides the assets and liabilities of the LTPPs: At At June 30, December 31, (in thousands) 2016 2015 Total assets of the LTPPs (1) $ 1,177,513 $ 1,216,319 Total liabilities of the LTPPs (1) 988,741 1,008,835 (1) The assets of the LTPPs are primarily real estate and the liabilities are predominantly mortgage debt. The Company’s exposure to loss related to the Guaranteed Funds and the underlying LTPPs has two elements: exposure to loss associated with our financial guarantee s as described above and exposure to loss related to the Company’s investments in bonds that are dependent upon repayment by certain LTPPs within the Guaranteed Funds. The Company’s maximum exposure to loss associated with our guarantees was $482.7 million at Ju ne 30, 2016 and December 31, 2015, respectively, while the Company’s maximum exposure to loss related to its investments in bonds was $99.3 million and $126.4 million at June 30, 2016 and December 31, 2015 , respectively. Real estate held for use, net The real estate held for use by consolidated property partnerships was comprised of the following: At At June 30, December 31, (in thousands) 2016 2015 Building, furniture and fixtures $ 19,368 $ 8,696 Accumulated depreciation (356) (89) Land 2,194 1,214 Total $ 21,206 $ 9,821 Depreciation expense was $0.1 million and $0.3 million for the three months and six months ended June 30, 2016, respectively . There was no depreciation expense for the three months and six months ended June 30, 2015. 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 and six months ended June 31, 2016 and 2015. During the first quarter of 2016, the Company reclassified a property with a carrying value of $3.7 million from real estate held for use to real estate held for sale. During the second quarter of 2016, the Company acquired a 1.0% general partnership interest in an entity that owns an affordable multifamily property that served as collateral for one of our bond investments. The Company accounted for this acquisition as a business combination and, as part of this transaction, acquired cash, tangible assets, which included land, building, furniture, fixtures and equipment and assumed liabilities of the partnership. The fair value of the partnership’s tangible assets w as determined by discounting the expected future cash flows associated with the underlying property, using market discount and capitalization rates, less estimated selling costs. The total consideration paid by the Company of $0.1 million for the acquisition was equal to the net fair value of the assets acquired, liabilities assumed and noncontrolling interest. The fair value of the noncontrolling interest at the date of acquisition was $1.9 million. A reclassification into our Consolidated Statement of Operations of $4.2 million of “Other comprehensive income (loss) allocable to common shareholders” representing unrealized gains was triggered when the Company consolidated the property. Real estate held for sale , net The real estate held for sale by consolidated property partnerships was comprised of the following: At At June 30, December 31, (in thousands) 2016 2015 Cash $ 728 $ ─ Building, furniture and fixtures 1,955 ─ Land 495 ─ Other assets 31 ─ Total $ 3,209 $ ─ Liability Summary: The following table summarizes the liabilities of the CFVs: At At June 30, December 31, (in thousands) 2016 2015 Debt (1), (2) $ 9,848 $ 9,883 Unfunded equity commitments to unconsolidated LTPPs 8,103 8,203 Asset management fee payable 26,520 24,828 Other liabilities 3,645 3,405 Total liabilities of CFVs $ 48,116 $ 46,319 (1) At June 30, 2016 and December 31, 2015, $6.7 million of this debt had a UPB equal to its carrying value, a weighted average effective interest rate of 5.5% , and was due on demand. (2) At June 30, 2016 and December 31, 2015, $3.1 million and $3.2 million, respectively, of this debt was related to the two consolidated property partnerships and had a UPB of $2.8 million. The weighted average effective interest rate for this debt at June 30, 2016 and December 31, 2015 was 4.3% and had various maturity dates through May 1, 2039. Income Statement Summary: The following section provides more information related to the income statement of the CFVs : For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Revenue: Rental and other income from real estate $ 462 $ ─ $ 784 $ ─ Interest and other income 264 133 761 200 Total revenue from CFVs 726 133 1,545 200 Expenses: Depreciation and amortization 681 550 1,368 1,102 Interest expense 132 90 259 178 Other operating expenses 1,697 1,337 2,986 2,476 Asset impairments 6,504 7,037 12,769 14,574 Total expenses from CFVs 9,014 9,014 17,382 18,330 Net losses related to CFVs: Investment loss (598) ─ (598) ─ Equity in losses from LTPPs of CFVs (4,937) (6,654) (10,623) (12,347) Net loss (13,823) (15,535) (27,058) (30,477) Net losses allocable to noncontrolling interests in CFVs (1) 12,322 14,168 24,822 28,472 Net loss allocable to the common shareholders related to CFVs $ (1,501) $ (1,367) $ (2,236) $ (2,005) (1) Excludes $66 and $109 of net gain allocable to the minority interest holder in IHS PM for the three months and six months ended June 30, 2016. These amounts are excluded from this presentation because IHS PM related activity is not included within CFV income statement activity above. There were no losses allocable to the minority interest holder in IHS PM for the three months and six months ended June 30, 2015. The details of Net loss allocable to the common shareholders related to CFVs: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Guarantee fees $ 331 $ 331 $ 662 $ 662 Interest income 65 ─ 65 ─ Equity in losses from LTPPs (1,354) (1,698) (2,483) (2,667) Equity in income from Consolidated Property Partnerships 55 ─ 118 ─ Other expenses (598) ─ (598) ─ Net loss allocable to the common shareholders related to CFVs $ (1,501) $ (1,367) $ (2,236) $ (2,005) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 1 4 — SEGMENT INFORMATION T he Company operate s through three reportable segments: U.S. Operations, International Operations and Corporate Operations . For the three months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 3,614 $ 29 $ 13 $ ─ $ (65) (1) $ 3,591 Total interest expense (451) ─ (101) ─ ─ (552) Net interest income 3,163 29 (88) ─ (65) 3,039 Total fee and other income 1,717 1,823 6 ─ (331) (2) 3,215 Revenue from CFVs ─ ─ ─ 726 ─ 726 Total non-interest revenue 1,717 1,823 6 726 (331) 3,941 Total revenues, net of interest expense 4,880 1,852 (82) 726 (396) 6,980 Operating and other expenses: Interest expense (14) ─ (1,061) ─ ─ (1,075) Operating expenses (2,130) (2,094) (1,355) ─ ─ (5,579) Other expenses, net (1,305) 2 (30) ─ 598 (3) (735) Expenses from CFVs ─ ─ ─ (8,867) (147) (1), (2), (4) (9,014) Total operating and other expenses (3,449) (2,092) (2,446) (8,867) 451 (16,403) Net gains on assets, derivatives and extinguishment of liabilities 1,452 ─ ─ ─ ─ 1,452 Net gains transferred into net income from AOCI due to consolidation or real estate foreclosure 4,205 ─ ─ ─ ─ 4,205 Equity in income (losses) from unconsolidated funds and ventures 2,242 (4) (61) ─ ─ (55) (4) 2,126 Net gains related to CFVs ─ ─ ─ (598) ─ (598) Equity in losses from Lower Tier Property Partnerships of CFVs (1,354) (5) ─ ─ (3,583) (5) ─ (4,937) Income (loss) from continuing operations before income taxes 7,976 (301) (2,528) (12,322) ─ (7,175) Income tax expense ─ ─ (34) ─ ─ (34) Income from discontinued operations, net of tax 83 ─ ─ ─ ─ 83 Net income (loss) 8,059 (301) (2,562) (12,322) ─ (7,126) (Income) loss allocable to noncontrolling interests: Net (income) losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ (66) ─ 12,322 ─ 12,256 Net income (loss) allocable to common shareholders $ 8,059 $ (367) $ (2,562) $ ─ $ ─ $ 5,130 (1) Represents bond interest income that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.1 million was reflected in total interest for U.S. Operations. (2) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the second quarter of 2016 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (3) Represents a lower of cost or market adjustment on a property held for sale that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.6 million was reflected in other expenses for U.S. Operations. (4) Represent equity in income from the Consolidated Property Partnerships that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the Company recognized $0.1 million of gains in U.S. Operations. (5) Mainly represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $1.4 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. For the three months ended June 30, 2015 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 4,052 $ 15 $ 17 $ ─ $ ─ $ 4,084 Total interest expense (379) ─ (132) ─ ─ (511) Net interest income 3,673 15 (115) ─ ─ 3,573 Total fee and other income 2,641 1,386 ─ ─ (331) (1) 3,696 Revenue from CFVs ─ ─ ─ 133 ─ 133 Total non-interest revenue 2,641 1,386 ─ 133 (331) 3,829 Total revenues, net of interest expense 6,314 1,401 (115) 133 (331) 7,402 Operating and other expenses: Interest expense (281) (29) (1,398) ─ ─ (1,708) Operating expenses (1,948) (2,210) (1,407) ─ ─ (5,565) Other expenses (435) (284) (1,003) ─ ─ (1,722) Expenses from CFVs ─ ─ ─ (9,345) 331 (1) (9,014) Total operating and other expenses (2,664) (2,523) (3,808) (9,345) 331 (18,009) Net gains on assets, derivatives and extinguishment of liabilities 10,342 ─ ─ ─ ─ 10,342 Equity in (losses) income from unconsolidated funds and ventures (42) 62 ─ ─ ─ 20 Equity in losses from Lower Tier Property Partnerships of CFVs (1,698) (2) ─ ─ (4,956) (2) ─ (6,654) Income (loss) from continuing operations before income taxes 12,252 (1,060) (3,923) (14,168) ─ (6,899) Income tax expense ─ ─ (61) ─ ─ (61) Income (loss) from discontinued operations, net of tax 83 ─ ─ ─ ─ 83 Net income (loss) 12,335 (1,060) (3,984) (14,168) ─ (6,877) Loss allocable to noncontrolling interests: Net losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ ─ ─ 14,168 ─ 14,168 Net income (loss) allocable to common shareholders $ 12,335 $ (1,060) $ (3,984) $ ─ $ ─ $ 7,291 (1) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the second quarter of 2015 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (2) Represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $1.7 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. For the six months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 7,263 $ 56 $ 28 $ ─ $ (65) (1) $ 7,282 Total interest expense (891) ─ (210) ─ ─ (1,101) Net interest income 6,372 56 (182) ─ (65) 6,181 Total fee and other income 3,107 3,281 28 ─ (662) (2) 5,754 Revenue from CFVs ─ ─ ─ 1,545 ─ 1,545 Total non-interest revenue 3,107 3,281 28 1,545 (662) 7,299 Total revenues, net of interest expense 9,479 3,337 (154) 1,545 (727) 13,480 Operating and other expenses: Interest expense (14) ─ (2,103) ─ ─ (2,117) Operating expenses (4,372) (4,028) (3,394) ─ ─ (11,794) Other expenses, net (1,452) 120 (49) ─ 598 (3) (783) Expenses from CFVs ─ ─ ─ (17,629) 247 (1), (2), (4) (17,382) Total operating and other expenses (5,838) (3,908) (5,546) (17,629) 845 (32,076) Net gains on assets, derivatives and extinguishment of liabilities 4,541 ─ 4 ─ ─ 4,545 Net gains transferred into net income from AOCI due to consolidation or real estate foreclosure 15,647 ─ ─ ─ ─ 15,647 Equity in income (losses) from unconsolidated funds and ventures 6,925 (4) (220) ─ ─ (118) (4) 6,587 Net gains related to CFVs ─ ─ ─ (598) ─ (598) Equity in losses from Lower Tier Property Partnerships of CFVs (2,483) (5) ─ ─ (8,140) (5) ─ (10,623) Income (loss) from continuing operations before income taxes 28,271 (791) (5,696) (24,822) ─ (3,038) Income tax expense ─ ─ (106) ─ ─ (106) Income (loss) from discontinued operations, net of tax 166 ─ ─ ─ ─ 166 Net income (loss) 28,437 (791) (5,802) (24,822) ─ (2,978) (Income) loss allocable to noncontrolling interests: Net (income) losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ (109) ─ 24,822 ─ 24,713 Net income (loss) allocable to common shareholders $ 28,437 $ (900) $ (5,802) $ ─ $ ─ $ 21,735 (1) Represents bond interest income that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.1 million was reflected in total interest for U.S. Operations. (2) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the first six months of 2016 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (3) Represents a lower of cost or market adjustment on a property held for sale that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.6 million was reflected in other expenses for U.S. Operations. (4) Represent equity in income from the Consolidated Property Partnerships that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the Company recognized $0.1 million of gains in U.S. Operations. (5) Mainly represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $2.5 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. For the six months ended June 30, 2015 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 8,787 $ 34 $ 30 $ ─ $ ─ $ 8,851 Total interest expense (708) ─ (277) ─ − (985) Net interest income 8,079 34 (247) ─ ─ 7,866 Total fee and other income 4,695 2,616 488 ─ (662) (1) 7,137 Revenue from CFVs ─ ─ ─ 200 − 200 Total non-interest revenue 4,695 2,616 488 200 (662) 7,337 Total revenues, net of interest expense 12,774 2,650 241 200 (662) 15,203 Operating and other expenses: Interest expense (796) (58) (4,050) ─ ─ (4,904) Operating expenses (3,560) (4,292) (2,992) ─ ─ (10,844) Other expenses (693) (30) (1,106) ─ ─ (1,829) Expenses from CFVs ─ ─ ─ (18,992) 662 (1) (18,330) Total operating and other expenses (5,049) (4,380) (8,148) (18,992) 662 (35,907) Net gains on assets, derivatives and extinguishment of liabilities 11,910 ─ ─ ─ ─ 11,910 Equity in income from unconsolidated funds and ventures (51) 144 ─ ─ ─ 93 Equity in (losses) income from Lower Tier Property Partnerships of CFVs (2,667) (2) ─ ─ (9,680) (6) ─ (12,347) Income (loss) from continuing operations before income taxes 16,917 (1,586) (7,907) (28,472) ─ (21,048) Income tax expense ─ ─ (132) ─ ─ (132) Income (losses) from discontinued operations, net of tax 161 ─ ─ ─ ─ 161 Net income (loss) 17,078 (1,586) (8,039) (28,472) ─ (21,019) Loss allocable to noncontrolling interests: Net losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ ─ ─ 28,472 ─ 28,472 Net income (loss) allocable to common shareholders $ 17,078 $ (1,586) $ (8,039) $ ─ $ ─ $ 7,453 (1) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the first six months of 2015 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (2) Represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $2.7 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. The following table provides information about total assets by segment: June 30, December 31, (in thousands) 2016 2015 ASSETS U.S. Operations (includes $211,235 and $219,612 related to CFVs) $ 542,292 $ 571,213 Corporate Operations 18,739 21,619 International Operations 7,015 6,239 Total MMA consolidated assets $ 568,046 $ 599,071 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation and Significant Accounting Policies The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“ GAAP ”) in the U.S. To conform to our current period presentation, we have reclassified certain amounts reported in our prior periods’ consolidated financial statements. The consolidated financial statements include the accounts of the Company and of entities that are considered to be variable interest entities (“ VIEs ”) 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. Equity investments in unconsolidated entities where the Company has the ability to exercise significant influence over the operations of the entity, but is not considered the primary beneficiary, are accounted for using the equity method of accounting. The unaudited interim consolidated financial statements as of, and for the three months and six months ended June 30 2016, should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 (“ 2015 Form 10-K ”). The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The Company evaluates subsequent events through the date of filing with the Securities and Exchange Commission (“ SEC ”). |
Use of Estimates | 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 instruments, guarantee obligations, and certain assets and liabilities of 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. |
New Accounting Guidance | New Accounting Guidance Accounting for Consolidation Effective January 1, 2016, we prospectively adopted guidance issued by the Financial Accounting Standards Board (“ FASB ”) regarding consolidation of legal entities such as limited partnerships, limited liability companies and securitization structures. The guidance removed the specialized consolidation model surrounding limited partnerships and similar entities and amended the requirements that such entities must meet to qualify as voting interest entities. In addition, the guidance eliminated certain of the conditions for evaluating whether fees paid to a decision maker or service provider represented a variable interest. The adoption of this guidance resulted in the Company expanding disclosures for interests we have in various entities that are considered to be variable interest entities; however, it did not impact the number of entities consolidated by the Company. Accounting for Financial Instruments In January 2016, the FASB issued Accounting Standards Update (“ ASU ”) No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. This new guidance, which is effective for us on January 1, 2018, with early adoption permitted, also amends certain disclosure requirements associated with the fair value of financial instruments. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Improvements.” This guidance is intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. This guidance adds to U.S. GAAP an impairment model that is based on expected losses rather than incurred losses. This new guidance is effective for us on January 1, 2020, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This guidance introduces a lessee model that brings most leases on the balance sheet, as well as aligns many of the underlying principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard. This new guidance, which is effective for us on January 1, 2019, with early adoption permitted, also requires lessors to increase the transparency of their exposure to changes in value of their residual assets and how they manage that exposure. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Revenue from Contracts with Customers In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net.” The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expected to be entitled in exchange for those goods or services. This guidance clarifies the implementation of principal versus agent considerations. This new guidance is effective for us on January 1, 2018. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” This guidance addresses certain implementation issues and clarifies the new revenue standard’s core revenue recognition principal. This new guidance is effective for us on January 1, 2018. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Stock Compensation In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This guidance simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This new guidance is effective for us on January 1, 2017, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The effects of the revisions on our Consolidated Balance Sheet were as follows: As Previously Reported As Revised December 31, December 31, (in thousands) 2015 Adjustment 2015 Common shareholders’ equity: Common shares, no par value (6,118,535 and 6,516,275 shares issued and outstanding and 76,999 and 72,476 non-employee directors' and employee deferred shares issued at June 30, 2016 and December 31, 2015, respectively) $ 47,755 $ 7,206 $ 54,961 Accumulated other comprehensive income 68,415 (7,206) 61,209 Total common shareholders’ equity $ 116,170 $ ─ $ 116,170 The effects of the revisions on our Consolidated Statements of Equity were as follows: Common Equity Before (in thousands) AOCI AOCI As previously reported six months ended June 30, 2015 $ 36,859 $ 58,420 Cumulative adjustment at December 31, 2014 6,323 (6,323) Adjustment 705 (705) As revised six months ended June 30, 2015 $ 43,887 $ 51,392 The effects of the revisions on our Consolidated Statements of Operations were as follows: Net income Basic Diluted from income income Income tax discontinued per per Interest on benefit operations common common (in thousands, except per share data) Bonds (expense) net of tax share share As previously reported three months ended June 30, 2015 $ 3,270 $ (278) $ 89 $ 1.02 $ 1.02 Adjustment 11 217 (6) 0.03 0.03 As revised three months ended June 30, 2015 $ 3,281 $ (61) $ 83 $ 1.05 $ 1.05 As previously reported six months ended June 30, 2015 $ 6,602 $ (132) $ 161 $ 0.95 $ 0.95 Adjustment 705 ─ ─ 0.10 0.10 As revised six months ended June 30, 2015 $ 7,307 $ (132) $ 161 $ 1.05 $ 1.05 |
BONDS AVAILABLE-FOR-SALE (Table
BONDS AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Bonds Available-For-Sale [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables provide information about the UPB, amortized cost, gross unrealized gains and fair value (“ FV ”) associated with the Company’s investments in bonds that are classified as available-for-sale: At June 30, 2016 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Multifamily tax-exempt bonds $ 123,188 $ 77,324 $ 48,325 $ 125,649 102% Other real estate related bond investments 57,287 50,636 6,546 57,182 100% Total $ 180,475 $ 127,960 $ 54,871 $ 182,831 101% At December 31, 2015 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Multifamily tax-exempt bonds $ 160,974 $ 98,694 $ 57,915 $ 156,609 97% Other real estate related bond investments 62,385 55,423 6,407 61,830 99% Total $ 223,359 $ 154,117 $ 64,322 $ 218,439 98% (1) Consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as other-than-temporary impairments (“ OTTI ”) recognized in earnings. |
Bonds with Prepayment Features | (in thousands) UPB Amortized Cost Fair Value June 30, 2016 $ 52,376 $ 40,637 $ 50,526 July 1 through December 31, 2016 ─ ─ ─ 2017 ─ ─ ─ 2018 1,967 528 2,276 2019 ─ ─ ─ 2020 16,553 6,386 17,156 Thereafter 109,422 80,252 112,713 Bonds that may not be prepaid 157 157 160 Total $ 180,475 $ 127,960 $ 182,831 The weighted average expected maturity of the Company’s investments in bonds that are not currently prepayable at par at June 30, 2016 was 5.5 years. |
Past Due Analysis of Available-for-sale Securities Bonds, Current | The following table provides information about the fair value of the Company’s investments in bonds that are classified as available-for-sale and that were current with respect to principal and interest payments, as well as information about the fair value of bonds that were past due with respect to principal or interest payments: At At June 30, December 31, (in thousands) 2016 2015 Total current $ 160,409 $ 175,106 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 22,422 43,333 Total $ 182,831 $ 218,439 |
Gain (Loss) on Investments | For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net impairment recognized on bonds held at each period-end $ ─ $ (179) $ ─ $ (179) Gains recognized at time of sale or redemption (1) 28 3,793 2,323 4,376 Total net gains on bonds $ 28 $ 3,614 $ 2,323 $ 4,197 |
INVESTMENTS IN PARTNERSHIPS (Ta
INVESTMENTS IN PARTNERSHIPS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the carrying value of the Company’s investments in partnerships. At At June 30, December 31, (in thousands) 2016 2015 Investments in U.S. real estate partnerships (includes $11,545 and $13,374 related to VIEs) (1) $ 27,974 $ 29,633 Investments in IHS-managed funds (includes $1,593 and $1,388 related to VIEs) (1) 2,734 2,501 Investment in the Solar Joint Venture 51,248 50,521 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) 155,518 177,786 Total investments in partnerships $ 237,474 $ 260,441 (1) We do not consolidate any of the investees that were assessed to meet the definition of a VIE. See Note 13, “Consolidated Funds and Ventures,” for more information. |
U.S. Real Estate Partnerships [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the total assets and liabilities of the U.S. real estate partnerships in which the Company held an equity investment: At At June 30, December 31, 2016 2015 (in thousands) Total assets $ 101,040 $ 114,697 Total liabilities 49,497 61,007 The following table provides information about the net income (loss) of U.S. real estate partnerships in which the Company had an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net income (loss) $ 506 $ (546) $ 5,624 $ (395) |
IHS Managed Funds and Ventures [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the carrying value of total assets and liabilities of the IHS-managed funds in which the Company held an equity investment: At At June 30, December 31, 2016 2015 (in thousands) Total assets $ 221,679 $ 235,858 Total liabilities 87,071 103,149 The table that follows provides information about the net (loss) income of the IHS-managed funds in which the Company had an equity investment. For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net (loss) income $ (2,902) $ 1,586 $ (8,712) $ 3,332 |
Solar Facilities Investment [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | The following table provides information about the carrying amount of total assets and liabilities of the Solar Joint Venture in which the Company held an equity investment: At At June 30, December 31, 2016 2015 (in thousands) Total assets $ 117,880 $ 104,137 Total liabilities 15,879 3,585 The following table displays the net income of the Solar Joint Venture in which the Company held an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net income $ 2,495 $ ─ $ 5,557 $ ─ |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | At At June 30, December 31, (in thousands) 2016 2015 Other assets: Loans held for investment $ 24,754 $ 7,928 Loans held for sale 2,742 6,417 Real estate owned 9,251 8,669 Derivative assets 3,980 3,673 Solar facilities (includes other assets such as cash and other receivables) 1,858 2,073 Accrued interest receivable 2,293 2,115 Asset management fees and reimbursements receivable 1,446 1,121 Other assets 8,577 7,485 Other assets held by CFVs (1) 32,497 18,834 Total other assets $ 87,398 $ 58,315 (1) See Note 13, “Consolidated Funds and Ventures,” for more information. |
Schedule of Accounts, Notes, Loans and Financing Receivable | At At June 30, December 31, (in thousands) 2016 2015 Amortized cost $ 25,504 $ 8,678 Allowance for loan losses (750) (750) Loans held for investment, net $ 24,754 $ 7,928 |
Real Estate Owned | At At June 30, December 31, (in thousands) 2016 2015 REO held for use, net $ 3,188 $ 8,669 REO held for sale, net 6,063 ─ Total REO $ 9,251 $ 8,669 |
Schedule Of Real Estate Owned, Held For Use | At At June 30, December 31, (in thousands) 2016 2015 Cash $ ─ $ 149 Building, furniture, fixtures and land improvement 569 4,014 Accumulated depreciation ─ ─ Land 2,619 4,496 Other assets ─ 10 Total $ 3,188 $ 8,669 |
Schedule Of Real Estate Owned, Held For Sale | At At June 30, December 31, (in thousands) 2016 2015 Cash $ 139 $ ─ Building, furniture and fixtures 4,014 ─ Land 1,877 ─ Other assets 33 ─ Total $ 6,063 $ ─ |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | At At June 30, 2016 December 31, 2015 Weighted-Average Weighted-Average Carrying Effective Interest Carrying Effective Interest (dollars in thousands) Value Rate Value Rate Asset Related Debt (1) Notes payable and other debt – bond related (2) Due within one year $ 1,022 1.9 % $ 1,137 1.5 % Due after one year 68,153 1.8 88,131 1.4 Notes payable and other debt – non-bond related Due within one year 4,057 12.0 7,564 13.0 Due after one year 2,451 10.4 3,126 10.4 Total asset related debt $ 75,683 2.6 $ 99,958 2.6 Other Debt (1) Subordinated debt (3) Due within one year $ 3,288 3.6 $ 3,069 3.0 Due after one year 127,547 3.2 129,185 3.0 Notes payable and other debt Due within one year 101 1.8 ─ ─ Due after one year 9,811 1.8 ─ ─ Total other debt $ 140,747 3.1 $ 132,254 3.0 Total asset related debt and other debt $ 216,430 2.9 $ 232,212 2.8 Debt related to CFVs Due within one year $ 6,803 5.5 $ 6,802 5.5 Due after one year 3,045 4.3 3,081 4.3 Total debt related to CFVs $ 9,848 5.1 $ 9,883 5.1 Total debt $ 226,278 3.0 $ 242,095 2.9 (1) Asset related debt is debt that 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 that 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 – bond related were unamortized debt issuance costs of $0.1 million at June 30, 2016 and December 31, 2015. (3) The subordinated debt balances include net cost basis adjustments of $8.9 m illion and $9.2 million at June 30, 2016 and December 31, 2015, respectively, that pertain to issuance-related premiums and debt issuance costs. |
Schedule of Maturities of Long-term Debt | Asset Related Debt CFVs (in thousands) and Other Debt Related Debt Total Debt 2016 $ 5,062 $ 6,741 $ 11,803 2017 8,946 62 9,008 2018 60,583 65 60,648 2019 13,360 69 13,429 2020 10,718 72 10,790 Thereafter 108,965 2,472 111,437 Net premium and debt issue costs 8,796 367 9,163 Total $ 216,430 $ 9,848 $ 226,278 |
Schedule of Subordinate Debt | (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFI $ 27,460 $ (156) $ 27,304 Amortizing December 2027 and December 2033 8.00% MFH 27,889 2,770 30,659 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 25,360 2,529 27,889 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 14,618 1,344 15,962 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 26,579 2,442 29,021 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 121,906 $ 8,929 $ 130,835 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments [Abstract] | |
Schedule of the Company’s Derivative Assets and Liabilities | Fair Value At At June 30, 2016 December 31, 2015 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 3,980 $ 1,271 $ 3,658 $ 1,023 Interest rate cap ─ ─ 15 ─ Interest rate swap ─ 767 ─ 690 Total derivative instruments $ 3,980 $ 2,038 $ 3,673 $ 1,713 |
Schedule of Derivative Notional Amounts | Notional Amounts At At June 30, December 31, (in thousands) 2016 2015 Total return swaps $ 107,892 $ 111,845 Interest rate cap 45,000 45,000 Interest rate swap 7,636 7,675 Total derivative instruments $ 160,528 $ 164,520 |
Schedule of Derivatives Not Designated as Hedging Instruments | Gains (Losses) Gains (Losses) For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Total return swaps (1) $ 1,522 $ 1,013 $ 2,321 $ 2,204 Interest rate cap (4) (41) (14) (120) Interest rate swap (2) (100) (44) (222) (171) Total $ 1,418 $ 928 $ 2,085 $ 1,913 (1) The cash paid and received on TRSs that were reported as derivative instruments is settled on a net basis and recorded through “Net gains on derivatives, loans and other assets” on the Consolidated Statements of Operations. Net cash received was $1.1 million and $1.0 million for the three months ended June 30, 2016 and 2015, respectively. Net cash received was $2.2 million and $2.0 million for the six months ended June 30, 2016 and 2015, respectively. (2) The cash paid and received on the interest rate swap is settled on a net basis and recorded through “Net gains on derivatives, loans and other assets” on the Consolidated Statements of Operations. Net cash paid was $0.1 million for the three months ended June 30, 2016 and 2015. Net cash paid was $0.1 million and $0.2 million for the six months ended June 30, 2016 and 2015, respectively. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements At June 30, (in thousands) 2016 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 182,831 $ ─ $ ─ $ 182,831 Loans held for investment 23,700 ─ ─ 23,700 Loans held for sale 2,742 ─ ─ 2,742 Derivative instruments 3,980 ─ ─ 3,980 Liabilities: Derivative instruments $ 2,038 $ ─ $ ─ $ 2,038 Fair Value Measurements At December 31, (in thousands) 2015 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 218,439 $ ─ $ ─ $ 218,439 Loans held for sale 6,417 ─ ─ 6,417 Derivative instruments 3,673 ─ 15 3,658 Liabilities: Derivative instruments $ 1,713 $ ─ $ ─ $ 1,713 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | (in thousands) Bonds Available-for-sale Loans Held for Investment Loans Held for Sale Derivative Assets Derivative Liabilities Balance, April 1, 2016 $ 192,928 $ 6,169 $ 3,335 $ 3,952 $ (2,430) Net (losses) gains included in earnings (1,354) ─ ─ 28 392 Net change in other comprehensive income (1) 4,460 ─ ─ ─ ─ Impact from purchases ─ ─ ─ ─ ─ Impact from loan originations ─ 17,531 303 ─ ─ Impact from sales/redemptions ─ ─ (896) ─ ─ Impact from bonds eliminated due to real estate consolidation (12,946) ─ ─ ─ ─ Impact from settlements (257) ─ ─ ─ ─ Balance, June 30, 2016 $ 182,831 $ 23,700 $ 2,742 $ 3,980 $ (2,038) (2) This amount includes $ 4.5 million of unrealized net holding gains arising during the period . (in thousands) Bonds Available-for-sale Loans Held for Sale Derivative Assets Derivative Liabilities Balance, April 1, 2015 $ 220,129 $ ─ $ 3,276 $ (1,359) Net (losses) gains included in earnings (1,877) ─ 57 (1) Net change in other comprehensive income (1) (222) ─ ─ ─ Impact from purchases ─ ─ ─ ─ Impact from loan originations ─ 4,932 ─ ─ Impact from sales/redemptions (9,874) ─ ─ ─ Impact from settlements (494) ─ ─ ─ Balance, June 30, 2015 $ 207,662 $ 4,932 $ 3,333 $ (1,360) (1) This amount includes the reversal of $3.4 million of unrealized gains related to bonds that were sold/redeemed, offset by $3.0 million of unrealized net holding gains arising during the period, and $0.2 million of unrealized bond losses classified into operations . (in thousands) Bonds Available-for-sale Loans Held for Investment Loans Held for Sale Derivative Assets Derivative Liabilities Balance, January 1, 2016 $ 218,439 $ ─ $ 6,417 $ 3,658 $ (1,713) Net (losses) gains included in earnings (2,483) ─ ─ 322 (325) Net change in other comprehensive income (1) 8,251 ─ ─ ─ ─ Impact from purchases ─ ─ ─ ─ ─ Impact from loan originations ─ 23,700 4,315 ─ ─ Impact from sales/redemptions (5,824) ─ (7,990) ─ ─ Impact from bonds extinguished due to real estate consolidation and foreclosure (30,300) ─ ─ ─ ─ Impact from settlements (5,252) ─ ─ ─ ─ Balance, June 30, 2016 $ 182,831 $ 23,700 $ 2,742 $ 3,980 $ (2,038) (1) This amount includes $8.3 million of unrealized net holding gains arising during the period, partially offset by the reversal of $2.1 million of unrealized gains related to bonds that were sold/redeemed. (in thousands) Bonds Available-for-sale Loans Held for Sale Derivative Assets Derivative Liabilities Balance, January 1, 2015 $ 222,899 $ ─ $ 2,539 $ (753) Net (losses) gains included in earnings (2,846) ─ 794 (607) Net change in other comprehensive income (1) 1,353 ─ ─ ─ Impact from loan originations ─ 4,932 ─ ─ Impact from sales/redemptions (9,874) ─ ─ ─ Impact from settlements (3,870) ─ ─ ─ Balance, June 30, 2015 $ 207,662 $ 4,932 $ 3,333 $ (1,360) (1) This amount represents $5.0 million of unrealized net holding gains arising during the period plus $0.2 million of unrealized bond losses reclassified into operations, partially offset by the reversal of $3.9 million of unrealized bond gains related to bonds that were redeemed. |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized gains related to assets and liabilities still held at June 30, 2016 $ ─ $ 1,354 $ 421 Additional realized gains recognized 28 ─ 1,001 Total gains reported in earnings $ 28 $ 1,354 $ 1,422 (3) Amounts are reflected through “Net gains on bonds” on the Consolidated Statements of Operations. (4) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2015 $ (179) $ (1,698) $ 56 Additional realized gains recognized 3,792 ─ 913 Total gains (losses) reported in earnings $ 3,613 $ (1,698) $ 969 (1) Amounts are reflected through “Other expenses” and “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized gains (losses) related to assets and liabilities still held at June 30, 2016 $ ─ $ 2,433 (3) Change in unrealized gains related to assets and liabilities held at January 1, 2016, but settled during 2016 ─ 50 ─ Additional realized gains recognized 2,323 ─ 2,102 Total gains reported in earnings $ 2,323 $ 2,483 $ 2,099 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2015 $ (179) $ (2,667) $ 187 Additional realized gains recognized 4,375 ─ 1,846 Total gains (losses) reported in earnings $ 4,196 $ (2,667) $ 2,033 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statements of Operations. (2) Amounts are reflected through “Net gains on derivatives , loans and other assets ” on the Consolidated Statements of Operations. |
Fair Value Measurements By Level 3 Valuation Technique | Fair Value Measurement as of June 30, 2016 Significant Significant Valuation Unobservable Weighted (in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Available-for-sale securities: Multifamily tax-exempt bonds Performing $ 84,602 Discounted cash flow Market yield 4.3 - 5.5 % 4.7 % 10,292 Discounted cash flow Market yield 7.8 7.8 Capitalization rate 6.6 6.6 Net operating income ("NOI") annual growth rate 0.3 0.3 Non-performing 22,423 Discounted cash flow Market yield 7.0 - 8.2 7.5 Capitalization rate 6.0 - 6.8 6.3 NOI annual growth rate (0.7) - 1.1 0.5 Subordinated cash flow 8,332 Discounted cash flow Market yield 7.4 7.4 Capitalization rate 6.2 - 6.5 6.3 NOI annual growth rate (0.7) - 0.7 0.4 CDD bonds 9,644 Discounted cash flow Market yield 8.2 8.2 16,910 Dealer pricing Other bonds 30,628 Dealer pricing Loans held for investment 23,700 Discounted cash flow Market yield 13.0 13.0 Loans held for sale 2,742 Discounted cash flow Market yield 10.0 - 15.0 12.7 Derivative instruments: Total return swaps 187 Discounted cash flow Market yield 5.3 5.3 (1,270) Discounted cash flow Market yield 8.6 8.6 Capitalization rate 7.2 7.2 NOI annual growth rate 2.5 2.5 3,792 Dealer pricing Interest rate derivatives (767) Discounted cash flow Market yield 22.9 22.9 (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third party sources or dealers about what a market participant would use in valuing the asset . (2) Weighted averages are calculated using outstanding unpaid principal balance for cash instruments, such as loans and securities, and notional amounts for derivative instruments. Fair Value Measurement as of December 31, 2015 Significant Significant Valuation Unobservable Weighted (in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Available-for-sale securities: Multifamily tax-exempt bonds Performing $ 84,203 Discounted cash flow Market yield 4.6 - 7.1 % 5.6 % 20,226 Discounted cash flow Market yield 8.2 - 8.7 8.4 Capitalization rate 7.0 - 7.5 7.2 NOI annual growth rate 0.4 - 1.4 1.0 Non-performing 43,333 Discounted cash flow Market yield 7.5 - 7.9 7.7 Capitalization rate 6.2 - 6.5 6.3 NOI annual growth rate 0.5 - 1.2 0.9 Subordinated cash flow 8,847 Discounted cash flow Market yield 7.8 - 7.9 7.9 Capitalization rate 6.4 - 6.6 6.5 NOI annual growth rate (0.7) - 0.8 0.4 CDD bonds 9,381 Discounted cash flow Market yield 8.5 8.5 17,475 Dealer pricing Other bonds 34,974 Dealer pricing Loans held for sale 6,417 Discounted cash flow Market yield 10.0 - 15.0 13.5 Derivative instruments: Total return swaps (983) Discounted cash flow Market yield 8.7 8.7 Capitalization rate 7.5 7.5 NOI annual growth rate 2.9 2.9 3,618 Dealer pricing Interest rate derivatives (690) Discounted cash flow Market yield 26.2 26.2 (1) Unobservable inputs reflect information that is not based upon independent sources that are readily available. These inputs are based upon assumptions and internally generated data made by the Company, which may include significant judgment that has been developed based upon available information from third party sources or dealers about what a market participant would use in valuing the asset . (2) Weighted averages are calculated using outstanding unpaid principal balance for cash instruments, such as loans and securities, and notional amounts for derivative instruments. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | At June 30, 2016 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 18,283 $ 18,283 $ ─ $ ─ Restricted cash 18,840 18,840 ─ ─ Restricted cash related to CFVs 23,220 23,220 ─ ─ Asset management fee receivable from TC Fund I ─ ─ ─ 2,114 Guarantee fee receivable from TC Fund I 4,227 ─ ─ 4,227 Loans held for investment 1,054 ─ ─ 1,515 Loans held for investment related to CFVs 65 ─ ─ 268 Liabilities: Notes payable and other debt, bond related 69,175 ─ ─ 69,288 Notes payable and other debt, non-bond related 16,420 ─ ─ 16,440 Notes payable and other debt related to CFVs 9,848 ─ ─ 3,295 Subordinated debt issued by MFH 103,531 ─ ─ 30,289 Subordinated debt issued by MFI 27,304 ─ ─ 17,891 Guarantee obligations (1) 4,380 ─ ─ 13,569 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $9.2 million as of June 30, 2016, are eliminated for financial reporting purposes . Refer below to “Valuation Techniques” for more information about differences between the carrying value and disclosed fair value of the Company’s guarantee obligations. At December 31, 2015 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 21,843 $ 21,843 $ ─ $ ─ Restricted cash 17,041 17,041 ─ ─ Restricted cash related to CFVs 22,992 22,992 ─ ─ Guarantee fee receivable from TC Fund I 4,227 ─ ─ 4,227 Loans held for investment 7,928 ─ ─ 7,687 Loans held for investment related to CFVs 65 ─ ─ 213 Liabilities: Notes payable and other debt, bond related 89,268 ─ ─ 89,405 Notes payable and other debt, non-bond related 10,690 ─ ─ 10,717 Notes payable and other debt related to CFVs 9,883 ─ ─ 3,171 Subordinated debt issued by MFH 104,736 ─ ─ 29,518 Subordinated debt issued by MFI 27,518 ─ ─ 15,579 Guarantee obligations (1) 4,758 ─ ─ 15,557 |
GUARANTEES AND COLLATERAL (Tabl
GUARANTEES AND COLLATERAL (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees And Collateral [Abstract] | |
Schedule of Guarantor Obligations | The following table provides information about the maximum exposure associated with the Company’s guarantee and indemnification agreements that we executed in connection with the Guaranteed Funds, TC Fund I and certain LTPPs: At At June 30, 2016 December 31, 2015 Maximum Carrying Maximum Carrying (in thousands) Exposure (1) Amount Exposure (1) Amount Guaranteed Funds (2) $ 490,843 $ 318 $ 490,843 $ 451 TC Fund I 109,599 4,016 109,599 4,227 LTPPs 1,223 46 1,223 80 (1) The Company’s maximum exposure represents the maximum loss the Company could incur under such agreements but is not indicative of the likelihood of expected loss under such agreements. (2) The maximum exposure includes $482.7 million related to the 11 Guaranteed Funds we consolidated at June 30, 2016 and December 31, 2015. See Note 13, “Consolidated Funds and Ventures,” for more information. |
Schedule of Financial Instruments Owned and Pledged as Collateral | At June 30, 2016 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 4,022 $ 143,103 $ ─ $ ─ $ 147,125 Other (1) 14,818 11,330 ─ 2,742 28,890 CFVs (2) 23,220 ─ 155,518 32,497 211,235 Total $ 42,060 $ 154,433 $ 155,518 $ 35,239 $ 387,250 (1) The Company pledges collateral in connection with secured borrowings and various guarantees that it has provided. (2) These are assets held by CFVs. At December 31, 2015 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 4,697 $ 160,876 $ ─ $ ─ $ 165,573 Other (1) 12,344 14,085 ─ 6,417 32,846 CFVs (2) 22,992 ─ 177,786 18,834 219,612 Total $ 40,033 $ 174,961 $ 177,786 $ 25,251 $ 418,031 (1) The Company pledges collateral in connection with secured borrowings and various guarantees that it has provided. These are assets held by CFVs. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | (in thousands) 2016 $ 125 2017 261 2018 277 2019 294 2020 184 Thereafter 433 Total minimum future rental commitments $ 1,574 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Earnings Per Share | The following table provides information about net income to common shareholders as well as provides information that pertains to weighted average share counts that were used in per share calculations as presented on the Consolidated Statements of Operations: For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net income from continuing operations $ 5,047 $ 7,208 $ 21,569 $ 7,292 Net income from discontinued operations 83 83 166 161 Net income to common shareholders $ 5,130 $ 7,291 $ 21,735 $ 7,453 Basic weighted-average shares (1) 6,289 6,955 6,406 7,084 Common stock equivalents (2), (3), (4) ─ ─ 4 ─ Diluted weighted-average shares 6,289 6,955 6,410 7,084 (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 June 30, 2016, 410,000 stock options were in the money and had a potential dilutive share impact of 371,943 and 369,495 for the three months and six months ended June 30, 2016, respectively. In addition, 9,468 employee deferred shares had a dilutive weighted-average share impact of 4,110 for the six months ended June 30, 2016. There was no dilutive impact for the three months ended June 30, 2016. For the three months and six months ended June 30, 2016, the adjustment to net income for the awards classified as liabilities caused the common stock equivalents to be anti-dilutive. (3) At June 30, 2015, 410,000 stock options were in the money and had a potential dilutive share impact of 321,255 and 317,188 for the three months and six months ended June 30, 2015, respectively . In addition, 19,885 unvested employee def e rred shares had a potential dilutive weighted-average share impact of 9,895 and 15,276 for the three months and six months ended June 30, 2015, respectively. For the three months and six months ended June 30, 2015, the adjustment to net income for the awards classified as liabilities caused the common stock equivalents to be anti-dilutive. (4) For the three months and six months ended June 30, 2016, the weighted average number of options excluded from the calculations of diluted earnings per share was 478 and 3,344 , respectively, either because of their anti-dilutive effect (i.e. options that were not in the money) or because the option had contingent vesting requirements. For the three months and six months ended June 30, 2015, the weighted average number of options excluded from the calculations of diluted earnings per share was 42,221 either because of their anti-dilutive effect (i.e. options that were not in the money) or because the option had contingent vesting requirements. |
Schedule of Noncontrolling Interest | At At June 30, December 31, (in thousands) 2016 2015 Guaranteed Funds $ 150,026 $ 176,070 Consolidated Property Partnerships 5,640 3,950 IHS PM 140 31 Total $ 155,806 $ 180,051 |
Schedule of Accumulated Other Comprehensive Income | The following table provides information related to the net change in AOCI that is allocable to common shareholders for the three months ended June 30, 2016: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, April 1, 2016 $ 54,616 $ (3,092) $ 51,524 Unrealized net gains 4,460 10 4,470 Reclassification of unrealized bonds gains into the Consolidated Statement of Operations due to consolidation or real estate foreclosure (4,205) ─ (4,205) Net change in AOCI 255 10 265 Balance, June 30, 2016 $ 54,871 $ (3,082) $ 51,789 The following table provides information related to the net change in AOCI that is allocable to common shareholders for the three months ended June 30, 2015: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, April 1, 2015 $ 52,336 $ (764) $ 51,572 Unrealized net gains 2,994 42 3,036 Reversal of unrealized gains on redeemed bonds (3,395) ─ (3,395) Reclassification of unrealized losses to operations due to impairment 179 ─ 179 Net change in AOCI (222) 42 (180) Balance, June 30, 2015 $ 52,114 $ (722) $ 51,392 The following table provides information related to the net change in AOCI that is allocable to common shareholders for the six months ended June 30, 2016: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, January 1, 2016 $ 64,322 $ (3,113) $ 61,209 Unrealized net gains 8,251 31 8,282 Reclassification of unrealized gains on sold or redeemed bonds into the Consolidated Statements of Operations (2,055) ─ (2,055) Reclassification of unrealized bonds gains into the Consolidated Statement of Operations due to consolidation or real estate foreclosure (15,647) ─ (15,647) Net change in AOCI (9,451) 31 (9,420) Balance, June 30, 2016 $ 54,871 $ (3,082) $ 51,789 The following table provides information related to the net change in AOCI that is allocable to common shareholders for the six months ended June 30, 2015: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, January 1, 2015 $ 50,761 $ (632) $ 50,129 Unrealized net gains (losses) 5,040 (90) 4,950 Reclassification of unrealized gains on sold or redeemed bonds (3,866) ─ (3,866) Reclassification of unrealized losses to operations due to impairment 179 ─ 179 Net change in AOCI 1,353 (90) 1,263 Balance, June 30, 2015 $ 52,114 $ (722) $ 51,392 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Summary of Stock-Based Compensation Expense | For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Employees’ Stock-Based Compensation Plans $ 765 $ 1,001 $ 1,548 $ 1,300 Non-employee Directors’ Stock-Based Compensation Plans 74 74 148 148 Total $ 839 $ 1,075 $ 1,696 $ 1,448 |
Summary of Option Activity | The following table provides information related to option activity under the Employees’ Stock-Based Compensation Plans: Weighted- average Weighted- Remaining average Contractual Exercise Life Aggregate Number of Price per per option Intrinsic Period End (in thousands, except per option data) Options Option (in years) Value (1) Liability (2) Outstanding at January 1, 2015 416 $ 3.52 6.3 $ 3,196 $ 3,281 Forfeited/Expired in 2015 ─ Outstanding at December 31, 2015 416 3.52 5.3 5,283 5,282 Forfeited/Expired in 2016 (6) 132.50 Outstanding at June 30, 2016 410 1.56 4.9 6,800 6,811 Number of options that were exercisable at: December 31, 2015 398 3.60 5.3 June 30, 2016 410 1.56 4.9 (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 410,000 ; 416,211 ; and 412,100 ; at June 30, 2016, December 31, 2015 and January 1, 2015, respectively. |
Schedule of Employee Deferred Shares | Weighted- average Grant Deferred Share Date Share Period End (in thousands, except per share data) Grants Price Liability Balance, January 1, 2016 10 $ 4.40 $ 126 Granted in 2016 ─ ─ Issued in 2016 (10) 4.40 Forfeited in 2016 ─ ─ Balance, June 30, 2016 ─ ─ ─ |
Summary of Nonemployee Director Stock Award Activity | Common Deferred Weighted- Shares Shares average Grant Options Directors' Fees Cash Granted Granted Date Share Price Vested Expense June 30, 2016 $ 73,750 ─ 4,523 $ 16.31 ─ $ 147,500 June 30, 2015 73,750 3,391 3,508 10.69 ─ 147,500 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operations | For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Other income $ 84 $ 84 $ 167 $ 167 Other expense (1) (1) (1) (6) Net income from discontinued operations 83 83 166 161 Loss from discontinued operations allocable to noncontrolling interests ─ ─ ─ ─ Net income to common shareholders from discontinued operations $ 83 $ 83 $ 166 $ 161 |
CONSOLIDATED FUNDS AND VENTUR35
CONSOLIDATED FUNDS AND VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Consolidated Funds and Ventures [Abstract] | |
Schedule of More Information Related to Assets Consolidated Fund or Ventures | At At June 30, December 31, (in thousands) 2016 2015 Cash, cash equivalents and restricted cash $ 23,220 $ 22,992 Investments in LTPPs 155,518 177,786 Real estate held for use, net 21,206 9,821 Real estate held for sale, net 3,209 ─ Other assets 8,082 9,013 Total assets of CFVs $ 211,235 $ 219,612 |
Assets and Liabilities of Unconsolidated Funds and Ventures | At At June 30, December 31, (in thousands) 2016 2015 Total assets of the LTPPs (1) $ 1,177,513 $ 1,216,319 Total liabilities of the LTPPs (1) 988,741 1,008,835 (1) The assets of the LTPPs are primarily real estate and the liabilities are predominantly mortgage debt. |
Schedule of More Information Related to Real Estate Consolidated Fund and Ventures | The real estate held for use by consolidated property partnerships was comprised of the following: At At June 30, December 31, (in thousands) 2016 2015 Building, furniture and fixtures $ 19,368 $ 8,696 Accumulated depreciation (356) (89) Land 2,194 1,214 Total $ 21,206 $ 9,821 |
Schedule of More Information Related to Real Estate Held-for-Sale Consolidated Fund and Ventures | The real estate held for sale by consolidated property partnerships was comprised of the following: At At June 30, December 31, (in thousands) 2016 2015 Cash $ 728 $ ─ Building, furniture and fixtures 1,955 ─ Land 495 ─ Other assets 31 ─ Total $ 3,209 $ ─ |
Schedule of More Information Related to Liabilities Consolidated Fund and Venture | The following table summarizes the liabilities of the CFVs: At At June 30, December 31, (in thousands) 2016 2015 Debt (1), (2) $ 9,848 $ 9,883 Unfunded equity commitments to unconsolidated LTPPs 8,103 8,203 Asset management fee payable 26,520 24,828 Other liabilities 3,645 3,405 Total liabilities of CFVs $ 48,116 $ 46,319 (1) At June 30, 2016 and December 31, 2015, $6.7 million of this debt had a UPB equal to its carrying value, a weighted average effective interest rate of 5.5% , and was due on demand. (2) At June 30, 2016 and December 31, 2015, $3.1 million and $3.2 million, respectively, of this debt was related to the two consolidated property partnerships and had a UPB of $2.8 million. The weighted average effective interest rate for this debt at June 30, 2016 and December 31, 2015 was 4.3% and had various maturity dates through May 1, 2039. |
Schedule of Income Statement of Consolidated Funds and Ventures | For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Revenue: Rental and other income from real estate $ 462 $ ─ $ 784 $ ─ Interest and other income 264 133 761 200 Total revenue from CFVs 726 133 1,545 200 Expenses: Depreciation and amortization 681 550 1,368 1,102 Interest expense 132 90 259 178 Other operating expenses 1,697 1,337 2,986 2,476 Asset impairments 6,504 7,037 12,769 14,574 Total expenses from CFVs 9,014 9,014 17,382 18,330 Net losses related to CFVs: Investment loss (598) ─ (598) ─ Equity in losses from LTPPs of CFVs (4,937) (6,654) (10,623) (12,347) Net loss (13,823) (15,535) (27,058) (30,477) Net losses allocable to noncontrolling interests in CFVs (1) 12,322 14,168 24,822 28,472 Net loss allocable to the common shareholders related to CFVs $ (1,501) $ (1,367) $ (2,236) $ (2,005) (1) Excludes $66 and $109 of net gain allocable to the minority interest holder in IHS PM for the three months and six months ended June 30, 2016. These amounts are excluded from this presentation because IHS PM related activity is not included within CFV income statement activity above. There were no losses allocable to the minority interest holder in IHS PM for the three months and six months ended June 30, 2015. |
Schedule of Net Income to Shareholders Related to Consolidated Funds and Ventures [Table Text Block] | For the three months ended For the six months ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Guarantee fees $ 331 $ 331 $ 662 $ 662 Interest income 65 ─ 65 ─ Equity in losses from LTPPs (1,354) (1,698) (2,483) (2,667) Equity in income from Consolidated Property Partnerships 55 ─ 118 ─ Other expenses (598) ─ (598) ─ Net loss allocable to the common shareholders related to CFVs $ (1,501) $ (1,367) $ (2,236) $ (2,005) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | For the three months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 3,614 $ 29 $ 13 $ ─ $ (65) (1) $ 3,591 Total interest expense (451) ─ (101) ─ ─ (552) Net interest income 3,163 29 (88) ─ (65) 3,039 Total fee and other income 1,717 1,823 6 ─ (331) (2) 3,215 Revenue from CFVs ─ ─ ─ 726 ─ 726 Total non-interest revenue 1,717 1,823 6 726 (331) 3,941 Total revenues, net of interest expense 4,880 1,852 (82) 726 (396) 6,980 Operating and other expenses: Interest expense (14) ─ (1,061) ─ ─ (1,075) Operating expenses (2,130) (2,094) (1,355) ─ ─ (5,579) Other expenses, net (1,305) 2 (30) ─ 598 (3) (735) Expenses from CFVs ─ ─ ─ (8,867) (147) (1), (2), (4) (9,014) Total operating and other expenses (3,449) (2,092) (2,446) (8,867) 451 (16,403) Net gains on assets, derivatives and extinguishment of liabilities 1,452 ─ ─ ─ ─ 1,452 Net gains transferred into net income from AOCI due to consolidation or real estate foreclosure 4,205 ─ ─ ─ ─ 4,205 Equity in income (losses) from unconsolidated funds and ventures 2,242 (4) (61) ─ ─ (55) (4) 2,126 Net gains related to CFVs ─ ─ ─ (598) ─ (598) Equity in losses from Lower Tier Property Partnerships of CFVs (1,354) (5) ─ ─ (3,583) (5) ─ (4,937) Income (loss) from continuing operations before income taxes 7,976 (301) (2,528) (12,322) ─ (7,175) Income tax expense ─ ─ (34) ─ ─ (34) Income from discontinued operations, net of tax 83 ─ ─ ─ ─ 83 Net income (loss) 8,059 (301) (2,562) (12,322) ─ (7,126) (Income) loss allocable to noncontrolling interests: Net (income) losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ (66) ─ 12,322 ─ 12,256 Net income (loss) allocable to common shareholders $ 8,059 $ (367) $ (2,562) $ ─ $ ─ $ 5,130 (1) Represents bond interest income that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.1 million was reflected in total interest for U.S. Operations. (2) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the second quarter of 2016 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (3) Represents a lower of cost or market adjustment on a property held for sale that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.6 million was reflected in other expenses for U.S. Operations. (4) Represent equity in income from the Consolidated Property Partnerships that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the Company recognized $0.1 million of gains in U.S. Operations. (5) Mainly represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $1.4 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. For the three months ended June 30, 2015 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 4,052 $ 15 $ 17 $ ─ $ ─ $ 4,084 Total interest expense (379) ─ (132) ─ ─ (511) Net interest income 3,673 15 (115) ─ ─ 3,573 Total fee and other income 2,641 1,386 ─ ─ (331) (1) 3,696 Revenue from CFVs ─ ─ ─ 133 ─ 133 Total non-interest revenue 2,641 1,386 ─ 133 (331) 3,829 Total revenues, net of interest expense 6,314 1,401 (115) 133 (331) 7,402 Operating and other expenses: Interest expense (281) (29) (1,398) ─ ─ (1,708) Operating expenses (1,948) (2,210) (1,407) ─ ─ (5,565) Other expenses (435) (284) (1,003) ─ ─ (1,722) Expenses from CFVs ─ ─ ─ (9,345) 331 (1) (9,014) Total operating and other expenses (2,664) (2,523) (3,808) (9,345) 331 (18,009) Net gains on assets, derivatives and extinguishment of liabilities 10,342 ─ ─ ─ ─ 10,342 Equity in (losses) income from unconsolidated funds and ventures (42) 62 ─ ─ ─ 20 Equity in losses from Lower Tier Property Partnerships of CFVs (1,698) (2) ─ ─ (4,956) (2) ─ (6,654) Income (loss) from continuing operations before income taxes 12,252 (1,060) (3,923) (14,168) ─ (6,899) Income tax expense ─ ─ (61) ─ ─ (61) Income (loss) from discontinued operations, net of tax 83 ─ ─ ─ ─ 83 Net income (loss) 12,335 (1,060) (3,984) (14,168) ─ (6,877) Loss allocable to noncontrolling interests: Net losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ ─ ─ 14,168 ─ 14,168 Net income (loss) allocable to common shareholders $ 12,335 $ (1,060) $ (3,984) $ ─ $ ─ $ 7,291 (1) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the second quarter of 2015 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (2) Represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $1.7 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. For the six months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 7,263 $ 56 $ 28 $ ─ $ (65) (1) $ 7,282 Total interest expense (891) ─ (210) ─ ─ (1,101) Net interest income 6,372 56 (182) ─ (65) 6,181 Total fee and other income 3,107 3,281 28 ─ (662) (2) 5,754 Revenue from CFVs ─ ─ ─ 1,545 ─ 1,545 Total non-interest revenue 3,107 3,281 28 1,545 (662) 7,299 Total revenues, net of interest expense 9,479 3,337 (154) 1,545 (727) 13,480 Operating and other expenses: Interest expense (14) ─ (2,103) ─ ─ (2,117) Operating expenses (4,372) (4,028) (3,394) ─ ─ (11,794) Other expenses, net (1,452) 120 (49) ─ 598 (3) (783) Expenses from CFVs ─ ─ ─ (17,629) 247 (1), (2), (4) (17,382) Total operating and other expenses (5,838) (3,908) (5,546) (17,629) 845 (32,076) Net gains on assets, derivatives and extinguishment of liabilities 4,541 ─ 4 ─ ─ 4,545 Net gains transferred into net income from AOCI due to consolidation or real estate foreclosure 15,647 ─ ─ ─ ─ 15,647 Equity in income (losses) from unconsolidated funds and ventures 6,925 (4) (220) ─ ─ (118) (4) 6,587 Net gains related to CFVs ─ ─ ─ (598) ─ (598) Equity in losses from Lower Tier Property Partnerships of CFVs (2,483) (5) ─ ─ (8,140) (5) ─ (10,623) Income (loss) from continuing operations before income taxes 28,271 (791) (5,696) (24,822) ─ (3,038) Income tax expense ─ ─ (106) ─ ─ (106) Income (loss) from discontinued operations, net of tax 166 ─ ─ ─ ─ 166 Net income (loss) 28,437 (791) (5,802) (24,822) ─ (2,978) (Income) loss allocable to noncontrolling interests: Net (income) losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ (109) ─ 24,822 ─ 24,713 Net income (loss) allocable to common shareholders $ 28,437 $ (900) $ (5,802) $ ─ $ ─ $ 21,735 (1) Represents bond interest income that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.1 million was reflected in total interest for U.S. Operations. (2) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the first six months of 2016 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (3) Represents a lower of cost or market adjustment on a property held for sale that the Company recognized through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the $0.6 million was reflected in other expenses for U.S. Operations. (4) Represent equity in income from the Consolidated Property Partnerships that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, the Company recognized $0.1 million of gains in U.S. Operations. (5) Mainly represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $2.5 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. For the six months ended June 30, 2015 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate CFVs Reclassifications Consolidated Total interest income $ 8,787 $ 34 $ 30 $ ─ $ ─ $ 8,851 Total interest expense (708) ─ (277) ─ − (985) Net interest income 8,079 34 (247) ─ ─ 7,866 Total fee and other income 4,695 2,616 488 ─ (662) (1) 7,137 Revenue from CFVs ─ ─ ─ 200 − 200 Total non-interest revenue 4,695 2,616 488 200 (662) 7,337 Total revenues, net of interest expense 12,774 2,650 241 200 (662) 15,203 Operating and other expenses: Interest expense (796) (58) (4,050) ─ ─ (4,904) Operating expenses (3,560) (4,292) (2,992) ─ ─ (10,844) Other expenses (693) (30) (1,106) ─ ─ (1,829) Expenses from CFVs ─ ─ ─ (18,992) 662 (1) (18,330) Total operating and other expenses (5,049) (4,380) (8,148) (18,992) 662 (35,907) Net gains on assets, derivatives and extinguishment of liabilities 11,910 ─ ─ ─ ─ 11,910 Equity in income from unconsolidated funds and ventures (51) 144 ─ ─ ─ 93 Equity in (losses) income from Lower Tier Property Partnerships of CFVs (2,667) (2) ─ ─ (9,680) (6) ─ (12,347) Income (loss) from continuing operations before income taxes 16,917 (1,586) (7,907) (28,472) ─ (21,048) Income tax expense ─ ─ (132) ─ ─ (132) Income (losses) from discontinued operations, net of tax 161 ─ ─ ─ ─ 161 Net income (loss) 17,078 (1,586) (8,039) (28,472) ─ (21,019) Loss allocable to noncontrolling interests: Net losses allocable to noncontrolling interests in CFVs: Related to continuing operations ─ ─ ─ 28,472 ─ 28,472 Net income (loss) allocable to common shareholders $ 17,078 $ (1,586) $ (8,039) $ ─ $ ─ $ 7,453 (1) Represents guarantee fees related to the Company’s Guaranteed Funds, which were recognized during the first six months of 2015 through an allocation of income (see Note 13, “Consolidated Funds and Ventures”) and for purposes of the table above, were included in total fee and other income for U.S. Operations. (2) Represents equity in losses from the LTPPs that the Company recognized as an allocation (see Note 13, “Consolidated Funds and Ventures”). The Company is allocated equity in losses in situations where the Guaranteed Funds’ equity investment in the LTPP has reached zero, but the Company has a bond investment represented by mortgage debt owned by the LTPP. For purposes of the table above, the Company recognized $2.7 million of losses in U.S. Operations and reduced the CFVs losses by the same amount. |
Reconciliation of Assets from Segment to Consolidated | June 30, December 31, (in thousands) 2016 2015 ASSETS U.S. Operations (includes $211,235 and $219,612 related to CFVs) $ 542,292 $ 571,213 Corporate Operations 18,739 21,619 International Operations 7,015 6,239 Total MMA consolidated assets $ 568,046 $ 599,071 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2016 | |
International Housing Solutions (IHS) [Member] | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Ownership percentage | 60.00% |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revisions to Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Common shares, no par value (6,118,535 and 6,516,275 shares issued and outstanding and 76,999 and 72,476 non-employee directors' and employee deferred shares issued at June 30, 2016 and December 31, 2015, respectively) | $ 70,325 | $ 54,961 | ||||
Accumulated other comprehensive income ("AOCI") | 51,789 | $ 51,524 | 61,209 | $ 51,392 | $ 51,572 | $ 50,129 |
Total common shareholders’ equity | $ 122,114 | 116,170 | ||||
Scenario, Previously Reported [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Common shares, no par value (6,118,535 and 6,516,275 shares issued and outstanding and 76,999 and 72,476 non-employee directors' and employee deferred shares issued at June 30, 2016 and December 31, 2015, respectively) | 47,755 | |||||
Accumulated other comprehensive income ("AOCI") | 68,415 | |||||
Total common shareholders’ equity | 116,170 | |||||
Restatement Adjustment [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Common shares, no par value (6,118,535 and 6,516,275 shares issued and outstanding and 76,999 and 72,476 non-employee directors' and employee deferred shares issued at June 30, 2016 and December 31, 2015, respectively) | 7,206 | |||||
Accumulated other comprehensive income ("AOCI") | $ (7,206) |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revisions to Consolidated Statements of Equity) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | $ 277,920 | $ 296,221 | ||
Common Stock [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | 70,325 | 54,961 | $ 43,887 | |
Common Stock [Member] | Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | 36,859 | |||
Common Stock [Member] | Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | 705 | $ 6,323 | ||
AOCI [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | $ 51,789 | $ 61,209 | 51,392 | |
AOCI [Member] | Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | 58,420 | |||
AOCI [Member] | Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity | $ (705) | $ (6,323) |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revisions to Consolidated Statements of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Interest on bonds | $ 2,705 | $ 3,281 | $ 5,959 | $ 7,307 |
Income tax benefit (expense) | (34) | (61) | (106) | (132) |
Net income from discontinued operations, net of tax | $ 83 | $ 83 | $ 166 | $ 161 |
Basic income (loss) per common share | $ 0.81 | $ 1.05 | $ 3.39 | $ 1.05 |
Diluted income (loss) per common share | $ 0.81 | $ 1.05 | $ 3.39 | $ 1.05 |
Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Interest on bonds | $ 3,270 | $ 6,602 | ||
Income tax benefit (expense) | (278) | (132) | ||
Net income from discontinued operations, net of tax | $ 89 | $ 161 | ||
Basic income (loss) per common share | $ 1.02 | $ 0.95 | ||
Diluted income (loss) per common share | $ 1.02 | $ 0.95 | ||
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Interest on bonds | $ 11 | $ 705 | ||
Income tax benefit (expense) | 217 | |||
Net income from discontinued operations, net of tax | $ (6) | |||
Basic income (loss) per common share | $ 0.03 | $ 0.10 | ||
Diluted income (loss) per common share | $ 0.03 | $ 0.10 |
BONDS AVAILABLE-FOR-SALE (Narra
BONDS AVAILABLE-FOR-SALE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Non Accrual Bonds | $ 22,400 | $ 22,400 | $ 43,300 | ||
Non Accrual Bonds Interest Income Cash Basis Method | 200 | $ 500 | 500 | $ 1,100 | |
Interest Income Non Accrual Bonds Not Recognized | 400 | 1,100 | 900 | 2,200 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 14,400 | 14,400 | |||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 25,700 | 25,700 | |||
Increase Decrease in Fair Value Of Bonds | (35,600) | ||||
Proceeds From Sale or Redemption Of Available For Sale Securities | $ 0 | $ 800 | $ 6,100 | $ 1,400 | |
Weighted average pay rate on available-for-sale bonds | 5.70% | 5.70% | 5.40% | ||
Net gains transferred into net income from AOCI due to real estate foreclosure | $ 4,205 | $ 15,647 | |||
Fair Value of Bonds Sold or Redeemed, Non-accrual Status | $ 22,900 | ||||
Weighted Average Expected Maturity, Investments, not Currently Prepayable | 5 years 6 months | ||||
Mortgage Revenue Bonds [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Net gains transferred into net income from AOCI due to real estate foreclosure | $ 11,400 |
BONDS AVAILABLE-FOR-SALE (Bonds
BONDS AVAILABLE-FOR-SALE (Bonds and Related Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 180,475 | $ 223,359 |
Amortized Cost | 127,960 | 154,117 |
Gross Unrealized Gains | 54,871 | 64,322 |
Fair Value | $ 182,831 | $ 218,439 |
FV as a % of UPB | 101.00% | 98.00% |
Mortgage Revenue Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 123,188 | $ 160,974 |
Amortized Cost | 77,324 | 98,694 |
Gross Unrealized Gains | 48,325 | 57,915 |
Fair Value | $ 125,649 | $ 156,609 |
FV as a % of UPB | 102.00% | 97.00% |
Other Debt Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 57,287 | $ 62,385 |
Amortized Cost | 50,636 | 55,423 |
Gross Unrealized Gains | 6,546 | 6,407 |
Fair Value | $ 57,182 | $ 61,830 |
FV as a % of UPB | 100.00% | 99.00% |
BONDS AVAILABLE-FOR-SALE (Bon43
BONDS AVAILABLE-FOR-SALE (Bonds Without Prepayment Restrictions) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Bonds Unpaid Principal Balance [Abstract] | ||
Bonds unpaid principal balance for, June 30, 2016 | $ 52,376 | |
Bonds unpaid principal balance, 2018 | 1,967 | |
Bonds unpaid principal balance, 2020 | 16,553 | |
Bonds unpaid principal balance, thereafter | 109,422 | |
Bonds unpaid principal balance, may not be prepaid | 157 | |
Unpaid principal balance | 180,475 | $ 223,359 |
Amortized Cost, Bonds that may be prepaid without restrictions | ||
Amortized Cost, June 30, 2016 | 40,637 | |
Amortized Cost, 2018 | 528 | |
Amortized Cost, 2020 | 6,386 | |
Amortized Cost, Thereafter | 80,252 | |
Amortized Cost, Bonds that may not be prepaid | 157 | |
Amortized Cost | 127,960 | 154,117 |
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties | ||
Fair Value, July 1 through December 31, 2016 | 50,526 | |
Fair Value, 2018 | 2,276 | |
Fair Value, 2020 | 17,156 | |
Fair Value, Thereafter | 112,713 | |
Fair Value, Bonds that may not be prepaid | 160 | |
Fair Value, Total | $ 182,831 | $ 218,439 |
BONDS AVAILABLE-FOR-SALE (Bond
BONDS AVAILABLE-FOR-SALE (Bond Aging Analysis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Bonds Available-For-Sale [Abstract] | ||
Total current | $ 160,409 | $ 175,106 |
30-59 days past due | ||
60-89 days past due | ||
90 days or greater | 22,422 | 43,333 |
Total | $ 182,831 | $ 218,439 |
BONDS AVAILABLE-FOR-SALE (Reali
BONDS AVAILABLE-FOR-SALE (Realized Gains on Bond Sales and Redemptions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Bonds Available-For-Sale [Abstract] | ||||
Net impairment recognized on bonds held at each period-end | $ (179) | $ (179) | ||
Gains recognized at time of sale or redemption | $ 28 | 3,792 | $ 2,323 | 4,375 |
Total net gains on bonds | $ 28 | $ 3,614 | $ 2,323 | $ 4,197 |
INVESTMENTS IN PARTNERSHIPS (Na
INVESTMENTS IN PARTNERSHIPS (Narrative) (Details) $ in Thousands, ZAR in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2016USD ($)entity | Jun. 30, 2016ZAR | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | $ 237,474 | $ 260,441 | ||||
Loans and Leases Receivable, Net Amount, Total | 24,754 | 7,928 | ||||
U.S. Real Estate Partnerships [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | $ 27,974 | 29,633 | ||||
Payments to acquire equity method investments | $ 8,800 | |||||
Equity method investment, ownership percentage | 80.00% | 33.00% | 33.00% | |||
Number of Variable Interest Entities | entity | 5 | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $ 11,500 | 13,400 | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 11,500 | 20,300 | ||||
U.S. Real Estate Partnerships formed in Q4 2014[Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 16,400 | |||||
U.S. Real Estate Partnerships, Other [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 6,200 | |||||
MuniMae TEI Holdings, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 5,300 | |||||
IHS Managed Funds and Ventures [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 2,734 | 2,501 | ||||
Equity In Income From SAWHF [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 1,100 | |||||
IHS Residential Partners One [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 1,600 | |||||
Variable Interest Entity, Maximum Committed Financial or Other Support | ZAR | ZAR 180 | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 12,000 | 11,700 | ||||
IHS Fund Two [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 100 | |||||
Solar Facilities Investment [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | $ 51,248 | $ 50,521 | ||||
Payments to acquire equity method investments | $ 25,000 | $ 50,000 | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||
Minimum [Member] | IHS Managed Funds and Ventures [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 1.80% | 1.80% | ||||
Maximum [Member] | IHS Managed Funds and Ventures [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 4.25% | 4.25% |
INVESTMENTS IN PARTNERSHIPS (Sc
INVESTMENTS IN PARTNERSHIPS (Schedule of Real Estate Investment Partnerships) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 237,474 | $ 260,441 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 27,974 | 29,633 |
IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 2,734 | 2,501 |
Solar Facilities Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 51,248 | 50,521 |
Lower Tier Property Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 155,518 | 177,786 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 11,545 | 13,374 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 1,593 | $ 1,388 |
INVESTMENTS IN PARTNERSHIPS (48
INVESTMENTS IN PARTNERSHIPS (Schedule of Balance Sheet Accounts Related to Equity Method Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 101,040 | $ 114,697 |
Total liabilities | 49,497 | 61,007 |
IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 221,679 | 235,858 |
Total liabilities | 87,071 | 103,149 |
Solar Facilities Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 117,880 | 104,137 |
Total liabilities | $ 15,879 | $ 3,585 |
INVESTMENTS IN PARTNERSHIPS (49
INVESTMENTS IN PARTNERSHIPS (Schedule of Income Loss in Earnings of Unconsolidated Venture) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
U.S. Real Estate Partnerships [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | $ 506 | $ (546) | $ 5,624 | $ (395) |
IHS Managed Funds and Ventures [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | (2,902) | $ 1,586 | (8,712) | $ 3,332 |
Solar Facilities Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | $ 2,495 | $ 5,557 |
OTHER ASSETS (Narrative, Loans
OTHER ASSETS (Narrative, Loans Held-for-Investment and Held-for-Sale) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Loans and Leases Receivable Unpaid Principal Balance | $ 30,500 | $ 13,200 | ||
Loans and Leases Receivable, Deferred Income | 5,000 | 4,500 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,100 | 1,100 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 600 | 300 | ||
Net gains on sale of real estate | $ 5,622 | 116 | $ 5,622 | |
Solar Loans [Member] | ||||
Assets held for sale, not part of disposal group | 1,600 | 2,000 | ||
Net gains on sale of real estate | 100 | |||
Solar Facilities [Member] | ||||
Property, Plant, and Equipment, Owned, Accumulated Depreciation | $ 1,600 | $ 3,100 |
OTHER ASSETS (Narrative, Remain
OTHER ASSETS (Narrative, Remainder) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Gains (Losses) on Sales of Other Real Estate | $ 5,622 | $ 116 | $ 5,622 | ||
Accrued Fees and Other Revenue Receivable | $ 1,446 | 1,446 | $ 1,121 | ||
Derivative Asset, Noncurrent | 3,980 | 3,980 | 3,673 | ||
Depreciation | 100 | 300 | $ 100 | ||
One solar construction loan [Member] | |||||
Fair Value, Option, Unpaid Principal Balance | 23,700 | 23,700 | |||
IHS Funds and Ventures [Member] | |||||
Accrued Fees and Other Revenue Receivable | $ 1,100 | $ 1,100 | 800 | ||
Loan Origination Commitments [Member] | |||||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 500 | ||||
Building [Member] | |||||
Property, Plant and Equipment, Useful Life | 40 years | ||||
Building Improvements [Member] | |||||
Property, Plant and Equipment, Useful Life | 15 years | ||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment, Useful Life | 6 years | ||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment, Useful Life | 7 years |
OTHER ASSETS (Summary of Other
OTHER ASSETS (Summary of Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other assets: | ||
Loan receivable held-for-investment | $ 24,754 | $ 7,928 |
Loans held-for-sale | 2,742 | 6,417 |
Real estate owned | 9,251 | 8,669 |
Derivative assets | 3,980 | 3,673 |
Accrued interest and dividends receivable | 2,293 | 2,115 |
Asset management fees receivable | 1,446 | 1,121 |
Other assets | 8,577 | 7,485 |
Total other assets | 87,398 | 58,315 |
Consolidated Funds and Ventures [Member] | ||
Other assets: | ||
Total other assets | 32,497 | 18,834 |
Solar Facilities Investment [Member] | ||
Other assets: | ||
Total other assets | $ 1,858 | $ 2,073 |
OTHER ASSETS (Loans Held for In
OTHER ASSETS (Loans Held for Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortized cost | $ 25,504 | $ 8,678 |
Allowance for loan losses | (750) | (750) |
Loans held for investment, net | $ 24,754 | $ 7,928 |
OTHER ASSETS (Summary of Invest
OTHER ASSETS (Summary of Investments in Real Estate ) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Real estate held-for-use | $ 3,188 | $ 8,669 |
Real estate held-for-sale | 6,063 | |
Total real estate | $ 9,251 | $ 8,669 |
OTHER ASSETS (REO held for use,
OTHER ASSETS (REO held for use, net) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Other assets | $ 87,398 | $ 58,315 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,220 | 22,992 |
Other assets | 8,082 | 9,013 |
Real estate held for use, net | 21,206 | 9,821 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | 21,206 | 9,821 |
Consolidated Funds and Ventures [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 19,368 | 8,696 |
Real estate held for use, gross | 19,368 | 8,696 |
Accumulated depreciation | (356) | (89) |
Consolidated Funds and Ventures [Member] | Land [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,194 | 1,214 |
Real estate held for use, gross | 2,194 | 1,214 |
REO held for use, net [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 149 | |
Other assets | 10 | |
Real estate held for use, net | 3,188 | 8,669 |
REO held for use, net [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 569 | 4,014 |
Real estate held for use, gross | 569 | 4,014 |
REO held for use, net [Member] | Land [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,619 | 4,496 |
Real estate held for use, gross | $ 2,619 | $ 4,496 |
OTHER ASSETS (REO held for sale
OTHER ASSETS (REO held for sale, net) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Other assets | $ 87,398 | $ 58,315 |
Real estate held-for-sale, net | 6,063 | |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,220 | 22,992 |
Property, Plant and Equipment, Net | 21,206 | 9,821 |
Other assets | 8,082 | 9,013 |
Real estate held-for-sale, net | 3,209 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 728 | |
Other assets | 31 | |
Real estate held-for-sale, net | 3,209 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | 1,955 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | Land [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | 495 | |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | 21,206 | 9,821 |
Consolidated Funds and Ventures [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 19,368 | 8,696 |
Consolidated Funds and Ventures [Member] | Land [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,194 | $ 1,214 |
REO held for sale, net [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 139 | |
Other assets | 33 | |
Real estate held-for-sale, net | 6,063 | |
REO held for sale, net [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,014 | |
REO held for sale, net [Member] | Land [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | $ 1,877 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.00% | 3.00% | 2.90% | ||
Interest expense | $ 552 | $ 511 | $ 1,101 | $ 985 | |
Repayments of Debt | 10,256 | 30,004 | |||
Letters of Credit Outstanding, Amount | 0 | 0 | $ 0 | ||
Notes Payable and Other Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense | 100 | 300 | |||
Long-term Debt, Excluding Current Maturities, Total | 9,811 | 9,811 | |||
Subordinated Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense, subordinated notes and debentures | 1,100 | 1,400 | 2,100 | 4,100 | |
Long-term Debt, Excluding Current Maturities, Total | 127,547 | 127,547 | $ 129,185 | ||
Principal | $ 121,906 | $ 121,906 | |||
Asset Related Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.60% | 2.60% | 2.60% | ||
Notes Payable and Other Debt – Bond Related [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 300 | $ 400 | $ 600 | $ 700 | |
Long-term Debt, Excluding Current Maturities, Total | 68,153 | 68,153 | $ 88,131 | ||
Notes Payable and Other Debt – Non-Bond Related [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense | 200 | 500 | |||
Long-term Debt, Excluding Current Maturities, Total | 2,451 | 2,451 | $ 3,126 | ||
TRS Financing Arrangements [Member] | |||||
Debt Instrument [Line Items] | |||||
Underlying Bond Notional Amount | $ 67,800 | $ 67,800 | |||
Underlying Bond Interest Rate | 6.20% | 6.20% | |||
Long-term Debt, Gross | $ 69,300 | $ 69,300 | |||
Derivative, Variable Interest Rate | 1.70% | 1.70% | |||
TRS Financing Arrangement One [Member] | |||||
Debt Instrument [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% |
DEBT (Outstanding Debt Balances
DEBT (Outstanding Debt Balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 226,278 | $ 242,095 |
Debt Instrument, Interest Rate, Effective Percentage | 3.00% | 2.90% |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 216,430 | $ 232,212 |
Debt Instrument, Interest Rate, Effective Percentage | 2.90% | 2.80% |
Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 75,683 | $ 99,958 |
Debt Instrument, Interest Rate, Effective Percentage | 2.60% | 2.60% |
Notes Payable and Other Debt – Bond Related [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 1,022 | $ 1,137 |
Debt, Due after one year | $ 68,153 | $ 88,131 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 1.90% | 1.50% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 1.80% | 1.40% |
Unamortized Debt Issuance Expense | $ 100 | |
Notes Payable and Other Debt – Non-Bond Related [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 4,057 | $ 7,564 |
Debt, Due after one year | $ 2,451 | $ 3,126 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 12.00% | 13.00% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 10.40% | 10.40% |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 140,747 | $ 132,254 |
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | 3.00% |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 3,288 | $ 3,069 |
Debt, Due after one year | 127,547 | $ 129,185 |
Debt, Carrying Value | $ 130,835 | |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 3.60% | 3.00% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 3.20% | 3.00% |
Net Premium and Debt Issuance Costs | $ 8,900 | $ 9,200 |
Notes Payable and Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 101 | |
Debt, Due after one year | $ 9,811 | |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 1.80% | |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 1.80% | |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 6,803 | 6,802 |
Debt, Due after one year | 3,045 | 3,081 |
Debt, Carrying Value | $ 9,848 | $ 9,883 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 5.50% | 5.50% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 4.30% | 4.30% |
Debt Instrument, Interest Rate, Effective Percentage | 5.10% | 5.10% |
DEBT (Principal Commitments) (D
DEBT (Principal Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2,016 | $ 11,803 | |
2,017 | 9,008 | |
2,018 | 60,648 | |
2,019 | 13,429 | |
2,020 | 10,790 | |
Thereafter | 111,437 | |
Net premium and debt issue costs | 9,163 | |
Total | 226,278 | $ 242,095 |
Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Total | 9,848 | 9,883 |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 5,062 | |
2,017 | 8,946 | |
2,018 | 60,583 | |
2,019 | 13,360 | |
2,020 | 10,718 | |
Thereafter | 108,965 | |
Net premium and debt issue costs | 8,796 | |
Total | 216,430 | 232,212 |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 6,741 | |
2,017 | 62 | |
2,018 | 65 | |
2,019 | 69 | |
2,020 | 72 | |
Thereafter | 2,472 | |
Net premium and debt issue costs | 367 | |
Total | $ 9,848 | $ 9,883 |
DEBT (Subordinate Debt) (Detail
DEBT (Subordinate Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Net Premium and Debt Issuance Costs | $ 9,163 | |
Carrying Value | 226,278 | $ 242,095 |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 121,906 | |
Net Premium and Debt Issuance Costs | 8,929 | |
Carrying Value | 130,835 | |
Subordinated Loan [Member] | MMA Financial Inc. Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 27,460 | |
Net Premium and Debt Issuance Costs | (156) | |
Carrying Value | $ 27,304 | |
Maturity Date | December 2027 and December 2033 | |
Coupon Interest Rate | 8.00% | |
Subordinated Loan [Member] | Mfh Issue 1 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 27,889 | |
Net Premium and Debt Issuance Costs | 2,770 | |
Carrying Value | $ 30,659 | |
Maturity Date | March 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Subordinated Loan [Member] | Mfh Issue 2 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 25,360 | |
Net Premium and Debt Issuance Costs | 2,529 | |
Carrying Value | $ 27,889 | |
Maturity Date | April 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Subordinated Loan [Member] | Mfh Issue 3 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 14,618 | |
Net Premium and Debt Issuance Costs | 1,344 | |
Carrying Value | $ 15,962 | |
Maturity Date | July 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Subordinated Loan [Member] | Mfh Issue 4 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 26,579 | |
Net Premium and Debt Issuance Costs | 2,442 | |
Carrying Value | $ 29,021 | |
Maturity Date | July 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
DERIVATIVE INSTRUMENTS (Narrati
DERIVATIVE INSTRUMENTS (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)agreement | Dec. 31, 2015USD ($)agreement | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 160,528 | $ 164,520 |
Total Return Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 107,892 | $ 111,845 |
Number of Interest Rate Derivatives Held | agreement | 10 | |
Total Return Swap [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Nonderivative Instruments | $ 86,400 | |
Derivative, Fixed Interest Rate | 6.50% | |
Total Return Swap [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative, Variable Interest Rate | 2.20% | |
Total Return Swap Two [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Nonderivative Instruments | $ 20,100 | |
Derivative, Fixed Interest Rate | 7.00% | |
Total Return Swap Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Derivative [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 4.00% | 3.50% |
Interest rate swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 7,636 | $ 7,675 |
Number of Interest Rate Derivatives Held | agreement | 1 | 1 |
Derivative, Fixed Interest Rate | 6.50% | |
Interest rate swap [Member] | SIFMA 7-day Municipal Swap Index [Member] | ||
Derivative [Line Items] | ||
Derivative, Basis Spread on Variable Rate | 2.50% | |
Interest rate cap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 45,000 | $ 45,000 |
Number of Interest Rate Derivatives Held | agreement | 1 | 1 |
Derivative, Cap Interest Rate | 2.50% |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of the Company’s Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 3,980 | $ 3,673 |
Derivative Liability | 2,038 | 1,713 |
Total Return Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 3,980 | 3,658 |
Derivative Liability | 1,271 | 1,023 |
Interest rate cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 15 | |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 767 | $ 690 |
DERIVATIVE INSTRUMENTS (Sched63
DERIVATIVE INSTRUMENTS (Schedule of Derivative Notional Amounts) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 160,528 | $ 164,520 |
Total Return Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 107,892 | 111,845 |
Interest rate cap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 45,000 | 45,000 |
Interest rate swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 7,636 | $ 7,675 |
DERIVATIVE INSTRUMENTS (Summary
DERIVATIVE INSTRUMENTS (Summary of Derivative Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | $ 1,418 | $ 928 | $ 2,085 | $ 1,913 |
Total Return Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | 1,522 | 1,013 | 2,321 | 2,204 |
Payments For Proceeds From Derivative Instrument Operating Activities | 1,100 | 1,000 | 2,200 | 2,000 |
Interest rate cap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | (4) | (41) | (14) | (120) |
Interest rate swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | (100) | (44) | (222) | (171) |
Payments For Proceeds From Derivative Instrument Operating Activities | $ 100 | $ 100 | $ 100 | $ 200 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized gains (losses) arising during the period | $ 4,460 | $ 2,994 | $ 8,251 | $ 5,040 | |
Reversal of net unrealized gains on sold/redeemed bonds | 3,395 | $ 2,055 | 3,866 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | $ 179 | $ 179 | |||
Fair Value Inputs, Discount Rate | 7.40% | ||||
Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 17.50% | 20.00% | |||
Subordinated Debt Obligations, Fair Value Disclosure | 48,200 | $ 48,200 | |||
Minimum [Member] | Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 15.00% | ||||
Subordinated Debt Obligations, Fair Value Disclosure | 42,800 | $ 42,800 | |||
Maximum [Member] | Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 20.00% | ||||
Subordinated Debt Obligations, Fair Value Disclosure | $ 55,100 | $ 55,100 |
FAIR VALUE MEASUREMENTS (Valuat
FAIR VALUE MEASUREMENTS (Valuation of Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Loans held-for-sale | $ 2,742 | $ 6,417 |
Derivative assets | 3,980 | 3,673 |
Liabilities: | ||
Derivative liabilities | 2,038 | 1,713 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Loans held for investment | 1,515 | 7,687 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Investments in bonds | 182,831 | 218,439 |
Loans held for investment | 23,700 | |
Loans held-for-sale | 2,742 | 6,417 |
Derivative assets | 3,980 | 3,673 |
Liabilities: | ||
Derivative liabilities | 2,038 | 1,713 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Derivative assets | 15 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Investments in bonds | 182,831 | 218,439 |
Loans held for investment | 23,700 | |
Loans held-for-sale | 2,742 | 6,417 |
Derivative assets | 3,980 | 3,658 |
Liabilities: | ||
Derivative liabilities | $ 2,038 | $ 1,713 |
FAIR VALUE MEASUREMENTS (Activi
FAIR VALUE MEASUREMENTS (Activity for Assets and Liabilities Measured on Recurring Level 3 Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | $ 34,974 | |||
Available-for-sale Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | $ 192,928 | $ 220,129 | 218,439 | $ 222,899 |
Net (losses) gains included in earnings | (1,354) | (1,877) | (2,483) | (2,846) |
Net change in other comprehensive income | 4,460 | (222) | 6,196 | 1,353 |
Impact from sales/redemptions | (9,874) | (3,769) | (9,874) | |
Impact from bonds extinguished due to consolidation or real estate foreclosure | (12,946) | (30,300) | ||
Impact from settlements | (257) | (494) | (5,252) | (3,870) |
Balance at ending period | 182,831 | 207,662 | 182,831 | 207,662 |
Loans Receivable [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 6,169 | |||
Impact from originations | 17,531 | 23,700 | ||
Balance at ending period | 23,700 | 23,700 | ||
Loans Held-for-sale [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 3,335 | 6,417 | ||
Impact from originations | 303 | 4,932 | 4,315 | 4,932 |
Impact from sales/redemptions | (896) | (7,990) | ||
Balance at ending period | 2,742 | 4,932 | 2,742 | 4,932 |
Derivative Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 3,952 | 3,276 | 3,658 | 2,539 |
Net (losses) gains included in earnings | 28 | 57 | 322 | 794 |
Balance at ending period | 3,980 | 3,333 | 3,980 | 3,333 |
Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | (2,430) | (1,359) | (1,713) | (753) |
Net (losses) gains included in earnings | 392 | (1) | (325) | (607) |
Balance at ending period | $ (2,038) | $ (1,360) | $ (2,038) | $ (1,360) |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Amounts and Fair Values of Financial Instruments ) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | $ 18,283 | $ 21,843 |
Restricted cash | 18,840 | 17,041 |
Fair Value, Inputs, Level 1 [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Restricted cash | 23,220 | 22,992 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Loans held for investment | 1,515 | 7,687 |
Liabilities: | ||
Guarantee obligations | 13,569 | 15,557 |
Fair Value, Inputs, Level 3 [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Loans held for investment | 268 | 213 |
Fair Value, Inputs, Level 3 [Member] | TC Fund I [Member] | ||
Assets: | ||
Asset management fee receivable | 2,114 | |
Guarantee fee receivable | 4,227 | 4,227 |
Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Notes payable and other debt | 69,288 | 89,405 |
Non Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Notes payable and other debt | 16,440 | 10,717 |
Debt Related To Consolidated Funds and Ventures [Member] | Fair Value, Inputs, Level 3 [Member] | Consolidated Funds and Ventures [Member] | ||
Liabilities: | ||
Notes payable and other debt | 3,295 | 3,171 |
Subordinated Loan [Member] | Fair Value, Inputs, Level 3 [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | 30,289 | 29,518 |
Subordinated Loan [Member] | Fair Value, Inputs, Level 3 [Member] | MFI [Member] | ||
Liabilities: | ||
Subordinated debt | 17,891 | 15,579 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 18,283 | 21,843 |
Restricted cash | 18,840 | 17,041 |
Loans held for investment | 1,054 | 7,928 |
Liabilities: | ||
Guarantee obligations | 4,380 | 4,758 |
Reported Value Measurement [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Restricted cash | 23,220 | 22,992 |
Loans held for investment | 65 | 65 |
Reported Value Measurement [Member] | TC Fund I [Member] | ||
Assets: | ||
Guarantee fee receivable | 4,227 | 4,227 |
Reported Value Measurement [Member] | Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 69,175 | 89,268 |
Reported Value Measurement [Member] | Non Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 16,420 | 10,690 |
Reported Value Measurement [Member] | Debt Related To Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | ||
Liabilities: | ||
Notes payable and other debt | 9,848 | 9,883 |
Reported Value Measurement [Member] | Subordinated Loan [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | 103,531 | 104,736 |
Reported Value Measurement [Member] | Subordinated Loan [Member] | MFI [Member] | ||
Liabilities: | ||
Subordinated debt | $ 27,304 | $ 27,518 |
FAIR VALUE MEASUREMENTS (Amount
FAIR VALUE MEASUREMENTS (Amount of Activity Pertaining to Level 3 Assets and Liabilities Included in Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Available-for-sale Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in unrealized (losses) gains related to assets and liabilities still held | $ (179) | $ (179) | ||
Additional realized gains (losses) recognized | $ 28 | 3,792 | $ 2,323 | 4,375 |
Total gains (losses) reported in earnings | 28 | 3,613 | 2,323 | 4,196 |
Equity Method Investments [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in unrealized (losses) gains related to assets and liabilities still held | 1,354 | (1,698) | 2,433 | (2,667) |
Change in unrealized losses related to assets and liabilities settled during the period | 50 | |||
Total gains (losses) reported in earnings | 1,354 | (1,698) | 2,483 | (2,667) |
Derivative Asset / Liability [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in unrealized (losses) gains related to assets and liabilities still held | 420 | 56 | (3) | 187 |
Additional realized gains (losses) recognized | 1,002 | 913 | 2,102 | 1,846 |
Total gains (losses) reported in earnings | $ 1,422 | $ 969 | $ 2,099 | $ 2,033 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Measurements By Level 3 Valuation Technique) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 34,974 | |||
Market yield | 7.40% | |||
Total Return Swap [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) | $ (1,270) | $ (983) | ||
Market yield | 8.60% | 8.70% | ||
Capitalization rate | 7.20% | 7.50% | ||
NOI annual growth rate | 2.50% | 2.90% | ||
Interest Rate Contract [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) | $ (767) | $ (690) | ||
Market yield | 22.90% | 26.20% | ||
Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 84,602 | $ 84,203 | ||
Market yield | 4.70% | 5.60% | ||
Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment B [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 10,292 | $ 20,226 | ||
Market yield | 7.80% | 8.40% | ||
Capitalization rate | 6.60% | 7.20% | ||
NOI annual growth rate | 0.30% | 1.00% | ||
Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 22,423 | $ 43,333 | ||
Market yield | 7.50% | 7.70% | ||
Capitalization rate | 6.30% | 6.30% | ||
NOI annual growth rate | 0.50% | 0.90% | ||
Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 8,332 | $ 8,847 | ||
Market yield | 7.40% | 7.90% | ||
Capitalization rate | 6.30% | 6.50% | ||
NOI annual growth rate | 0.40% | 0.40% | ||
Available-for-sale, CDD Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 8.20% | 8.50% | ||
Available-for-sale, CDD Bonds Segment A [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 9,644 | $ 9,381 | ||
Available-for-sale, CDD Bonds Segment B [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | 16,910 | 17,475 | ||
Other Debt Obligations [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | 30,628 | |||
Loans Held for Investment [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 23,700 | |||
Market yield | 13.00% | |||
Loans Held-for-sale [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value | $ 2,742 | $ 6,417 | $ 3,335 | $ 4,932 |
Market yield | 12.70% | 13.50% | ||
Total Return Swap [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) | $ 187 | $ 3,618 | ||
Market yield | 5.30% | |||
Total Return Swap Segment B [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) | $ 3,792 | |||
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 4.30% | 4.60% | ||
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment B [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 8.20% | |||
Capitalization rate | 7.00% | |||
NOI annual growth rate | 0.40% | |||
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 7.00% | 7.50% | ||
Capitalization rate | 6.00% | 6.20% | ||
NOI annual growth rate | (0.70%) | 0.50% | ||
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 7.80% | |||
Capitalization rate | 6.20% | 6.40% | ||
NOI annual growth rate | (0.70%) | (0.70%) | ||
Minimum [Member] | Loans Held-for-sale [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 10.00% | 10.00% | ||
Maximum [Member] | Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 5.50% | 7.10% | ||
Maximum [Member] | Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment B [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 8.70% | |||
Capitalization rate | 7.50% | |||
NOI annual growth rate | 1.40% | |||
Maximum [Member] | Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 8.20% | 7.90% | ||
Capitalization rate | 6.80% | 6.50% | ||
NOI annual growth rate | 1.10% | 1.20% | ||
Maximum [Member] | Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 7.90% | |||
Capitalization rate | 6.50% | 6.60% | ||
NOI annual growth rate | 0.70% | 0.80% | ||
Maximum [Member] | Loans Held-for-sale [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Market yield | 15.00% | 15.00% |
GUARANTEES AND COLLATERAL (Narr
GUARANTEES AND COLLATERAL (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)agreement | Dec. 31, 2015USD ($) | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Guaranteed Funds | agreement | 13 | |
Guaranteed Funds [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Guaranteed Funds | agreement | 11 | |
Guarantor Obligations, Reserves | $ 13,700 | $ 13,000 |
Guarantor Obligations, Payment | 900 | |
Guarantor Obligations, Unamortized Fees | 9,200 | 10,800 |
Guarantor Obligations, Collateral Pledged | 16,100 | 16,400 |
Maximum Exposure | 490,843 | 490,843 |
Carrying Amount | 318 | 451 |
TC Fund I [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Guarantor Obligations, Unamortized Fees | $ 4,000 | 4,200 |
Guarantor Obligations, Liquidation Proceeds, Percentage | 70.00% | |
Percentage in excess of projected tax credits | 95.00% | |
Guarantor Obligations, Bank Loss Absorption Rate, Percentage | 5.00% | |
Maximum Exposure | $ 109,599 | 109,599 |
Carrying Amount | $ 4,016 | $ 4,227 |
GUARANTEES AND COLLATERAL (Summ
GUARANTEES AND COLLATERAL (Summary of Guarantees) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Guaranteed Funds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | $ 490,843 | $ 490,843 |
Carrying Amount | 318 | 451 |
Eleven Guaranteed Funds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | 482,700 | 482,700 |
TC Fund I [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | 109,599 | 109,599 |
Carrying Amount | 4,016 | 4,227 |
Lower Tier Property Partnerships [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | 1,223 | 1,223 |
Carrying Amount | $ 46 | $ 80 |
GUARANTEES AND COLLATERAL (Coll
GUARANTEES AND COLLATERAL (Collateral and Restricted Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 42,060 | $ 40,033 |
Bonds Available-for-Sale | 154,433 | 174,961 |
Investments in partnerships | 155,518 | 177,786 |
Other Assets | 35,239 | 25,251 |
Total Assets Pledged | 387,250 | 418,031 |
Debt and derivatives TRSs [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 4,022 | 4,697 |
Bonds Available-for-Sale | 143,103 | 160,876 |
Total Assets Pledged | 147,125 | 165,573 |
Other, Pledged or Restricted [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 14,818 | 12,344 |
Bonds Available-for-Sale | 11,330 | 14,085 |
Other Assets | 2,742 | 6,417 |
Total Assets Pledged | 28,890 | 32,846 |
Consolidated Funds and Ventures [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 23,220 | 22,992 |
Investments in partnerships | 155,518 | 177,786 |
Other Assets | 32,497 | 18,834 |
Total Assets Pledged | $ 211,235 | $ 219,612 |
COMMITMENTS AND CONTINGENCIES74
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating Leases, Rent Expense, Net | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.2 |
COMMITMENTS AND CONTINGENCIES75
COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Commitments) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 125 |
2,017 | 261 |
2,018 | 277 |
2,019 | 294 |
2,020 | 184 |
Thereafter | 433 |
Total minimum future rental commitments | $ 1,574 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - $ / shares | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 05, 2016 | Feb. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Class of Stock [Line Items] | ||||||
Common Stock Equivalents Employee Options | 410,000 | 410,000 | 410,000 | 410,000 | ||
Incremental Common Shares Attributable to Call Options and Warrants | 371,943 | 321,255 | 369,495 | 317,188 | ||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 9,895 | 4,110 | 15,276 | |||
Unvested Employee Deferred Shares | 9,468 | 19,885 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 478 | 42,221 | 3,344 | 42,221 | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 600,000 | 600,000 | ||||
Stock Repurchased During Period, Shares | 300,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 16.67 | |||||
Treasury Stock To Be Acquired Maximum Costs Per Share | $ 19.62 | $ 19.62 | ||||
Held By Third Party | 4.90% | 4.90% | ||||
Stock Repurchase Program [Member] | Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Repurchased During Period, Shares | 19,000,000,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 18.33 | |||||
International Housing Solutions (IHS) [Member] | ||||||
Class of Stock [Line Items] | ||||||
Ownership percentage | 60.00% | |||||
IHS PM [Member] | ||||||
Class of Stock [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | 40.00% | ||||
Ownership percentage | 60.00% |
EQUITY (Summary of Net Income t
EQUITY (Summary of Net Income to Common Shareholders) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Net income (loss) from continuing operations | $ 5,047 | $ 7,208 | $ 21,569 | $ 7,292 |
Net income from discontinued operations | 83 | 83 | 166 | 161 |
Net income to common shareholders | $ 5,130 | $ 7,291 | $ 21,735 | $ 7,453 |
Basic weighted-average shares | 6,289 | 6,955 | 6,406 | 7,084 |
Common stock equivalents | 4 | |||
Diluted weighted-average shares | 6,289 | 6,955 | 6,410 | 7,084 |
EQUITY (Noncontrolling Interest
EQUITY (Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 155,806 | $ 180,051 |
L I H T C Funds [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | 150,026 | 176,070 |
Consolidated Property Partnerships [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | 5,640 | 3,950 |
IHS PM [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 140 | $ 31 |
EQUITY (Schedule of Accumulated
EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Reversal of net unrealized gains on sold or redeemed bonds | $ (3,395) | $ (2,055) | $ (3,866) | |
Reversal of unrealized gains from AOCI to Net Income due to consolidation and foreclosure | $ (4,205) | (15,647) | ||
Other | 3,395 | 15,647 | 179 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning Balance | 51,524 | 51,572 | 61,209 | 50,129 |
Net change in AOCI | 4,470 | (9,420) | 4,950 | |
Other Comprehensive Income, Other, Net of Tax | 3,036 | 8,282 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (4,205) | 179 | 2,055 | 3,866 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 265 | (180) | (9,420) | 1,263 |
Ending Balance | 51,789 | 51,392 | 51,789 | 51,392 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Beginning Balance | 54,616 | 52,336 | 64,322 | 50,761 |
Unrealized net gains (losses) | 4,460 | 2,994 | 8,251 | 5,040 |
Reversal of net unrealized gains on sold or redeemed bonds | (3,395) | (2,055) | (3,866) | |
Reclassification of unrealized losses to operations | (4,205) | 179 | 179 | |
Reversal of unrealized gains from AOCI to Net Income due to consolidation and foreclosure | (15,647) | |||
Ending Balance | 54,871 | 52,114 | 54,871 | 52,114 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net change AOCI, before tax | 255 | (222) | (9,451) | 1,353 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Beginning Balance | (3,092) | (764) | 3,113 | (632) |
Unrealized net gains (losses) | 10 | 42 | 31 | (90) |
Ending Balance | (3,082) | (722) | (3,082) | (722) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net change AOCI, before tax | $ 10 | $ 42 | $ (31) | $ 90 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 381,345 | 381,345 | |||
Additional Stock based Compensation | $ 800,000 | $ 1,500,000 | |||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 410,000 | 410,000 | 416,211 | 412,100 | |
Employee Deferred Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 17,205 | 17,205 | |||
Additional Stock based Compensation | $ 18,741 | ||||
Non-employee Directors’ Stock-Based Compensation Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,130,000 | 1,130,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | |||||
Non-Employee Share Based Compensation Arrangement by Share Based Payment Award, Number Of Shares Available To Be Issued | 421,041 | 421,041 | |||
Rate Of Cash Based Compensation | 50.00% | ||||
Additional Stock based Compensation | $ 60,000 | ||||
Board Of Directors Chairman [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional Stock based Compensation | 20,000 | ||||
Audit Committee Chair [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional Stock based Compensation | 15,000 | ||||
Other Committee Chairs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional Stock based Compensation | $ 10,000 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ 839 | $ 1,075 | $ 1,696 | $ 1,448 |
Employees’ Stock-Based Compensation Plans [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | 765 | 1,001 | 1,548 | 1,300 |
Non-employee Directors’ Stock-Based Compensation Plans [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ 74 | $ 74 | $ 148 | $ 148 |
STOCK-BASED COMPENSATION (Sum82
STOCK-BASED COMPENSATION (Summary of Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | |||
Number of Options Outstanding at beginning of period | 416 | 416 | |
Number of Options Forfeited/Expired | (6) | ||
Number of Options Outstanding at end of period | 410 | 416 | 416 |
Number of options that were exercisable | 410 | 398 | |
Weighted average Exercise Price per Option Outstanding at beginning of period | $ 3.52 | $ 3.52 | |
Weighted average Exercise Price per Option, Forfeited/Expired | 132.50 | ||
Weighted average Exercise Price per Option Outstanding at end of period | 1.56 | 3.52 | $ 3.52 |
Weighted average Exercise Price per Option Exercisable | $ 1.56 | $ 3.60 | |
Weighted Average Remaining Contractual Life per Option (in years) Outstanding | 4 years 10 months 24 days | 5 years 3 months 18 days | 6 years 3 months 18 days |
Weighted average Remaining Contractual Life per Option (in years) Exercisable | 4 years 10 months 24 days | 5 years 3 months 18 days | |
Aggregate Intrinsic Value | $ 6,800 | $ 5,283 | $ 3,196 |
Period End Liability | $ 6,811 | $ 5,282 | $ 3,281 |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Employee Deferred Shares) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Period End Liability | $ 6,811 | $ 5,282 | $ 3,281 |
Employee Deferred Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance | 10 | ||
Issued | (10) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance | $ 4.40 | ||
Issued | $ 4.40 | ||
Period End Liability | $ 126 |
STOCK-BASED COMPENSATION (Sum84
STOCK-BASED COMPENSATION (Summary of Nonemployee Director Stock Award Activity) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Cash | $ 3,919,000 | $ 3,911,000 | $ 7,999,000 | $ 7,183,000 |
Non-employee Directors’ Stock-Based Compensation Plans [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Cash | $ 73,750 | $ 73,750 | ||
Weighted - average Grant Date Share Price | $ 16.31 | $ 10.69 | ||
Options Vested | ||||
Directors' Fees Expense | $ 147,500 | $ 147,500 | ||
Non-employee Directors’ Stock-Based Compensation Plans [Member] | Common Shares [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Granted | 3,391 | |||
Non-employee Directors’ Stock-Based Compensation Plans [Member] | Restricted Stock [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Granted | 4,523 | 3,508 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Discontinued Operations [Abstract] | ||||
Other income | $ 84 | $ 84 | $ 167 | $ 167 |
Other expense | (1) | (1) | (1) | (6) |
Net income from discontinued operations | 83 | 83 | 166 | 161 |
Loss from discontinued operations allocable to noncontrolling interests | ||||
Net income to common shareholders from discontinued operations | $ 83 | $ 83 | $ 166 | $ 161 |
CONSOLIDATED FUNDS AND VENTUR86
CONSOLIDATED FUNDS AND VENTURES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Depreciation | $ 100 | $ 300 | $ 100 | |
Real Estate Held-For-Sale | 6,063 | 6,063 | ||
Lower Tier Property Partnerships Real Estate Held For Use [Member] | ||||
Bond Investment in Lower Tier Property Partnerships | 99,300 | 99,300 | $ 126,400 | |
Lower Tier Property Partnerships Real Estate Held For Use, Acquired Q22016 [Member] | ||||
Business Combination, Consideration Transferred | $ 100 | |||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% | |||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | $ 1,900 | 1,900 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,200 | |||
L I H T C Funds [Member] | ||||
Real Estate Held-For-Sale | $ 3,209 | $ 3,209 | ||
L I H T C Funds [Member] | Face Amount Equal to Carrying Value [Member] | ||||
Debt, Weighted Average Interest Rate and Cost | 5.50% | 5.50% | ||
Portion of Debt Carrying Value | $ 6,700 | $ 6,700 | 6,700 | |
L I H T C Funds [Member] | Face Amount Not Equal to Carrying Value [Member] | ||||
Portion of Debt Carrying Value | $ 3,100 | $ 3,100 | 3,200 | |
Consolidated Property Partnershps [Member] | ||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 0.01% | |||
Limited Liability Company (Llc) Or Limited Partnership (Lp), Members Or Limited Partners, Ownership Interest | 99.89% | |||
Consolidated Property Partnershps [Member] | Face Amount Not Equal to Carrying Value [Member] | ||||
Debt, Weighted Average Interest Rate and Cost | 4.30% | 4.30% | ||
Related Face Amount to Carrying Value | $ 2,800 | |||
Eleven Guaranteed Funds [Member] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 482,700 | $ 482,700 | $ 482,700 | |
Building [Member] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Minimum [Member] | Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 6 years | |||
Maximum [Member] | Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 7 years |
CONSOLIDATED FUNDS AND VENTUR87
CONSOLIDATED FUNDS AND VENTURES (Asset Summary for Consolidated Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Investments in Lower Tier Property Partnerships | $ 237,474 | $ 260,441 |
Real estate held-for-sale, net | 6,063 | |
Other assets | 87,398 | 58,315 |
Total assets | 568,046 | 599,071 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,220 | 22,992 |
Investments in Lower Tier Property Partnerships | 155,518 | 177,786 |
Real estate held for use, net | 21,206 | 9,821 |
Real estate held-for-sale, net | 3,209 | |
Other assets | 8,082 | 9,013 |
Total assets | 211,235 | 219,612 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | $ 21,206 | $ 9,821 |
CONSOLIDATED FUNDS AND VENTUR88
CONSOLIDATED FUNDS AND VENTURES (Assets and Liabilities of LTPPs) (Details) - Lower Tier Property Partnerships Real Estate Held For Use [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Total assets of Lower Tier Property Partnerships | $ 1,177,513 | $ 1,216,319 |
Total liabilities of Lower Tier Property Partnerships | $ 988,741 | $ 1,008,835 |
CONSOLIDATED FUNDS AND VENTUR89
CONSOLIDATED FUNDS AND VENTURES (Real Estate Held-for-use of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | $ 21,206 | $ 9,821 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | 21,206 | 9,821 |
Consolidated Funds and Ventures [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | 19,368 | 8,696 |
Accumulated depreciation | (356) | (89) |
Consolidated Funds and Ventures [Member] | Land [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | $ 2,194 | $ 1,214 |
CONSOLIDATED FUNDS AND VENTUR90
CONSOLIDATED FUNDS AND VENTURES (Real Estate Held-for-sale of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Other assets | $ 87,398 | $ 58,315 |
Real estate held-for-sale, net | 6,063 | |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,220 | 22,992 |
Property, Plant and Equipment, Net | 21,206 | 9,821 |
Other assets | 8,082 | 9,013 |
Real estate held-for-sale, net | 3,209 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 728 | |
Other assets | 31 | |
Real estate held-for-sale, net | 3,209 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | 1,955 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | Land [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | 495 | |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | $ 21,206 | $ 9,821 |
CONSOLIDATED FUNDS AND VENTUR91
CONSOLIDATED FUNDS AND VENTURES (Liabilities of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Debt | $ 226,278 | $ 242,095 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,103 | 8,203 |
Other liabilities | 51,838 | 47,551 |
Total liabilities | 290,126 | 302,850 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Debt | 9,848 | 9,883 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,103 | 8,203 |
Asset management fee payable | 26,520 | 24,828 |
Other liabilities | 3,645 | 3,405 |
Total liabilities | $ 48,116 | $ 46,319 |
CONSOLIDATED FUNDS AND VENTUR92
CONSOLIDATED FUNDS AND VENTURES (Information Pertaining to Income Statement of CFVs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Total revenue from CFVs | $ 726 | $ 133 | $ 1,545 | $ 200 |
Expenses: | ||||
Interest expense | 552 | 511 | 1,101 | 985 |
Total expenses from CFVs | 16,403 | 18,009 | 32,076 | 35,907 |
Net gains (losses) related to CFVs: | ||||
Derivative gains | 1,418 | 928 | 2,085 | 1,913 |
Equity in losses from Lower Tier Property Partnerships of CFVs | (4,036) | (12,254) | ||
Net loss | (7,126) | (6,877) | (2,978) | (21,019) |
Consolidated Funds and Ventures [Member] | ||||
Revenue: | ||||
Rental and other income from real estate | 462 | 784 | ||
Interest and other income | 264 | 133 | 761 | 200 |
Total revenue from CFVs | 726 | 133 | 1,545 | 200 |
Expenses: | ||||
Depreciation and amortization | 681 | 550 | 1,368 | 1,102 |
Interest expense | 132 | 90 | 259 | 178 |
Other operating expenses | 1,697 | 1,337 | 2,986 | 2,476 |
Asset impairments | 6,504 | 7,037 | 12,769 | 14,574 |
Total expenses from CFVs | 9,014 | 9,014 | 17,382 | 18,330 |
Net gains (losses) related to CFVs: | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | (4,937) | (6,654) | (10,623) | (12,347) |
Net loss | (13,823) | (15,535) | (27,058) | (30,477) |
Net losses allocable to noncontrolling interests in CFVs | 12,322 | 14,168 | 24,822 | 28,472 |
Net (loss) income allocable to the common shareholders related to CFVs | (1,501) | (1,367) | (2,236) | (2,005) |
Consolidated Funds and Ventures [Member] | ||||
Revenue: | ||||
Total revenue from CFVs | 726 | 133 | 1,545 | 200 |
Expenses: | ||||
Total expenses from CFVs | 8,867 | 9,345 | 17,629 | 18,992 |
Net gains (losses) related to CFVs: | ||||
Net loss | (12,322) | (14,168) | (24,822) | (28,472) |
Net (loss) income allocable to the common shareholders related to CFVs | $ (1,501) | $ (1,367) | $ (2,236) | $ (2,005) |
CONSOLIDATED FUNDS AND VENTUR93
CONSOLIDATED FUNDS AND VENTURES (Net (Loss) Income Related to CFVs Allocable to Common Shareholders) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investment [Line Items] | ||||
Interest income | $ 3,591 | $ 4,084 | $ 7,282 | $ 8,851 |
Equity in income (losses) | (4,036) | (12,254) | ||
Other expense | 735 | 1,722 | 783 | 1,829 |
Consolidated Funds and Ventures [Member] | ||||
Investment [Line Items] | ||||
Guarantee fees | 331 | 331 | 662 | 662 |
Interest income | 65 | 65 | ||
Other expense | (598) | (598) | ||
Net (loss) income allocable to the common shareholders related to CFVs | (1,501) | (1,367) | (2,236) | (2,005) |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | ||||
Investment [Line Items] | ||||
Equity in income (losses) | (1,354) | $ (1,698) | (2,483) | $ (2,667) |
Consolidated Funds and Ventures [Member] | SAWHF [Member] | ||||
Investment [Line Items] | ||||
Equity in income (losses) | $ 55 | $ 118 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Interest Income, Operating | $ 3,591 | $ 4,084 | $ 7,282 | $ 8,851 |
Investment Advisory, Management and Administrative Fees | $ 2,261 | 1,575 | $ 4,153 | 2,996 |
Equity in (losses) income from Lower Tier Property Partnerships in CFVs | $ (6,654) | $ (12,347) |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total interest income | $ 3,591 | $ 4,084 | $ 7,282 | $ 8,851 |
Total interest expense | (552) | (511) | (1,101) | (985) |
Net interest income | 3,039 | 3,573 | 6,181 | 7,866 |
Total fee and other income | 3,215 | 3,696 | 5,754 | 7,137 |
Revenue from CFVs | 726 | 133 | 1,545 | 200 |
Total non-interest revenue | 3,941 | 3,829 | 7,299 | 7,337 |
Total revenues, net of interest expense | 6,980 | 7,402 | 13,480 | 15,203 |
Operating and other expenses: | ||||
Interest expense | (1,075) | (1,708) | (2,117) | (4,904) |
Operating expenses | (5,579) | (5,565) | (11,794) | (10,844) |
Other expenses, net | (735) | (1,722) | (783) | (1,829) |
Expenses from CFVs | (9,014) | (9,014) | (17,382) | (18,330) |
Total operating and other expenses | (16,403) | (18,009) | (32,076) | (35,907) |
Net gains on assets, derivatives and extinguishment of liabilities | 1,452 | 10,342 | 4,545 | 11,910 |
Net gains transferred into net income from AOCI due to real estate foreclosure | 4,205 | 15,647 | ||
Equity in (losses) income from unconsolidated funds and ventures | (4,036) | (12,254) | ||
Net gains related to CFVs | (598) | (598) | ||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (6,654) | (12,347) | ||
Income (loss) from continuing operations before income taxes | (7,175) | (6,899) | (3,038) | (21,048) |
Income tax expense | (34) | (61) | (106) | (132) |
Income (loss) from discontinued operations, net of tax | 83 | 83 | 166 | 161 |
Net income (loss) | (7,126) | (6,877) | (2,978) | (21,019) |
Net losses allocable to noncontrolling interests in CFVs: | (12,256) | (14,168) | (24,713) | (28,472) |
Net income (loss) to common shareholders | 5,130 | 7,291 | 21,735 | 7,453 |
Unconsolidated Funds and Ventures [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) income from unconsolidated funds and ventures | 2,126 | 20 | 6,587 | 93 |
Lower Tier Property Partnerships [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (4,937) | (10,623) | ||
Consolidated Funds and Ventures [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from CFVs | 726 | 133 | 1,545 | 200 |
Operating and other expenses: | ||||
Equity in (losses) income from unconsolidated funds and ventures | (4,937) | (6,654) | (10,623) | (12,347) |
Continuing Operations [Member] | ||||
Operating and other expenses: | ||||
Net losses allocable to noncontrolling interests in CFVs: | 12,256 | 14,168 | 24,713 | 28,472 |
U.S. Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 3,614 | 4,052 | 7,263 | 8,787 |
Total interest expense | (451) | (379) | (891) | (708) |
Net interest income | 3,163 | 3,673 | 6,372 | 8,079 |
Total fee and other income | 1,717 | 2,641 | 3,107 | 4,695 |
Total non-interest revenue | 1,717 | 2,641 | 3,107 | 4,695 |
Total revenues, net of interest expense | 4,880 | 6,314 | 9,479 | 12,774 |
Operating and other expenses: | ||||
Interest expense | (14) | (281) | (14) | (796) |
Operating expenses | (2,130) | (1,948) | (4,372) | (3,560) |
Other expenses, net | (1,305) | (435) | (1,452) | (693) |
Total operating and other expenses | (3,449) | (2,664) | (5,838) | (5,049) |
Net gains on assets, derivatives and extinguishment of liabilities | 1,452 | 10,342 | 4,541 | 11,910 |
Net gains transferred into net income from AOCI due to real estate foreclosure | 4,205 | 15,647 | ||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (1,698) | (2,667) | ||
Income (loss) from continuing operations before income taxes | 7,976 | 12,252 | 28,271 | 16,917 |
Income (loss) from discontinued operations, net of tax | 83 | 83 | 166 | 161 |
Net income (loss) | 8,059 | 12,335 | 28,437 | 17,078 |
Net income (loss) to common shareholders | 8,059 | 12,335 | 28,437 | 17,078 |
U.S. Operations [Member] | Unconsolidated Funds and Ventures [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) income from unconsolidated funds and ventures | 2,242 | (42) | 6,925 | (51) |
U.S. Operations [Member] | Lower Tier Property Partnerships [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (1,354) | (2,483) | ||
International Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 29 | 15 | 56 | 34 |
Net interest income | 29 | 15 | 56 | 34 |
Total fee and other income | 1,823 | 1,386 | 3,281 | 2,616 |
Total non-interest revenue | 1,823 | 1,386 | 3,281 | 2,616 |
Total revenues, net of interest expense | 1,852 | 1,401 | 3,337 | 2,650 |
Operating and other expenses: | ||||
Interest expense | (29) | (58) | ||
Operating expenses | (2,094) | (2,210) | (4,028) | (4,292) |
Other expenses, net | 2 | (284) | 120 | (30) |
Total operating and other expenses | (2,092) | (2,523) | (3,908) | (4,380) |
Income (loss) from continuing operations before income taxes | (301) | (1,060) | (791) | (1,586) |
Net income (loss) | (301) | (1,060) | (791) | (1,586) |
Net income (loss) to common shareholders | (367) | (1,060) | (900) | (1,586) |
International Operations [Member] | Unconsolidated Funds and Ventures [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) income from unconsolidated funds and ventures | (61) | 62 | (220) | 144 |
International Operations [Member] | Continuing Operations [Member] | ||||
Operating and other expenses: | ||||
Net losses allocable to noncontrolling interests in CFVs: | (66) | (109) | ||
Corporate Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 13 | 17 | 28 | 30 |
Total interest expense | (101) | (132) | (210) | (277) |
Net interest income | (88) | (115) | (182) | (247) |
Total fee and other income | 6 | 28 | 488 | |
Total non-interest revenue | 6 | 28 | 488 | |
Total revenues, net of interest expense | (82) | (115) | (154) | 241 |
Operating and other expenses: | ||||
Interest expense | (1,061) | (1,398) | (2,103) | (4,050) |
Operating expenses | (1,355) | (1,407) | (3,394) | (2,992) |
Other expenses, net | (30) | (1,003) | (49) | (1,106) |
Total operating and other expenses | (2,446) | (3,808) | (5,546) | (8,148) |
Net gains on assets, derivatives and extinguishment of liabilities | 4 | |||
Income (loss) from continuing operations before income taxes | (2,528) | (3,923) | (5,696) | (7,907) |
Income tax expense | (34) | (61) | (106) | (132) |
Net income (loss) | (2,562) | (3,984) | (5,802) | (8,039) |
Net income (loss) to common shareholders | (2,562) | (3,984) | (5,802) | (8,039) |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | (65) | (65) | ||
Net interest income | (65) | (65) | ||
Total fee and other income | (331) | (331) | (662) | (662) |
Total non-interest revenue | (331) | (331) | (662) | (662) |
Total revenues, net of interest expense | (396) | (331) | (727) | (662) |
Operating and other expenses: | ||||
Other expenses, net | 598 | 598 | ||
Expenses from CFVs | (147) | 331 | 247 | 662 |
Total operating and other expenses | 451 | 331 | 845 | 662 |
Intersegment Eliminations [Member] | Unconsolidated Funds and Ventures [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) income from unconsolidated funds and ventures | (55) | (118) | ||
Consolidated Funds and Ventures [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 65 | 65 | ||
Revenue from CFVs | 726 | 133 | 1,545 | 200 |
Total non-interest revenue | 726 | 133 | 1,545 | 200 |
Total revenues, net of interest expense | 726 | 133 | 1,545 | 200 |
Operating and other expenses: | ||||
Other expenses, net | 598 | 598 | ||
Expenses from CFVs | (8,867) | (9,345) | (17,629) | (18,992) |
Total operating and other expenses | (8,867) | (9,345) | (17,629) | (18,992) |
Net gains related to CFVs | (598) | (598) | ||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (4,956) | (9,680) | ||
Income (loss) from continuing operations before income taxes | (12,322) | (14,168) | (24,822) | (28,472) |
Net income (loss) | (12,322) | (14,168) | (24,822) | (28,472) |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | ||||
Operating and other expenses: | ||||
Equity in (losses) income from unconsolidated funds and ventures | (1,354) | (1,698) | (2,483) | (2,667) |
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (3,583) | (8,140) | ||
Consolidated Funds and Ventures [Member] | Continuing Operations [Member] | ||||
Operating and other expenses: | ||||
Net losses allocable to noncontrolling interests in CFVs: | $ 12,322 | $ 14,168 | $ 24,822 | $ 28,472 |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | $ 568,046 | $ 599,071 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 568,046 | 599,071 |
U.S. Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 542,292 | 571,213 |
U.S. Operations [Member] | Consolidated Funds and Ventures [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 211,235 | 219,612 |
Corporate Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 18,739 | 21,619 |
International Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | $ 7,015 | $ 6,239 |