Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 03, 2017 | |
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, 2017 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 | |
Entity Common Stock, Shares Outstanding | 5,852,582 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 37,482 | $ 45,525 |
Restricted cash (includes $23,770 and $23,584 related to consolidated funds and ventures ("CFVs")) | 46,126 | 57,504 |
Bonds available-for-sale (includes $140,643 and $135,614 pledged as collateral) | 151,662 | 155,981 |
Investments in partnerships (includes $119,444 and $137,773 related to CFVs) | 227,676 | 244,191 |
Other assets (includes $42,727 and $44,551 related to CFVs) | 73,093 | 70,998 |
Total assets | 536,039 | 574,199 |
LIABILITIES AND EQUITY | ||
Debt (includes $12,945 and $13,029 related to CFVs) | 225,096 | 243,071 |
Accounts payable and accrued expenses | 4,132 | 7,821 |
Unfunded equity commitments to lower tier property partnerships related to CFVs | 8,103 | 8,103 |
Other liabilities (includes $33,117 and $32,582 related to CFVs) | 56,852 | 54,881 |
Total liabilities | 294,183 | 313,876 |
Commitments and contingencies | ||
Equity | ||
Noncontrolling interests in CFVs and IHS Property Management ("IHS PM") | 114,309 | 134,999 |
Common shareholders’ equity: | ||
Common shares, no par value (5,795,543 and 5,925,743 shares issued and outstanding and 85,780 and 81,863 non-employee directors' and employee deferred shares issued at June 30, 2017 and December 31, 2016, respectively) | 88,609 | 87,506 |
Accumulated other comprehensive income ("AOCI") | 38,938 | 37,818 |
Total common shareholders’ equity | 127,547 | 125,324 |
Total equity | 241,856 | 260,323 |
Total liabilities and equity | $ 536,039 | $ 574,199 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Restricted cash (includes $23,770 and $23,584 related to consolidated funds and ventures ("CFVs")) | $ 46,126 | $ 57,504 |
Bonds available-for-sale, pledged as collateral | 140,643 | 135,614 |
Investments in partnerships (includes $119,444 and $137,773 related to CFVs) | 227,676 | 244,191 |
Other assets, pledged as collateral | 42,727 | 44,551 |
Other assets | 73,093 | 70,998 |
Debt | 225,096 | 243,071 |
Other Liabilities | $ 56,852 | $ 54,881 |
Common stock, no par value | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 5,795,543 | 5,925,743 |
Common shares, shares outstanding (in shares) | 5,795,543 | 5,925,743 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 85,780 | 81,863 |
Consolidated Funds and Ventures [Member] | ||
Restricted cash (includes $23,770 and $23,584 related to consolidated funds and ventures ("CFVs")) | $ 23,770 | $ 23,584 |
Investments in partnerships (includes $119,444 and $137,773 related to CFVs) | 119,444 | 137,773 |
Other assets | 42,727 | 44,551 |
Debt | 12,945 | 13,029 |
Other Liabilities | $ 33,117 | $ 32,582 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Interest income | |||||
Interest on bonds | $ 2,376 | $ 2,705 | $ 4,896 | $ 5,959 | |
Interest on loans and short-term investments | 298 | 886 | 712 | 1,323 | |
Total interest income | 2,674 | 3,591 | 5,608 | 7,282 | |
Interest expense | |||||
Bond related debt | 444 | 335 | 855 | 630 | |
Non-bond related debt | 217 | 471 | |||
Total interest expense | 444 | 552 | 855 | 1,101 | |
Net interest income | 2,230 | 3,039 | 4,753 | 6,181 | |
Non-interest revenue | |||||
Asset management fees and reimbursements | 6,751 | 2,261 | 11,270 | 4,153 | |
Other income | 242 | 954 | 553 | 1,601 | |
Total non-interest revenue | 8,738 | 3,941 | 15,075 | 7,299 | |
Total revenues, net of interest expense | 10,968 | 6,980 | 19,828 | 13,480 | |
Operating and other expenses | |||||
Interest expense | 1,221 | 1,075 | 2,447 | 2,117 | |
Salaries and benefits | 3,421 | 3,919 | 9,291 | 7,999 | |
General and administrative | 777 | 655 | 1,369 | 1,355 | |
Professional fees | 1,166 | 1,005 | 2,975 | 2,440 | |
Other expenses | 298 | 735 | 156 | 783 | |
Expenses from CFVs | 9,782 | 9,014 | 17,452 | 17,382 | |
Total operating and other expenses | 16,665 | 16,403 | 33,690 | 32,076 | |
Net gains on bonds | 28 | 2,323 | |||
Net gains (losses) on loans | 6 | (5,335) | 6 | ||
Net gains on sale of real estate estate and other investments | 174 | 174 | 116 | ||
Net gains (losses) on assets and derivatives | (968) | 1,418 | 1,071 | 2,100 | |
Net gains on extinguishment of liabilities | 3,829 | 3,829 | |||
Net gains transferred into net income from AOCI due to consolidation or real estate foreclosure | 4,205 | 15,647 | |||
Net gains related to CFVs | (598) | 10 | (598) | ||
Equity in gains (losses) from equity method investments | [1] | (2,545) | (4,036) | ||
Net gain (loss) from continuing operations before income taxes | (3,777) | (7,175) | (16,658) | (3,038) | |
Income tax benefit (expense) | (424) | (34) | (166) | (106) | |
Net income from discontinued operations, net of tax | 95 | 83 | 137 | 166 | |
Net (loss) income | (4,106) | (7,126) | (16,687) | (2,978) | |
Loss allocable to noncontrolling interests: | |||||
Net loss allocable to noncontrolling interests | (11,523) | (12,256) | (20,660) | (24,713) | |
Net income allocable to common shareholders | $ 7,417 | $ 5,130 | $ 3,973 | $ 21,735 | |
Basic income (loss) per common share: | |||||
(Loss) Income from continuing operations (in dollars per share) | $ 1.24 | $ 0.80 | $ 0.65 | $ 3.37 | |
Income from discontinued operations (in dollars per share) | 0.02 | 0.01 | 0.02 | 0.02 | |
(Loss) Income per common share (in dollars per share) | 1.26 | 0.81 | 0.67 | 3.39 | |
Diluted income (loss) per common share: | |||||
(Loss) Income from continuing operations (in dollars per share) | 1.14 | 0.80 | 0.65 | 3.37 | |
Income from discontinued operations (in dollars per share) | 0.02 | 0.01 | 0.02 | 0.02 | |
(Loss) Income per common share (in dollars per share) | $ 1.16 | $ 0.81 | $ 0.67 | $ 3.39 | |
Weighted-average common shares outstanding: | |||||
Basic (in shares) | 5,893 | 6,289 | 5,915 | 6,406 | |
Diluted (in shares) | 6,275 | 6,289 | 5,915 | 6,410 | |
Continuing Operations [Member] | |||||
Loss allocable to noncontrolling interests: | |||||
Net loss allocable to noncontrolling interests | $ 11,523 | $ 12,256 | $ 20,660 | $ 24,713 | |
Consolidated Funds and Ventures [Member] | |||||
Non-interest revenue | |||||
Revenue from CFVs | 1,745 | 726 | 3,252 | 1,545 | |
Operating and other expenses | |||||
Expenses from CFVs | 9,782 | 9,014 | 17,452 | 17,382 | |
Net gains related to CFVs | (598) | 10 | (598) | ||
Equity in gains (losses) from equity method investments | (3,974) | (4,937) | (7,448) | (10,623) | |
Unconsolidated Funds and Ventures [Member] | |||||
Operating and other expenses | |||||
Equity in gains (losses) from equity method investments | $ 2,859 | $ 2,126 | $ 4,903 | $ 6,587 | |
[1] | These amounts primarily relate to CFVs. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net income allocable to common shareholders | $ 7,417 | $ 5,130 | $ 3,973 | $ 21,735 |
Net loss allocable to noncontrolling interests | (11,523) | (12,256) | (20,660) | (24,713) |
Net loss | (4,106) | (7,126) | (16,687) | (2,978) |
Bond related changes: | ||||
Unrealized net gains | 539 | 4,460 | 1,346 | 8,251 |
Reversal of net unrealized gains on sold or redeemed bonds | (2,055) | |||
Reclassification of unrealized gains from AOCI to Net Income due to consolidation and foreclosure | (4,205) | (15,647) | ||
Net change in other comprehensive income due to bonds | 539 | 255 | 1,346 | (9,451) |
Income tax (benefit) expense | 243 | |||
Foreign currency translation adjustment | (14) | 10 | (226) | 31 |
Other comprehensive (loss) income allocable to common shareholders | 768 | 265 | 1,120 | (9,420) |
Other comprehensive loss allocable to noncontrolling interests: | ||||
Foreign currency translation adjustment | ||||
Comprehensive income to common shareholders | 8,185 | 5,395 | 5,093 | 12,315 |
Comprehensive loss to noncontrolling interests | (11,523) | (12,256) | (20,660) | (24,713) |
Comprehensive loss | $ (3,338) | $ (6,861) | $ (15,567) | $ (12,398) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Jun. 30, 2017 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | AOCI [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 87,506 | $ 37,818 | $ 125,324 | $ 134,999 | $ 260,323 |
Balance (in shares) at Dec. 31, 2016 | 6,007 | ||||
Net loss | $ 3,973 | 3,973 | (20,660) | (16,687) | |
Other comprehensive income (loss) | 1,120 | 1,120 | 1,120 | ||
Distributions | (30) | (30) | |||
Purchases of shares in a subsidiary (including price adjustments on prior purchases) | (207) | (207) | (207) | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 89 | 89 | 89 | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 4 | ||||
Common share repurchases | $ (2,752) | (2,752) | (2,752) | ||
Common share repurchases (in shares) | (130) | ||||
Balance at Jun. 30, 2017 | $ 88,609 | $ 38,938 | $ 127,547 | $ 114,309 | $ 241,856 |
Balance (in shares) at Jun. 30, 2017 | 5,881 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (16,687) | $ (2,978) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Provisions for credit losses and impairment | [1] | 11,400 | 12,769 |
Net equity in losses from equity investments in partnerships | [1] | 2,545 | 4,036 |
Net gains on bonds | (2,323) | ||
Net losses related to CFVs | (10) | 598 | |
Net gains on real estate and other investments | (174) | (116) | |
Net losses (gains) on loans | 5,335 | (6) | |
Net losses on derivatives and other assets | 270 | 17 | |
Net losses (gains) on derivatives, loans, other assets and extinguishment of liabilities | (3,829) | ||
Net gains transferred into net income from AOCI due to real estate consolidation and foreclosure | (15,647) | ||
Distributions received from investments in partnerships | 2,096 | 5,862 | |
Subordinate debt effective yield amortization and interest accruals | (399) | 334 | |
Depreciation and other amortization | [1] | 1,289 | 673 |
Foreign currency loss | (496) | (157) | |
Stock-based compensation expense | 1,667 | 1,622 | |
Change in asset management fees receivable | (3,217) | (329) | |
Change in asset management fees payable related to CFVs | 447 | 1,693 | |
Other | (3,797) | (2,006) | |
Net cash (used in) provided by operating activities | (3,560) | 4,042 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Principal payments and sales proceeds received on bonds and loans held for investment | 12,472 | 16,984 | |
Advances on and originations of loans held for investment | (15,528) | (23,470) | |
Investments in property partnerships and real estate | (2,128) | (1,615) | |
Proceeds from the sale of real estate and other investments | 2,939 | 17,804 | |
Decrease (increase) in restricted cash and cash of CFVs | 11,232 | (2,497) | |
Capital distributions received from investments in property partnerships | 2,291 | 3,407 | |
Net cash provided by investing activities | 11,278 | 10,613 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowing activity | 7,309 | ||
Repayment of borrowings | (20,112) | (10,256) | |
Purchase of treasury stock | (2,751) | (6,544) | |
Distributions paid to holders of noncontrolling interests | (1,415) | ||
Other | (207) | ||
Net cash used in financing activities | (15,761) | (18,215) | |
Net decrease in cash and cash equivalents | (8,043) | (3,560) | |
Cash and cash equivalents at beginning of period | 45,525 | 21,843 | |
Cash and cash equivalents at end of period | 37,482 | 18,283 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest paid | 4,102 | 2,784 | |
Income taxes paid | 260 | 174 | |
Non-cash investing and financing activities: | |||
Unrealized gains (losses) included in other comprehensive income | 1,120 | (9,420) | |
Debt and liabilities extinguished through sales and collections on bonds and loans | 1,444 | 1,657 | |
Decrease in debt through net loan paydowns | 3,674 | ||
Increase in real estate assets and decrease in bond assets due to foreclosure or initial consolidation of funds and ventures | 30,299 | ||
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 | $ 7,448 | $ 10,623 | |
[1] | These amounts primarily relate to CFVs. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | MMA Capital Management, LLC NOTES TO CONSOLIDA T ED FINANCIAL STATEMENTS (Unaudited) 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 when used in these Notes, the “ Company ,” “ MMA ,” “ we ,” “ our ” or “ us ” refers 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. We invest for our own account and co-invest with our institutional capital partners. We derive revenue from returns on our investments as well as asset management, performance and other fees from the investments, funds and ventures we manage. The Company operates through three reportable segments. United States (“ U.S. ”) Operations consists of three business lines: Leveraged Bonds, Low Income Housing Tax Credit (“ LIHTC ”) and Energy Capital. In our Leveraged Bonds business line, we primarily own and manage bonds for our own account that finance affordable housing and infrastructure in the U.S. 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. In our Energy Capital business line, our wholly owned subsidiary MMA Energy Capital (“ MEC ”), originates debt capital directly and through multiple ventures with a leading global private investment firm and an alternative asset manager (hereinafter, the “ Solar Ventures ”) to develop, build and operate renewable energy systems throughout North America. The Solar Ventures include Renewable Energy Lending, LLC (“ REL ”), Solar Construction Lending, LLC (“ SCL ”), Solar Permanent Lending, LLC (“ SPL ”) and Solar Development Lending, LLC (“ SDL ”). International Operations is managed through our wholly owned subsidiary, International Housing Solutions S.à r.l. (“ IHS ”). IHS’s strategy is to raise, invest in and manage funds and ventures that invest in residential real estate. This includes four private real estate funds and a publicly-traded real estate investment trust (“ REIT ”). IHS currently manages five investment vehicles: 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; IHS Fund II SA (“ IHS Fund II SA ”), which is a multi-investor fund targeting investments in affordable housing, including green housing projects, within South Africa; IHS Fund II SSA (“ IHS Fund II SSA ”), which is a multi-investor fund targeting investments in affordable housing, including green housing projects, within Namibia and Botswana; and Transcend Residential Property Fund Limited (“ Transcend ”), which is a REIT that is listed on the AltX of the Johannesburg Stock Exchange. Additionally, MMA owns a 60% interest in IHS Property Management Proprietary Limited (“ IHS PM ”), which provides property management services to a substantial portion of the properties in our IHS-managed funds. Corporate Operations is responsible for accounting, reporting, compliance and financial planning and analysis services. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“ GAAP ”) in the U.S. The unaudited interim consolidated financial statements as of, and for the three months and six months ended June 30, 2017, 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, 2016 (“ 2016 Form 10-K ”). 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. Principles of Consolidation The consolidated financial statements include the accounts of the Company and of entities that are considered to be variable interest entities in which the Company is the primary beneficiary, as well as those entities in which the Company has a controlling financial interest, including wholly owned subsidiaries of the Company. All intercompany transactions and balances have been eliminated in consolidation. 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. New Accounting Guidance 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 have considered the impact of this new guidance and do not expect its adoption to materially impact 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 expects 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. 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 principle. 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 Business Combinations In January 2017, Accounting Standards Update (“ASU”) No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” was issued. This guidance clarifies the definition of a business and provides guidance to assist reporting entities in the evaluation as to whether a transaction should be accounted for as an asset acquisition or business combination. This new guidance is effective for us on January 1, 2018. We anticipate the adoption of this new guidance to result in the majority, if not all, of the Company’s potential future general partner or limited partner acquisitions in real estate partnerships to be accounted for as an asset acquisition of nonfinancial assets rather than the acquisition of a business. We have considered the impact of this new guidance and do not expect its adoption to materially impact our consolidated financial statements. Accounting for Goodwill In January 2017, ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” was issued. This guidance simplifies the complexity of the two-step goodwill impairment test by removing the second step to the test. Goodwill impairment represents the excess of a reporting unit’s carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. This new guidance is effective for us on January 1, 2020, with early adoption permitted. We have considered the impact of this new guidance and do not expect its adoption to materially impact our consolidated financial statements. Accounting for Derecognition of Nonfinancial Assets In February 2017, ASU No. 2017-05, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Topic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” was issued. This guidance clarifies that the derecognition of all businesses should be accounted for in accordance with the derecognition and deconsolidation guidance of Topic 810-10 – Consolidations . In addition, this guidance eliminates the scope exception in authoritative literature that governs transfers of financial assets related to transfers of investments (including equity method investments) in real estate entities and supersedes guidance related to the exchange of a nonfinancial asset for a noncontrolling ownership interest as set forth in Topic 845 – Nonmonetary Transactions . This new guidance is effective for us on January 1, 2018. We have considered the impact of this new guidance and do not expect its adoption to materially impact our consolidated financial statements. Accounting for Stock Compensation In May 2017, ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting” was issued. This guidance amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under Accounting Standards Codification (“ ASC ”) 718, Compensation – Stock Compensation. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. This new guidance is effective for us on January 1, 2018. We have considered the impact of this new guidance and do not expect its adoption to materially impact our consolidated financial statements. |
BONDS AVAILABLE-FOR-SALE
BONDS AVAILABLE-FOR-SALE | 6 Months Ended |
Jun. 30, 2017 | |
Bonds Available-For-Sale [Abstract] | |
BONDS AVAILABLE-FOR-SALE | N ote 2—B onds 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 mortgage on the underlying properties. The Company’s investments in other real estate related bonds include municipal bonds that were issued to finance the development of infrastructure for a mixed-use commercial development and are secured by incremental tax revenues generated from the development . Investments in other real estate related bonds also includes senior investments in a trust collateralized by a pool of tax-exempt municipal bonds that finance a variety of non-profit projects such as healthcare and educational facilities, 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 6.1% at June 30, 2017 and December 31, 2016 . 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, 2017 and December 31, 2016 , respectively. The following tables provide information about the UPB, amortized cost, gross unrealized gains, gross unrealized losses and fair value (“ FV ”) associated with the Company’s investments in bonds that are classified as available-for-sale: At June 30, 2017 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2), (3) FV of UPB Multifamily tax-exempt bonds $ 105,915 $ 70,459 $ 38,507 $ ─ $ 108,966 103% Other real estate related bond investments 44,454 38,859 4,036 (199) 42,696 96% Total $ 150,369 $ 109,318 $ 42,543 $ (199) $ 151,662 101% At December 31, 2016 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2), (3) FV of UPB Multifamily tax-exempt bonds $ 106,366 $ 73,049 $ 36,978 $ ─ $ 110,027 103% Other real estate related bond investments 47,788 41,934 4,449 (429) 45,954 96% Total $ 154,154 $ 114,983 $ 41,427 $ (429) $ 155,981 101% (1) Consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as other-than-temporary impairments (“ OTTI ”) recognized in earnings. (2) These unrealized losses relate to investments in bonds that were not assessed as OTTI. The presentation of unrealized losses in the table above at December 31, 2016 was conformed in this Report to the presentation adopted during the first quarter of 2017 to separately disclose such amounts as gross unrealized losses. Such amounts were previously included in our 2016 Form 10-K within gross unrealized gains. (3) Comprised of two and one bond in a gross unrealized loss position for less than 12 consecutive months that had a fair value of $20.3 million and $16.5 million at June 30, 2017 and December 31, 2016, respectively. See Note 7 , “Fair Value , ” which describes factors that contribut ed to the $4.3 million decrease in the reported fair value of the Company’s bond portfolio for the six months ended June 30, 2017 . 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 7 , the majority of the Company’s bonds amortiz e on a scheduled basis and have stated maturity dates between September 2017 and March 2049. The Company also had five non-amortizing bonds with principal due in full between November 2044 and August 2048 (the total cost basis and fair value of these bonds were $13.5 million and $25.8 million, respectively, at June 30, 2017). 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 7 , 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, 2017 $ 34,454 $ 28,859 $ 32,162 July 1 through December 31, 2017 ─ ─ ─ 2018 1,919 311 2,215 2019 ─ ─ ─ 2020 5,230 4,279 5,451 2021 46,451 28,375 49,647 Thereafter 62,283 47,462 62,154 Bonds that may not be prepaid 32 32 33 Total $ 150,369 $ 109,318 $ 151,662 The weighted-average expected maturity of the Company’s investments in bonds that were not currently prepayable at par at June 3 0 , 2017 was 4.6 years. Non-Accrual Bonds The fair value of the Company’s investments in bonds that were on non-accrual status was $6.7 million and $7.0 million at June 3 0 , 2017 and December 31, 2016. The Company recognized interest income on a cash basis of $0.1 million and $0.2 million for the three months ended June 30, 2017 and 2016 , respectively , and $0.1 million and $0.5 million for the six months ended June 30, 2017 and 2016, respectively . Interest income not recognized during the period in which these investments in bonds were on non-accrual status was $0.2 million and $0.4 million for the three months ended June 30, 2017 and 2016, respectively, and $0.3 million and $0.9 m illion for the six months ended June 30, 2017 and 2016, respectively . B ond 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) 2017 2016 Total current $ 144,927 $ 148,967 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 6,735 7,014 Total $ 151,662 $ 155,981 B ond Sales and Redemptions The Company recognized cash proceeds in connection with sale and full redemption of its investments in bonds of $6.1 million for the six months ended June 3 0 , 2016 . There were no bond sales or full redemptions for the three months ended June 30, 2017 and 2016 or for the six months ended June 30, 2017. The following table provides information about net realized gains that were recognized in connection with the Company’s investments in bonds (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) 2017 2016 2017 2016 Gains recognized at time of sale or redemption (1) $ ─ $ 28 $ ─ $ 2,323 |
INVESTMENTS IN PARTNERSHIPS AND
INVESTMENTS IN PARTNERSHIPS AND VENTURES | 6 Months Ended |
Jun. 30, 2017 | |
INVESTMENTS IN PARTNERSHIPS AND VENTURES [Abstract] | |
INVESTMENT IN PARTNERSHIPS AND VENTURES | N ote 3— I nvestments in Partnerships and Ventures The following table provides information about the carrying value of the Company’s investments in partnerships and ventures. At At June 30, December 31, (in thousands) 2017 2016 Investments in U.S. real estate partnerships (includes $7,794 and $11,138 related to VIEs) (1) $ 25,287 $ 27,596 Investments in IHS-managed funds (includes $2,022 and $1,955 related to VIEs) (1) 4,003 3,296 Investment in Solar Ventures 78,942 75,526 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) 119,444 137,773 Total investments in partnerships $ 227,676 $ 244,191 (1) We do not consolidate any of the investees that were assessed to meet the definition of a VIE because the Company was deemed not to be the primary beneficiary. (2) See Note 13, “Consolidated Funds and Ventures,” for more information. I nvestments in U.S. Real Estate Partnerships A t June 3 0 , 201 7 , $17.5 million of the reported carrying value pertains to an equity investment made by the Company in a real estate venture to develop a mixed-use town center development . The Company made an initial contribution of $8.8 million , which represent ed 80% of the real estate venture’s initial capital. Through the governing agreements, the Company is obligated to make additional capital contributions of up to an additional $2.5 million as of June 30, 2017 . 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 7 , $ 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, 201 7 , $1.6 million of the reported carrying value pertains to an equity investment in a LIHTC partnership acquired by a wholly owned subsidiary of the registrant, MuniMae TEI Holdings, LLC (“ TEI ”), during the fourth quarter of 2015. While this entity was determined to be a VIE, the Company was not deemed to be its primary beneficiary. Therefore, t he Company did not consolidate this entity and accounts for this investment using the equity method of accounting. At June 30, 2017 and December 31, 2016, two and three of the U.S. real estate partnerships in which we have investments were determined to be VIEs , respectively . The carrying value of the equity investments in these partnerships was $7.8 million and $11.1 million at June 30, 2017 and December 3 1 , 2016, 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 $7.8 million and $11.1 million at June 30, 2017 and December 3 1 , 2016, 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. 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, 2017 2016 (in thousands) Total assets $ 86,277 $ 97,659 Total liabilities 40,003 47,147 The following table provides information about the net (loss) income 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) 2017 2016 2017 2016 Net (loss) income $ (518) $ 506 $ (1,032) $ 5,624 I nvestments in IHS-Managed Funds At June 30, 2017 , the Company held equity co-investments in four IHS-managed funds (SAWHF, IHS Residential Partners , IHS Fund II SA and IHS Fund II SSA ) that range from a 1.8% to a 4.25% ownership interest in such funds. IHS provides asset management services to each of these funds in return for asset management fees. For each fund , 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 7 , the carrying value of the Company’s equity investment in SAWHF , IHS Residential Partners , IHS Fund II SA and IHS Fund II SSA was $1.7 million, $2.0 million , $0.3 million and $0 , respective ly. As SAWHF, IHS Fund II SA and IHS Fund II SSA 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 IHS Residential Partners and, as a result, the Company believes that its risk of loss is limited to its investment balance of $2.0 million. However , through the governing shareholder agreement, IHS could be required to commit up to 180 million rand as capital contributions to such fund. In this regard, our maximum exposure to loss as a result of our involvement in this VIE is approximately $13.9 million and $13.2 million at June 30, 2017 and December 31, 2016, respectively, based upon foreign currency exchange rates as of such reporting dates. On July 28, 2017, IHS purchased from a third party an 11.85% ownership interest in SAWHF for 153.1 million rand, or approximately $11.8 million. As part of this purchase transaction, the third party committed to invest the proceeds that it received into IHS Fund II SA, subject to the same conditions that governed the third party’s original investment in SAWHF and that include, but are not limited to, a commitment by IHS to purchase the third party’s ownership interest in IHS Fund II SA ten years from the initial close date of such fund (or, by the expiry of the fund’s original term). 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, 2017 2016 (in thousands) Total assets $ 272,330 $ 261,082 Total liabilities 104,858 110,214 The following table provides information about the net income (loss) 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) 2017 2016 2017 2016 Net income (loss) $ 870 $ (2,902) $ (2,197) $ (8,712) I nvestment in Solar Ventures MEC originates solar loans directly and through our Solar Ventures. The Company made an initial $75.0 million non-cash capital contribution into REL in November 2016 that was comprised of solar energy loan investments, including our membership interests in SCL and SPL, in exchange for a membership interest in REL. Because REL is not a VIE, the Company accounts for this investment using the equity method of accounting. On June 15, 2017, the Company made an initial $0.7 million capital contribution into Solar Development Lending, LLC (“ SDL ”). Because SD L is not 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 Ventures in which the Company held an equity investment: At At June 30, December 31, 2017 2016 (in thousands) Total assets $ 181,783 $ 158,365 Total liabilities 4,306 4,905 The following table provides information about the net income of the Solar Ventures in which the Company had an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Net income $ 5,346 $ 2,495 $ 8,396 $ 5,557 |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Other Assets | N ote 4—O ther 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) 2017 2016 Other assets: Loans held for investment $ 4,870 $ 4,809 Loans held for sale ─ ─ Real estate owned 3,421 3,267 Derivative assets 7,698 7,884 Solar facilities (includes other assets such as cash and other receivables) 1,664 1,733 Accrued interest receivable 1,685 1,822 Asset management fees and reimbursements receivable 4,638 1,406 Other assets 6,390 5,526 Other assets held by CFVs (1) 42,727 44,551 Total other assets $ 73,093 $ 70,998 (1) See Note 13, “Consolidated Funds and Ventures,” for more information. L oans Held For Investment (“HFI”) 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 (“ FVO ”) for such instruments and, as a result, such assets are subsequently measured on a fair value basis in our Consolidated Statement of Operations as a component of “Net gains (losses) on loans.” 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) 2017 2016 Amortized cost $ 14,598 $ 9,202 Net losses included in earnings (8,900) (3,565) Allowance for loan losses (828) (828) Loans held for investment, net $ 4,870 $ 4,809 At June 30, 2017 and December 31, 2016 , HFI loans had UPB of $22.2 million and $16.8 million, respectively, as well as deferred fees and other basis adjustments of $7.6 million for June 30, 2017 and December 31, 2016 . At June 30, 2017, the Company had a subordinated loan receivable with a UPB of $11.5 million from a residential solar power provider in the U.S. who filed for bankruptcy protection on March 13 , 2 017 under Chapter 11 of the U.S. Bankruptcy Code. On April 20, 2017, the bankruptcy court approved the sale of the borrower’s assets for an amount less than the UPB of borrower debt obligations that are senior to that held by the Company. Given this development and other considerations, the Company does not expect to recover any of this loan’s UPB or its unpaid interest and related fees. As a result, this loan, which is measured on a fair value basis given the Company’s election of the FVO, was placed on non-accrual status in the first quarter of 2017 and was ascribed no fair v alue for reporting purposes in the first quarter of 2017. Included within the Company’s HFI loans are 16 loans and one loan for which the Company elected the FVO to minimize certain operational challenges associated with the accounting of these loans at June 30, 2017 and December 31, 2016, respectively. These loans had UPB of $15.4 million (fair value of $3.9 million) and $10.0 million (fair value of $3.8 million) at June 3 0, 2017 and December 31, 2016, respectively. During July 2017, the Company’s taxable senior mortgage loans, which had a UPB of $3.9 million as of June 30, 2017, were repaid in full. At June 30, 2017 and December 31, 2016 , of the remaining HFI loans, impaired loans had a UPB of $6.4 million and were not accruing interest. We report impairment on HFI loans as “Other expenses” in our Consolidated Statement of Operations. The carrying value for HFI loans on non-accrual status was $0.5 million at June 30, 2017 and December 31, 2016 . The loan that the Company made to TC Fund I on December 31, 2015 is included among this population of loans. At June 30, 2017 and December 31, 2016 , no HFI loans that were 90 days or more past due in scheduled principal or interest payments were still accruing interest. Loans Held For Sale (“HFS”) We report the carrying value of HFS loans at the lower of cost or fair value with the excess of the loan’s cost over its fair value recognized as a valuation allowance within “Net gains (losses) on loans” in our Consolidated Statement of Operations. The cost basis for HFS loans was $6.0 million at June 30, 2017 and Dec ember 3 1 , 2016 with a zero carrying value at June 30, 2017 and December 31, 2016. During the three months and six months ended June 30, 2017 and 2016, the Company did not recognize any lower of cost or market adjustments associated with any HFS loans that were recognized in the Consolidated Balance Sheets. U nfunded Loan Commitments There were no unfunded loan commitments at June 30, 2017 and December 31, 2016. Real Estate Owned (“REO ”) The following table provides information about the carrying value of the Company’s REO held for use, net: At At June 30, December 31, (in thousands) 2017 2016 Building, furniture, fixtures and land improvement $ 802 $ 648 Land 2,619 2,619 Total $ 3,421 $ 3,267 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’s REO is represented by land that is currently in process of being developed. As a result, no depreciation expense was recognized in connection with this land investment. Additionally, t he Company did no t recognize any impairment losses for the three months and six months ended June 3 0 , 201 7 and 201 6. D erivative Assets At June 30, 2017 and Dec ember 3 1, 2016, the Company had $ 7.7 million and $ 9.0 million, respectively , of recogniz ed derivative assets. See Note 6, “Derivative Instruments,” for more information. Solar Facilities At June 30, 2017 and Dec ember 3 1 , 2016, the Company owned one and two solar facilit ies that were designated as held for use (“ HFU ”) with a total carrying value of $1.2 million and $1.3 million, respectively. T he se 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. The solar facilities had accumulated depreciation of $1.2 million and $1.7 million at June 30, 2017 and December 31, 2016, respectively. A sset Management Fees and Reimbursement Receivable At June 30, 2017 and Dec ember 3 1 , 2016 , the Company had $ 4.6 million and $1. 4 million of asset management fees and reimb ursement receivable s, respectively, recognized in its Consolidated Balance Sheets, of which $0.2 million and $0.9 million , respectively, w ere due from IHS-managed funds and ventures. During the second quarter of 2017, the Company accrued $3.9 million of asset management fees for services previously rendered to TC Fund I resulting from payments that we expect to receive from TC Fund I. Additionally, during July 2017, TC Fund I received an additional $2.8 million of capital proceeds from settlements that occurred after June 30, 2017. Based on how TC Fund I’s cash distribution waterfall will apply to these additional proceeds, the Company will recognize an additional $2.2 million of asset management fees in its Consolidated Statements of Operations during the third quarter of 2017. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | N ote 5—D ebt 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, 2017 December 31, 2016 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 $ 16,846 2.6 % $ 2,892 2.2 % Due after one year 67,251 2.2 79,137 2.1 Total asset related debt $ 84,097 2.3 $ 82,029 2.1 Other Debt (1) Subordinated debt (3) Due within one year $ 2,624 3.1 $ 3,297 3.9 Due after one year 105,003 2.8 125,899 3.4 Notes payable and other debt Due within one year 1,815 3.9 1,948 3.9 Due after one year 18,612 2.5 16,869 2.3 Total other debt $ 128,054 2.8 $ 148,013 3.3 Total asset related debt and other debt $ 212,151 2.6 $ 230,042 2.8 Debt related to CFVs Due within one year $ 6,893 6.2 $ 6,885 5.7 Due after one year 6,052 4.0 6,144 4.0 Total debt related to CFVs $ 12,945 5.2 $ 13,029 4.9 Total debt $ 225,096 2.7 $ 243,071 3.0 (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, 2017 and December 31, 2016. (3) The subordinated debt balances include net cost basis adjustments of $8.6 m illion and $8.7 million at June 30, 2017 and December 31, 2016, respectively, that pertain to premiums and debt issuance costs. C ovenant 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 7 : Asset Related Debt CFVs (in thousands) and Other Debt Related Debt Total Debt 2017 $ 2,297 $ 6,760 $ 9,057 2018 60,133 101 60,234 2019 13,497 109 13,606 2020 29,410 116 29,526 2021 9,244 125 9,369 Thereafter 89,078 4,867 93,945 Net premium and debt issue costs 8,492 867 9,359 Total $ 212,151 $ 12,945 $ 225,096 At June 30, 2017 , the Company was in compliance with all covenants under its debt obligations . A sset 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 total return swap (“ TRS ”) agreements . In such transactions, the Company convey s its interest in bonds to a counterparty in exchange for cash consideration while simultaneously executing TRS agreements 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 TRS agreements 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, 2017, u nder the terms of these TRS agreements , the counterparty is required to pay the Company an amount equal to the interest payments received on the underlying bonds (UPB of $79.8 million with a weighted - average pay rate of 6.5% at June 30, 2017 ). The Company is required to pay the counterparty a rate of Securities Industry and Financial Markets Association seven -day municipal swap rate (“ SIFMA ”) plus a spread on the TRS agreements (notional amount of $84.2 million with a weighted - average pay rate of 2.2% at June 3 0 , 201 7 ). The Company uses this pay rate on executed TRS agreements to accrue interest on its secured borrowing obligations to its counterparty. O ther Debt Subordinated 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. (“ MF I ”) and MMA Financial Holdings, Inc. (“ MFH ”) and that was outstanding at June 3 0 , 201 7 : (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFI $ 6,498 $ (32) $ 6,466 Amortizing December 2027 8.00% MFH 27,336 2,617 29,953 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 24,856 2,391 27,247 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 14,328 1,271 15,599 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 26,051 2,311 28,362 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 99,069 $ 8,558 $ 107,627 On June 20, 2017, the Company repurchased $19.9 million of its outstanding subordinated debt, which resulted in the recognition of a pre-tax gain of $3.8 million in the Consolidated Statements of Operations as a component of “Net gains on extinguishment of liabilities . ” Notes Payable and Other Debt This debt was primarily recognized in connection with the conveyance of two bonds to a buyer with which the Company concurrently executed a TRS. In this case, the transfer of the bonds did not qualify as a sale and, as a result, the proceeds received from the buyer were recognized as a debt obligation. The bonds were debt obligations of two partnerships that own affordable multifamily properties and that were consolidated by the Company. Letters of Credit The Company had no letters of credit outstanding at June 30, 2017 and December 31, 2016 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | N ote 6— D erivative Instruments The Company uses derivative instruments for various purposes. Pay-fixed interest rate swaps, interest rate basis swaps and interest rate caps are used to manage interest rate risk. TRS agreements are used by the Company to obtain, or retain, the economic risks and rewards associated with tax exempt municipal bonds. Derivative instruments that are recognized in the Consolidated Balance Sheets are measured on a fair value basis. Because the Company does not designate any of its derivative instruments as fair value or cash flow hedges, c hanges in fair value of such instruments are recognized in the Consolidated Statements of Operations as a component of “ Net (losses) gains on derivatives 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, 2017 December 31, 2016 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 3,405 $ 399 $ 2,327 $ 372 Basis swaps 254 64 176 7 Interest rate caps 1,070 ─ 1,553 ─ Interest rate swaps 2,969 ─ 3,828 ─ Total derivative instruments $ 7,698 $ 463 $ 7,884 $ 379 T he following table provides information about the notional amounts of the Company’s derivative instruments: Notional Amounts At At June 30, December 31, (in thousands) 2017 2016 Total return swaps $ 72,721 $ 91,050 Basis swaps 100,500 100,500 Interest rate caps 80,000 80,000 Interest rate swaps 140,000 140,000 Total dollar-based derivative instruments $ 393,221 $ 411,550 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) 2017 2016 2017 2016 Total return swaps (1) $ 454 $ 1,522 $ 2,577 $ 2,321 Basis swaps (2) 20 ─ (9) ─ Interest rate caps (271) (4) (482) (14) Interest rate swaps (3) (1,171) (100) (1,015) (222) Total $ (968) $ 1,418 $ 1,071 $ 2,085 (1) The cash paid and received on TRS agreements that were reported as derivative instruments is settled on a net basis and recorded through “Net (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. Net cash received was $0.7 million and $1.1 million for the three months ended June 30, 2017 and 2016, respectively. Net cash received was $1.6 million and $2.2 million for the six months ended June 30, 2017 and 2016, respectively. (2) The cash paid and received on the basis swaps is settled on a net basis and recorded through “Net (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. The net cash paid for the three months and six months ended June 30, 2017 was de minimis. (3) The cash paid and received on the interest rate swaps is settled on a net basis and recorded through “Net (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. Net cash paid was $0.1 million for the three months ended June 30, 2017 and 2016. Net cash paid was $0.2 million and $0.1 million for the six months ended June 30, 2017 and 2016, respectively. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value | N ote 7 — F air 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. F air 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. R ecurring 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) 2017 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 151,662 $ ─ $ ─ $ 151,662 Loans held for investment 3,899 ─ ─ 3,899 Derivative instruments 7,698 ─ 4,293 3,405 Liabilities: Derivative instruments $ 463 $ ─ $ 64 $ 399 Fair Value Measurements At December 31, (in thousands) 2016 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 155,981 $ ─ $ ─ $ 155,981 Loans held for investment 3,835 ─ ─ 3,835 Derivative instruments 7,884 ─ 5,557 2,327 Liabilities: Derivative instruments $ 379 $ ─ $ 7 $ 372 C hanges 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, 2017 and 2016, 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, 2017: (in thousands) Bonds Available-for-sale Loans Held for Investment Derivative Assets Derivative Liabilities Balance, April 1, 2017 $ 152,385 $ 13,248 $ 3,265 $ ─ Net (losses) gains included in earnings (1,089) ─ 140 (399) Net change in other comprehensive income (1) 539 ─ ─ ─ Impact from purchases ─ ─ ─ ─ Impact from loan originations ─ ─ ─ ─ Impact from sales/redemptions ─ (9,349) ─ ─ Impact from settlements (173) ─ ─ ─ Transfer from loans HFS to loans HFI ─ ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount includes $0.5 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 30, 2017: (in thousands) Equity in Losses from LTPPs Net gains on derivatives (1) Change in unrealized losses related to assets and liabilities still held at June 30, 2017 $ (1,089) $ (259) Additional realized losses recognized ─ 713 Total (losses) gains reported in earnings $ (1,089) $ 454 (1) Amounts are reflected through “Net (losses) gains on derivatives 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 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 30, 2016: (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, 2016 $ ─ $ (1,354) $ 420 Additional realized gains recognized 28 ─ 1,002 Total gains (losses) reported in earnings $ 28 $ (1,354) $ 1,422 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statement of Operations. (2) Amounts are reflected through “Net (losses) gains on derivatives 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 30, 2017: (in thousands) Bonds Available-for-sale Loans Held for Investment Derivative Assets Derivative Liabilities Balance, January 1, 2017 $ 155,981 $ 3,835 $ 2,327 $ (372) Net (losses) gains included in earnings (2,207) (5,335) 1,078 (27) Net change in other comprehensive income (1) 1,346 ─ ─ ─ Impact from purchases ─ 14,028 ─ ─ Impact from loan originations ─ 1,500 ─ ─ Impact from sales/redemptions ─ (10,129) ─ ─ Impact from settlements (3,458) ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount includes $1.3 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 six months ended June 30, 2017: (in thousands) Equity in Losses from LTPPs Net losses on loans (1) Net gains on derivatives (1) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2017 $ (2,207) $ (5,335) $ 1,051 Additional realized gains recognized ─ ─ 1,526 Total (losses) gains reported in earnings $ (2,207) $ (5,335) $ 2,577 (1) Amounts are reflected through “Net (losses) gains on derivatives 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 30, 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 loan originations ─ 23,700 4,315 ─ ─ Impact from sales/redemptions (3,769) ─ (7,990) ─ ─ Impact from bonds extinguished due to consolidated 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 represents $ 8.3 million of unrealized net holding gains arising during the period, partially offset by the reversal of $ 2.1 million of unrealized bond gains related to bonds that were sold or 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 30, 2016: (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized losses related to assets and liabilities still held at June 30, 2016 $ ─ $ (2,433) $ (3) Change in unrealized losses 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 (losses) 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 (losses) gains on derivatives 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 at June 30, 2017 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 $ 93,465 Discounted cash flow Market yield 3.9 - 5.9 % 4.6 % Non-performing 6,736 Discounted cash flow Market yield 8.1 8.1 Capitalization rate 7.2 7.2 Net operating income (" NOI ") annual growth rate (1.2) (1.2) Subordinated cash flow 8,765 Discounted cash flow Market yield 7.4 - 7.6 7.5 Capitalization rate 6.4 - 6.5 6.5 NOI annual growth rate 0.2 - 0.8 0.5 Infrastructure bonds 24,758 Discounted cash flow Market yield 7.0 - 9.0 7.8 Other bonds 17,938 Discounted cash flow Market yield 3.7 - 5.4 4.4 Loans held for investment 3,899 Discounted cash flow Market yield 7.0 - 8.6 7.5 Derivative instruments: Total return swaps 3,405 Discounted cash flow Market yield 3.7 - 5.1 4.6 (399) Discounted cash flow Market yield 7.2 7.2 Capitalization rate 8.3 8.3 NOI annual growth rate 1.7 1.7 (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 UPB for cash instruments, such as loans and securities, and notional amounts for derivative instruments. Fair Value Measurement at December 31, 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 $ 93,082 Discounted cash flow Market yield 4.3 - 5.7 % 5.0 % Non-performing 7,015 Discounted cash flow Market yield 8.1 8.1 Capitalization rate 6.9 6.9 NOI annual growth rate (0.9) (0.9) Subordinated cash flow 9,930 Discounted cash flow Market yield 7.3 - 7.4 7.4 Capitalization rate 6.0 - 6.4 6.2 NOI annual growth rate 0.4 - 0.8 0.5 Infrastructure bonds 25,145 Discounted cash flow Market yield 7.3 - 9.0 8.0 Other bonds 20,809 Discounted cash flow Market yield 3.7 - 5.5 4.6 Loans held for investment 3,835 Discounted cash flow Market yield 19.2 19.2 Derivative instruments: Total return swaps 2,327 Discounted cash flow Market yield 3.9 -5.5 5.0 (372) Discounted cash flow Market yield 7.2 7.2 Capitalization rate 8.5 8.5 NOI annual growth rate 2.5 2.5 (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 UPB 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. For our Level 3 assets and liabilities, we use a discounted cash flow valuation technique to measure fair value. 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. In applying this 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 : · For performing multifamily bonds, infrastructure bonds and certain TRS derivatives, 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. · 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 NOI from the underlying properties that serve as collateral for our instruments. A terminal value, less estimated costs of sale, 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. 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 that are referenced 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 NOI 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 NOI that the Company projects each property to generate on an annual basis over the 10-year projection period . 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 NOI will result in an increase to the fair value of the property. N on-Recurring Changes in Fair Value There were no non-recurring adjustments during the three months ended June 3 0 , 2017. A dditional Disclosures Related To The Fair Value of Financial Instruments That Are Not Carried On The Consolidated Balance Sheets at Fair Value The t ables 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, 2017 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 37,482 $ 37,482 $ ─ $ ─ Restricted cash 22,356 22,356 ─ ─ Restricted cash related to CFVs 23,770 23,770 ─ ─ Asset management fee receivable from TC Fund I 3,868 ─ ─ 6,678 Guarantee fee receivable from TC Fund I 1,355 ─ ─ 1,355 Loans held for investment 971 ─ ─ 1,344 Loans held for investment related to CFVs 65 ─ ─ 511 Liabilities: Notes payable and other debt, bond related 84,097 ─ ─ 84,162 Notes payable and other debt, non-bond related 20,427 ─ ─ 20,428 Notes payable and other debt related to CFVs 12,945 ─ ─ 5,954 Subordinated debt issued by MFH 101,161 ─ ─ 41,507 Subordinated debt issued by MFI 6,466 ─ ─ 5,099 Guarantee obligations (1) 3,652 ─ ─ 11,690 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $8.0 million at June 30, 2017, 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, 2016 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 45,525 $ 45,525 $ ─ $ ─ Restricted cash 33,920 33,920 ─ ─ Restricted cash related to CFVs 23,584 23,584 ─ ─ Asset management fee receivable from TC Fund I ─ 2,947 Guarantee fee receivable from TC Fund I 1,348 ─ ─ 1,348 Loans held for investment 974 ─ ─ 1,106 Loans held for investment related to CFVs 65 ─ ─ 488 Liabilities: Notes payable and other debt, bond related 82,029 ─ ─ 82,118 Notes payable and other debt, non-bond related 18,817 ─ ─ 18,817 Notes payable and other debt related to CFVs 13,029 ─ ─ 5,956 Subordinated debt issued by MFH 102,338 ─ ─ 41,327 Subordinated debt issued by MFI 26,858 ─ ─ 20,139 Guarantee obligations (1) 4,003 ─ ─ 12,616 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $8.6 million as of December 31, 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. 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 – Fair value is measured using a discounted cash flow methodology pursuant to which contractual payments from actual or anticipated residual events are discounted based upon a market yield. Guarantee fee receivable – The carrying value of this receivable approximates 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 14.5% at June 30, 2017 and December 31, 2016 . As outlined in the table above, at June 30, 2017, the aggregate fair value was measured at $46.6 million. At June 30, 2017 , the measured fair value of this debt would have been $54.6 million and $40.5 million using a market yield of 12.0% and 17.0% , 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 financial reporting purposes. Therefore, such amounts are not included in the carrying value of the Company’s guarantee obligations as reported in the 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, 2017 | |
Guarantees And Collateral [Abstract] | |
Guarantees And Collateral | N ote 8 — G uarantees and Collateral G uarantees – LIHTC Business Line The C ompany 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 of investor yield for losses resulting from recapture of tax credits due to foreclosure or difficulties in maintaining occupancy levels as mandated by LIHTC compliance regulations 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 30, 2017 and December 3 1 , 2016 , the 11 Guaranteed Funds for which the Company has provided an indemnification to the purchaser of corresponding GP interests held an aggregate of $13.6 million and $14.5 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 from 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 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 guarantee payments for the six months ended June 30, 2017 . 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. At June 30, 2017, 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, 2017 and December 31, 2016, the Company had $8.0 million and $8.6 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 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 investor 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 investor 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, 2017 , the Company had $3.6 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. At June 30, 2017 and December 31, 2016, the Company had $20.5 million and $25.6 million, respectively, of collateral that was primarily pledged towards the guarantee exposure associated with the 11 Guaranteed Funds and TC Fund I. If we are required to perform under our guarantees, we could, subject to third party consent, access or be reimbursed from this collateral. On November 10, 2016, the Company acquired a 0.01% general partnership interest in an entity that owns an affordable multifamily property that served as collateral for one of our bond investments. This property is an investment included within the 11 consolidated Guaranteed Funds. As part of this acquisition, the Company guaranteed the GP’s performance in connection with its obligations under the partnership agreement, which requires the GP to pay the limited partner any potential difference caused by the actual tax credits delivered being less than projected (including recapture of credits previously taken if caused by the actions of the GP). This performance guarantee does not increase maximum exposure amounts that are disclosed in the table below associated with indemnification agreements that the Company executed in connection with the Guaranteed Funds. Refer to Notes to Consolidated Financial Statements – Note 1 3 , “Consolidated Funds and Ventures,” for additional information. Guarantees – Energy Capital Business Line On November 7, 2016, as part of the formation of REL, the Company agreed to guarantee all payment and performance obligations of its subsidiary, MEC, to the venture. Performance under this guaranty would be required by a breach of terms under the management agreement entered into by MEC. Because the Company controls MEC, it does not expect that it would, under any circumstance, ever have to perform under this guarantee. As a result, the Company believes that there are no potential future payments to make under this guarantee. Refer to Notes to Consolidated Financial Statements – Note 3, “Investments in Partnerships and Ventures,” for more information about our Solar Ventures. 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, 2017 December 31, 2016 Maximum Carrying Maximum Carrying (in thousands) Exposure (1) Amount Exposure (1) Amount Guaranteed Funds (2) $ 392,518 $ 53 $ 392,518 $ 186 TC Fund I 109,587 3,593 109,587 3,805 LTPPs 536 6 536 12 (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 $388.4 million related to the 11 Guaranteed Funds we consolidated at June 30, 2017 and December 31, 2016. See Note 13, “Consolidated Funds and Ventures,” for more information. C ollateral and Restricted Assets The following table summarizes assets that are either pledged or restricted for the Company’s use at June 30, 2017 and December 31, 2016. This table also reflects certain assets held by CFVs in order to reconcile to the Company’s Consolidated Balance Sheets: At June 30, 2017 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 5,945 $ 136,412 $ ─ $ ─ $ 142,357 Other (1) 16,411 4,231 ─ ─ 20,642 CFVs (2) 23,770 ─ 119,444 42,727 185,941 Total $ 46,126 $ 140,643 $ 119,444 $ 42,727 $ 348,940 (1) Majority of this balance represents collateral pledged by the Company in connection with secured borrowings and various guarantees that it has provided. (2) These are assets held by CFVs. At December 31, 2016 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 13,928 $ 129,746 $ ─ $ ─ $ 143,674 Other (1) 19,992 5,868 ─ ─ 25,860 CFVs (2) 23,584 ─ 137,773 44,551 205,908 Total $ 57,504 $ 135,614 $ 137,773 $ 44,551 $ 375,442 (1) Majority of this balance represents collateral pledged by the Company 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, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 —C ommitments and Contingencies O perating Leases At June 30 , 201 7 , the Company had four non-cancelable operating leases that expir e in 2017, 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 and six months ended June 30, 2017 and 2016, respectively . The following table summarizes the future minimum rental commitments for the Company’s operating leases at June 3 0 , 201 7 : (in thousands) 2017 $ 148 2018 300 2019 316 2020 185 2021 129 Thereafter 304 Total minimum future rental commitments $ 1,382 L itigation 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, 2017, the Company had no significant litigation matters. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity | N ote 1 0 — E quity C ommon 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) 2017 2016 2017 2016 Net income from continuing operations $ 7,322 $ 5,047 $ 3,836 $ 21,569 Net income from discontinued operations 95 83 137 166 Net income to common shareholders $ 7,417 $ 5,130 $ 3,973 $ 21,735 Basic weighted-average shares (1) 5,893 6,289 5,915 6,406 Common stock equivalents (2), (3), (4) 382 ─ ─ 4 Diluted weighted-average shares 6,275 6,289 5,915 6,410 (1) Includes common shares issued and outstanding, as well as deferred shares of employees and non-employee directors that have vested but are not issued and outstanding. (2) At June 30, 2017, 410,000 stock options were in the money and had a potential dilutive share impact of 382,278 and 381,435 for the three months and six months ended June 30, 2017, respectively. For the six months ended June 30, 2017, the adjustment to net income for the awards classified as liabilities caused the common stock equivalents to be anti-dilutive. (3) 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 unvested employee def e rred shares had a potential 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. (4) For the three months and six months ended June 30, 2017, all options were vested in the money as of January 1, 2017 and thus none were excluded from the calculations of diluted earnings per share. 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. Common Shares On D ecember 1, 2016, the Board authorized a 2017 share repurchase program (“ 201 7 Plan ”) for up to 580,000 shares and the Company adopted a further Rule 10b5-1 Plan implementing the Board’s authorization . During the second quarter of 2017, the Company purchased 42,100 shares at an average price of $23.29. Between July 1, 2017 and August 3, 2017, the Company repurchased 28,741 shares at an average price of $ 22.99 . Effective at the filing of this Report and until mod ified by further action by the B oard, the maximum price at which management is currently authorized to purchase shares is $24.94 per share. Effective May 5, 2015, the Company adopted the 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 f ollowing table provides information about the noncontrolling interests in CFVs and IHS PM: At At June 30, December 31, (in thousands) 2017 2016 Guaranteed Funds $ 108,548 $ 128,734 Consolidated Property Partnerships 5,695 6,220 IHS PM 66 45 Total $ 114,309 $ 134,999 Guaranteed Funds At June 30, 2017 and Dec ember 31, 2016 , 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, 2017 and Dec ember 3 1 , 2016, 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 P M 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, 2017 and December 31, 2016, 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, 2017: Bonds Income Foreign Available- Tax Currency (in thousands) for-sale Expense Translation AOCI Balance, April 1, 2017 $ 41,805 $ (243) $ (3,392) $ 38,170 Unrealized net gains (losses) 539 ─ (14) 525 Income tax benefit ─ 243 ─ 243 Net change in AOCI 539 243 (14) 768 Balance, June 30, 2017 $ 42,344 $ ─ $ (3,406) $ 38,938 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 bond 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 six months ended June 30, 2017: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, January 1, 2017 $ 40,998 $ (3,180) $ 37,818 Unrealized net gains (losses) 1,346 (226) 1,120 Net change in AOCI 1,346 (226) 1,120 Balance, June 30, 2017 $ 42,344 $ (3,406) $ 38,938 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 (2,055) ─ (2,055) Reclassification of unrealized bond 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 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | N ote 1 1 — S tock-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) 2017 2016 2017 2016 Employees’ Stock-Based Compensation Plans (1) $ (164) $ 765 $ 1,579 $ 1,548 Non-employee Directors’ Stock-Based Compensation Plans 89 74 178 148 Total $ (75) $ 839 $ 1,757 $ 1,696 (1) Compensation expense associated with Employee’s Stock-Based Compensation Plans declined in the second quarter of 2017 as the Company’s stock price decreased from $23.25 at March 31, 2017 to $22.85 at June 30, 2017. E mployees’ Stock-Based Compensation Plans At June 30, 2017 , 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. E mployee 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 were vested as of June 30, 2017. The following table provides information related to option activity under the Employees’ Stock-Based Compensation Plans: Weighted-average Remaining Weighted-average Contractual Aggregate Number of Exercise Price Life per option Intrinsic Period End (in thousands, except per option data) Options per Option (in years) Value (1) Liability (2) Outstanding at January 1, 2016 416 $ 3.52 5.3 $ 5,283 $ 5,282 Forfeited/Expired in 2016 (6) 132.50 Outstanding at December 31, 2016 410 1.56 4.4 7,149 7,166 Forfeited/Expired in 2017 ─ Outstanding at June 30, 2017 410 1.56 3.9 8,727 8,745 Number of options that were exercisable at: December 31, 2016 410 1.56 4.4 June 30, 2017 410 1.56 3.9 (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 ; 410,000 ; and 416,211 ; at June 30, 2017, December 31, 2016 and January 1, 2016, respectively. The value of employee options increased by $1.6 million during the six months ended June 30, 2017, due to the increase in market value of our stock price. This increase was recognized as additional compensation expense. Employee Deferred Shares All of the Company’s employee deferred shares were vested and issued. 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 412,260 were available to be issued at June 30, 2017 . 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 non-employee director compensation, including cash, vested options and common and deferred shares, for services rendered for the six months ended June 30, 2017 and 2016 . The directors are fully vested in the deferred shares at the grant date. Common Deferred Weighted-average Shares Shares Grant Date Options Directors' Fees Cash Granted Granted Share Price Vested Expense June 30, 2017 $ 88,750 ─ 3,917 $ ─ ─ $ 177,500 June 30, 2016 73,750 ─ 4,523 16.31 ─ 147,500 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | N ote 1 2 — D iscontinued 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 30, 2017 and 2016 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) 2017 2016 2017 2016 Other income $ 69 $ 84 $ 138 $ 167 Other expense (1) (1) (1) (1) Income tax benefit 27 ─ ─ ─ Net income from discontinued operations 95 83 $ 137 $ 166 Loss from discontinued operations allocable to noncontrolling interests ─ ─ ─ ─ Net income to common shareholders from discontinued operations $ 95 $ 83 $ 137 $ 166 |
CONSOLIDATED FUNDS AND VENTURES
CONSOLIDATED FUNDS AND VENTURES | 6 Months Ended |
Jun. 30, 2017 | |
Consolidated Funds and Ventures [Abstract] | |
Consolidated Funds and Ventures | N ote 1 3 — C onsolidated 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 .” G uaranteed 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. C onsolidated Property Partnerships At June 30, 2017, the Company is the general partner in four LTPPs in which it holds equity interests ranging from 0.01 % - 1.00% . Because the Company was determined to be the primary beneficiary, the four entities have been consolidated by the Company for financial reporting purposes at June 30, 2017. 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) 2017 2016 Cash, cash equivalents and restricted cash $ 23,770 $ 23,584 Investments in LTPPs 119,444 137,773 Real estate held for use, net 24,499 36,942 Real estate held for sale, net 12,007 145 Other assets 6,221 7,464 Total assets of CFVs $ 185,941 $ 205,908 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) 2017 2016 Total assets of the LTPPs (1) $ 1,141,299 $ 1,124,274 Total liabilities of the LTPPs (1) 934,177 937,335 (1) The assets of the LTPPs are primarily real estate and the liabilities are predominantly mortgage debt. The following table provides information about the net loss of the LTPPs related to CFVs: For the six months ended June 30, (in thousands) 2017 2016 Net loss $ (13,236) $ (13,190) 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. Although the Company does not anticipate having to perform under its guarantees, the Company’s maximum exposure to loss associated with our guarantees was $388.4 million at June 30, 2017 and December 31, 2016, while the Company’s maximum exposure to loss related to its investments in bonds was $87.5 million and $87.6 million at June 30, 2017 and December 31, 2016 , respectively. Real estate held for use, net The following provides information about the assets of the consolidated property partnerships that were classified as held for use as of the specified reporting dates: At At June 30, December 31, (in thousands) 2017 2016 Building, furniture and fixtures $ 22,975 $ 33,281 Accumulated depreciation (1,612) (1,085) Land 3,136 4,746 Total $ 24,499 $ 36,942 Depreciation expense was $0.4 million and $0.1 million for the three months ended June 30, 2017 and 2016, respectively and $0.9 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively. Buildings are depreciate d 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 30, 2017 and 2016. Real estate held for sale, net The following provides information about the assets of the consolidated property partnership that was classified as held for sale as of the specified reporting dates: At At June 30, December 31, (in thousands) 2017 2016 Cash $ 431 $ 145 Building, furniture and fixtures 10,306 ─ Accumulated depreciation (359) ─ Land 1,610 ─ Other assets 19 ─ Total $ 12,007 $ 145 During the second quarter of 2017, the Company redesignated one of the properties within its consolidated property partnerships from real estate held for use to real estate held for sale. The Company began marketing the property for sale during the second quarter of 2017, with the expected disposal to be completed by December 31, 2017. Liability Summary: The following table summarizes the liabilities of the CFVs: At At June 30, December 31, (in thousands) 2017 2016 Debt (1), (2) $ 12,945 $ 13,029 Unfunded equity commitments to unconsolidated LTPPs 8,103 8,103 Asset management fee payable 28,820 28,373 Other liabilities (3) 4,297 4,209 Total liabilities of CFVs $ 54,165 $ 53,714 (1) At June 30, 2017 and December 31, 2016, $6.7 million of this debt had a UPB equal to its carrying value, a weighted-average effective interest rate of 6.3% and 5.8% , respectively, and was due on demand. (2) At June 30, 2017 and December 31, 2016, $6.2 million and $6.3 million, respectively, of this debt was related to two consolidated property partnerships and had a UPB of $5.4 million and weighted-average effective interest rate of 4.0% with various maturity dates through March 11, 2029. (3) At June 30, 2017, $0.1 million of other liabilities is associated with the consolidated property partnership designated as held for sale. 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) 2017 2016 2017 2016 Revenue: Rental and other income from real estate $ 1,320 $ 462 $ 2,633 $ 784 Interest and other income 425 264 619 761 Total revenue from CFVs 1,745 726 3,252 1,545 Expenses: Depreciation and amortization 865 681 1,811 1,368 Interest expense 156 132 316 259 Other operating expenses 1,966 1,697 3,925 2,986 Asset impairments 6,795 6,504 11,400 12,769 Total expenses from CFVs 9,782 9,014 17,452 17,382 Net losses related to CFVs: Investment (losses) gains ─ (598) 10 (598) Equity in losses from LTPPs of CFVs (3,974) (4,937) (7,448) (10,623) Net loss (12,011) (13,823) (21,638) (27,058) Net losses allocable to noncontrolling interests in CFVs (1) 11,572 12,322 20,712 24,822 Net loss allocable to the common shareholders related to CFVs $ (439) $ (1,501) $ (926) $ (2,236) (1) Excludes $49 and $66 of net gain allocable to the noncontrolling interest holder in IHS PM for the three months ended June 30, 2017 and 2016, respectively. Excludes $52 and $109 of net gain allocable to the noncontrolling interest holder in IHS PM for the six months ended June 30, 2017 and 2016, respectively. These amounts are excluded from this presentation because IHS PM and its related activity are not included within CFV income statement activity above. 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) 2017 2016 2017 2016 Guarantee fees $ 288 $ 331 $ 576 $ 662 Interest income 331 65 664 65 Equity in losses from LTPPs (1,089) (1,354) (2,207) (2,483) Equity in income from Consolidated Property Partnerships 31 55 41 118 Other expenses ─ (598) ─ (598) Net loss allocable to the common shareholders related to CFVs $ (439) $ (1,501) $ (926) $ (2,236) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | N ote 1 4 — S egment Information The Company operates through three reportable segments: U.S. Operations, International Operations and Corporate Operations . The segment results include fees received from CFVs as well as net losses or net income allocated to equity investments in certain CFVs. We have revised the presentation for the three months and six months ended June 30, 2016, which had no impact on Net income to common shareholders. For the three months ended June 30, 2017 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate Reclassifications Consolidated Total interest income $ 2,938 $ 43 $ 24 $ (331) (1) $ 2,674 Total interest expense (444) ─ ─ ─ (444) Net interest income 2,494 43 24 (331) 2,230 Total fee and other income 5,103 2,178 ─ (288) (2) 6,993 Revenue from CFVs 1,745 ─ ─ ─ 1,745 Total non-interest revenue 6,848 2,178 ─ (288) 8,738 Total revenues, net of interest expense 9,342 2,221 24 (619) 10,968 Operating and other expenses: Interest expense (82) ─ (1,139) ─ (1,221) Operating expenses (2,049) (2,231) (1,084) ─ (5,364) Other expenses, net (221) (47) (30) ─ (298) Expenses from CFVs (10,432) ─ ─ 650 (1), (2), (3) (9,782) Total operating and other expenses (12,784) (2,278) (2,253) 650 (16,665) Net (losses) gains on assets and derivatives (794) ─ 3,829 ─ 3,035 Equity in income (losses) from unconsolidated funds and ventures 2,875 (3) 15 ─ (31) (3) 2,859 Equity in losses from Lower Tier Property Partnerships of CFVs (3,974) ─ ─ ─ (3,974) (Loss) income from continuing operations before income taxes (5,335) (42) 1,600 ─ (3,777) Income tax expense ─ ─ (424) ─ (424) Income from discontinued operations, net of tax 67 ─ 28 ─ 95 Net (loss) income (5,268) (42) 1,204 ─ (4,106) Loss (income) allocable to noncontrolling interests: Net losses (income) allocable to noncontrolling interests in CFVs: Related to continuing operations 11,572 (49) ─ ─ 11,523 Net income (loss) allocable to common shareholders $ 6,304 $ (91) $ 1,204 $ ─ $ 7,417 (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 $0.3 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 2017 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 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 $0.03 million of gains in U.S. Operations. For the three months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate 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 2,443 1,823 6 (331) 3,941 Total revenues, net of interest expense 5,606 1,852 (82) (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 (1,305) 2 (30) 598 (3) (735) Expenses from CFVs (8,867) ─ ─ (147) (1), (2), (4) (9,014) Total operating and other expenses (12,316) (2,092) (2,446) 451 (16,403) Net gains on assets and derivatives 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 losses related to CFVs (598) (598) Equity in losses from Lower Tier Property Partnerships of CFVs (4,937) ─ ─ ─ (4,937) Loss from continuing operations before income taxes (4,346) (301) (2,528) ─ (7,175) Income tax expense ─ ─ (34) ─ (34) Income from discontinued operations, net of tax 83 ─ ─ ─ 83 Net (loss) income (4,263) (301) (2,562) ─ (7,126) Loss (income) allocable to noncontrolling interests: Net losses (income) allocable to noncontrolling interests in CFVs: Related to continuing operations 12,322 (66) ─ ─ 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) Represents 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. For the six months ended June 30, 2017 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate Reclassifications Consolidated Total interest income $ 6,139 $ 91 $ 42 $ (664) (1) $ 5,608 Total interest expense (855) ─ ─ (855) Net interest income 5,284 91 42 (664) 4,753 Total fee and other income 6,392 6,007 ─ (576) (2) 11,823 Revenue from CFVs 3,252 ─ ─ ─ 3,252 Total non-interest revenue 9,644 6,007 ─ (576) 15,075 Total revenues, net of interest expense 14,928 6,098 42 (1,240) 19,828 Operating and other expenses: Interest expense (157) (1) (2,289) ─ (2,447) Operating expenses (5,294) (5,008) (3,333) ─ (13,635) Other expenses, net (484) 388 (60) ─ (156) Expenses from CFVs (18,723) ─ ─ 1,271 (1), (2), (3) (17,452) Total operating and other expenses (24,658) (4,621) (5,682) 1,271 (33,690) Net (losses) gains on assets, derivatives and extinguishment of liabilities (4,090) ─ 3,829 ─ (261) Equity in income (losses) from unconsolidated funds and ventures 4,982 (3) (38) ─ (41) (3) 4,903 Net gains related to CFVs ─ ─ ─ 10 10 Equity in losses from Lower Tier Property Partnerships of CFVs (7,448) ─ ─ ─ (7,448) (Loss) income from continuing operations before income taxes (16,286) 1,439 (1,811) ─ (16,658) Income tax expense ─ ─ (166) ─ (166) Income from discontinued operations, net of tax 137 ─ ─ ─ 137 Net (loss) income (16,149) 1,439 (1,977) ─ (16,687) (Income) loss allocable to noncontrolling interests: Net (income) losses allocable to noncontrolling interests in CFVs: Related to continuing operations 20,712 (52) ─ ─ 20,660 Net income (loss) allocable to common shareholders $ 4,563 $ 1,387 $ (1,977) $ ─ $ 3,973 (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 $0.7 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 2017 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 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 $0.04 million of gains in U.S. Operations. For the six months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate 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 4,652 3,281 28 (662) 7,299 Total revenues, net of interest expense 11,024 3,337 (154) (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 (1,452) 120 (49) 598 (3) (783) Expenses from CFVs (17,629) ─ ─ 247 (1), (2), (4) (17,382) Total operating and other expenses (23,467) (3,908) (5,546) 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 real estate foreclosure 15,647 ─ ─ ─ 15,647 Equity in income (loss) from unconsolidated funds and ventures 6,925 (4) (220) ─ (118) (4) 6,587 Net losses related to CFVs (598) ─ ─ ─ (598) Equity in losses from Lower Tier Property Partnerships of CFVs (10,623) ─ ─ ─ (10,623) Income (loss) from continuing operations before income taxes 3,449 (791) (5,696) ─ (3,038) Income tax expense ─ ─ (106) ─ (106) Income from discontinued operations, net of tax 166 ─ ─ ─ 166 Net income (loss) 3,615 (791) (5,802) ─ (2,978) Loss allocable to noncontrolling interests: Net losses (income) allocable to noncontrolling interests in CFVs: Related to continuing operations 24,822 (109) ─ ─ 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 purpose of the table above, the $0.6 million was reflected in other expenses for U.S. Operations. (4) Represents 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. The following table provides information about total assets by segment: June 30, December 31, (in thousands) 2017 2016 ASSETS U.S. Operations (includes $185,941 and $205,908 related to CFVs) $ 486,931 $ 517,286 Corporate Operations 37,861 48,459 International Operations 11,247 8,454 Total MMA consolidated assets $ 536,039 $ 574,199 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“ GAAP ”) in the U.S. The unaudited interim consolidated financial statements as of, and for the three months and six months ended June 30, 2017, 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, 2016 (“ 2016 Form 10-K ”). 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. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and of entities that are considered to be variable interest entities in which the Company is the primary beneficiary, as well as those entities in which the Company has a controlling financial interest, including wholly owned subsidiaries of the Company. All intercompany transactions and balances have been eliminated in consolidation. 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. |
BONDS AVAILABLE-FOR-SALE (Table
BONDS AVAILABLE-FOR-SALE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, gross unrealized losses and fair value (“ FV ”) associated with the Company’s investments in bonds that are classified as available-for-sale: At June 30, 2017 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2), (3) FV of UPB Multifamily tax-exempt bonds $ 105,915 $ 70,459 $ 38,507 $ ─ $ 108,966 103% Other real estate related bond investments 44,454 38,859 4,036 (199) 42,696 96% Total $ 150,369 $ 109,318 $ 42,543 $ (199) $ 151,662 101% At December 31, 2016 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2), (3) FV of UPB Multifamily tax-exempt bonds $ 106,366 $ 73,049 $ 36,978 $ ─ $ 110,027 103% Other real estate related bond investments 47,788 41,934 4,449 (429) 45,954 96% Total $ 154,154 $ 114,983 $ 41,427 $ (429) $ 155,981 101% (1) Consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as other-than-temporary impairments (“ OTTI ”) recognized in earnings. (2) These unrealized losses relate to investments in bonds that were not assessed as OTTI. The presentation of unrealized losses in the table above at December 31, 2016 was conformed in this Report to the presentation adopted during the first quarter of 2017 to separately disclose such amounts as gross unrealized losses. Such amounts were previously included in our 2016 Form 10-K within gross unrealized gains. (3) Comprised of two and one bond in a gross unrealized loss position for less than 12 consecutive months that had a fair value of $20.3 million and $16.5 million at June 30, 2017 and December 31, 2016, respectively. |
Bonds with Prepayment Features | (in thousands) UPB Amortized Cost Fair Value June 30, 2017 $ 34,454 $ 28,859 $ 32,162 July 1 through December 31, 2017 ─ ─ ─ 2018 1,919 311 2,215 2019 ─ ─ ─ 2020 5,230 4,279 5,451 2021 46,451 28,375 49,647 Thereafter 62,283 47,462 62,154 Bonds that may not be prepaid 32 32 33 Total $ 150,369 $ 109,318 $ 151,662 |
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) 2017 2016 Total current $ 144,927 $ 148,967 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 6,735 7,014 Total $ 151,662 $ 155,981 |
Gain (Loss) on Investments | For the three months ended For the six months ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Gains recognized at time of sale or redemption (1) $ ─ $ 28 $ ─ $ 2,323 |
INVESTMENTS IN PARTNERSHIPS A24
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 and ventures. At At June 30, December 31, (in thousands) 2017 2016 Investments in U.S. real estate partnerships (includes $7,794 and $11,138 related to VIEs) (1) $ 25,287 $ 27,596 Investments in IHS-managed funds (includes $2,022 and $1,955 related to VIEs) (1) 4,003 3,296 Investment in Solar Ventures 78,942 75,526 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) 119,444 137,773 Total investments in partnerships $ 227,676 $ 244,191 (1) We do not consolidate any of the investees that were assessed to meet the definition of a VIE because the Company was deemed not to be the primary beneficiary. 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, 2017 2016 (in thousands) Total assets $ 86,277 $ 97,659 Total liabilities 40,003 47,147 The following table provides information about the net (loss) income 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) 2017 2016 2017 2016 Net (loss) income $ (518) $ 506 $ (1,032) $ 5,624 |
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, 2017 2016 (in thousands) Total assets $ 272,330 $ 261,082 Total liabilities 104,858 110,214 The following table provides information about the net income (loss) 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) 2017 2016 2017 2016 Net income (loss) $ 870 $ (2,902) $ (2,197) $ (8,712) |
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 Ventures in which the Company held an equity investment: At At June 30, December 31, 2017 2016 (in thousands) Total assets $ 181,783 $ 158,365 Total liabilities 4,306 4,905 The following table provides information about the net income of the Solar Ventures in which the Company had an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Net income $ 5,346 $ 2,495 $ 8,396 $ 5,557 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | At At June 30, December 31, (in thousands) 2017 2016 Other assets: Loans held for investment $ 4,870 $ 4,809 Loans held for sale ─ ─ Real estate owned 3,421 3,267 Derivative assets 7,698 7,884 Solar facilities (includes other assets such as cash and other receivables) 1,664 1,733 Accrued interest receivable 1,685 1,822 Asset management fees and reimbursements receivable 4,638 1,406 Other assets 6,390 5,526 Other assets held by CFVs (1) 42,727 44,551 Total other assets $ 73,093 $ 70,998 (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) 2017 2016 Amortized cost $ 14,598 $ 9,202 Net losses included in earnings (8,900) (3,565) Allowance for loan losses (828) (828) Loans held for investment, net $ 4,870 $ 4,809 |
Schedule Of Real Estate Owned, Held For Use | At At June 30, December 31, (in thousands) 2017 2016 Building, furniture, fixtures and land improvement $ 802 $ 648 Land 2,619 2,619 Total $ 3,421 $ 3,267 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | At At June 30, 2017 December 31, 2016 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 $ 16,846 2.6 % $ 2,892 2.2 % Due after one year 67,251 2.2 79,137 2.1 Total asset related debt $ 84,097 2.3 $ 82,029 2.1 Other Debt (1) Subordinated debt (3) Due within one year $ 2,624 3.1 $ 3,297 3.9 Due after one year 105,003 2.8 125,899 3.4 Notes payable and other debt Due within one year 1,815 3.9 1,948 3.9 Due after one year 18,612 2.5 16,869 2.3 Total other debt $ 128,054 2.8 $ 148,013 3.3 Total asset related debt and other debt $ 212,151 2.6 $ 230,042 2.8 Debt related to CFVs Due within one year $ 6,893 6.2 $ 6,885 5.7 Due after one year 6,052 4.0 6,144 4.0 Total debt related to CFVs $ 12,945 5.2 $ 13,029 4.9 Total debt $ 225,096 2.7 $ 243,071 3.0 (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, 2017 and December 31, 2016. (3) The subordinated debt balances include net cost basis adjustments of $8.6 m illion and $8.7 million at June 30, 2017 and December 31, 2016, respectively, that pertain to 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 2017 $ 2,297 $ 6,760 $ 9,057 2018 60,133 101 60,234 2019 13,497 109 13,606 2020 29,410 116 29,526 2021 9,244 125 9,369 Thereafter 89,078 4,867 93,945 Net premium and debt issue costs 8,492 867 9,359 Total $ 212,151 $ 12,945 $ 225,096 |
Schedule of Subordinate Debt | (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFI $ 6,498 $ (32) $ 6,466 Amortizing December 2027 8.00% MFH 27,336 2,617 29,953 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 24,856 2,391 27,247 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 14,328 1,271 15,599 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 26,051 2,311 28,362 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 99,069 $ 8,558 $ 107,627 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments [Abstract] | |
Schedule of the Company’s Derivative Assets and Liabilities | Fair Value At At June 30, 2017 December 31, 2016 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 3,405 $ 399 $ 2,327 $ 372 Basis swaps 254 64 176 7 Interest rate caps 1,070 ─ 1,553 ─ Interest rate swaps 2,969 ─ 3,828 ─ Total derivative instruments $ 7,698 $ 463 $ 7,884 $ 379 |
Schedule of Derivative Notional Amounts | Notional Amounts At At June 30, December 31, (in thousands) 2017 2016 Total return swaps $ 72,721 $ 91,050 Basis swaps 100,500 100,500 Interest rate caps 80,000 80,000 Interest rate swaps 140,000 140,000 Total dollar-based derivative instruments $ 393,221 $ 411,550 |
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) 2017 2016 2017 2016 Total return swaps (1) $ 454 $ 1,522 $ 2,577 $ 2,321 Basis swaps (2) 20 ─ (9) ─ Interest rate caps (271) (4) (482) (14) Interest rate swaps (3) (1,171) (100) (1,015) (222) Total $ (968) $ 1,418 $ 1,071 $ 2,085 (1) The cash paid and received on TRS agreements that were reported as derivative instruments is settled on a net basis and recorded through “Net (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. Net cash received was $0.7 million and $1.1 million for the three months ended June 30, 2017 and 2016, respectively. Net cash received was $1.6 million and $2.2 million for the six months ended June 30, 2017 and 2016, respectively. (2) The cash paid and received on the basis swaps is settled on a net basis and recorded through “Net (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. The net cash paid for the three months and six months ended June 30, 2017 was de minimis. The cash paid and received on the interest rate swaps is settled on a net basis and recorded through “Net (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. Net cash paid was $0.1 million for the three months ended June 30, 2017 and 2016. Net cash paid was $0.2 million and $0.1 million for the six months ended June 30, 2017 and 2016, respectively. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements At June 30, (in thousands) 2017 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 151,662 $ ─ $ ─ $ 151,662 Loans held for investment 3,899 ─ ─ 3,899 Derivative instruments 7,698 ─ 4,293 3,405 Liabilities: Derivative instruments $ 463 $ ─ $ 64 $ 399 Fair Value Measurements At December 31, (in thousands) 2016 Level 1 Level 2 Level 3 Assets: Investments in bonds $ 155,981 $ ─ $ ─ $ 155,981 Loans held for investment 3,835 ─ ─ 3,835 Derivative instruments 7,884 ─ 5,557 2,327 Liabilities: Derivative instruments $ 379 $ ─ $ 7 $ 372 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | 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, 2017: (in thousands) Bonds Available-for-sale Loans Held for Investment Derivative Assets Derivative Liabilities Balance, April 1, 2017 $ 152,385 $ 13,248 $ 3,265 $ ─ Net (losses) gains included in earnings (1,089) ─ 140 (399) Net change in other comprehensive income (1) 539 ─ ─ ─ Impact from purchases ─ ─ ─ ─ Impact from loan originations ─ ─ ─ ─ Impact from sales/redemptions ─ (9,349) ─ ─ Impact from settlements (173) ─ ─ ─ Transfer from loans HFS to loans HFI ─ ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount includes $0.5 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 30, 2017: (in thousands) Equity in Losses from LTPPs Net gains on derivatives (1) Change in unrealized losses related to assets and liabilities still held at June 30, 2017 $ (1,089) $ (259) Additional realized losses recognized ─ 713 Total (losses) gains reported in earnings $ (1,089) $ 454 (1) Amounts are reflected through “Net (losses) gains on derivatives 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 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 30, 2016: (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, 2016 $ ─ $ (1,354) $ 420 Additional realized gains recognized 28 ─ 1,002 Total gains (losses) reported in earnings $ 28 $ (1,354) $ 1,422 (1) Amounts are reflected through “Net gains on bonds” on the Consolidated Statement of Operations. (2) Amounts are reflected through “Net (losses) gains on derivatives 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 30, 2017: (in thousands) Bonds Available-for-sale Loans Held for Investment Derivative Assets Derivative Liabilities Balance, January 1, 2017 $ 155,981 $ 3,835 $ 2,327 $ (372) Net (losses) gains included in earnings (2,207) (5,335) 1,078 (27) Net change in other comprehensive income (1) 1,346 ─ ─ ─ Impact from purchases ─ 14,028 ─ ─ Impact from loan originations ─ 1,500 ─ ─ Impact from sales/redemptions ─ (10,129) ─ ─ Impact from settlements (3,458) ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount includes $1.3 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 six months ended June 30, 2017: (in thousands) Equity in Losses from LTPPs Net losses on loans (1) Net gains on derivatives (1) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2017 $ (2,207) $ (5,335) $ 1,051 Additional realized gains recognized ─ ─ 1,526 Total (losses) gains reported in earnings $ (2,207) $ (5,335) $ 2,577 (1) Amounts are reflected through “Net (losses) gains on derivatives 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 30, 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 loan originations ─ 23,700 4,315 ─ ─ Impact from sales/redemptions (3,769) ─ (7,990) ─ ─ Impact from bonds extinguished due to consolidated 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 represents $ 8.3 million of unrealized net holding gains arising during the period, partially offset by the reversal of $ 2.1 million of unrealized bond gains related to bonds that were sold or 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 30, 2016: (in thousands) Net gains on bonds (1) Equity in Losses from LTPPs Net gains on derivatives (2) Change in unrealized losses related to assets and liabilities still held at June 30, 2016 $ ─ $ (2,433) $ (3) Change in unrealized losses 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 (losses) 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 (losses) gains on derivatives and other assets” on the Consolidated Statements of Operations. |
Fair Value Measurements By Level 3 Valuation Technique | Fair Value Measurement at June 30, 2017 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 $ 93,465 Discounted cash flow Market yield 3.9 - 5.9 % 4.6 % Non-performing 6,736 Discounted cash flow Market yield 8.1 8.1 Capitalization rate 7.2 7.2 Net operating income (" NOI ") annual growth rate (1.2) (1.2) Subordinated cash flow 8,765 Discounted cash flow Market yield 7.4 - 7.6 7.5 Capitalization rate 6.4 - 6.5 6.5 NOI annual growth rate 0.2 - 0.8 0.5 Infrastructure bonds 24,758 Discounted cash flow Market yield 7.0 - 9.0 7.8 Other bonds 17,938 Discounted cash flow Market yield 3.7 - 5.4 4.4 Loans held for investment 3,899 Discounted cash flow Market yield 7.0 - 8.6 7.5 Derivative instruments: Total return swaps 3,405 Discounted cash flow Market yield 3.7 - 5.1 4.6 (399) Discounted cash flow Market yield 7.2 7.2 Capitalization rate 8.3 8.3 NOI annual growth rate 1.7 1.7 (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 UPB for cash instruments, such as loans and securities, and notional amounts for derivative instruments. Fair Value Measurement at December 31, 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 $ 93,082 Discounted cash flow Market yield 4.3 - 5.7 % 5.0 % Non-performing 7,015 Discounted cash flow Market yield 8.1 8.1 Capitalization rate 6.9 6.9 NOI annual growth rate (0.9) (0.9) Subordinated cash flow 9,930 Discounted cash flow Market yield 7.3 - 7.4 7.4 Capitalization rate 6.0 - 6.4 6.2 NOI annual growth rate 0.4 - 0.8 0.5 Infrastructure bonds 25,145 Discounted cash flow Market yield 7.3 - 9.0 8.0 Other bonds 20,809 Discounted cash flow Market yield 3.7 - 5.5 4.6 Loans held for investment 3,835 Discounted cash flow Market yield 19.2 19.2 Derivative instruments: Total return swaps 2,327 Discounted cash flow Market yield 3.9 -5.5 5.0 (372) Discounted cash flow Market yield 7.2 7.2 Capitalization rate 8.5 8.5 NOI annual growth rate 2.5 2.5 (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 UPB for cash instruments, such as loans and securities, and notional amounts for derivative instruments. |
Fair Value, by Balance Sheet Grouping | At June 30, 2017 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 37,482 $ 37,482 $ ─ $ ─ Restricted cash 22,356 22,356 ─ ─ Restricted cash related to CFVs 23,770 23,770 ─ ─ Asset management fee receivable from TC Fund I 3,868 ─ ─ 6,678 Guarantee fee receivable from TC Fund I 1,355 ─ ─ 1,355 Loans held for investment 971 ─ ─ 1,344 Loans held for investment related to CFVs 65 ─ ─ 511 Liabilities: Notes payable and other debt, bond related 84,097 ─ ─ 84,162 Notes payable and other debt, non-bond related 20,427 ─ ─ 20,428 Notes payable and other debt related to CFVs 12,945 ─ ─ 5,954 Subordinated debt issued by MFH 101,161 ─ ─ 41,507 Subordinated debt issued by MFI 6,466 ─ ─ 5,099 Guarantee obligations (1) 3,652 ─ ─ 11,690 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $8.0 million at June 30, 2017, 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, 2016 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 45,525 $ 45,525 $ ─ $ ─ Restricted cash 33,920 33,920 ─ ─ Restricted cash related to CFVs 23,584 23,584 ─ ─ Asset management fee receivable from TC Fund I ─ 2,947 Guarantee fee receivable from TC Fund I 1,348 ─ ─ 1,348 Loans held for investment 974 ─ ─ 1,106 Loans held for investment related to CFVs 65 ─ ─ 488 Liabilities: Notes payable and other debt, bond related 82,029 ─ ─ 82,118 Notes payable and other debt, non-bond related 18,817 ─ ─ 18,817 Notes payable and other debt related to CFVs 13,029 ─ ─ 5,956 Subordinated debt issued by MFH 102,338 ─ ─ 41,327 Subordinated debt issued by MFI 26,858 ─ ─ 20,139 Guarantee obligations (1) 4,003 ─ ─ 12,616 (1) Certain of the Company’s guarantee obligations, which had a carrying value of $8.6 million as of December 31, 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. |
GUARANTEES AND COLLATERAL (Tabl
GUARANTEES AND COLLATERAL (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 Maximum Carrying Maximum Carrying (in thousands) Exposure (1) Amount Exposure (1) Amount Guaranteed Funds (2) $ 392,518 $ 53 $ 392,518 $ 186 TC Fund I 109,587 3,593 109,587 3,805 LTPPs 536 6 536 12 (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 $388.4 million related to the 11 Guaranteed Funds we consolidated at June 30, 2017 and December 31, 2016. See Note 13, “Consolidated Funds and Ventures,” for more information. |
Schedule of Financial Instruments Owned and Pledged as Collateral | The following table summarizes assets that are either pledged or restricted for the Company’s use at June 30, 2017 and December 31, 2016. This table also reflects certain assets held by CFVs in order to reconcile to the Company’s Consolidated Balance Sheets: At June 30, 2017 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 5,945 $ 136,412 $ ─ $ ─ $ 142,357 Other (1) 16,411 4,231 ─ ─ 20,642 CFVs (2) 23,770 ─ 119,444 42,727 185,941 Total $ 46,126 $ 140,643 $ 119,444 $ 42,727 $ 348,940 (1) Majority of this balance represents collateral pledged by the Company in connection with secured borrowings and various guarantees that it has provided. (2) These are assets held by CFVs. At December 31, 2016 Bonds Total Restricted Available- Investment in Other Assets (in thousands) Cash for-sale Partnerships Assets Pledged Debt and derivatives related to TRSs $ 13,928 $ 129,746 $ ─ $ ─ $ 143,674 Other (1) 19,992 5,868 ─ ─ 25,860 CFVs (2) 23,584 ─ 137,773 44,551 205,908 Total $ 57,504 $ 135,614 $ 137,773 $ 44,551 $ 375,442 (1) Majority of this balance represents collateral pledged by the Company 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, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | (in thousands) 2017 $ 148 2018 300 2019 316 2020 185 2021 129 Thereafter 304 Total minimum future rental commitments $ 1,382 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Summary of Net Income to Common Shareholders | 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) 2017 2016 2017 2016 Net income from continuing operations $ 7,322 $ 5,047 $ 3,836 $ 21,569 Net income from discontinued operations 95 83 137 166 Net income to common shareholders $ 7,417 $ 5,130 $ 3,973 $ 21,735 Basic weighted-average shares (1) 5,893 6,289 5,915 6,406 Common stock equivalents (2), (3), (4) 382 ─ ─ 4 Diluted weighted-average shares 6,275 6,289 5,915 6,410 (1) Includes common shares issued and outstanding, as well as deferred shares of employees and non-employee directors that have vested but are not issued and outstanding. (2) At June 30, 2017, 410,000 stock options were in the money and had a potential dilutive share impact of 382,278 and 381,435 for the three months and six months ended June 30, 2017, respectively. For the six months ended June 30, 2017, the adjustment to net income for the awards classified as liabilities caused the common stock equivalents to be anti-dilutive. (3) 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 unvested employee def e rred shares had a potential 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. (4) For the three months and six months ended June 30, 2017, all options were vested in the money as of January 1, 2017 and thus none were excluded from the calculations of diluted earnings per share. 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. |
Schedule of Noncontrolling Interest | At At June 30, December 31, (in thousands) 2017 2016 Guaranteed Funds $ 108,548 $ 128,734 Consolidated Property Partnerships 5,695 6,220 IHS PM 66 45 Total $ 114,309 $ 134,999 |
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, 2017: Bonds Income Foreign Available- Tax Currency (in thousands) for-sale Expense Translation AOCI Balance, April 1, 2017 $ 41,805 $ (243) $ (3,392) $ 38,170 Unrealized net gains (losses) 539 ─ (14) 525 Income tax benefit ─ 243 ─ 243 Net change in AOCI 539 243 (14) 768 Balance, June 30, 2017 $ 42,344 $ ─ $ (3,406) $ 38,938 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 bond 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 six months ended June 30, 2017: Bonds Foreign Available- Currency (in thousands) for-sale Translation AOCI Balance, January 1, 2017 $ 40,998 $ (3,180) $ 37,818 Unrealized net gains (losses) 1,346 (226) 1,120 Net change in AOCI 1,346 (226) 1,120 Balance, June 30, 2017 $ 42,344 $ (3,406) $ 38,938 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 (2,055) ─ (2,055) Reclassification of unrealized bond 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 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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) 2017 2016 2017 2016 Employees’ Stock-Based Compensation Plans (1) $ (164) $ 765 $ 1,579 $ 1,548 Non-employee Directors’ Stock-Based Compensation Plans 89 74 178 148 Total $ (75) $ 839 $ 1,757 $ 1,696 |
Summary of Option Activity | The following table provides information related to option activity under the Employees’ Stock-Based Compensation Plans: Weighted-average Remaining Weighted-average Contractual Aggregate Number of Exercise Price Life per option Intrinsic Period End (in thousands, except per option data) Options per Option (in years) Value (1) Liability (2) Outstanding at January 1, 2016 416 $ 3.52 5.3 $ 5,283 $ 5,282 Forfeited/Expired in 2016 (6) 132.50 Outstanding at December 31, 2016 410 1.56 4.4 7,149 7,166 Forfeited/Expired in 2017 ─ Outstanding at June 30, 2017 410 1.56 3.9 8,727 8,745 Number of options that were exercisable at: December 31, 2016 410 1.56 4.4 June 30, 2017 410 1.56 3.9 (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 ; 410,000 ; and 416,211 ; at June 30, 2017, December 31, 2016 and January 1, 2016, respectively. |
Summary of Nonemployee Director Stock Award Activity | Common Deferred Weighted-average Shares Shares Grant Date Options Directors' Fees Cash Granted Granted Share Price Vested Expense June 30, 2017 $ 88,750 ─ 3,917 $ ─ ─ $ 177,500 June 30, 2016 73,750 ─ 4,523 16.31 ─ 147,500 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operations | For the three months ended For the six months ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Other income $ 69 $ 84 $ 138 $ 167 Other expense (1) (1) (1) (1) Income tax benefit 27 ─ ─ ─ Net income from discontinued operations 95 83 $ 137 $ 166 Loss from discontinued operations allocable to noncontrolling interests ─ ─ ─ ─ Net income to common shareholders from discontinued operations $ 95 $ 83 $ 137 $ 166 |
CONSOLIDATED FUNDS AND VENTUR34
CONSOLIDATED FUNDS AND VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of More Information Related to Assets Consolidated Fund or Ventures | At At June 30, December 31, (in thousands) 2017 2016 Cash, cash equivalents and restricted cash $ 23,770 $ 23,584 Investments in LTPPs 119,444 137,773 Real estate held for use, net 24,499 36,942 Real estate held for sale, net 12,007 145 Other assets 6,221 7,464 Total assets of CFVs $ 185,941 $ 205,908 |
Schedule of Investments in Partnerships | The following table provides information about the carrying value of the Company’s investments in partnerships and ventures. At At June 30, December 31, (in thousands) 2017 2016 Investments in U.S. real estate partnerships (includes $7,794 and $11,138 related to VIEs) (1) $ 25,287 $ 27,596 Investments in IHS-managed funds (includes $2,022 and $1,955 related to VIEs) (1) 4,003 3,296 Investment in Solar Ventures 78,942 75,526 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) 119,444 137,773 Total investments in partnerships $ 227,676 $ 244,191 (1) We do not consolidate any of the investees that were assessed to meet the definition of a VIE because the Company was deemed not to be the primary beneficiary. See Note 13, “Consolidated Funds and Ventures,” for more information. |
Schedule of More Information Related to Real Estate Consolidated Fund and Ventures | The following provides information about the assets of the consolidated property partnerships that were classified as held for use as of the specified reporting dates: At At June 30, December 31, (in thousands) 2017 2016 Building, furniture and fixtures $ 22,975 $ 33,281 Accumulated depreciation (1,612) (1,085) Land 3,136 4,746 Total $ 24,499 $ 36,942 |
Schedule of More Information Related to Real Estate Held-for-Sale Consolidated Fund and Ventures | The following provides information about the assets of the consolidated property partnership that was classified as held for sale as of the specified reporting dates: At At June 30, December 31, (in thousands) 2017 2016 Cash $ 431 $ 145 Building, furniture and fixtures 10,306 ─ Accumulated depreciation (359) ─ Land 1,610 ─ Other assets 19 ─ Total $ 12,007 $ 145 |
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) 2017 2016 Debt (1), (2) $ 12,945 $ 13,029 Unfunded equity commitments to unconsolidated LTPPs 8,103 8,103 Asset management fee payable 28,820 28,373 Other liabilities (3) 4,297 4,209 Total liabilities of CFVs $ 54,165 $ 53,714 (1) At June 30, 2017 and December 31, 2016, $6.7 million of this debt had a UPB equal to its carrying value, a weighted-average effective interest rate of 6.3% and 5.8% , respectively, and was due on demand. (2) At June 30, 2017 and December 31, 2016, $6.2 million and $6.3 million, respectively, of this debt was related to two consolidated property partnerships and had a UPB of $5.4 million and weighted-average effective interest rate of 4.0% with various maturity dates through March 11, 2029. (3) At June 30, 2017, $0.1 million of other liabilities is associated with the consolidated property partnership designated as held for sale. |
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) 2017 2016 2017 2016 Revenue: Rental and other income from real estate $ 1,320 $ 462 $ 2,633 $ 784 Interest and other income 425 264 619 761 Total revenue from CFVs 1,745 726 3,252 1,545 Expenses: Depreciation and amortization 865 681 1,811 1,368 Interest expense 156 132 316 259 Other operating expenses 1,966 1,697 3,925 2,986 Asset impairments 6,795 6,504 11,400 12,769 Total expenses from CFVs 9,782 9,014 17,452 17,382 Net losses related to CFVs: Investment (losses) gains ─ (598) 10 (598) Equity in losses from LTPPs of CFVs (3,974) (4,937) (7,448) (10,623) Net loss (12,011) (13,823) (21,638) (27,058) Net losses allocable to noncontrolling interests in CFVs (1) 11,572 12,322 20,712 24,822 Net loss allocable to the common shareholders related to CFVs $ (439) $ (1,501) $ (926) $ (2,236) (1) Excludes $49 and $66 of net gain allocable to the noncontrolling interest holder in IHS PM for the three months ended June 30, 2017 and 2016, respectively. Excludes $52 and $109 of net gain allocable to the noncontrolling interest holder in IHS PM for the six months ended June 30, 2017 and 2016, respectively. These amounts are excluded from this presentation because IHS PM and its related activity are not included within CFV income statement activity above. |
Schedule of Net Income to Shareholders Related to Consolidated Funds and Ventures | For the three months ended For the six months ended June 30, June 30, (in thousands) 2017 2016 2017 2016 Guarantee fees $ 288 $ 331 $ 576 $ 662 Interest income 331 65 664 65 Equity in losses from LTPPs (1,089) (1,354) (2,207) (2,483) Equity in income from Consolidated Property Partnerships 31 55 41 118 Other expenses ─ (598) ─ (598) Net loss allocable to the common shareholders related to CFVs $ (439) $ (1,501) $ (926) $ (2,236) |
L I H T C Funds [Member] | |
Schedule of Investments in Partnerships | At At June 30, December 31, (in thousands) 2017 2016 Total assets of the LTPPs (1) $ 1,141,299 $ 1,124,274 Total liabilities of the LTPPs (1) 934,177 937,335 (1) The assets of the LTPPs are primarily real estate and the liabilities are predominantly mortgage debt. |
Schedule of Net Income to Shareholders Related to Consolidated Funds and Ventures | For the six months ended June 30, (in thousands) 2017 2016 Net loss $ (13,236) $ (13,190) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | For the three months ended June 30, 2017 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate Reclassifications Consolidated Total interest income $ 2,938 $ 43 $ 24 $ (331) (1) $ 2,674 Total interest expense (444) ─ ─ ─ (444) Net interest income 2,494 43 24 (331) 2,230 Total fee and other income 5,103 2,178 ─ (288) (2) 6,993 Revenue from CFVs 1,745 ─ ─ ─ 1,745 Total non-interest revenue 6,848 2,178 ─ (288) 8,738 Total revenues, net of interest expense 9,342 2,221 24 (619) 10,968 Operating and other expenses: Interest expense (82) ─ (1,139) ─ (1,221) Operating expenses (2,049) (2,231) (1,084) ─ (5,364) Other expenses, net (221) (47) (30) ─ (298) Expenses from CFVs (10,432) ─ ─ 650 (1), (2), (3) (9,782) Total operating and other expenses (12,784) (2,278) (2,253) 650 (16,665) Net (losses) gains on assets and derivatives (794) ─ 3,829 ─ 3,035 Equity in income (losses) from unconsolidated funds and ventures 2,875 (3) 15 ─ (31) (3) 2,859 Equity in losses from Lower Tier Property Partnerships of CFVs (3,974) ─ ─ ─ (3,974) (Loss) income from continuing operations before income taxes (5,335) (42) 1,600 ─ (3,777) Income tax expense ─ ─ (424) ─ (424) Income from discontinued operations, net of tax 67 ─ 28 ─ 95 Net (loss) income (5,268) (42) 1,204 ─ (4,106) Loss (income) allocable to noncontrolling interests: Net losses (income) allocable to noncontrolling interests in CFVs: Related to continuing operations 11,572 (49) ─ ─ 11,523 Net income (loss) allocable to common shareholders $ 6,304 $ (91) $ 1,204 $ ─ $ 7,417 (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 $0.3 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 2017 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 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 $0.03 million of gains in U.S. Operations. For the three months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate 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 2,443 1,823 6 (331) 3,941 Total revenues, net of interest expense 5,606 1,852 (82) (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 (1,305) 2 (30) 598 (3) (735) Expenses from CFVs (8,867) ─ ─ (147) (1), (2), (4) (9,014) Total operating and other expenses (12,316) (2,092) (2,446) 451 (16,403) Net gains on assets and derivatives 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 losses related to CFVs (598) (598) Equity in losses from Lower Tier Property Partnerships of CFVs (4,937) ─ ─ ─ (4,937) Loss from continuing operations before income taxes (4,346) (301) (2,528) ─ (7,175) Income tax expense ─ ─ (34) ─ (34) Income from discontinued operations, net of tax 83 ─ ─ ─ 83 Net (loss) income (4,263) (301) (2,562) ─ (7,126) Loss (income) allocable to noncontrolling interests: Net losses (income) allocable to noncontrolling interests in CFVs: Related to continuing operations 12,322 (66) ─ ─ 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) Represents 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. For the six months ended June 30, 2017 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate Reclassifications Consolidated Total interest income $ 6,139 $ 91 $ 42 $ (664) (1) $ 5,608 Total interest expense (855) ─ ─ (855) Net interest income 5,284 91 42 (664) 4,753 Total fee and other income 6,392 6,007 ─ (576) (2) 11,823 Revenue from CFVs 3,252 ─ ─ ─ 3,252 Total non-interest revenue 9,644 6,007 ─ (576) 15,075 Total revenues, net of interest expense 14,928 6,098 42 (1,240) 19,828 Operating and other expenses: Interest expense (157) (1) (2,289) ─ (2,447) Operating expenses (5,294) (5,008) (3,333) ─ (13,635) Other expenses, net (484) 388 (60) ─ (156) Expenses from CFVs (18,723) ─ ─ 1,271 (1), (2), (3) (17,452) Total operating and other expenses (24,658) (4,621) (5,682) 1,271 (33,690) Net (losses) gains on assets, derivatives and extinguishment of liabilities (4,090) ─ 3,829 ─ (261) Equity in income (losses) from unconsolidated funds and ventures 4,982 (3) (38) ─ (41) (3) 4,903 Net gains related to CFVs ─ ─ ─ 10 10 Equity in losses from Lower Tier Property Partnerships of CFVs (7,448) ─ ─ ─ (7,448) (Loss) income from continuing operations before income taxes (16,286) 1,439 (1,811) ─ (16,658) Income tax expense ─ ─ (166) ─ (166) Income from discontinued operations, net of tax 137 ─ ─ ─ 137 Net (loss) income (16,149) 1,439 (1,977) ─ (16,687) (Income) loss allocable to noncontrolling interests: Net (income) losses allocable to noncontrolling interests in CFVs: Related to continuing operations 20,712 (52) ─ ─ 20,660 Net income (loss) allocable to common shareholders $ 4,563 $ 1,387 $ (1,977) $ ─ $ 3,973 (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 $0.7 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 2017 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 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 $0.04 million of gains in U.S. Operations. For the six months ended June 30, 2016 Income U.S. International Allocation MMA (in thousands) Operations Operations Corporate 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 4,652 3,281 28 (662) 7,299 Total revenues, net of interest expense 11,024 3,337 (154) (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 (1,452) 120 (49) 598 (3) (783) Expenses from CFVs (17,629) ─ ─ 247 (1), (2), (4) (17,382) Total operating and other expenses (23,467) (3,908) (5,546) 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 real estate foreclosure 15,647 ─ ─ ─ 15,647 Equity in income (loss) from unconsolidated funds and ventures 6,925 (4) (220) ─ (118) (4) 6,587 Net losses related to CFVs (598) ─ ─ ─ (598) Equity in losses from Lower Tier Property Partnerships of CFVs (10,623) ─ ─ ─ (10,623) Income (loss) from continuing operations before income taxes 3,449 (791) (5,696) ─ (3,038) Income tax expense ─ ─ (106) ─ (106) Income from discontinued operations, net of tax 166 ─ ─ ─ 166 Net income (loss) 3,615 (791) (5,802) ─ (2,978) Loss allocable to noncontrolling interests: Net losses (income) allocable to noncontrolling interests in CFVs: Related to continuing operations 24,822 (109) ─ ─ 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 purpose of the table above, the $0.6 million was reflected in other expenses for U.S. Operations. (4) Represents 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. |
Reconciliation of Assets from Segment to Consolidated | June 30, December 31, (in thousands) 2017 2016 ASSETS U.S. Operations (includes $185,941 and $205,908 related to CFVs) $ 486,931 $ 517,286 Corporate Operations 37,861 48,459 International Operations 11,247 8,454 Total MMA consolidated assets $ 536,039 $ 574,199 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - segment | 1 Months Ended | 6 Months Ended |
Nov. 30, 2016 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Number of reportable segments | 3 | |
International Housing Solutions (IHS) [Member] | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Ownership percentage | 60.00% | |
Guaranteed Funds [Member] | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Ownership percentage | 0.01% |
BONDS AVAILABLE-FOR-SALE (Narra
BONDS AVAILABLE-FOR-SALE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Non Accrual Bonds | $ 6,700 | $ 6,700 | $ 7,000 | ||
Non Accrual Bonds Interest Income Cash Basis Method | 100 | $ 200 | 100 | $ 500 | |
Interest Income Non Accrual Bonds Not Recognized | 200 | 400 | 300 | 900 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 13,500 | 13,500 | |||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $ 25,800 | 25,800 | |||
Increase Decrease in Fair Value Of Bonds | $ (4,300) | ||||
Proceeds From Sale or Redemption Of Available For Sale Securities | 6,100 | ||||
Weighted average pay rate on available-for-sale bonds | 6.10% | 6.10% | 6.10% | ||
Net gains transferred into net income from AOCI due to consolidation or real estate foreclosure | $ 4,205 | $ 15,647 | |||
Weighted Average Expected Maturity, Investments, not Currently Prepayable | 4 years 7 months 6 days | ||||
Other Debt Obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 20,300 | $ 20,300 | $ 16,500 |
BONDS AVAILABLE-FOR-SALE (Bonds
BONDS AVAILABLE-FOR-SALE (Bonds and Related Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 150,369 | $ 154,154 |
Amortized Cost | 109,318 | 114,983 |
Gross Unrealized Gains | 42,543 | 41,427 |
Gross Unrealized Losses | (199) | (429) |
Fair Value | $ 151,662 | $ 155,981 |
FV as a % of UPB | 101.00% | 101.00% |
Mortgage Revenue Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 105,915 | $ 106,366 |
Amortized Cost | 70,459 | 73,049 |
Gross Unrealized Gains | 38,507 | 36,978 |
Fair Value | $ 108,966 | $ 110,027 |
FV as a % of UPB | 103.00% | 103.00% |
Other Debt Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 44,454 | $ 47,788 |
Amortized Cost | 38,859 | 41,934 |
Gross Unrealized Gains | 4,036 | 4,449 |
Gross Unrealized Losses | (199) | (429) |
Fair Value | $ 42,696 | $ 45,954 |
FV as a % of UPB | 96.00% | 96.00% |
BONDS AVAILABLE-FOR-SALE (Bon39
BONDS AVAILABLE-FOR-SALE (Bonds Without Prepayment Restrictions) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Bonds Unpaid Principal Balance [Abstract] | ||
Bonds unpaid principal balance for, June 30, 2017 | $ 34,454 | |
Bonds unpaid principal balance, 2018 | 1,919 | |
Bonds unpaid principal balance, 2020 | 5,230 | |
Bonds unpaid principal balance, 2021 | 46,451 | |
Bonds unpaid principal balance, thereafter | 62,283 | |
Bonds unpaid principal balance, may not be prepaid | 32 | |
Unpaid principal balance | 150,369 | $ 154,154 |
Amortized Cost, Bonds that may be prepaid without restrictions | ||
Amortized Cost, June 30, 2017 | 28,859 | |
Amortized Cost, 2018 | 311 | |
Amortized Cost, 2020 | 4,279 | |
Amortized Cost, 2021 | 28,375 | |
Amortized Cost, Thereafter | 47,462 | |
Amortized Cost, Bonds that may not be prepaid | 32 | |
Amortized Cost | 109,318 | 114,983 |
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties | ||
Fair Value, June 30, 2017 | 32,162 | |
Fair Value, 2018 | 2,215 | |
Fair Value, 2020 | 5,451 | |
Fair Value, 2021 | 49,647 | |
Fair Value, Thereafter | 62,154 | |
Fair Value, Bonds that may not be prepaid | 33 | |
Fair Value, Total | $ 151,662 | $ 155,981 |
BONDS AVAILABLE-FOR-SALE (Bond
BONDS AVAILABLE-FOR-SALE (Bond Aging Analysis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Bonds Available-For-Sale [Abstract] | ||
Total current | $ 144,927 | $ 148,967 |
30-59 days past due | ||
60-89 days past due | ||
90 days or greater | 6,735 | 7,014 |
Total | $ 151,662 | $ 155,981 |
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, 2016 | |
Bonds Available-For-Sale [Abstract] | ||
(Losses) gains recognized at time of sale or redemption | $ 28 | $ 2,323 |
INVESTMENTS IN PARTNERSHIPS A42
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Narrative) (Details) $ in Thousands, ZAR in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2017ZARentity | Dec. 31, 2016USD ($)entity | Jul. 28, 2017ZAR | Jul. 28, 2017USD ($) | Jun. 30, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 244,191 | $ 227,676 | |||||
Commitments and Contingencies | |||||||
Loans and Leases Receivable, Net Amount, Total | 4,809 | 4,870 | |||||
U.S. Real Estate Partnerships [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | $ 27,596 | $ 25,287 | |||||
Payments to acquire equity method investments | $ 8,800 | ||||||
Equity method investment, ownership percentage | 80.00% | 33.00% | 33.00% | ||||
Commitments and Contingencies | $ 2,500 | ||||||
Number of Variable Interest Entities | entity | 2 | 3 | |||||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $ 11,100 | 7,800 | |||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 11,100 | 7,800 | |||||
U.S. Real Estate Partnerships formed in Q4 2014[Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 17,500 | ||||||
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 | 1,600 | ||||||
IHS Managed Funds and Ventures [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 3,296 | 4,003 | |||||
Equity In Income From SAWHF [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 1,700 | ||||||
IHS Residential Partners One [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 2,000 | ||||||
Variable Interest Entity, Maximum Committed Financial or Other Support | ZAR | ZAR 180 | ||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 13,200 | 13,900 | |||||
IHS Fund II SA [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 300 | ||||||
IHS Fund II SSA [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 0 | ||||||
Solar Facilities Investment [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investments | 75,526 | $ 78,942 | |||||
Payments to acquire equity method investments | $ 75,000 | ||||||
Solar Facilities Investment [Member] | Solar Development Lending, LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to acquire equity method investments | $ 700 | ||||||
SAWHF [Member] | IHS Managed Funds and Ventures [Member] | Subsequent Event [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Aggregate Cost | ZAR 153.1 | $ 11,800 | |||||
Equity method investment, ownership percentage | 11.85% | 11.85% | |||||
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 A43
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Real Estate Investment Partnerships) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 227,676 | $ 244,191 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 25,287 | 27,596 |
IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 4,003 | 3,296 |
Solar Facilities Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 78,942 | 75,526 |
Lower Tier Property Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 119,444 | 137,773 |
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 | 7,794 | 11,138 |
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 | $ 2,022 | $ 1,955 |
INVESTMENTS IN PARTNERSHIPS A44
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Balance Sheet Accounts Related to Equity Method Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 86,277 | $ 97,659 |
Total liabilities | 40,003 | 47,147 |
IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 272,330 | 261,082 |
Total liabilities | 104,858 | 110,214 |
Solar Facilities Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 181,783 | 158,365 |
Total liabilities | $ 4,306 | $ 4,905 |
INVESTMENTS IN PARTNERSHIPS A45
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Income Loss in Earnings of Unconsolidated Venture) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
U.S. Real Estate Partnerships [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | $ (518) | $ 506 | $ (1,032) | $ 5,624 |
IHS Managed Funds and Ventures [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | 870 | (2,902) | (2,197) | (8,712) |
Solar Facilities Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (loss) | $ 5,346 | $ 2,495 | $ 8,396 | $ 5,557 |
OTHER ASSETS (Narrative, Loans
OTHER ASSETS (Narrative, Loans Held-for-Investment and Held-for-Sale) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)contract | |
Loans and Leases Receivable Unpaid Principal Balance | $ 22,200 | $ 22,200 | $ 16,800 | |
Loans and Leases Receivable, Deferred Income | 7,600 | 7,600 | 7,600 | |
Impaired Financing Receivable, Unpaid Principal Balance | 6,400 | 6,400 | 6,400 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 500 | 500 | 500 | |
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 0 | 0 | 0 | |
Loans Receivable, Held-For-Sale, Cost Basis | 6,000 | 6,000 | 6,000 | |
Net gains on sale of real estate estate and other investments | 174 | 174 | $ 116 | |
Fair Value Option Loan [Member] | ||||
Loans and Leases Receivable Unpaid Principal Balance | 15,400 | $ 15,400 | $ 10,000 | |
Loans And Leases Receivable, Number of Loans | contract | 16 | 1 | ||
Fair Value, Option, Fair Value | 3,900 | $ 3,900 | $ 3,800 | |
Fair Value Option, One Loan [Member] | ||||
Loans and Leases Receivable Unpaid Principal Balance | 11,500 | 11,500 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 | ||
Solar Facilities [Member] | ||||
Property, Plant and Equipment, Net | 1,200 | 1,200 | 1,300 | |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | $ 1,200 | $ 1,200 | $ 1,700 |
OTHER ASSETS (Narrative, Remain
OTHER ASSETS (Narrative, Remainder) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset management fees and reimbursements | $ 6,751 | $ 2,261 | $ 11,270 | $ 4,153 | ||||
Gains (Losses) on Sales of Other Real Estate | 174 | 174 | $ 116 | |||||
Accrued Fees and Other Revenue Receivable | 4,638 | 4,638 | $ 1,406 | |||||
Derivative Asset, Noncurrent | 7,698 | 7,698 | 7,884 | |||||
Derivative Asset | 7,698 | 7,698 | 7,884 | |||||
Impairment of Long-Lived Assets to be Disposed of | 0 | $ 0 | ||||||
IHS Funds and Ventures [Member] | ||||||||
Accrued Fees and Other Revenue Receivable | 200 | 200 | 900 | |||||
TC Fund I [Member] | ||||||||
Asset management fees and reimbursements | 3,900 | |||||||
TC Fund I [Member] | Subsequent Event [Member] | ||||||||
Capital Proceeds from Settlements | $ 2,800 | |||||||
Loan Origination Commitments [Member] | ||||||||
Unfunded Loan Origination Commitments | $ 0 | $ 0 | $ 0 | |||||
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 | |||||||
Scenario, Forecast [Member] | TC Fund I [Member] | ||||||||
Asset management fees and reimbursements | $ 2,200 |
OTHER ASSETS (Summary of Other
OTHER ASSETS (Summary of Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other assets: | ||
Loan receivable held-for-investment | $ 4,870 | $ 4,809 |
Real estate owned | 3,421 | 3,267 |
Derivative assets | 7,698 | 7,884 |
Accrued interest and dividends receivable | 1,685 | 1,822 |
Asset management fees receivable | 4,638 | 1,406 |
Other assets | 6,390 | 5,526 |
Total other assets | 73,093 | 70,998 |
Consolidated Funds and Ventures [Member] | ||
Other assets: | ||
Total other assets | 42,727 | 44,551 |
Solar Facilities Investment [Member] | ||
Other assets: | ||
Total other assets | $ 1,664 | $ 1,733 |
OTHER ASSETS (Loans Held for In
OTHER ASSETS (Loans Held for Investment) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortized cost | $ 14,598 | $ 9,202 |
Net losses included in earnings | (8,900) | (3,565) |
Allowance for loan losses | (828) | (828) |
Loans held for investment, net | $ 4,870 | $ 4,809 |
OTHER ASSETS (REO held for use,
OTHER ASSETS (REO held for use, net) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Other assets | $ 73,093 | $ 70,998 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,770 | 23,584 |
Other assets | 6,221 | 7,464 |
Real estate held for use, net | 24,499 | 36,942 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | 24,499 | 36,942 |
Consolidated Funds and Ventures [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | 22,975 | 33,281 |
Accumulated depreciation | (1,612) | (1,085) |
Consolidated Funds and Ventures [Member] | Land [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | 3,136 | 4,746 |
REO held for use, net [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | 3,421 | 3,267 |
REO held for use, net [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | 802 | 648 |
REO held for use, net [Member] | Land [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | $ 2,619 | $ 2,619 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Gains (Losses) on Extinguishment of Debt | $ 3,829 | $ 3,829 | |
Letters of Credit Outstanding, Amount | 0 | 0 | $ 0 |
Notes Payable and Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities, Total | 18,612 | 18,612 | 16,869 |
Subordinated Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities, Total | 105,003 | 105,003 | 125,899 |
Debt Instrument, Repurchased Face Amount | 19,900 | 19,900 | |
Principal | 99,069 | 99,069 | |
Notes Payable and Other Debt – Bond Related [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities, Total | 67,251 | 67,251 | $ 79,137 |
TRS Financing Arrangements [Member] | |||
Debt Instrument [Line Items] | |||
Underlying Bond Notional Amount | $ 79,800 | $ 79,800 | |
Underlying Bond Interest Rate | 6.50% | 6.50% | |
Long-term Debt, Gross | $ 84,200 | $ 84,200 | |
Derivative, Variable Interest Rate | 2.20% | 2.20% | |
MMA Financial, Inc [Member] | Subordinated Loan [Member] | |||
Debt Instrument [Line Items] | |||
Gains (Losses) on Extinguishment of Debt | $ 3,800 |
DEBT (Outstanding Debt Balances
DEBT (Outstanding Debt Balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 225,096 | $ 243,071 |
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 3.00% |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 212,151 | $ 230,042 |
Debt Instrument, Interest Rate, Effective Percentage | 2.60% | 2.80% |
Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 84,097 | $ 82,029 |
Debt Instrument, Interest Rate, Effective Percentage | 2.30% | 2.10% |
Notes Payable and Other Debt – Bond Related [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 16,846 | $ 2,892 |
Debt, Due after one year | $ 67,251 | $ 79,137 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 2.60% | 2.20% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 2.20% | 2.10% |
Unamortized Debt Issuance Expense | $ 0 | $ 0 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 128,054 | $ 148,013 |
Debt Instrument, Interest Rate, Effective Percentage | 2.80% | 3.30% |
Notes Payable and Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 1,815 | $ 1,948 |
Debt, Due after one year | $ 18,612 | $ 16,869 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 3.90% | 3.90% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 2.50% | 2.30% |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 2,624 | $ 3,297 |
Debt, Due after one year | 105,003 | $ 125,899 |
Debt, Carrying Value | $ 107,627 | |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 3.10% | 3.90% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 2.80% | 3.40% |
Net Premium and Debt Issuance Costs | $ 8,600 | $ 8,700 |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 6,893 | 6,885 |
Debt, Due after one year | 6,052 | 6,144 |
Debt, Carrying Value | $ 12,945 | $ 13,029 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 6.20% | 5.70% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 4.00% | 4.00% |
Debt Instrument, Interest Rate, Effective Percentage | 5.20% | 4.90% |
DEBT (Principal Commitments) (D
DEBT (Principal Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,017 | $ 9,057 | |
2,018 | 60,234 | |
2,019 | 13,606 | |
2,020 | 29,526 | |
2,021 | 9,369 | |
Thereafter | 93,945 | |
Net premium and debt issue costs | 9,359 | |
Total | 225,096 | $ 243,071 |
Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Total | 12,945 | 13,029 |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
2,017 | 2,297 | |
2,018 | 60,133 | |
2,019 | 13,497 | |
2,020 | 29,410 | |
2,021 | 9,244 | |
Thereafter | 89,078 | |
Net premium and debt issue costs | 8,492 | |
Total | 212,151 | 230,042 |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
2,017 | 6,760 | |
2,018 | 101 | |
2,019 | 109 | |
2,020 | 116 | |
2,021 | 125 | |
Thereafter | 4,867 | |
Net premium and debt issue costs | 867 | |
Total | $ 12,945 | $ 13,029 |
DEBT (Subordinate Debt) (Detail
DEBT (Subordinate Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Net Premium and Debt Issuance Costs | $ 9,359 | |
Carrying Value | 225,096 | $ 243,071 |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 99,069 | |
Net Premium and Debt Issuance Costs | 8,558 | |
Carrying Value | 107,627 | |
Subordinated Loan [Member] | MMA Financial Inc. Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 6,498 | |
Net Premium and Debt Issuance Costs | (32) | |
Carrying Value | $ 6,466 | |
Maturity Date | December 2,027 | |
Coupon Interest Rate | 8.00% | |
Subordinated Loan [Member] | Mfh Issue 1 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 27,336 | |
Net Premium and Debt Issuance Costs | 2,617 | |
Carrying Value | $ 29,953 | |
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 | $ 24,856 | |
Net Premium and Debt Issuance Costs | 2,391 | |
Carrying Value | $ 27,247 | |
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 | $ 14,328 | |
Net Premium and Debt Issuance Costs | 1,271 | |
Carrying Value | $ 15,599 | |
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 | $ 26,051 | |
Net Premium and Debt Issuance Costs | 2,311 | |
Carrying Value | $ 28,362 | |
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 (Schedul
DERIVATIVE INSTRUMENTS (Schedule of the Company’s Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 7,698 | $ 7,884 |
Derivative Liability | 463 | 379 |
Total Return Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 3,405 | 2,327 |
Derivative Liability | 399 | 372 |
Basis Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 254 | 176 |
Derivative Liability | 64 | 7 |
Interest rate cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 1,070 | 1,553 |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 2,969 | $ 3,828 |
DERIVATIVE INSTRUMENTS (Sched56
DERIVATIVE INSTRUMENTS (Schedule of Derivative Notional Amounts) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 393,221 | $ 411,550 |
Total Return Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 72,721 | 91,050 |
Basis Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 100,500 | 100,500 |
Interest rate cap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 80,000 | 80,000 |
Interest rate swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 140,000 | $ 140,000 |
DERIVATIVE INSTRUMENTS (Summary
DERIVATIVE INSTRUMENTS (Summary of Derivative Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | $ (968) | $ 1,418 | $ 1,071 | $ 2,085 |
Total Return Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | 454 | 1,522 | 2,577 | 2,321 |
Payments For Proceeds From Derivative Instrument Operating Activities | 700 | 1,100 | 1,600 | 2,200 |
Basis Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | 20 | (9) | ||
Interest rate cap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | (271) | (4) | (482) | (14) |
Interest rate swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | (1,171) | (100) | (1,015) | (222) |
Payments For Proceeds From Derivative Instrument Operating Activities | $ (100) | $ (100) | $ (200) | $ (100) |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized gains (losses) arising during the period | $ 539 | $ 4,460 | $ 1,346 | $ 8,251 | |
Reversal of net unrealized gains on sold/redeemed bonds | $ 2,055 | ||||
Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 14.50% | 14.50% | |||
Subordinated Debt Obligations, Fair Value Disclosure | 46,600 | $ 46,600 | |||
Minimum [Member] | Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 12.00% | ||||
Subordinated Debt Obligations, Fair Value Disclosure | 40,500 | $ 40,500 | |||
Maximum [Member] | Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 17.00% | ||||
Subordinated Debt Obligations, Fair Value Disclosure | $ 54,600 | $ 54,600 |
FAIR VALUE (Fair Value of Asset
FAIR VALUE (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Derivative assets | $ 7,698 | $ 7,884 |
Liabilities: | ||
Derivative liabilities | 463 | 379 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Loans held for investment | 1,344 | 1,106 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Investments in bonds | 151,662 | 155,981 |
Loans held for investment | 3,899 | |
Loans held-for-sale | 3,835 | |
Derivative assets | 7,698 | 7,884 |
Liabilities: | ||
Derivative liabilities | 463 | 379 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Derivative assets | 4,293 | 5,557 |
Liabilities: | ||
Derivative liabilities | 64 | 7 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Investments in bonds | 151,662 | 155,981 |
Loans held for investment | 3,899 | |
Loans held-for-sale | 3,835 | |
Derivative assets | 3,405 | 2,327 |
Liabilities: | ||
Derivative liabilities | $ 399 | $ 372 |
FAIR VALUE (Activity for Assets
FAIR VALUE (Activity for Assets and Liabilities Measured on Recurring Level 3 Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Available-for-sale Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | $ 152,385 | $ 192,928 | $ 155,981 | $ 218,439 |
Net (losses) gains included in earnings | (1,089) | (1,354) | (2,207) | (2,483) |
Net change in other comprehensive income | 539 | 4,460 | 1,346 | 6,196 |
Impact from sales/redemptions | (3,769) | |||
Impact from bonds extinguished due to consolidation or real estate foreclosure | (12,946) | (30,300) | ||
Impact from settlements | (173) | (257) | (3,458) | (5,252) |
Balance at ending period | 151,662 | 182,831 | 151,662 | 182,831 |
Loans Receivable [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 13,248 | 6,169 | 3,835 | |
Net (losses) gains included in earnings | (5,335) | |||
Impact from purchases | 14,028 | |||
Impact from originations | 17,531 | 1,500 | 23,700 | |
Impact from sales/redemptions | (9,349) | (10,129) | ||
Balance at ending period | 3,899 | 23,700 | 3,899 | 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 | 3,835 | 6,417 | |
Impact from originations | 303 | 4,315 | ||
Impact from sales/redemptions | (896) | (7,990) | ||
Balance at ending period | 2,742 | 2,742 | ||
Derivative Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 3,265 | 3,952 | 2,327 | 3,658 |
Net (losses) gains included in earnings | 140 | 28 | 1,078 | 322 |
Balance at ending period | 3,405 | 3,980 | 3,405 | 3,980 |
Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | (2,430) | (372) | (1,713) | |
Net (losses) gains included in earnings | (399) | 392 | (27) | (325) |
Balance at ending period | $ (399) | $ (2,038) | $ (399) | $ (2,038) |
FAIR VALUE (Amount of Activity
FAIR VALUE (Amount of Activity Pertaining to Level 3 Assets and Liabilities Included in Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total gains (losses) reported in earnings | $ (8,900) | $ (3,565) | |||
Available-for-sale Securities [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Additional realized gains (losses) recognized | $ 28 | $ 2,323 | |||
Total gains (losses) reported in earnings | 28 | 2,323 | |||
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 | $ (1,089) | (1,354) | (2,207) | (2,433) | |
Change in unrealized losses related to assets and liabilities settled during the period | (50) | ||||
Total gains (losses) reported in earnings | (1,089) | (1,354) | (2,207) | (2,483) | |
Loans Receivable [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Change in unrealized (losses) gains related to assets and liabilities still held | (5,335) | ||||
Total gains (losses) reported in earnings | (5,335) | ||||
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 | (259) | 420 | 1,051 | (3) | |
Additional realized gains (losses) recognized | 713 | 1,002 | 1,526 | 2,102 | |
Total gains (losses) reported in earnings | $ 454 | $ 1,422 | $ 2,577 | $ 2,099 |
FAIR VALUE (Fair Value Measurem
FAIR VALUE (Fair Value Measurements By Level 3 Valuation Technique) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Total Return Swap [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value, Net Derivative Asset (Liability) | $ (399) | $ (372) | |||
Market yield | 7.20% | 7.20% | |||
Capitalization rate | 8.30% | 8.50% | |||
NOI annual growth rate | 1.70% | 2.50% | |||
Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | $ 93,465 | $ 93,082 | |||
Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | $ 6,736 | 7,015 | |||
Market yield | 8.10% | ||||
Capitalization rate | 7.20% | ||||
NOI annual growth rate | (1.20%) | ||||
Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | $ 8,765 | 9,930 | |||
Available-for-sale, Infrastructure Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | 24,758 | 25,145 | |||
Other Debt Obligations [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | 17,938 | 20,809 | |||
Loans Held for Investment [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | 3,899 | ||||
Loans Held-for-sale [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value | 3,835 | $ 2,742 | $ 3,335 | $ 6,417 | |
Total Return Swap [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Fair Value, Net Derivative Asset (Liability) | $ 3,405 | $ 2,327 | |||
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 | 3.90% | 4.30% | |||
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 8.10% | ||||
Capitalization rate | 6.90% | ||||
NOI annual growth rate | (0.90%) | ||||
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 | 7.40% | 7.30% | |||
Capitalization rate | 6.40% | 6.00% | |||
NOI annual growth rate | 0.20% | 0.40% | |||
Minimum [Member] | Available-for-sale, Infrastructure Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 7.00% | 7.30% | |||
Minimum [Member] | Other Debt Obligations [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 3.70% | 3.70% | |||
Minimum [Member] | Loans Held-for-sale [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 19.20% | ||||
Minimum [Member] | Total Return Swap [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 3.70% | 3.90% | |||
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 | 5.90% | 5.70% | |||
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 | 7.60% | 7.40% | |||
Capitalization rate | 6.50% | 6.40% | |||
NOI annual growth rate | 0.80% | 0.80% | |||
Maximum [Member] | Available-for-sale, Infrastructure Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 9.00% | 9.00% | |||
Maximum [Member] | Other Debt Obligations [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 5.40% | 5.50% | |||
Maximum [Member] | Total Return Swap [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 5.10% | 5.50% | |||
Weighted Average [Member] | Total Return Swap [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 7.20% | 7.20% | |||
Capitalization rate | 8.30% | 8.50% | |||
NOI annual growth rate | 1.70% | 2.50% | |||
Weighted Average [Member] | Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 4.60% | 5.00% | |||
Weighted Average [Member] | Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 8.10% | 8.10% | |||
Capitalization rate | 7.20% | 6.90% | |||
NOI annual growth rate | (1.20%) | (0.90%) | |||
Weighted Average [Member] | Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 7.50% | 7.40% | |||
Capitalization rate | 6.50% | 6.20% | |||
NOI annual growth rate | 0.50% | 0.50% | |||
Weighted Average [Member] | Available-for-sale, Infrastructure Bonds [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 7.80% | 8.00% | |||
Weighted Average [Member] | Other Debt Obligations [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 4.40% | 4.60% | |||
Weighted Average [Member] | Loans Held for Investment [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 7.50% | ||||
Weighted Average [Member] | Loans Held-for-sale [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 19.20% | ||||
Weighted Average [Member] | Total Return Swap [Member] | |||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||
Market yield | 4.60% | 5.00% |
FAIR VALUE (Carrying Amounts an
FAIR VALUE (Carrying Amounts and Fair Values of Financial Instruments ) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Liabilities: | ||
Guarantor Obligations, Unamortized Fees | $ 8,000 | $ 8,600 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 37,482 | 45,525 |
Restricted cash | 22,356 | 33,920 |
Fair Value, Inputs, Level 1 [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Restricted cash | 23,770 | 23,584 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Asset management fee receivable | 2,947 | |
Loans held for investment | 1,344 | 1,106 |
Liabilities: | ||
Guarantee obligations | 11,690 | 12,616 |
Fair Value, Inputs, Level 3 [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Loans held for investment | 511 | 488 |
Fair Value, Inputs, Level 3 [Member] | TC Fund I [Member] | ||
Assets: | ||
Asset management fee receivable | 6,678 | |
Guarantee fee receivable | 1,355 | 1,348 |
Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Notes payable and other debt | 84,162 | 82,118 |
Non Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Notes payable and other debt | 20,428 | 18,817 |
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 | 5,954 | 5,956 |
Subordinated Loan [Member] | Fair Value, Inputs, Level 3 [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | 41,507 | 41,327 |
Subordinated Loan [Member] | Fair Value, Inputs, Level 3 [Member] | MFI [Member] | ||
Liabilities: | ||
Subordinated debt | 5,099 | 20,139 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 37,482 | 45,525 |
Restricted cash | 22,356 | 33,920 |
Loans held for investment | 971 | 974 |
Liabilities: | ||
Guarantee obligations | 3,652 | 4,003 |
Reported Value Measurement [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Restricted cash | 23,770 | 23,584 |
Loans held for investment | 65 | 65 |
Reported Value Measurement [Member] | TC Fund I [Member] | ||
Assets: | ||
Asset management fee receivable | 3,868 | |
Guarantee fee receivable | 1,355 | 1,348 |
Reported Value Measurement [Member] | Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 84,097 | 82,029 |
Reported Value Measurement [Member] | Non Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 20,427 | 18,817 |
Reported Value Measurement [Member] | Debt Related To Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | ||
Liabilities: | ||
Notes payable and other debt | 12,945 | 13,029 |
Reported Value Measurement [Member] | Subordinated Loan [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | 101,161 | 102,338 |
Reported Value Measurement [Member] | Subordinated Loan [Member] | MFI [Member] | ||
Liabilities: | ||
Subordinated debt | $ 6,466 | $ 26,858 |
GUARANTEES AND COLLATERAL (Narr
GUARANTEES AND COLLATERAL (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Nov. 30, 2016 | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)agreement | Dec. 31, 2016USD ($) | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Guaranteed Funds | agreement | 13 | |||
Guarantor Obligations, Unamortized Fees | $ 8,000 | $ 8,600 | ||
Guaranteed Funds [Member] | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Guaranteed Funds | agreement | 11 | |||
Guarantor Obligations, Reserves | $ 13,600 | 14,500 | ||
Guarantor Obligations, Payment | $ 900 | |||
Guarantor Obligations, Unamortized Fees | 8,000 | 8,600 | ||
Maximum Exposure | 392,518 | 392,518 | ||
Carrying Amount | 53 | 186 | ||
Ownership percentage | 0.01% | |||
TC Fund I [Member] | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Guarantor Obligations, Unamortized Fees | $ 3,600 | 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 | $ 109,587 | 109,587 | ||
Carrying Amount | 3,593 | 3,805 | ||
11 Guaranteed Funds and TC Fund I [Member] | ||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||||
Guarantor Obligations, Collateral Pledged | $ 20,500 | $ 25,600 |
GUARANTEES AND COLLATERAL (Summ
GUARANTEES AND COLLATERAL (Summary of Guarantees) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Guaranteed Funds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | $ 392,518 | $ 392,518 |
Carrying Amount | 53 | 186 |
Eleven Guaranteed Funds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | 388,400 | 388,400 |
TC Fund I [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | 109,587 | 109,587 |
Carrying Amount | 3,593 | 3,805 |
Lower Tier Property Partnerships [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Exposure | 536 | 536 |
Carrying Amount | $ 6 | $ 12 |
GUARANTEES AND COLLATERAL (Coll
GUARANTEES AND COLLATERAL (Collateral and Restricted Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 46,126 | $ 57,504 |
Bonds Available-for-Sale | 140,643 | 135,614 |
Investments in partnerships | 119,444 | 137,773 |
Other Assets | 42,727 | 44,551 |
Total Assets Pledged | 348,940 | 375,442 |
Debt and derivatives TRSs [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 5,945 | 13,928 |
Bonds Available-for-Sale | 136,412 | 129,746 |
Total Assets Pledged | 142,357 | 143,674 |
Other, Pledged or Restricted [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 16,411 | 19,992 |
Bonds Available-for-Sale | 4,231 | 5,868 |
Total Assets Pledged | 20,642 | 25,860 |
Consolidated Funds and Ventures [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 23,770 | 23,584 |
Investments in partnerships | 119,444 | 137,773 |
Other Assets | 42,727 | 44,551 |
Total Assets Pledged | $ 185,941 | $ 205,908 |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating Leases, Rent Expense, Net | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Commitments) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 148 |
2,018 | 300 |
2,019 | 316 |
2,020 | 185 |
2,021 | 129 |
Thereafter | 304 |
Total minimum future rental commitments | $ 1,382 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - $ / shares | 1 Months Ended | 6 Months Ended | 12 Months Ended |
May 04, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 580,000 | ||
Treasury Stock To Be Acquired Maximum Costs Per Share | $ 24.94 | ||
Held By Third Party | 4.90% | ||
Stock Repurchase Program [Member] | Subsequent Event [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchased During Period, Shares | 28,741 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 22.99 | ||
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% | 60.00% |
EQUITY (Summary of Net Income t
EQUITY (Summary of Net Income to Common Shareholders) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | ||||
Net income (loss) from continuing operations | $ 7,322 | $ 5,047 | $ 3,836 | $ 21,569 |
Net income from discontinued operations | 95 | 83 | 137 | 166 |
Net income to common shareholders | $ 7,417 | $ 5,130 | $ 3,973 | $ 21,735 |
Basic weighted-average shares | 5,893,000 | 6,289,000 | 5,915,000 | 6,406,000 |
Common stock equivalents | 382,000 | 4,000 | ||
Diluted weighted-average shares | 6,275,000 | 6,289,000 | 5,915,000 | 6,410,000 |
Common Stock Equivalents Employee Options | 410,000 | 410,000 | 410,000 | 410,000 |
Incremental Common Shares Attributable to Call Options and Warrants | 382,278 | 371,943 | 381,435 | 369,495 |
Unvested Employee Deferred Shares | 9,468 | |||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 4,110 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 478 | 3,344 |
EQUITY (Noncontrolling Interest
EQUITY (Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 114,309 | $ 134,999 |
L I H T C Funds [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | 108,548 | 128,734 |
Consolidated Property Partnerships [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | 5,695 | 6,220 |
IHS PM [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 66 | $ 45 |
EQUITY (Schedule of Accumulated
EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Beginning Balance | $ 37,818 | |||
Unrealized net gains (losses) | $ 525 | $ 4,470 | 1,120 | |
Reversal of net unrealized gains on sold or redeemed bonds | $ (2,055) | |||
Reclassification of unrealized gains from AOCI to Net Income due to consolidation and foreclosure | (4,205) | (15,647) | ||
Other | 1,120 | |||
Ending Balance | 38,938 | 38,938 | ||
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Beginning Balance | (243) | |||
Income tax (expense), benefit | 243 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning Balance | 38,170 | 51,524 | 37,818 | 61,209 |
Net change in AOCI | 768 | 265 | 1,120 | 8,282 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 2,055 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 768 | 265 | 1,120 | (9,420) |
Ending Balance | 38,938 | 51,789 | 38,938 | 51,789 |
Bonds Avialable for-sale | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Beginning Balance | 41,805 | 54,616 | 40,998 | 64,322 |
Unrealized net gains (losses) | 539 | 4,460 | 1,346 | 8,251 |
Reversal of net unrealized gains on sold or redeemed bonds | (2,055) | |||
Reclassification of unrealized gains from AOCI to Net Income due to consolidation and foreclosure | (4,205) | (15,647) | ||
Ending Balance | 42,344 | 54,871 | 42,344 | 54,871 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net change AOCI, before tax | (539) | 255 | 1,346 | (9,451) |
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 | (3,392) | (3,113) | ||
Unrealized net gains (losses) | (14) | 10 | 31 | |
Ending Balance | (3,406) | (3,082) | (3,406) | (3,082) |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Beginning Balance | (3,092) | (3,180) | ||
Income tax (expense), benefit | (226) | |||
Ending Balance | (3,406) | (3,082) | $ (3,406) | (3,082) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net change AOCI, before tax | $ (14) | $ (10) | $ 31 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | |||
Additional Stock based Compensation | $ 1,600 | |||
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 | |
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 | |||
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 | |||
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 | 412,260 | |||
Rate Of Cash Based Compensation | 50.00% | |||
Additional Stock based Compensation | $ 60 | |||
Board Of Directors Chairman [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional Stock based Compensation | 20 | |||
Audit Committee Chair [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional Stock based Compensation | 15 | |||
Other Committee Chairs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional Stock based Compensation | $ 10 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Compensation expense | $ (75) | $ 839 | $ 1,757 | $ 1,696 | |
Share Price | $ 22.85 | $ 22.85 | $ 23.25 | ||
Employees’ Stock-Based Compensation Plans [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Compensation expense | $ (164) | 765 | $ 1,579 | 1,548 | |
Non-employee Directors’ Stock-Based Compensation Plans [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Compensation expense | $ 89 | $ 74 | $ 178 | $ 148 |
STOCK-BASED COMPENSATION (Sum75
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |||
Number of Options Outstanding at beginning of period | 410 | 416 | |
Number of Options Forfeited/Expired | (6) | ||
Number of Options Outstanding at end of period | 410 | 410 | 416 |
Number of options that were exercisable | 410 | 410 | |
Weighted average Exercise Price per Option Outstanding at beginning of period | $ 1.56 | $ 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 | 1.56 | $ 3.52 |
Weighted average Exercise Price per Option Exercisable | $ 1.56 | $ 1.56 | |
Weighted Average Remaining Contractual Life per Option (in years) Outstanding | 3 years 10 months 24 days | 4 years 4 months 24 days | 5 years 3 months 18 days |
Weighted average Remaining Contractual Life per Option (in years) Exercisable | 3 years 10 months 24 days | 4 years 4 months 24 days | |
Aggregate Intrinsic Value | $ 8,727 | $ 7,149 | $ 5,283 |
Period End Liability | $ 8,745 | $ 7,166 | $ 5,282 |
STOCK-BASED COMPENSATION (Sum76
STOCK-BASED COMPENSATION (Summary of Nonemployee Director Stock Award Activity) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Cash | $ 3,421,000 | $ 3,919,000 | $ 9,291,000 | $ 7,999,000 |
Non-employee Directors’ Stock-Based Compensation Plans [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Cash | $ 88,750 | $ 73,750 | ||
Weighted - average Grant Date Share Price | $ 16.31 | |||
Options Vested | ||||
Directors' Fees Expense | $ 177,500 | $ 147,500 | ||
Non-employee Directors’ Stock-Based Compensation Plans [Member] | Restricted Stock [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Granted | 3,917 | 4,523 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Discontinued Operations [Abstract] | ||||
Other income | $ 69 | $ 84 | $ 138 | $ 167 |
Other expense | (1) | (1) | (1) | (1) |
Income tax benefit (expense) | 27 | |||
Net income from discontinued operations | 95 | 83 | 137 | 166 |
Net income to common shareholders from discontinued operations | $ 95 | $ 83 | $ 137 | $ 166 |
CONSOLIDATED FUNDS AND VENTUR78
CONSOLIDATED FUNDS AND VENTURES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Lower Tier Property Partnerships Real Estate Held For Use [Member] | |||||
Bond Investment in Lower Tier Property Partnerships | $ 87,500 | $ 87,500 | $ 87,600 | ||
L I H T C Funds [Member] | |||||
Real Estate Held-For-Sale | $ 12,007 | $ 12,007 | $ 145 | ||
L I H T C Funds [Member] | Face Amount Equal to Carrying Value [Member] | |||||
Debt, Weighted Average Interest Rate and Cost | 6.30% | 6.30% | 5.80% | ||
Consolidated Property Partnershps [Member] | Face Amount Not Equal to Carrying Value [Member] | |||||
Debt, Weighted Average Interest Rate and Cost | 4.00% | 4.00% | 4.00% | ||
Portion of Debt Carrying Value | $ 6,200 | $ 6,200 | $ 6,300 | ||
Related Face Amount to Carrying Value | 5,400 | 5,400 | |||
Eleven Guaranteed Funds [Member] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 388,400 | 388,400 | 388,400 | ||
Consolidated Funds and Ventures [Member] | |||||
Income (Loss) Attributable To Noncontrolling Interest | 11,572 | $ 12,322 | 20,712 | $ 24,822 | |
Depreciation | 400 | $ 100 | 900 | $ 300 | |
Consolidated Funds and Ventures [Member] | L I H T C Funds [Member] | Face Amount Equal to Carrying Value [Member] | |||||
Portion of Debt Carrying Value | $ 6,700 | $ 6,700 | $ 6,700 | ||
Building [Member] | |||||
Property, Plant and Equipment, Useful Life | 40 years | ||||
Minimum [Member] | Consolidated Property Partnershps [Member] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 0.01% | ||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment, Useful Life | 6 years | ||||
Maximum [Member] | Consolidated Property Partnershps [Member] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% | ||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment, Useful Life | 7 years |
CONSOLIDATED FUNDS AND VENTUR79
CONSOLIDATED FUNDS AND VENTURES (Asset Summary for Consolidated Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Investments in Lower Tier Property Partnerships | $ 227,676 | $ 244,191 |
Other assets | 73,093 | 70,998 |
Total assets | 536,039 | 574,199 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,770 | 23,584 |
Investments in Lower Tier Property Partnerships | 119,444 | 137,773 |
Real estate held for use, net | 24,499 | 36,942 |
Real estate held-for-sale, net | 12,007 | 145 |
Other assets | 6,221 | 7,464 |
Total assets | 185,941 | 205,908 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | $ 24,499 | $ 36,942 |
CONSOLIDATED FUNDS AND VENTUR80
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, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Total assets of Lower Tier Property Partnerships | $ 1,141,299 | $ 1,124,274 |
Total liabilities of Lower Tier Property Partnerships | $ 934,177 | $ 937,335 |
CONSOLIDATED FUNDS AND VENTUR81
CONSOLIDATED FUNDS AND VENTURES (Real Estate Held-for-use of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | $ 24,499 | $ 36,942 |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, net | 24,499 | 36,942 |
Consolidated Funds and Ventures [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | 22,975 | 33,281 |
Accumulated depreciation | (1,612) | (1,085) |
Consolidated Funds and Ventures [Member] | Land [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | $ 3,136 | $ 4,746 |
CONSOLIDATED FUNDS AND VENTUR82
CONSOLIDATED FUNDS AND VENTURES (Real Estate Held-for-sale of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Other assets | $ 73,093 | $ 70,998 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,770 | 23,584 |
Property, Plant and Equipment, Net | 24,499 | 36,942 |
Other assets | 6,221 | 7,464 |
Real estate held-for-sale, net | 12,007 | 145 |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 431 | 145 |
Accumulated depreciation | (359) | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (359) | |
Other assets | 19 | |
Real estate held-for-sale, net | 12,007 | 145 |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Long Lived Assets Held For Sale | 10,306 | |
Lower Tier Property Partnerships Real Estate Held For Sale [Member] | Land [Member] | ||
Investment [Line Items] | ||
Long Lived Assets Held For Sale | 1,610 | |
Consolidated Funds and Ventures [Member] | ||
Investment [Line Items] | ||
Property, Plant and Equipment, Net | 24,499 | 36,942 |
Consolidated Funds and Ventures [Member] | Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Accumulated depreciation | 1,612 | 1,085 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 1,612 | $ 1,085 |
CONSOLIDATED FUNDS AND VENTUR83
CONSOLIDATED FUNDS AND VENTURES (Liabilities of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Investment [Line Items] | |||||
Debt | $ 225,096 | $ 225,096 | $ 243,071 | ||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,103 | 8,103 | 8,103 | ||
Other liabilities | 56,852 | 56,852 | 54,881 | ||
Total liabilities | 294,183 | 294,183 | 313,876 | ||
Net loss | (4,106) | $ (7,126) | (16,687) | $ (2,978) | |
Consolidated Funds and Ventures [Member] | |||||
Investment [Line Items] | |||||
Debt | 12,945 | 12,945 | 13,029 | ||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,103 | 8,103 | 8,103 | ||
Asset management fee payable | 28,820 | 28,820 | 28,373 | ||
Other liabilities | 4,297 | 4,297 | 4,209 | ||
Total liabilities | 54,165 | 54,165 | $ 53,714 | ||
Net loss | $ (12,011) | $ (13,823) | (21,638) | (27,058) | |
Consolidated Funds and Ventures [Member] | L I H T C Funds [Member] | |||||
Investment [Line Items] | |||||
Net income (loss) | $ (13,236) | $ (13,190) |
CONSOLIDATED FUNDS AND VENTUR84
CONSOLIDATED FUNDS AND VENTURES (Information Pertaining to Income Statement of CFVs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Expenses: | |||||
Interest expense | $ 444 | $ 552 | $ 855 | $ 1,101 | |
Total expenses from CFVs | 16,665 | 16,403 | 33,690 | 32,076 | |
Net gains (losses) related to CFVs: | |||||
Net gains (losses) on assets and derivatives | (968) | 1,418 | 1,071 | 2,100 | |
Equity in losses from Lower Tier Property Partnerships of CFVs | [1] | (2,545) | (4,036) | ||
Net loss | (4,106) | (7,126) | (16,687) | (2,978) | |
IHS PM [Member] | |||||
Net gains (losses) related to CFVs: | |||||
Net losses allocable to noncontrolling interests in CFVs | 49 | 66 | 52 | 109 | |
Consolidated Funds and Ventures [Member] | |||||
Revenue: | |||||
Rental and other income from real estate | 1,320 | 462 | 2,633 | 784 | |
Interest and other income | 425 | 264 | 619 | 761 | |
Total revenue from CFVs | 1,745 | 726 | 3,252 | 1,545 | |
Expenses: | |||||
Depreciation and amortization | 865 | 681 | 1,811 | 1,368 | |
Interest expense | 156 | 132 | 316 | 259 | |
Other operating expenses | 1,966 | 1,697 | 3,925 | 2,986 | |
Asset impairments | 6,795 | 6,504 | 11,400 | 12,769 | |
Total expenses from CFVs | 9,782 | 9,014 | 17,452 | 17,382 | |
Net gains (losses) related to CFVs: | |||||
Investment (loss) gains | (598) | 10 | (598) | ||
Equity in losses from Lower Tier Property Partnerships of CFVs | (3,974) | (4,937) | (7,448) | (10,623) | |
Net loss | (12,011) | (13,823) | (21,638) | (27,058) | |
Net losses allocable to noncontrolling interests in CFVs | 11,572 | 12,322 | 20,712 | 24,822 | |
Net (loss) income allocable to the common shareholders related to CFVs | $ (439) | $ (1,501) | $ (926) | $ (2,236) | |
[1] | These amounts primarily relate to CFVs. |
CONSOLIDATED FUNDS AND VENTUR85
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Investment [Line Items] | |||||
Asset management fees and reimbursements | $ 6,751 | $ 2,261 | $ 11,270 | $ 4,153 | |
Interest income | 2,674 | 3,591 | 5,608 | 7,282 | |
Equity in income (losses) | [1] | (2,545) | (4,036) | ||
Other expense | 298 | 735 | 156 | 783 | |
Consolidated Funds and Ventures [Member] | |||||
Investment [Line Items] | |||||
Guarantee fees | 288 | 331 | 576 | 662 | |
Interest income | 331 | 65 | 664 | 65 | |
Equity in income (losses) | (3,974) | (4,937) | (7,448) | (10,623) | |
Other expense | (598) | (598) | |||
Net (loss) income allocable to the common shareholders related to CFVs | (439) | (1,501) | (926) | (2,236) | |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | |||||
Investment [Line Items] | |||||
Equity in income (losses) | (1,089) | (1,354) | (2,207) | (2,483) | |
Consolidated Funds and Ventures [Member] | Consolidated Property Partnerships [Member] | |||||
Investment [Line Items] | |||||
Equity in income (losses) | $ 31 | $ 55 | $ 41 | $ 118 | |
[1] | These amounts primarily relate to CFVs. |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting [Abstract] | ||||
Interest Income, Operating | $ 2,674 | $ 3,591 | $ 5,608 | $ 7,282 |
Investment Advisory, Management and Administrative Fees | $ 6,751 | $ 2,261 | $ 11,270 | $ 4,153 |
SEGMENT INFORMATION (Schedule o
SEGMENT INFORMATION (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment Reporting Information [Line Items] | |||||
Total interest income | $ 2,674 | $ 3,591 | $ 5,608 | $ 7,282 | |
Total interest expense | (444) | (552) | (855) | (1,101) | |
Net interest income | 2,230 | 3,039 | 4,753 | 6,181 | |
Total fee and other income | 6,993 | 3,215 | 11,823 | 5,754 | |
Total non-interest revenue | 8,738 | 3,941 | 15,075 | 7,299 | |
Total revenues, net of interest expense | 10,968 | 6,980 | 19,828 | 13,480 | |
Operating and other expenses: | |||||
Interest expense | (1,221) | (1,075) | (2,447) | (2,117) | |
Operating expenses | (5,364) | (5,579) | (13,635) | (11,794) | |
Other expenses, net | (298) | (735) | (156) | (783) | |
Expenses from CFVs | (9,782) | (9,014) | (17,452) | (17,382) | |
Total operating and other expenses | (16,665) | (16,403) | (33,690) | (32,076) | |
Net gains on assets, derivatives and extinguishment of liabilities | 3,035 | 1,452 | (261) | 4,545 | |
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 | [1] | (2,545) | (4,036) | ||
Net gains (losses) related to CFVs | (598) | 10 | (598) | ||
Income (loss) from continuing operations before income taxes | (3,777) | (7,175) | (16,658) | (3,038) | |
Income tax benefit (expense) | (424) | (34) | (166) | (106) | |
Income (loss) from discontinued operations, net of tax | 95 | 83 | 137 | 166 | |
Net income (loss) | (4,106) | (7,126) | (16,687) | (2,978) | |
Net losses allocable to noncontrolling interests in CFVs: | 11,523 | 12,256 | 20,660 | 24,713 | |
Net income (loss) to common shareholders | 7,417 | 5,130 | 3,973 | 21,735 | |
Unconsolidated Funds and Ventures [Member] | |||||
Operating and other expenses: | |||||
Equity in (losses) income from unconsolidated funds and ventures | 2,859 | 2,126 | 4,903 | 6,587 | |
Consolidated Funds and Ventures [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from CFVs | 1,745 | 726 | 3,252 | 1,545 | |
Operating and other expenses: | |||||
Expenses from CFVs | (9,782) | (9,014) | (17,452) | (17,382) | |
Equity in (losses) income from unconsolidated funds and ventures | (3,974) | (4,937) | (7,448) | (10,623) | |
Net gains (losses) related to CFVs | (598) | 10 | (598) | ||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (3,974) | (4,937) | (7,448) | (10,623) | |
Continuing Operations [Member] | |||||
Operating and other expenses: | |||||
Net losses allocable to noncontrolling interests in CFVs: | (11,523) | (12,256) | (20,660) | (24,713) | |
U.S. Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 2,938 | 3,614 | 6,139 | 7,263 | |
Total interest expense | (444) | (451) | (855) | (891) | |
Net interest income | 2,494 | 3,163 | 5,284 | 6,372 | |
Total fee and other income | 5,103 | 1,717 | 6,392 | 3,107 | |
Total non-interest revenue | 6,848 | 2,443 | 9,644 | 4,652 | |
Total revenues, net of interest expense | 9,342 | 5,606 | 14,928 | 11,024 | |
Operating and other expenses: | |||||
Interest expense | (82) | (14) | (157) | (14) | |
Operating expenses | (2,049) | (2,130) | (5,294) | (4,372) | |
Other expenses, net | (221) | (1,305) | (484) | (1,452) | |
Total operating and other expenses | (12,784) | (12,316) | (24,658) | (23,467) | |
Net gains on assets, derivatives and extinguishment of liabilities | (794) | 1,452 | (4,090) | 4,541 | |
Net gains transferred into net income from AOCI due to real estate foreclosure | 4,205 | 15,647 | |||
Income (loss) from continuing operations before income taxes | (5,335) | (4,346) | (16,286) | 3,449 | |
Income (loss) from discontinued operations, net of tax | 67 | 83 | 137 | 166 | |
Net income (loss) | (5,268) | (4,263) | (16,149) | 3,615 | |
Net income (loss) to common shareholders | 6,304 | 8,059 | 4,563 | 28,437 | |
U.S. Operations [Member] | Unconsolidated Funds and Ventures [Member] | |||||
Operating and other expenses: | |||||
Equity in (losses) income from unconsolidated funds and ventures | 2,875 | 2,242 | 4,982 | 6,925 | |
U.S. Operations [Member] | Consolidated Funds and Ventures [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from CFVs | 1,745 | 726 | 3,252 | 1,545 | |
Operating and other expenses: | |||||
Expenses from CFVs | (10,432) | (8,867) | (18,723) | (17,629) | |
Net gains (losses) related to CFVs | (598) | (598) | |||
Equity in (losses) gains from Lower Tier Property Partnerships of CFVs | (3,974) | (4,937) | (7,448) | (10,623) | |
U.S. Operations [Member] | Continuing Operations [Member] | |||||
Operating and other expenses: | |||||
Net losses allocable to noncontrolling interests in CFVs: | (11,572) | (12,322) | (20,712) | (24,822) | |
International Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 43 | 29 | 91 | 56 | |
Net interest income | 43 | 29 | 91 | 56 | |
Total fee and other income | 2,178 | 1,823 | 6,007 | 3,281 | |
Total non-interest revenue | 2,178 | 1,823 | 6,007 | 3,281 | |
Total revenues, net of interest expense | 2,221 | 1,852 | 6,098 | 3,337 | |
Operating and other expenses: | |||||
Interest expense | (1) | ||||
Operating expenses | (2,231) | (2,094) | (5,008) | (4,028) | |
Other expenses, net | (47) | 2 | 388 | 120 | |
Total operating and other expenses | (2,278) | (2,092) | (4,621) | (3,908) | |
Income (loss) from continuing operations before income taxes | (42) | (301) | 1,439 | (791) | |
Net income (loss) | (42) | (301) | 1,439 | (791) | |
Net income (loss) to common shareholders | (91) | (367) | 1,387 | (900) | |
International Operations [Member] | Unconsolidated Funds and Ventures [Member] | |||||
Operating and other expenses: | |||||
Equity in (losses) income from unconsolidated funds and ventures | 15 | (61) | (38) | (220) | |
International Operations [Member] | Continuing Operations [Member] | |||||
Operating and other expenses: | |||||
Net losses allocable to noncontrolling interests in CFVs: | 49 | 66 | 52 | 109 | |
Corporate Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 24 | 13 | 42 | 28 | |
Total interest expense | (101) | (210) | |||
Net interest income | 24 | (88) | 42 | (182) | |
Total fee and other income | 6 | 28 | |||
Total non-interest revenue | 6 | 28 | |||
Total revenues, net of interest expense | 24 | (82) | 42 | (154) | |
Operating and other expenses: | |||||
Interest expense | (1,139) | (1,061) | (2,289) | (2,103) | |
Operating expenses | (1,084) | (1,355) | (3,333) | (3,394) | |
Other expenses, net | (30) | (30) | (60) | (49) | |
Total operating and other expenses | (2,253) | (2,446) | (5,682) | (5,546) | |
Net gains on assets, derivatives and extinguishment of liabilities | 3,829 | 3,829 | 4 | ||
Income (loss) from continuing operations before income taxes | 1,600 | (2,528) | (1,811) | (5,696) | |
Income tax benefit (expense) | (424) | (34) | (166) | (106) | |
Income (loss) from discontinued operations, net of tax | 28 | ||||
Net income (loss) | 1,204 | (2,562) | (1,977) | (5,802) | |
Net income (loss) to common shareholders | 1,204 | (2,562) | (1,977) | (5,802) | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | (331) | (65) | (664) | (65) | |
Net interest income | (331) | (65) | (664) | (65) | |
Total fee and other income | (288) | (331) | (576) | (662) | |
Total non-interest revenue | (288) | (331) | (576) | (662) | |
Total revenues, net of interest expense | (619) | (396) | (1,240) | (727) | |
Operating and other expenses: | |||||
Other expenses, net | 598 | 598 | |||
Total operating and other expenses | 650 | 451 | 1,271 | 845 | |
Intersegment Eliminations [Member] | Unconsolidated Funds and Ventures [Member] | |||||
Operating and other expenses: | |||||
Equity in (losses) income from unconsolidated funds and ventures | (31) | (55) | (41) | (118) | |
Intersegment Eliminations [Member] | Consolidated Funds and Ventures [Member] | |||||
Operating and other expenses: | |||||
Expenses from CFVs | 650 | (147) | 1,271 | 247 | |
Net gains (losses) related to CFVs | 10 | ||||
Consolidated Funds and Ventures [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 331 | 65 | 664 | 65 | |
Total interest expense | (156) | (132) | (316) | (259) | |
Revenue from CFVs | 1,745 | 726 | 3,252 | 1,545 | |
Operating and other expenses: | |||||
Other expenses, net | 598 | 598 | |||
Total operating and other expenses | (9,782) | (9,014) | (17,452) | (17,382) | |
Equity in (losses) income from unconsolidated funds and ventures | (3,974) | (4,937) | (7,448) | (10,623) | |
Net income (loss) | (12,011) | (13,823) | (21,638) | (27,058) | |
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | |||||
Operating and other expenses: | |||||
Equity in (losses) income from unconsolidated funds and ventures | $ (1,089) | $ (1,354) | $ (2,207) | $ (2,483) | |
[1] | These amounts primarily relate to CFVs. |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | $ 536,039 | $ 574,199 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 536,039 | 574,199 |
U.S. Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 486,931 | 517,286 |
U.S. Operations [Member] | Consolidated Funds and Ventures [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 185,941 | 205,908 |
Corporate Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | 37,861 | 48,459 |
International Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
ASSETS | $ 11,247 | $ 8,454 |