Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MMA CAPITAL MANAGEMENT, LLC | |
Entity Central Index Key | 1,003,201 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | mmac | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Common Stock, Shares Outstanding | 5,800,945 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 27,045 | $ 35,693 |
Restricted cash (includes $23,495 related to consolidated funds and ventures ("CFVs") at December 31, 2017) | 15,916 | 44,766 |
Investments in debt securities (includes $135,885 and $128,902 pledged as collateral) | 162,261 | 143,604 |
Investments in partnerships (includes $99,142 related to CFVs at December 31, 2017) | 128,206 | 227,962 |
Loans held for investment | 57,299 | 736 |
Loans held for sale | 9,000 | |
Other assets (includes $5,175 related to CFVs at December 31, 2017) | 17,585 | 17,905 |
Assets of discontinued operations | 61,220 | |
Total assets | 417,312 | 531,886 |
LIABILITIES AND EQUITY | ||
Debt (includes $6,712 related to CFVs at December 31, 2017) | 203,087 | 216,139 |
Accounts payable and accrued expenses | 3,405 | 6,098 |
Unfunded equity commitments to lower tier property partnerships related to CFVs | 8,003 | |
Other liabilities (includes $35,850 related to CFVs at December 31, 2017) | 24,138 | 57,332 |
Liabilities of discontinued operations | 17,212 | |
Total liabilities | 230,630 | 304,784 |
Commitments and contingencies (see Note 10) | ||
Equity | ||
Noncontrolling interests in CFVs | 89,529 | |
Common shareholders' equity: | ||
Common shares, no par value (5,671,794 and 5,525,687 shares issued and outstanding and 98,307 and 92,282 non-employee directors' deferred shares issued at June 30, 2018 and December 31, 2017, respectively) | 132,322 | 96,420 |
Accumulated other comprehensive income ("AOCI") | 54,360 | 41,153 |
Total common shareholders' equity | 186,682 | 137,573 |
Total equity | 186,682 | 227,102 |
Total liabilities and equity | $ 417,312 | $ 531,886 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted cash (includes $23,495 related to consolidated funds and ventures ("CFVs") at December 31, 2017) | $ 15,916 | $ 44,766 |
Bonds available-for-sale, pledged as collateral | 135,885 | 128,902 |
Investments in partnerships (includes $99,142 related to CFVs at December 31, 2017) | 128,206 | 227,962 |
Other assets | 17,585 | 17,905 |
Debt | 203,087 | 216,139 |
Other Liabilities | $ 24,138 | $ 57,332 |
Common stock, no par value | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 5,671,794 | 5,525,687 |
Common shares, shares outstanding (in shares) | 5,671,794 | 5,525,687 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 98,307 | 92,282 |
Consolidated Funds and Ventures [Member] | ||
Restricted cash (includes $23,495 related to consolidated funds and ventures ("CFVs") at December 31, 2017) | $ 23,495 | |
Bonds available-for-sale, pledged as collateral | $ 135,885 | 128,902 |
Investments in partnerships (includes $99,142 related to CFVs at December 31, 2017) | 99,142 | |
Other assets | 5,175 | |
Debt | 6,712 | |
Other Liabilities | $ 35,850 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Interest on bonds | $ 2,709 | $ 2,358 | $ 5,247 | $ 4,855 |
Interest on loans and short-term investments (includes $2 and $5 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 1,173 | 218 | 2,141 | 552 |
Total interest income | 3,882 | 2,576 | 7,388 | 5,407 |
Interest expense | ||||
Asset related debt | 673 | 444 | 1,284 | 855 |
Total interest expense | 673 | 444 | 1,284 | 855 |
Net interest income | 3,209 | 2,132 | 6,104 | 4,552 |
Non-interest revenue | ||||
Other income (includes $239 related to CFVs for the three months and six months ended June 30, 2017) | 293 | 451 | 513 | 748 |
Total non-interest revenue | 293 | 451 | 513 | 748 |
Total revenues, net of interest expense | 3,502 | 2,583 | 6,617 | 5,300 |
Operating and other expenses | ||||
Interest expense (includes $93 and $186 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 1,151 | 1,283 | 2,187 | 2,564 |
Salaries and benefits | (209) | 1,463 | 1,095 | 5,267 |
External management fees and reimbursable expenses | 2,184 | 4,703 | ||
General and administrative | 356 | 411 | 704 | 773 |
Professional fees (includes $65 and $102 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 587 | 936 | 3,801 | 2,433 |
Impairments (includes $6,795 and $11,400 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 6,795 | 388 | 11,400 | |
Asset management fee expense (includes $1,095 and $2,190 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 24 | 1,101 | 43 | 2,228 |
Other expenses (includes $459 and $911 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 120 | 622 | 571 | 1,266 |
Total operating and other expenses | 4,213 | 12,611 | 13,492 | 25,931 |
Equity in income (losses) from unconsolidated funds and ventures (includes ($3,879) and ($7,262) related to CFVs for the three months and six months ended June 30, 2017, respectively) | 2,382 | (2,545) | ||
Net losses on loans | (5,335) | |||
Net gains on real estate estate and other investments | 174 | 174 | ||
Net gains (losses) on derivatives | 2,053 | (968) | 4,362 | 1,071 |
Net gains on extinguishment of liabilities | 3,829 | 3,829 | ||
Net income (losses) from continuing operations before income taxes | 2,897 | (8,026) | (131) | (23,213) |
Income tax (expense) benefit | (754) | (1,579) | 36 | (166) |
Net income from discontinued operations, net of tax | 619 | 5,499 | 21,197 | 6,692 |
Net income (loss) | 2,762 | (4,106) | 21,102 | (16,687) |
Loss allocable to noncontrolling interests: | ||||
Net loss allocable to noncontrolling interests | (11,523) | (20,660) | ||
Net income allocable to common shareholders | $ 2,762 | $ 7,417 | $ 21,102 | $ 3,973 |
Basic income (loss) per common share: | ||||
Income (loss) from continuing operations | $ 0.37 | $ 0.25 | $ (0.02) | $ (0.64) |
Income from discontinued operations | 0.11 | 1.01 | 3.74 | 1.31 |
Income per common share | 0.48 | 1.26 | 3.72 | 0.67 |
Diluted income (loss) per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | 0.32 | 0.21 | (0.02) | (0.64) |
Income from discontinued operations (in dollars per share) | 0.10 | 0.95 | 3.74 | 1.31 |
Income per common share (in dollars per share) | $ 0.42 | $ 1.16 | $ 3.72 | $ 0.67 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 5,697 | 5,893 | 5,673 | 5,915 |
Diluted (in shares) | 6,074 | 6,275 | 5,673 | 5,915 |
Continuing Operations [Member] | ||||
Loss allocable to noncontrolling interests: | ||||
Net loss allocable to noncontrolling interests | $ (11,056) | $ (19,610) | ||
Discontinued Operations [Member] | ||||
Loss allocable to noncontrolling interests: | ||||
Net loss allocable to noncontrolling interests | 467 | 1,050 | ||
Consolidated Funds and Ventures [Member] | ||||
Interest income | ||||
Interest on loans and short-term investments (includes $2 and $5 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 2 | 5 | ||
Non-interest revenue | ||||
Other income (includes $239 related to CFVs for the three months and six months ended June 30, 2017) | 239 | 239 | ||
Operating and other expenses | ||||
Interest expense (includes $93 and $186 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 93 | 186 | ||
Professional fees (includes $65 and $102 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 65 | 102 | ||
Impairments (includes $6,795 and $11,400 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 6,795 | 11,400 | ||
Asset management fee expense (includes $1,095 and $2,190 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 1,095 | 2,190 | ||
Other expenses (includes $459 and $911 related to CFVs for the three months and six months ended June 30, 2017, respectively) | 459 | 911 | ||
Equity in income (losses) from unconsolidated funds and ventures (includes ($3,879) and ($7,262) related to CFVs for the three months and six months ended June 30, 2017, respectively) | (3,879) | (7,262) | ||
Unconsolidated Funds and Ventures [Member] | ||||
Operating and other expenses | ||||
Equity in income (losses) from unconsolidated funds and ventures (includes ($3,879) and ($7,262) related to CFVs for the three months and six months ended June 30, 2017, respectively) | $ 1,555 | $ (1,033) | $ 2,382 | $ (2,321) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net income allocable to common shareholders | $ 2,762 | $ 7,417 | $ 21,102 | $ 3,973 |
Net loss allocable to noncontrolling interests | (11,523) | (20,660) | ||
Net income (loss) | 2,762 | (4,106) | 21,102 | (16,687) |
Bond related changes: | ||||
Net unrealized gains | 4,465 | 539 | 1,118 | 1,346 |
Reclassification of unrealized gains to operations due to impairment | (135) | |||
Reinstatement of unrealized bond gains due to deconsolidation of Consolidated Lower Tier Property Partnerships | 9,415 | |||
Net change in other comprehensive income due to bonds | 4,465 | 539 | 10,398 | 1,346 |
Income tax benefit (expense) | 242 | 243 | (14) | |
Foreign currency translation adjustment | (660) | (14) | 2,823 | (226) |
Other comprehensive income allocable to common shareholders | 4,047 | 768 | 13,207 | 1,120 |
Comprehensive income to common shareholders | 6,809 | 8,185 | 34,309 | 5,093 |
Comprehensive loss to noncontrolling interests | (11,523) | (20,660) | ||
Comprehensive income (loss) | $ 6,809 | $ (3,338) | $ 34,309 | $ (15,567) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | AOCI [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2017 | $ 96,420 | $ 41,153 | $ 137,573 | $ 89,529 | $ 227,102 |
Balance (in shares) at Dec. 31, 2017 | 5,617 | ||||
Net income (loss) | $ 21,102 | 21,102 | 21,102 | ||
Other comprehensive income (loss) | 13,207 | 13,207 | 13,207 | ||
Purchases of shares in a subsidiary (including price adjustments on prior purchases) | $ (73) | (73) | $ (73) | ||
Options exercised (shares) | 30 | 30 | |||
Options exercised (value) | $ 784 | 784 | $ 784 | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 164 | 164 | 164 | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 6 | ||||
Net change due to deconsolidation | $ (89,529) | (89,529) | |||
Cumulative change due to change in accounting principles | $ 9,206 | 9,206 | 9,206 | ||
Common shares issued, shares | 250 | ||||
Common shares issued | $ 8,375 | 8,375 | 8,375 | ||
Options tendered for payment of withholding taxes, value | $ (315) | (315) | (315) | ||
Options tendered for payment of withholding taxes, shares | (13) | ||||
Common share repurchases | $ (3,341) | (3,341) | (3,341) | ||
Common share repurchases (in shares) | (121) | ||||
Balance at Jun. 30, 2018 | $ 132,322 | $ 54,360 | $ 186,682 | $ 186,682 | |
Balance (in shares) at Jun. 30, 2018 | 5,769 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 21,102 | $ (16,687) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provisions for credit losses and impairment | 388 | 11,400 |
Net equity in (income) losses from investments in partnerships | (2,382) | 2,545 |
Net gains on real estate and other investments | (63) | (184) |
Gain on disposal of discontinued operations | (20,420) | |
Net losses on loans | 5,335 | |
Net (gains) losses on derivatives | (2,856) | 270 |
Net gains on extinguishment of liabilities | (3,829) | |
Advances on and originations of loans held for sale | (9,000) | |
Distributions received from investments in partnerships | 3,606 | 2,096 |
Subordinated debt effective yield amortization and interest accruals | (128) | (399) |
Depreciation and other amortization | (412) | 1,289 |
Foreign currency gains | (35) | (496) |
Stock-based compensation expense | 1,128 | 1,667 |
Change in asset management fees receivable | 275 | (3,217) |
Other, net | (365) | (3,496) |
Net cash used in operating activities | (9,162) | (3,706) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments and sales proceeds received on bonds and loans held for investment | 6,885 | 12,472 |
Advances on and originations of loans held for investment | (15,528) | |
Investments in partnerships and real estate | (26,045) | (2,128) |
Proceeds from the sale of real estate and other investments | 63 | 2,939 |
Cash and restricted cash of discontinued operations derecognized in the Disposition | (23,009) | |
Restricted cash related to deconsolidated guaranteed LIHTC funds | (23,487) | |
Capital distributions received from investments in property partnerships | 17,866 | 2,291 |
Net cash provided by (used in) investing activities | (47,727) | 46 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowing activity | 12,189 | 7,309 |
Repayment of borrowings | (17,244) | (20,112) |
Purchase of treasury stock | (3,341) | (2,751) |
Options tendered for payment of withholding taxes | (315) | |
Issuance of treasury stock | 8,375 | |
Other, net | (207) | |
Net cash used in financing activities | (336) | (15,761) |
Net decrease in cash and cash equivalents | (57,225) | (19,421) |
Cash, cash equivalents and restricted cash at beginning of period | 100,186 | 103,029 |
Cash, cash equivalents and restricted cash at end of period | 42,961 | 83,608 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 3,672 | 4,102 |
Income taxes paid | 281 | 260 |
Non-cash investing and financing activities: | ||
Unrealized gains (losses) included in other comprehensive income | 13,207 | 1,120 |
Debt and liabilities extinguished through sales and collections on bonds and loans | 419 | 1,444 |
Increase in common shareholders' equity and decrease in other liabilities due to change in accounting principles | 9,206 | |
Increase in loans from the Disposition | 57,000 | |
Increase in investments in debt securities from the Disposition | 17,986 | |
Increase in other assets from the Disposition | 2,142 | |
Increase in deferred revenue from disposition | (13,000) | |
Increase in other accumulated other comprehensive income from the Disposition | (9,415) | |
Increase in loans held for investment, interest receivable and other liabilities and decrease in investment in partnerships | 6,138 | |
Increase in common shareholders' equity and decrease in other liabilities due to stock options exercised | 784 | |
Net decrease in investment in partnerships | (98,760) | |
Net decrease in other assets | (5,174) | |
Decrease in Debt | 6,712 | |
Decrease in unfunded equity commitments to lower tier property partnerships | 8,003 | |
Net decrease in other liabilities | 35,850 | |
Net decrease in noncontrolling interests | 83,909 | |
Cash and cash equivalents | 27,045 | 33,505 |
Restricted cash | 15,916 | 30,072 |
Assets of discontinuted operations | 20,031 | |
Total cash, cash equivalents and restricted caash shown in statement of cash flows | $ 27,045 | |
Consolidated Funds and Ventures [Member] | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Net equity in (income) losses from investments in partnerships | $ 7,262 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | Dec. 31, 2017USD ($) |
Statement Of Cash Flows [Abstract] | |
Cash, cash equivalents and restricted cash at beginning of period, assets of discontinued operations | $ 19,727 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | MMA Capital Management, LLC NOTES TO CONSOLIDA T ED FINANCIAL STATEMENTS Note 1 — S ummary of Significant Accounting Policies Organization MMA Capital Management, LLC 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 primarily invests in debt associated with real estate and infrastructure. We focus on investments with attractive risk-adjusted returns that generate positive environmental or social impacts. Our investments, other assets and liabilities are organized into three portfolios: · Leveraged Bonds – This portfolio primarily includes tax-exempt mortgage revenue bonds that are leveraged to generate attractive risk adjusted returns; · Energy Capital – This portfolio includes investments that we have made directly or through joint ventures with an institutional capital partner in loans that finance renewable energy projects; and · Other Assets and Liabilities – This portfolio includes certain loan receivables, cash, real estate-related investments, subordinated debt and the balance of the Company’s assets and liabilities. Commencing on January 8, 2018, we became externally managed by Hunt Investment Management, LLC, an investment adviser registered with the SEC (our “ External Manager ”). In conjunction with this change, and as further discussed in the 2017 Annual Report, we completed the sale of the following businesses and assets to the Hunt Companies (Hunt Companies, Inc. and its affiliates are hereinafter referred to as “ Hunt ” and this sale transaction is hereinafter referred to as the “ Disposition ”): · our Low Income Housing Tax Credit (“ LIHTC ”) business; · our international asset and investment management business; · the loan origination, servicing and management components of our Energy Capital business (including certain management, expense reimbursement and other contractual rights that were held by the Company with respect to this business line); · our bond servicing platform; and · certain miscellaneous investments. Given these changes to our business model and effective the first quarter of 2018, we operate as a single reporting segment. As a result, we no longer operate, or present the results of our operations, through three reportable segments that, as of December 31, 2017, included United States (“ U.S. ”) Operations, International Operations and Corporate Operations. Proposed Conversion to a Corporation On August 7, 2018, the Board authorized the Manager to convert our legal form of organization from a limited liability company to a corporation. Since its inception, the Company has followed a corporate form of governance and, in July 2013, elected to be taxed as a corporation. The proposed conversion would conform our legal form of organization to that of our tax and governance attributes. If the conversion is approved by our shareholders, our common shares will be converted on a one-for-one basis from common shares of a limited liability company to common shares of a corporation and our current governance framework, including Board of Directors, will remain in place. Similarly, the measurement of our assets, liabilities and other tax, financial and accounting attributes for financial reporting purposes will be unchanged. However, upon conversion, we will be governed by the Delaware General Corporation Law (the “ DGCL ”) and a new certificate of incorporation instead of by the Delaware Limited Liability Company Act (the “ LLC Act ”) and our current limited liability company operating agreement. The proposed conversion of the Company’s legal form to that of a corporation is subject to the approval of our shareholders. Accordingly, the Company will hold a special shareholders’ meeting during the fall at which shareholders will be provided an opportunity to vote on the Company’s proposed conversion. A proxy statement will be issued in advance of the meeting that provides more information about the Company’s proposed conversion including the differences between the DGCL and our proposed corporate documents as compared with the LLC Act and our current limited liability company operating agreement. 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, 2018, should be read in conjunction with our audited consolidated financial statements and related notes included in our 2017 Annual Report. The Company evaluates subsequent events through the date of filing with the Securities and Exchange Commission (“ SEC ”) . Changes in Presentation We have revised the presentation of our Consolidated Balance Sheets and Consolidated Statements of Operations for all reporting periods presented as a result of certain discontinued operations occurring in the first quarter of 2018 as a result of the Dispositi on. We have also made certain reclassifications to prior year’s financial statements to enhance comparability with the current year’s financial statements. 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 estimates in certain areas, including the determination of fair values for bonds, derivative instruments, guarantee obligations, and in prior periods certain assets and liabilities of CFVs. Management has also made 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 Adoption of New Accounting Standards Accounting for Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively “ Topic 606 ”). Topic 606 superseded existing revenue recognition standards with a single model unless those contracts are within the scope of other accounting standards. The revenue recognition principle in Topic 606 is that an entity should recognize revenue to depict the transfer of 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. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Only our asset management fee revenue is subject to Topic 606, which represents an insignificant portion of the Company’s total revenue. The adoption of Topic 606 did not have a material impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date or for the three or six months ended June 30, 2018. 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 . The effective date of ASU 2017-05 is aligned with Topic 606. We adopted ASU No. 2017-05 in conjunction with our adoption of Topic 606 as of January 1, 2018 and we recognized a cumulative effect adjustment of $9.2 million to retained earnings on January 1, 2018. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The objective of this update was to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This new standard requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted these new accounting standards on their effective date of January 1, 2018 utilizing the retrospective transition method. These new standards resulted in presentation changes of restricted cash within our Consolidated Statements of Cash Flows and in certain tables within our “Liquidity and Capital Resources” discussion in Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Accounting for Business Combinations In January 2017, 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. We adopted this new guidance on its effective date of January 1, 2018. The adoption of this guidance did not impact the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date or for the six months ended June 30, 2018. 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 Topic 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. We adopted this new guidance on its effective date of January 1, 2018. The adoption of Topic 718 did not have an impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date or for the six months ended June 30, 2018. Accounting for Financial Instruments In February 2018, the FASB issued ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance makes technical corrections to certain aspects of ASU 2016-01. We adopted this new guidance on its effective date of June 30, 2018. The adoption of this guidance did not impact the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date. Issued Accounting Standards Not Yet Adopted Accounting for Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Improvements.” This guidance is intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. This guidance establishes an impairment methodology that reflects lifetime expected credit losses rather than incurred losses. This guidance requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This new guidance is effective for us on January 1, 2020, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Income Taxes In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This new guidance permits companies to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act of 2017 (the “ Act ”) from AOCI to retained earnings. This new guidance, which also requires new disclosures, is effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This guidance expands the scope of Accounting Standards Codification (“ ASC ”) Topic 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. This new guidance is effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements . |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Investments in Debt Securities [Abstract] | |
INVESTMENTS IN DEBT SECURITIES | Note 2—Investments in Debt Securities The Company’s investments in debt securities primarily consist of multifamily tax-exempt bonds and other real estate-related bond investments. These investments are classified as available for sale for reporting purposes and are measured on a fair value basis in our Consolidated Balance Sheets. Multifamily tax-exempt bonds are issued by state and local governments or their agencies or authorities to finance affordable 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: (i) municipal bonds that finance the development of infrastructure for a mixed-use town center development and are secured by incremental tax revenues generated from the development, (ii) a subordinated investment in a collateralized mortgage backed security that finances a mixed-use multifamily housing property and (iii) a tax-exempt bond that is fully secured by U.S. Treasury notes. The weighted-average pay rate on the Company’s bond portfolio was 6.3% and 6.2% at June 30, 2018 and December 31, 2017, respectively. Weighted-average pay rate represents the cash interest payments collected on the bonds (excluding subordinated cash flow 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, 2018 and December 31, 2017. 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, 2018 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2) FV of UPB Multifamily tax-exempt bonds $ 121,941 $ 76,447 $ 54,290 $ (134) $ 130,603 107% Other real estate-related bond investments 36,825 30,957 860 (159) 31,658 86% Total $ 158,766 $ 107,404 $ 55,150 $ (293) $ 162,261 102% At December 31, 2017 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2) FV of UPB Multifamily tax-exempt bonds $ 105,472 $ 67,982 $ 43,587 $ ─ $ 111,569 106% Other real estate-related bond investments 37,050 31,163 1,203 (331) 32,035 86% Total $ 142,522 $ 99,145 $ 44,790 $ (331) $ 143,604 101% (1) Amortized cost consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as net other-than-temporary impairments (“ OTTI ”) recognized in “Impairments” in our Consolidated Statements of Operations. (2) Includes one bond in a gross unrealized loss position for less than 12 consecutive months that had a fair value of $2.0 million and $4.1 million at June 30, 2018 and December 31, 2017, respectively. Also includes one bond that was in a gross unrealized loss position for more than 12 consecutive months and that had a fair value of $15.0 million at June 30, 2018 and December 31, 2017. See Note 8, “Fair Value,” which describes factors that contributed to the $18.7 million increase in the reported fair value of the Company’s bond portfolio for the six months ended June 30, 2018. 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 30, 2018, the majority of the Company’s bond investments amortize on a scheduled basis and have stated maturity dates between March 2032 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 $13.1 million and $25.7 million, respectively, at June 30, 2018). Investments in Debt Securities with Prepayment Features The contractual terms of 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 their 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 30, 2018 and 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, 2018 $ 26,825 $ 20,957 $ 21,554 July 1 through December 31, 2018 1,868 255 2,126 2019 ─ ─ ─ 2020 22,080 12,883 23,171 2021 46,095 27,212 49,533 2022 51,898 36,097 55,773 Thereafter 10,000 10,000 10,104 Bonds that may not be prepaid ─ ─ ─ Total $ 158,766 $ 107,404 $ 162,261 The weighted-average expected maturity of the Company’s investments in bonds that were not currently prepayable at par at June 30, 2018 was 3.4 years. Bond Aging Analysis The following table provides information about the fair value of the Company’s investments in bonds that are classified as available-for-sale and that were current with respect to principal and interest payments, as well as information about the fair value of bonds that were past due with respect to principal or interest payments: At At June 30, December 31, (in thousands) 2018 2017 Total current (1) $ 149,375 $ 135,571 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 12,886 8,033 Total $ 162,261 $ 143,604 (1) Includes one bond that was placed on non-accrual during the second quarter of 2018, as collection of principal and interest was not reasonably assured, that had a fair value of $6.6 million at June 30, 2018. Non -Accrual Bonds The fair value of the Company’s investments in bonds that were on non-accrual status was $19.5 million and $8.0 million at June 30, 2018 and December 31, 2017, respectively. The Company recognized interest income on a cash basis of $0.2 million and $0.1 million for the three months and six months ended June 30, 2018 and June 30, 2017, respectively. Interest income not recognized on bonds that were on non-accrual status was $0.2 million for the three months ended June 30, 2018 and June 30, 2017; and $0.3 million for the six months ended June 30, 2018 and June 30, 2017. Bond Sales and Redemptions There were no sales or full redemptions of our bond investments during the three months and six months ended June 30, 2018 and June 30, 2017. The following table provides information about gains or losses that were recognized in the Consolidated Statements of Operations in connection with the Company’s investments in bonds: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 OTTI losses recognized on bonds held at each period-end $ ─ $ ─ $ (6) $ ─ |
INVESTMENTS IN PARTNERSHIPS
INVESTMENTS IN PARTNERSHIPS | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENTS IN PARTNERSHIPS [Abstract] | |
INVESTMENT IN PARTNERSHIPS | Note 3—Investments in Partnerships The following table provides information about the carrying value of the Company’s investments in partnerships and ventures. At At June 30, December 31, (in thousands) 2018 2017 Investments in U.S. real estate partnerships (includes $4,110 and $1,046 related to variable interest entities (" VIEs ")) (1) $ 22,834 $ 19,114 Investment in SAWHF 11,577 12,695 Investment in Solar Ventures 93,795 97,011 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) ─ 99,142 Total investments in partnerships $ 128,206 $ 227,962 (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 15, “Consolidated Funds and Ventures,” for more information. Investments in U.S. Real Estate Partnerships At June 30, 2018, $18.7 million of the reported carrying value of investments in U.S. real estate partnerships relates 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 capital contribution of $8.8 million, which represented 80% of the real estate venture’s initial capital. The Company has the right to a preferred return on its capital contribution, as well as the right to share in excess cash flows of the real estate venture. As of June 30, 2018, the Company held a 69.7% economic interest based upon the partnership’s distribution waterfall. This entity was determined not to be a VIE and because decision-making rights are shared equally among its members, the Company accounts for this investment using the equity method of accounting. At June 30, 2018, $0.9 million of the reported carrying value of investments in U.S. real estate partnerships relates to a 98.99% limited partner interest in an affordable housing partnership. While this entity was deemed to be a VIE, the Company was not deemed to be its primary beneficiary. Therefore, the Company did not consolidate this entity and accounts for this investment using the equity method of accounting. During the first quarter of 2018, the Company acquired three limited partner interests in three affordable housing partnerships for $3.3 million. While these entities were deemed to be VIEs, the Company was not deemed to be their primary beneficiary. Therefore, the Company did not consolidate these entities and accounts for these investments using the equity method of accounting. At June 30, 2018, the carrying value of these investments was $3.2 million. At June 30, 2018, five of the U.S. real estate partnerships in which we have investments were determined to be VIEs while, at December 31, 2017, two of the U.S. real estate partnerships in which we had investments were determined to be VIEs. The carrying value of the equity investments in these partnerships was $4.1 million and $1.0 million at June 30, 2018 and December 31, 2017, respectively. For one of the Company’s VIEs, because the underlying real estate was sold during the fourth quarter of 2017, the Company does not expect to make additional contributions to that investment. Our maximum exposure to loss due to our involvement with these VIEs was $4.1 million and $1.0 million at June 30, 2018 and December 31, 2017, 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 these investments. The following table provides information about the total assets, debt and other liabilities of the U.S. real estate partnerships in which the Company held an equity investment: At At June 30, December 31, 2018 2017 (in thousands) Total assets $ 59,247 $ 57,712 Debt 7,149 7,037 Other liabilities 32,075 22,030 The following table provides information about the gross revenue, operating expenses and net loss of U.S. real estate partnerships in which the Company had an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue $ 694 $ 1,215 $ 1,417 $ 2,454 Operating expenses 548 842 1,085 1,651 Net loss and net loss attributable to the entity (367) (518) (676) (1,032) Investment in SAWHF At June 30, 2018, the carrying value of the Company’s 11.85% equity investment in SAWHF was $11.6 million. As SAWHF was determined not to be a VIE, the Company accounts for this investment using the equity method of accounting. The following table provides information about the carrying value of total assets, debt and other liabilities of SAWHF: At At June 30, December 31, 2018 2017 (in thousands) Total assets $ 105,938 $ 123,187 Debt 7,947 15,712 Other liabilities 57 100 The following table provides information about the gross revenue, operating expenses and net (loss) income of SAWHF. For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue $ 1,915 $ 2,557 $ 2,305 $ 6,864 Operating expenses 613 2,889 1,551 8,003 Net (loss) income and net (loss) income attributable to the entity (912) 1,709 1,567 3,071 Investment in Solar Ventures The carrying value of the Company’s equity investments in Solar Construction Lending, LLC (“ SCL ”), Solar Permanent Lending, LLC (“ SPL ”) and Solar Development Lending , LLC (“ SDL ”) was $86.1 million, $3.4 million and $4.3 million, respectively, at June 30, 2018 . None of these investees were assessed to constitute VIEs and the Company accounts for all of these investments using the equity method of accounting. The following table provides information about the carrying amount of total assets, other liabilities and noncontrolling interests of the Solar Ventures: At At June 30, December 31, 2018 2017 (in thousands) Total assets $ 202,086 $ 399,758 Other liabilities 3,934 5,111 Noncontrolling interests ─ 87,699 The following table provides information about the gross revenue, operating expenses and net income of the Solar Ventures: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue $ 5,932 $ 6,752 $ 12,522 $ 10,845 Operating expenses 1,479 1,587 2,817 2,829 Net income 5,136 5,346 10,219 8,396 Net income attributable to the entity 5,136 3,052 10,219 4,849 |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
LOANS | Note 4—Loans Held for Investment (‘HFI”) and Loans Held for Sale (“HFS”) The following table provides information about the carrying value of the Company’s loans: At At June 30, December 31, (in thousands) 2018 2017 Loans HFI $ 57,299 $ 736 Loans HFS 9,000 ─ Total loans $ 66,299 $ 736 Loans 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 losses on loans.” The following table provides information about the UPB and cost basis adjustments that were recognized in the Company’s Consolidated Balance Sheets related to loans that it classified as HFI: At At June 30, December 31, (in thousands) 2018 2017 UPB $ 58,050 $ 1,487 Cost basis adjustments, net (751) (751) Loans HFI, net $ 57,299 $ 736 The following table provides information about the UPB and amortized cost of loans that are current with respect to principal and interest payments, as well as information about the UPB of loans that are past due with respect to principal or interest payments. At At June 30, December 31, (in thousands) 2018 2017 UPB Carrying value UPB Carrying value Total current $ 57,000 $ 57,000 $ 437 $ 437 30-59 days past due ─ ─ ─ ─ 60-89 days past due ─ ─ ─ ─ 90 days or greater 1,050 299 1,050 299 Total $ 58,050 $ 57,299 $ 1,487 $ 736 At June 30, 2018 and December 31, 2017, the Company did not have any loans for which it elected the FVO. At June 30, 2018 and December 31, 2017, the UPB of HFI loans that were placed on non-accrual status was $1.1 million while the carrying value of these loans was $0.3 million as of such reporting dates. At June 30, 2018 and December 31, 2017, no HFI loans that were 90 days or more past due in scheduled principal or interest payments were still accruing interest. Loans HFS We report the carrying value of HFS loans at the lower of cost or fair value. In this regard, if a loan’s amortized cost exceeds its fair value at a reporting date, the Company will establish a valuation allowance and recognize a related provision for loan loss in our Consolidated Statement of Operations as a component of “Net losses on loans.” Subsequent increases in the fair value of an HFS loan for which a valuation allowance was established will be recognized in the Consolidated Statements of Operations as a reduction of “Net losses on loans” up to the amount of previously recognized losses. The cost basis for HFS loans was $15.0 million and $6.0 million at June 30, 2018 and December 31, 2017, respectively, with $9.0 million and zero carrying value at June 30, 2018 and December 31, 2017, respectively. During the three months and six months ended June 30, 2018 and June 30, 2017, 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. Unfunded Loan Commitments There were no unfunded loan commitments at June 30, 2018 and December 31, 2017. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets | Note 5—Other Assets The following table provides information related to the carrying value of the Company’s other assets: At At June 30, December 31, (in thousands) 2018 2017 Other assets: Derivative assets $ 9,512 $ 6,865 Real estate owned 3,576 3,447 Accrued interest receivable 2,355 1,558 Other assets 2,142 860 Other assets held by CFVs (1) ─ 5,175 Total other assets $ 17,585 $ 17,905 (1) See Note 15, “Consolidated Funds and Ventures,” for more information. Derivative Assets At June 30, 2018 and December 31, 2017, the Company had $9.5 million and $6.9 million, respectively, of derivative assets. See Note 7, “Derivative Instruments,” for more information. 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) 2018 2017 Building, furniture, fixtures and land improvement $ 957 $ 828 Land 2,619 2,619 Total $ 3,576 $ 3,447 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 Other Assets and Other Liabilities portfolio includes the Company’s REO that represents a parcel of land that is currently in the process of being developed. As a result, no depreciation expense was recognized in connection with this land investment for the three months and six months ended June 30, 2018 and June 30, 2017. Additionally, the Company did no t recognize any impairment losses for such reporting periods. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 6—Debt The table below provides information about the carrying values and weighted-average effective interest rates of the Company’s debt obligations that were outstanding: At At June 30, 2018 December 31, 2017 Weighted-Average Weighted-Average Carrying Effective Interest Carrying Effective Interest (dollars in thousands) Value Rate Value Rate Asset Related Debt Notes payable and other debt – bond related (1) Due within one year $ 39,979 2.8 % $ 41,767 3.2 % Due after one year 56,587 2.9 42,071 2.9 Total asset related debt 96,566 2.9 83,838 3.1 Other Debt Subordinated debt (2) Due within one year 2,253 3.5 2,297 2.6 Due after one year 96,599 3.5 97,700 2.6 Notes payable and other debt Due within one year ─ 14,733 2.8 Due after one year 7,669 14.6 10,859 12.1 Total other debt 106,521 4.3 125,589 3.5 Total asset related debt and other debt 203,087 3.6 209,427 3.3 Debt related to CFVs Due within one year ─ 6,712 6.5 Due after one year ─ ─ Total debt related to CFVs ─ ─ 6,712 6.5 Total debt $ 203,087 3.6 $ 216,139 3.4 (1) Included in notes payable and other debt – bond related were unamortized debt issuance costs. The balance at June 30, 2018 was $0.1 million. The December 31, 2017 balance was de minimis. (2) The subordinated debt balances include net cost basis adjustments of $8.1 m illion and $8.3 million at June 30, 2018 and December 31, 2017, respectively, that pertain to premiums and debt issuance costs. Covenant Compliance and Debt Maturities The following table provides information about scheduled principal payments associated with the Company’s debt agreements that were outstanding at June 30, 2018: Asset Related Debt (in thousands) and Other Debt 2018 $ 40,710 2019 12,293 2020 36,962 2021 20,804 2022 1,679 Thereafter 82,906 Net premium and debt issue costs 7,733 Total debt $ 203,087 At June 30, 2018, the Company was in compliance with all covenants under its debt obligations. Asset Related Debt Asset related debt is debt that finances interest-bearing assets. The interest expense associated with this debt is included within “Net interest income” on the Consolidated Statements of Operations. 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 conveys 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, 2018, under 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 $91.2 million with a weighted-average pay rate of 6.4% at June 30, 2018). For the majority of the TRS agreements, the Company is required to pay the counterparty a rate that is based upon the Securities Industry and Financial Markets Association seven-day municipal swap rate (“ SIFMA ”) plus a spread (notional amount of $89.4 million with a weighted-average pay rate of 2.7% at June 30, 2018) and for the remaining TRS agreements, the Company is required to pay the counterparty a rate of 1-month London Interbank Offered Rate (“ LIBOR ”) plus a spread (notional amount of $7.2 million with a weighted-average pay rate of 3.6% at June 30, 2018). The Company uses the pay rate on executed TRS agreements to accrue interest on its secured borrowing obligations to its counterparty. Other Debt Other debt is debt that finances non-interest-bearing assets and other business activities of the Company. The interest expense associated with this debt is included within “Interest expense” under “Operating and other expenses” on the Consolidated Statements of Operations. Subordinated Debt The table below provides information about the key terms of the subordinated debt that was issued by the Company’s wholly owned subsidiary MMA Financial Holdings, Inc. (“ MFH ”) and that was outstanding at June 30, 2018: (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFH $ 26,793 $ 2,472 $ 29,265 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 24,363 2,259 26,622 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 14,044 1,202 15,246 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 25,534 2,185 27,719 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 90,734 $ 8,118 $ 98,852 Notes Payable and Other Debt At June 30, 2018, the UPB and carrying value was $8.0 million and $7.7 million, respectively, of notes payable and other debt used to finance the Company’s 11.85% ownership interest in SAWHF. Such debt, which is denominated in South African rand, has a contractual maturity date of September 8, 2020 and requires the Company to pay its counterparty a rate that is based upon the Johannesburg Interbank Agreed Rate (“ JIBAR ”) plus a fixed spread of 5.15% . At June 30, 2018, the JIBAR base rate was 6.92% . Letters of Credit The Company had no letters of credit outstanding at June 30, 2018 and December 31, 2017. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 7—Derivative 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. Foreign currency forward exchange agreements are used to manage currency risk associated with the financing of our SAWHF equity investment. 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 gains (losses) on derivatives .” 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, 2018 December 31, 2017 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 2,747 $ 44 $ 2,347 $ 46 Basis swaps 956 58 439 26 Interest rate caps 1,263 ─ 788 ─ Interest rate swaps 4,439 ─ 3,291 ─ Foreign currency forward exchange 107 ─ ─ 247 Total derivative instruments $ 9,512 $ 102 $ 6,865 $ 319 The following table provides information about the notional amounts of the Company’s derivative instruments: Notional Amounts At At June 30, December 31, (in thousands) 2018 2017 Total return swaps $ 71,844 $ 72,290 Basis swaps 84,500 100,500 Interest rate caps 80,000 80,000 Interest rate swaps 140,000 140,000 Foreign currency forward exchange 4,289 4,363 Total dollar-based derivative instruments $ 380,633 $ 397,153 The following table provides information about the net gains (losses) that were recognized by the Company in connection with its derivative instruments: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Total return swaps (1) $ 1,092 $ 454 $ 1,638 $ 2,577 Basis swaps (2) 315 20 507 (9) Interest rate caps 79 (271) 475 (482) Interest rate swaps (3) (21) (1,171) 1,395 (1,015) Foreign currency forward exchange 588 ─ 347 ─ Total derivative gains (losses) $ 2,053 $ (968) $ 4,362 $ 1,071 (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 gains (losses) on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.6 million and $0.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively. Net cash received was $1.2 million and $1.6 million for the six months ended June 30, 2018 and June 30, 2017, respectively. (2) The cash paid and received on the basis swaps is settled on a net basis and recorded through “Net gains (losses) on derivatives” on the Consolidated Statements of Operations. The net cash paid was de minimis for the three months and six months ended June 30, 2018 and June 30, 2017. (3) The cash paid and received on the interest rate swaps is settled on a net basis and recorded through “Net gains (losses) on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.1 million for the three months and six months ended June 30, 2018. Net cash paid was $0.1 million and $0.2 million for the three months and six months ended June 30, 2017. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value [Abstract] | |
Fair Value | Note 8—Fair Value We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Assets and liabilities recorded at fair value on a recurring basis are presented in the first table below in this Note. From time to time, we may be required to measure at fair value other assets on a nonrecurring basis such as certain loans held for investment or investments in partnerships. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Fair Value Hierarchy The Company measures the fair value of its assets and liabilities based upon their contractual terms and using relevant market information. A description of the methods used by the Company to measure fair value is provided below. Fair value measurements are subjective in nature, involve uncertainties and often require the Company to make significant judgments. Changes in assumptions could significantly affect the Company’s measurement of fair value. GAAP establishes a three-level hierarchy that prioritizes inputs into the valuation techniques used to measure fair value. Fair value measurements associated with assets and liabilities are categorized into one of the following levels of the hierarchy based upon how observable the valuation inputs are that are used in such measurements. · Level 1: Valuation is based upon quoted prices in active markets for identical instruments. · Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs or significant value drivers are observable in active markets. · Level 3: Valuation is generated from techniques that use significant assumptions that are not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Recurring Changes in Fair Value The following tables present the carrying amounts of assets and liabilities that are measured at fair value on a recurring basis by instrument type and based upon the level of the fair value hierarchy within which fair value measurements of such assets and liabilities are categorized. Fair Value Measurements At June 30, (in thousands) 2018 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 162,261 $ ─ $ ─ $ 162,261 Derivative instruments 9,512 ─ 6,765 2,747 Liabilities: Derivative instruments $ 102 $ ─ $ 58 $ 44 Fair Value Measurements At December 31, (in thousands) 2017 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 143,604 $ ─ $ ─ $ 143,604 Derivative instruments 6,865 ─ 4,518 2,347 Liabilities: Derivative instruments $ 319 $ ─ $ 273 $ 46 Changes in Fair Value Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes, but is not limited to, quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between Level 1, Level 2 and Level 3. For the three months ended June 30, 2018 and June 30, 2017, there were no individually significant transfers between Levels 1 and 2, or between Levels 2 and 3. Changes in the 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, 2018: (in thousands) Investments in Debt Securities Derivative Assets Derivative Liabilities Balance, April 1, 2018 $ 157,824 $ 2,250 $ (48) Net gains included in earnings ─ 497 4 Net change in AOCI (1) 4,465 ─ ─ Impact from settlements (2) (28) ─ ─ Balance, June 30, 2018 $ 162,261 $ 2,747 $ (44) (1) This amount includes $4.5 million of net unrealized holding gains recognized during the period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the three months ended June 30, 2018 related to activity presented in the preceding table: (in thousands) Net losses on bonds (1) Net gains on derivatives (2) Net change in unrealized gains related to assets and liabilities still held at June 30, 2018 $ ─ $ 501 Additional realized gains recognized ─ 591 Total gains reported in earnings $ ─ $ 1,092 (1) Amounts are classified as “Impairments” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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, 2017: (in thousands) Investments in Debt Securities 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 sales/redemptions ─ (9,349) ─ ─ Impact from settlements (2) (173) ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount includes $0.5 million of net unrealized holding gains recognized during the period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the three months ended June 30, 2017 related to activity presented in the preceding table: (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 gains recognized ─ 713 Total (losses) gains reported in earnings $ (1,089) $ 454 (1) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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, 2018: (in thousands) Investments in Debt Securities Derivative Assets Derivative Liabilities Balance, January 1, 2018 $ 143,604 $ 2,347 $ (46) Net (losses) gains included in earnings (6) 400 2 Net change in other comprehensive income (1) 983 ─ ─ Impact from deconsolidation 17,997 ─ ─ Impact from settlements (2) (317) ─ ─ Balance, June 30, 2018 $ 162,261 $ 2,747 $ (44) (1) This amount includes $1.1 million of net unrealized holding gains recognized during the period, as well as $0.1 million of unrealized holding gains that were reclassified out of AOCI into the Consolidated Statements of Operations in connection with a bond that was assessed as OTTI. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the six months ended June 30, 2018 related to activity presented in the preceding table : (in thousands) Net losses on bonds (1) Net gains on derivatives (2) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2018 $ (6) $ 402 Additional realized gains recognized ─ 1,236 Total (losses) gains reported in earnings $ (6) $ 1,638 (1) Amounts are classified as “Impairments” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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) Investments in Debt Securities 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 (2) (3,458) ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount represents $ 1.3 million of net unrealized holding gains recognized during the period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the six months ended June 30, 2017 related to activity presented in the preceding table: (in thousands) Equity in losses from LTPPs Net losses on loans (1) Net gains on derivatives (2) 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 classified as “Net losses on loans” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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, 2018 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Investments in debt securities: Multifamily tax-exempt bonds Performing $ 103,325 Discounted cash flow Market yield 4.1 - 6.5 % 4.7 % Non-performing 12,886 Discounted cash flow Market yield 8.7 N/A Capitalization rate 7.6 N/A Net operating income (" NOI ") annual growth rate 0.5 N/A Property bids $ 13,105 - 13,567 $ 13,413 Valuation technique weighting factors 10 - 90 % N/A Subordinated cash flow 9,164 Discounted cash flow Market yield 7.6 - 7.9 7.8 % Capitalization rate 6.7 - 6.8 6.8 NOI annual growth rate 0.6 - 0.7 0.6 Infrastructure bonds 21,554 Discounted cash flow Market yield 7.4 - 9.6 8.3 Cash flow probability - future incremental tax revenue growth 75 N/A Cash flow probability - no future incremental tax revenue growth 25 N/A Other bonds 15,332 Discounted cash flow Market yield 2.2 - 4.4 3.7 Derivative instruments: Total return swaps 2,703 Discounted cash flow Market yield 4.6 - 5.4 4.8 (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, 2017 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Investments in debt securities: Multifamily tax-exempt bonds Performing $ 90,963 Discounted cash flow Market yield 4.3 - 6.7 % 5.0 % Non-performing 8,033 Discounted cash flow Market yield 7.5 7.5 Capitalization rate 6.4 6.4 NOI annual growth rate (1.2) (1.2) Subordinated cash flow 12,573 Discounted cash flow Market yield 6.7 - 7.0 6.8 Capitalization rate 5.8 - 6.1 5.9 NOI annual growth rate 0.6 - 0.9 0.8 Infrastructure bonds 21,824 Discounted cash flow Market yield 7.1 - 9.2 8.0 Cash flow probability - future incremental tax revenue growth 80 80 Cash flow probability - no future incremental tax revenue growth 20 20 Other bonds 10,211 Discounted cash flow Market yield 4.2 4.2 Loans held for investment Discounted cash flow Market yield Derivative instruments: Total return swaps 2,301 Discounted cash flow Market yield 4.1 - 5.3 5.0 (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 generally 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 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. Such projected cash flows are discounted based upon the market yield of such instruments. For such instruments, the Company determines market yield by generally utilizing 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 infrastructure bonds, the Company’s projection of expected future cash flows reflects a probability-weighted assessment of the expected future incremental tax revenues that would be generated through existing and future development of raw land and the mixed-use town center that support the debt service payments on the Company’s bonds. Such projected cash flows are discounted based upon the market yield of such instruments. For such instruments, the Company determines market yield by generally utilizing the AAA MMD tax-exempt rate for each infrastructure bond’s specific term and applies a market rate risk premium spread that reflects each instrument’s specific credit characteristics. · 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. For purposes of projecting expected future cash flows associated with non-performing bonds, the Company may also consider quotes received from third parties related to underlying properties that serve as collateral for our instruments. In instances where the Company uses more than one valuation technique to measure the fair value of underlying properties, the results (respective indications of fair value) are evaluated and weighted, as appropriate, considering the reasonableness of the range indicated by those results. 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 flows 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. · Cash flow probabilities – represent factors that, in the aggregate, sum to 100% and that are individually applied to two or more cash flow scenarios to arrive at a set of bond cash flows that represents the probability-weighted average of all possible bond cash flows. Changes in probabilities that are assigned to underlying cash flow scenarios could potentially have significant impacts on the fair value measurement of the Company’s investments in infrastructure bonds. · Valuation technique weighting factors – represent factors that, in the aggregate, sum to 100% and that are individually applied to two or more indications of fair value considering the reasonableness of the range indicated by those results. · Property bids – represent the average of bids, net of closing costs, received from third parties in connection with the pending sale of affordable housing properties that secure non-performing bond investments. Non-Recurring Changes in Fair Value During the six months ended June 30, 2018, the Company recognized $0.4 million of impairment losses associated with certain equity investments based upon the fair value of such instruments. Fair value measurements of these instruments, which were categorized as Level 3 in the fair value hierarchy, were completed using a discounted cash flow methodology. There were no non-recurring fair value adjustments recorded for the six months ended June 30, 2017. Additional Disclosures Related To The Fair Value of Financial Instruments That Are Not Carried On The Consolidated Balance Sheets at Fair Value The tables that follow provide information about the carrying amounts and fair values of those financial instruments of the Company for which fair value is not measured on a recurring basis and organizes such information based upon the level of the fair value hierarchy within which fair value measurements are categorized. Assets and liabilities that do not represent financial instruments ( e.g. , premises and equipment) are excluded from these disclosures. At June 30, 2018 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 27,045 $ 27,045 $ ─ $ ─ Restricted cash 15,916 15,916 ─ ─ Asset management fees and reimbursements receivable 288 ─ ─ ─ Loans held for investment 57,299 ─ ─ 57,613 Loans held for sale 9,000 ─ ─ 9,247 Liabilities: Notes payable and other debt, bond related 96,566 ─ ─ 96,624 Notes payable and other debt, non-bond related 7,669 ─ ─ 7,997 Subordinated debt issued by MFH 98,852 ─ ─ 51,013 At December 31, 2017 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 35,693 $ 35,693 $ ─ $ ─ Restricted cash 21,271 21,271 ─ ─ Restricted cash related to CFVs 23,495 23,495 ─ ─ Asset management fee receivable from TC Fund I 116 ─ ─ 116 Loans held for investment 736 ─ ─ 1,754 Loans held for investment related to CFVs 65 ─ ─ 497 Liabilities: Notes payable and other debt, bond related 83,838 ─ ─ 83,879 Notes payable and other debt, non-bond related 25,592 ─ ─ 26,014 Notes payable and other debt related to CFVs 6,712 ─ ─ ─ Subordinated debt issued by MFH 99,997 ─ ─ 43,256 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 – 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. 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 credit risks. 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 – The Company measures the fair value of the subordinated debt by discounting contractual cash flows based upon its estimated market yield, which was 12.5% and 14.0% at June 30, 2018 and December 31, 2017, respectively. As outlined in the table above, at June 30, 2018, the aggregate fair value was measured at $51.0 million. At June 30, 2018, the measured fair value of this debt would have been $60.8 million and $43.7 million using a market yield of 10.0% and 15.0% , 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. |
GUARANTEES AND COLLATERAL
GUARANTEES AND COLLATERAL | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees And Collateral [Abstract] | |
Guarantees And Collateral | Note 9—Guarantees and Collateral Guarantees At June 30, 2018, the Company had one minimum yield guarantee associated with a nonconsolidated guaranteed LIHTC fund that expires on December 31, 2018. In this case, the Company agreed to indemnify the purchaser of the general partner interest in that guaranteed LIHTC fund from investor claims related to that guarantee. This arrangement requires the Company to stand ready to perform under such guarantee of investor yield for losses that result from the recapture of tax credits due to foreclosure or from difficulties in maintaining occupancy levels as mandated by LIHTC compliance regulation with respect to the LTPP in which the guaranteed LIHTC fund is invested. Prior to December 31, 2017 , the guaranteed LIHTC fund had delivered all tax credits to its investors resulting in no additional future exposure to the Company as the tax credit recapture risk is not significant enough to reduce the guaranteed LIHTC fund yield below its guaranteed yield for the remaining two LTPPs in which the guaranteed LIHTC fund is invested that are within their tax credit compliance period. As a result, the Company has measured the maximum exposure and the carrying value of this guarantee to be zero at June 30, 2018 and December 31, 2017. The Company also has agreed to indemnify specific investors in non-guaranteed LIHTC funds related to the performance on two LTPPs. If a third party fails to perform on its financial obligation relating to the property’s performance, the Company would be required to indemnify impacted investors. Such indemnities will expire on December 31, 2018 and December 31, 2022. At June 30, 2018 and December 31, 2017, the Company had a maximum exposure of $0.1 million related to one of these LTPP indemnifications and the remaining LTPP indemnification had no financial limit as the specific guarantee requires the guarantor to unconditionally fund any operating deficits of the LTPP. However, the Company does not believe it will be required to perform under this indemnification or incur any losses based upon the current operations of the LTPP. Based upon the foregoing, the Company has measured the maximum exposure to be $0.1 million and the carrying value of these indemnifications to be zero at June 30, 2018 and December 31, 2017. Collateral and Restricted Assets The following tables summarize assets that are either pledged or restricted for the Company’s use at June 30, 2018 and December 31, 2017. For prior periods, these tables also reflect certain assets held by CFVs in order to reconcile to the Company’s Consolidated Balance Sheets: At June 30, 2018 Investments Total Restricted in Debt Assets (in thousands) Cash Securities Pledged Debt and derivatives related to TRS agreements $ 9,230 $ 135,885 $ 145,115 Other (1) 6,686 ─ 6,686 Total $ 15,916 $ 135,885 $ 151,801 (1) The majority of this balance represents collateral pledged by the Company in connection with the debt that finances its 11.85% ownership interest in SAWHF. At December 31, 2017 Investments Total Restricted in Debt Investments in Other Assets (in thousands) Cash Securities Partnerships Assets Pledged Debt and derivatives related to TRS agreements $ 9,160 $ 128,902 $ ─ $ ─ $ 138,062 Other (1) 12,111 ─ ─ ─ 12,111 CFVs 23,495 ─ 99,142 5,175 127,812 Total $ 44,766 $ 128,902 $ 99,142 $ 5,175 $ 277,985 (1) The majority of this balance represents collateral pledged by the Company in connection with the debt that finances its 11.85% ownership interest in SAWHF as well as collateral pledged by the Company in connection with the tax credit guarantee . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and Contingencies Operating Leases During the first quarter of 2018, the Company conveyed all its operating lease agreements to Hunt. As a result, t he Company had no future rental commitments at June 30, 2018. Litigation and Other Legal Matters In the ordinary course of business , the Company and its subsidiaries are named from time to time as defendants in various litigation matters or may have other claims made against them. Such legal proceedings may include claims for substantial or indeterminate compensatory, consequential or punitive damages, or for injunctive or declaratory relief. The Company establishes reserves for litigation matters or other loss contingencies when a loss is probable and can be reasonably estimated. Once established, reserves may be adjusted when new information is obtained. At June 30, 2018, we had no significant litigation matters and we were not aware of any other claims that we believe would have a material adverse impact on our financial condition or results of operations. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 11—Equity Common Share Information The following table provides information about net income (loss) 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) 2018 2017 2018 2017 Net income (loss) from continuing operations $ 2,143 $ 1,451 $ (95) $ (3,769) Net income from discontinued operations 619 5,966 21,197 7,742 Net income to common shareholders $ 2,762 $ 7,417 $ 21,102 $ 3,973 Basic weighted-average shares (1) 5,697 5,893 5,673 5,915 Common stock equivalents (2), (3) 377 382 ─ ─ Diluted weighted-average shares 6,074 6,275 5,673 5,915 (1) Includes common shares issued and outstanding, as well as deferred shares of non-employee directors that have vested but are not issued and outstanding. (2) At June 30, 2018, 380,000 stock options were exercisable and in-the-money and had a potential dilutive share impact of 377,162 and 381,833 for the three months and six months ended June 30, 2018. For the six months ended June 30, 2018, the Company had a net loss from continuing operations and thus, any incremental shares would be anti-dilutive. (3) At June 30, 2017, 410,000 stock options were exercisable and 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. Common Shares On March 13, 2018, the Board authorized a 2018 share repurchase program (“ 2018 Plan ”) for up to 125,000 common shar es, at a maximum price of $30.00 per share. The Company adopted a further Rule 10b5-1 plan implementing the Board’s authorization. On August 7, 2018, the Board amended the 2018 Plan to increase (i) the total shares authorized for repurchase to 187,500 and (ii) the maximum authorized share repurchase price per share to $31.50 . In the second quarter of 2018, the Company purchased 121,027 common shares at an average price of $27.60 . Between July 1, 2018 and August 2, 2018, the Company repurchased 3,973 common shares at an average price of $26.38. On March 9, 2018, the Company issued 125,000 common shares to Hunt for $4.1 million, representing a price per share of $33.00 . On June 26, 2018, the Company issued an additional 125,000 shares to Hunt for $4.3 million, or $34.00 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 remain in effect the earlier of (i) a period of five years, (ii) or until the Board determines the plan is no longer required. On January 3, 2018, the Board approved a waiver of the 4.9% ownership limitation for Hunt, increasing it to 9.9% of the Company’s issued and outstanding shares in any rolling 12-month period. Noncontrolling Interests The following table provides information about the noncontrolling interests in CFVs: At At June 30, December 31, (in thousands) 2018 2017 Guaranteed LIHTC Funds $ ─ $ 83,909 Consolidated Property Partnerships ─ 5,620 Total $ ─ $ 89,529 Guaranteed LIHTC Funds At June 30, 2018, the Company did not consolidate any guaranteed LIHTC funds for financial reporting purposes. As a result, noncontrolling interests in such funds were not recognized in the Company’s financial statements as of such reporting date. At December 31, 2017, noncontrolling interest holders were comprised of limited and general partners in the 11 guaranteed LIHTC funds that were consolidated for reporting purposes. See Note 15, “Consolidated Funds and Ventures,” for more information. Consolidated Property Partnerships At June 30, 2018, the Company did not consolidate property partnerships for financial reporting purposes. As a result, noncontrolling interests in such entities were not recognized in the Company’s financial statements as of such reporting date. At December 31, 2017, noncontrolling interest holders were comprised of limited and general partners of these partnerships. See Note 15, “Consolidated Funds and Ventures,” for more information. Accumulated Other Comprehensive Income Allocable to Common Shareholders The following table provides information related to the net change in AOCI that was allocable to common shareholders for the three months ended June 30, 2018: Investments Income Foreign in Debt Tax Currency (in thousands) Securities Expense Translation AOCI Balance, April 1, 2018 $ 50,392 $ (256) $ 177 $ 50,313 Net unrealized gains (losses) 4,465 ─ (660) 3,805 Income tax benefit ─ 242 ─ 242 Net change in AOCI 4,465 242 (660) 4,047 Balance, June 30, 2018 $ 54,857 $ (14) $ (483) $ 54,360 The following table provides information related to the net change in AOCI that was allocable to common shareholders for the three months ended June 30, 2017: Investments Income Foreign in Debt Tax Currency (in thousands) Securities Expense Translation AOCI Balance, April 1, 2017 $ 41,805 $ (243) $ (3,392) $ 38,170 Net unrealized 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 was allocable to common shareholders for the six months ended June 30, 2018: Investments Income Foreign in Debt Tax Currency (in thousands) Securities Expense Translation AOCI Balance, January 1, 2018 $ 44,459 $ ─ $ (3,306) $ 41,153 Net unrealized gains 1,118 ─ 2,823 3,941 Reclassification of unrealized gains to operations due to the OTTI of bond investments (135) ─ ─ (135) Recognition of unrealized holding gains on bond investments due to deconsolidation of LTPPs 9,415 ─ ─ 9,415 Income tax expense ─ (14) ─ (14) Net change in AOCI 10,398 (14) 2,823 13,207 Balance, June 30, 2018 $ 54,857 $ (14) $ (483) $ 54,360 The following table provides information related to the net change in AOCI that was allocable to common shareholders for the six months ended June 30, 2017: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2017 $ 40,998 $ (3,180) $ 37,818 Net unrealized 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 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 12—Stock-Based Compensation On January 8, 2018, the Company engaged Hunt through the execution of the Management Agreement to externally manage the Company’s operations. All employees of the Company were hired by the External Manager. 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 its former employees (“ Employees’ Stock-Based Compensation Plans ”). The following table provides information related to total compensation expense that was recorded for these Plans: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Employees’ Stock-Based Compensation Plans $ (228) $ (164) $ 964 $ 1,579 Non-employee Directors’ Stock-Based Compensation Plans 164 89 328 178 Total $ (64) $ (75) $ 1,292 $ 1,757 Employees’ Stock-Based Compensation Plans At June 30, 2018, there were 394,211 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 394,211 shares available under the plans, only 17,205 are available to be issued in the form of either stock options or shares, while the remaining 377,006 shares available for issuance must be issued in the form of stock options. Employee Common Stock Options The Company measures the fair value of unvested options with time-based vesting and all vested options (both time-based and performance based) using a lattice model for purposes of recognizing compensation expense. The Company believes the lattice model provides a better estimate of the fair value of these options as, according to FASB’s Accounting Standards Codification Topic 718, “the design of a lattice model more fully reflects the substantive characteristics of a particular employee share option.” Because options granted with stock price targets contain a “market condition” under FASB’s Accounting Standards Codification Topic 718, a Monte Carlo simulation is used to simulate future stock price movements for the Company. The Company believes a Monte Carlo simulation provides a better estimate of the fair value for unvested options granted with specific stock price targets as the model’s flexibility allows for the fair value to account for the vesting provisions as well as the different probabilities of stock price outcomes. All options were vested as of June 30, 2018. 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, 2017 410 $ 1.56 4.4 $ 7,149 $ 7,166 Forfeited/Expired in 2017 ─ Outstanding at December 31, 2017 410 1.56 3.4 9,322 9,342 Exercised in 2018 (3) (30) 1.15 Forfeited/Expired in 2018 ─ Outstanding at June 30, 2018 380 1.60 3.0 9,501 9,523 Number of options that were exercisable at: December 31, 2017 410 1.56 3.4 June 30, 2018 380 1.60 3.0 (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 380,000 at June 30, 2018 and 410,000 at both December 31, 2017 and January 1, 2017. (3) Of the 30,000 options exercised the Company issued 17,134 of common shares for the six months ended June 30, 2018, as the balance of the options was tendered by their holder in connection with the payment of related withholding taxes. 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 399,733 were available to be issued at June 30, 2018. 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 August 3, 2017, the Board adopted an amendment to the Non-employee Directors’ Stock-based Compensation Plans providing for directors to be paid $120,000 per year for their services with 50% payable 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, 2018 and June 30, 2017. 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, 2018 $ 163,750 ─ 6,025 $ 27.18 ─ $ 327,500 June 30, 2017 88,750 ─ 3,917 ─ ─ 177,500 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES | Note 13—Related Party Transactions and Transactions with Affiliates Transactions with Hunt External Management Fees and Expenses Reimbursement Commencing on January 8, 2018, we became externally managed pursuant to a management agreement between us and the External Manager (the “ Management Agreement ”). At the time of the Disposition, all employees of the Company were hired by the External Manager. In consideration for the external management services, the Company agreed to pay the External Manager (i) a base management fee, which is payable quarterly in arrears and is calculated as a percentage of the Company’s GAAP common shareholders’ equity, with certain annual true-ups, and (ii) an incentive fee equal to 20% of the total annual return of diluted common shareholders’ equity per share in excess of 7% . For the first and second quarters of 2018, the base management fee is fixed at $1 million per quarter, with the percentage of GAAP common shareholders’ equity calculation beginning with the third quarter of 2018. Additionally, pursuant to the Management Agreement, the Company agreed to reimburse the External Manager for certain allocable overhead costs, including certain salaries and benefits, subject to a cap. During the three months and six months ended June 30, 2018, the Company recognized $2.2 million and $4.7 million , respectively, of management fees and expense reimbursements in our Consolidated Statements of Operations. At June 30, 2018, $2.2 million of management fees and expense reimbursements is payable to the External Manager. Loan HFI As consideration for the Disposition (refer to Note 1, “Summary of Significant Accounting Policies” for more information), Hunt agreed to pay the Company $57.0 million and to assume certain liabilities of the Company. The Company provided seller financing through a $57.0 million note receivable from Hunt that has a term of seven years, is prepayable at any time and bears interest at the rate of 5% per annum. The unpaid principal balance on the note will amortize in 20 equal quarterly payments of $2.85 million beginning on March 31, 2020. During the three months and six months ended June 30, 2018, the Company recognized $0.7 million and $1.4 million, respectively, of interest income associated with this note receivable in the Consolidated Statements of Operations. At June 30, 2018, $0.7 million of interest remains payable by Hunt and is included in our Consolidated Balance Sheets. Common Shares In conjunction with the Disposition, the Company agreed to issue, and Hunt agreed to acquire, 250,000 of the Company’s common shares in a private placement at an average purchase price of $33.50 per share. On March 9, 2018, the Company issued 125,000 common shares to Hunt for $4.1 million, representing a price per share of $33.00 . On June 26, 2018, the Company issued the remaining 125,000 shares to Hunt for $4.3 million, or $34.00 per share. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 14—Discontinued Operations On January 8, 2018, the Company entered into a series of material definitive agreements with affiliates of Hunt, in which the Company sold certain business lines and assets to Hunt and converted to an externally managed business model by engaging Hunt to perform management services for the Company. The Company sold the following to Hunt as part of the Disposition: (i) its LIHTC business; (ii) its international asset and investment management business; (iii) the loan origination, servicing and management components of its Energy Capital business; (iv) its bond servicing platform; and (v) certain miscellaneous investments. This sale transaction also included certain management, expense reimbursement and other contractual rights held by the Company with respect to its Energy Capital, LIHTC and International Operations. The 11 guaranteed LIHTC funds that were deconsolidated in connection with the Disposition have been excluded from discontinued operations because such funds were not conveyed to Hunt as part of the Disposition. As a result of the Disposition, the Company’s continuing operations consist primarily of its: (i) investments in debt securities; (ii) equity investments in renewable energy lending ventures and SAWHF; (iii) the $57.0 million note receivable from Hunt; (iv) derivative financial instruments that are used to hedge interest rate and foreign currency risk of the Company; and (v) other assets and liabilities, including certain real estate-related investments and the Company’s subordinated debt. The table below summarizes the Company’s assets and liabilities related to discontinued operations reported in its Consolidated Balance Sheets. At At June 30, December 31, (in thousands) 2018 2017 ASSETS Cash and cash equivalents $ ─ $ 3,654 Restricted cash ─ 16,073 Investments in debt securities ─ 5,450 Investments in partnerships ─ 4,456 Real estate, net ─ 23,944 Other assets ─ 7,643 Total assets of discontinued operations $ ─ $ 61,220 LIABILITIES Debt $ ─ $ 8,308 Accounts payable and accrued expenses ─ 3,454 Other liabilities ─ 5,450 Total liabilities of discontinued operations $ ─ $ 17,212 The table below provides information about income and expenses related to the Company’s discontinued operations reported in its Consolidated Statements of Operations. For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Interest on bonds $ ─ $ 18 $ 6 $ 41 Interest on loans and short-term investments ─ 83 6 166 Asset management fee and reimbursements ─ 6,542 842 10,871 Other income ─ 307 53 581 Interest expense ─ (32) ─ (69) Salaries and benefits ─ (1,958) (53) (4,024) General and administrative ─ (366) (68) (596) Professional fees ─ (297) (20) (646) Other expenses ─ (129) (29) 237 (Losses) gains on sales and operations of real estate, net (2) 134 61 169 Equity in income (loss) from unconsolidated funds and ventures ─ 14 1 (38) Income tax benefit (expense) 553 1,183 (22) ─ Net income from discontinued operations, net of tax 551 5,499 777 6,692 Disposal: Net gain on disposal of discontinued operations 68 ─ 20,420 ─ Net income from discontinued operations 619 5,499 $ 21,197 $ 6,692 Loss from discontinued operations allocable to noncontrolling interests ─ 467 ─ 1,050 Net income to common shareholders from discontinued operations $ 619 $ 5,966 $ 21,197 $ 7,742 The table below provides information about operating and investing cash flows related to the Company’s discontinued operations reported in its Consolidated Statements of Cash Flows. For the six months ended June 30, (in thousands) 2018 2017 Depreciation and amortization $ 26 $ 850 Capital expenditures ─ (108) Net change in assets, liabilities and equity due to sale of business: Decrease in investments in debt securities related to CFVs (5,450) ─ Decrease in loans (231) ─ Decrease in other assets ($24,140 related to CFVs) (35,715) ─ Decrease in debt ($6,144 related to CFVs) 8,308 ─ Decrease in accounts payable and accrued expenses 7,201 ─ Decrease in other liabilities ($480 related to CFVs) 5,333 ─ Decrease in noncontrolling interests in CFVs 5,620 ─ Increase in accumulated other comprehensive income (3,404) ─ |
CONSOLIDATED FUNDS AND VENTURES
CONSOLIDATED FUNDS AND VENTURES | 6 Months Ended |
Jun. 30, 2018 | |
Consolidated Funds and Ventures [Abstract] | |
Consolidated Funds and Ventures | Note 15—Consolidated Funds and Ventures In instances where the Company had 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 Consolidated Balance Sheets and Consolidated Statements of Operations. Third-party ownership in these CFVs is recorded in equity as “Noncontrolling interests in CFVs.” Guaranteed LIHTC Funds At December 31, 2017, the Company consolidated 11 guaranteed LIHTC funds for reporting purposes. During the first quarter of 2018, the Company assigned to Hunt, and Hunt assumed, the Company’s guarantee obligations associated with these 11 guaranteed LIHTC funds in connection with the Disposition. Consequently, the Company deconsolidated these guaranteed LIHTC funds upon settlement of the Disposition. The primary assets of the guaranteed LIHTC funds were equity investments in LTPPs. These investments were accounted for by the guaranteed LIHTC funds using the equity method of accounting. Asset Summary: The following table summarizes the assets of the CFVs: At At June 30, December 31, (in thousands) 2018 2017 Cash, cash equivalents and restricted cash $ ─ $ 23,495 Investments in LTPPs ─ 99,142 Other assets ─ 5,175 Total assets of CFVs $ ─ $ 127,812 The assets of the CFVs were restricted for use by the specific owner entity and were not available for the Company’s general use. Investments in LTPPs The guaranteed LIHTC funds’ limited partner investments in LTPPs were accounted for using the equity method of accounting. The following table summarizes the total amount of assets, debt and other liabilities of LTPPs: At At June 30, December 31, (in thousands) 2018 2017 Total assets of the LTPPs (1) $ ─ $ 1,085,998 Total debt of the LTPPs ─ 771,027 Total other liabilities of the LTPPs ─ 165,500 (1) The assets of the LTPPs are primarily real estate and the liabilities are predominantly mortgage debt. The following table provides information about the gross revenue, operating expenses and net loss of LTPPs related to CFVs: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue ─ 37,691 $ ─ $ 75,365 Operating expenses ─ 22,085 ─ 44,125 Net loss and net loss attributable to entity ─ (6,242) ─ (12,201) Prior to the Disposition, the Company’s exposure to loss related to the guaranteed LIHTC funds and the underlying LTPPs had two elements: (i) exposure to loss associated with our financial guarantees as described above and (ii) exposure to loss related to the Company’s investments in bonds that were dependent upon repayment by certain LTPPs within the guaranteed LIHTC funds. Liability Summary: The following table summarizes the liabilities of the CFVs: At At June 30, December 31, (in thousands) 2018 2017 Debt (1) $ ─ $ 6,712 Unfunded equity commitments to unconsolidated LTPPs ─ 8,003 Asset management fee payable ─ 31,840 Other liabilities ─ 4,010 Total liabilities of CFVs $ ─ $ 50,565 (1) At December 31, 2017, $6.7 million of this debt had a UPB equal to its carrying value, a weighted-average effective interest rate of 6.5% , and was due on demand. 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) 2018 2017 2018 2017 Revenue: Interest and other income related to CFVs $ ─ $ 241 $ ─ $ 244 Expenses: Interest expense ─ 93 ─ 186 Professional fees ─ 65 ─ 102 Asset management fee expense ─ 1,095 ─ 2,190 Other expenses ─ 459 ─ 911 Impairments ─ 6,795 ─ 11,400 Total expenses related to CFVs ─ 8,507 ─ 14,789 Equity in losses from LTPPs of CFVs ─ (3,879) ─ (7,262) Net loss ─ (12,145) ─ (21,807) Net losses allocable to noncontrolling interests in CFVs from continuing operations ─ 11,056 ─ 19,610 Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (1,089) $ ─ $ (2,197) 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) 2018 2017 2018 2017 Equity in losses from LTPPs ─ (1,089) $ ─ $ (2,207) Equity in income from Consolidated Property Partnerships ─ ─ ─ 10 Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (1,089) $ ─ $ (2,197) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Segment Information [Abstract] | |
Segment Information | Note 16—Segment Information At June 30, 2018, the Company primarily invests in debt associated with real estate and infrastructure and operates as a single reporting segment. As discussed in Note 1, “Summary of Significant Accounting Policies,” as a result of the Disposition the Company no longer operates, or present the results of its operations, through three reportable segments that, as of December 31, 2017, included U.S. Operations, International Operations and Corporate Operations. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018, should be read in conjunction with our audited consolidated financial statements and related notes included in our 2017 Annual Report. The Company evaluates subsequent events through the date of filing with the Securities and Exchange Commission (“ SEC ”) . |
Changes in Presentation | Changes in Presentation We have revised the presentation of our Consolidated Balance Sheets and Consolidated Statements of Operations for all reporting periods presented as a result of certain discontinued operations occurring in the first quarter of 2018 as a result of the Dispositi on. We |
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 estimates in certain areas, including the determination of fair values for bonds, derivative instruments, guarantee obligations, and in prior periods certain assets and liabilities of CFVs. Management has also made 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. |
New Accounting Guidance | New Accounting Guidance Adoption of New Accounting Standards Accounting for Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20 (collectively “ Topic 606 ”). Topic 606 superseded existing revenue recognition standards with a single model unless those contracts are within the scope of other accounting standards. The revenue recognition principle in Topic 606 is that an entity should recognize revenue to depict the transfer of 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. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Only our asset management fee revenue is subject to Topic 606, which represents an insignificant portion of the Company’s total revenue. The adoption of Topic 606 did not have a material impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date or for the three or six months ended June 30, 2018. 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 . The effective date of ASU 2017-05 is aligned with Topic 606. We adopted ASU No. 2017-05 in conjunction with our adoption of Topic 606 as of January 1, 2018 and we recognized a cumulative effect adjustment of $9.2 million to retained earnings on January 1, 2018. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The objective of this update was to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This new standard requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted these new accounting standards on their effective date of January 1, 2018 utilizing the retrospective transition method. These new standards resulted in presentation changes of restricted cash within our Consolidated Statements of Cash Flows and in certain tables within our “Liquidity and Capital Resources” discussion in Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Accounting for Business Combinations In January 2017, 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. We adopted this new guidance on its effective date of January 1, 2018. The adoption of this guidance did not impact the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date or for the six months ended June 30, 2018. 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 Topic 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. We adopted this new guidance on its effective date of January 1, 2018. The adoption of Topic 718 did not have an impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date or for the six months ended June 30, 2018. Accounting for Financial Instruments In February 2018, the FASB issued ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance makes technical corrections to certain aspects of ASU 2016-01. We adopted this new guidance on its effective date of June 30, 2018. The adoption of this guidance did not impact the Company’s Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Equity or Consolidated Statements of Cash Flows as of the adoption date. Issued Accounting Standards Not Yet Adopted Accounting for Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Improvements.” This guidance is intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. This guidance establishes an impairment methodology that reflects lifetime expected credit losses rather than incurred losses. This guidance requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This new guidance is effective for us on January 1, 2020, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Income Taxes In February 2018, the FASB issued ASU No. 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This new guidance permits companies to reclassify stranded tax effects caused by the Tax Cuts and Jobs Act of 2017 (the “ Act ”) from AOCI to retained earnings. This new guidance, which also requires new disclosures, is effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements. Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This guidance expands the scope of Accounting Standards Codification (“ ASC ”) Topic 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. This new guidance is effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating the potential impact of the new guidance on our consolidated financial statements |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments in Debt Securities [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, 2018 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2) FV of UPB Multifamily tax-exempt bonds $ 121,941 $ 76,447 $ 54,290 $ (134) $ 130,603 107% Other real estate-related bond investments 36,825 30,957 860 (159) 31,658 86% Total $ 158,766 $ 107,404 $ 55,150 $ (293) $ 162,261 102% At December 31, 2017 Gross Gross Amortized Unrealized Unrealized FV as a % (in thousands) UPB Cost (1) Gains Losses (2) FV of UPB Multifamily tax-exempt bonds $ 105,472 $ 67,982 $ 43,587 $ ─ $ 111,569 106% Other real estate-related bond investments 37,050 31,163 1,203 (331) 32,035 86% Total $ 142,522 $ 99,145 $ 44,790 $ (331) $ 143,604 101% (1) Amortized cost consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as net other-than-temporary impairments (“ OTTI ”) recognized in “Impairments” in our Consolidated Statements of Operations. (2) Includes one bond in a gross unrealized loss position for less than 12 consecutive months that had a fair value of $2.0 million and $4.1 million at June 30, 2018 and December 31, 2017, respectively. Also includes one bond that was in a gross unrealized loss position for more than 12 consecutive months and that had a fair value of $15.0 million at June 30, 2018 and December 31, 2017. |
Bonds with Prepayment Features | (in thousands) UPB Amortized Cost Fair Value June 30, 2018 $ 26,825 $ 20,957 $ 21,554 July 1 through December 31, 2018 1,868 255 2,126 2019 ─ ─ ─ 2020 22,080 12,883 23,171 2021 46,095 27,212 49,533 2022 51,898 36,097 55,773 Thereafter 10,000 10,000 10,104 Bonds that may not be prepaid ─ ─ ─ Total $ 158,766 $ 107,404 $ 162,261 |
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) 2018 2017 Total current (1) $ 149,375 $ 135,571 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 12,886 8,033 Total $ 162,261 $ 143,604 Includes one bond that was placed on non-accrual during the second quarter of 2018, as collection of principal and interest was not reasonably assured, that had a fair value of $6.6 million at June 30, 2018. |
Gain (Loss) on Investments | For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 OTTI losses recognized on bonds held at each period-end $ ─ $ ─ $ (6) $ ─ |
INVESTMENTS IN PARTNERSHIPS (Ta
INVESTMENTS IN PARTNERSHIPS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 Investments in U.S. real estate partnerships (includes $4,110 and $1,046 related to variable interest entities (" VIEs ")) (1) $ 22,834 $ 19,114 Investment in SAWHF 11,577 12,695 Investment in Solar Ventures 93,795 97,011 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) ─ 99,142 Total investments in partnerships $ 128,206 $ 227,962 (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 15, “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, debt and other liabilities of the U.S. real estate partnerships in which the Company held an equity investment: At At June 30, December 31, 2018 2017 (in thousands) Total assets $ 59,247 $ 57,712 Debt 7,149 7,037 Other liabilities 32,075 22,030 The following table provides information about the gross revenue, operating expenses and net loss of U.S. real estate partnerships in which the Company had an equity investment: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue $ 694 $ 1,215 $ 1,417 $ 2,454 Operating expenses 548 842 1,085 1,651 Net loss and net loss attributable to the entity (367) (518) (676) (1,032) |
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, debt and other liabilities of SAWHF: At At June 30, December 31, 2018 2017 (in thousands) Total assets $ 105,938 $ 123,187 Debt 7,947 15,712 Other liabilities 57 100 The following table provides information about the gross revenue, operating expenses and net (loss) income of SAWHF. For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue $ 1,915 $ 2,557 $ 2,305 $ 6,864 Operating expenses 613 2,889 1,551 8,003 Net (loss) income and net (loss) income attributable to the entity (912) 1,709 1,567 3,071 |
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, other liabilities and noncontrolling interests of the Solar Ventures: At At June 30, December 31, 2018 2017 (in thousands) Total assets $ 202,086 $ 399,758 Other liabilities 3,934 5,111 Noncontrolling interests ─ 87,699 The following table provides information about the gross revenue, operating expenses and net income of the Solar Ventures: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue $ 5,932 $ 6,752 $ 12,522 $ 10,845 Operating expenses 1,479 1,587 2,817 2,829 Net income 5,136 5,346 10,219 8,396 Net income attributable to the entity 5,136 3,052 10,219 4,849 |
LOANS HELD FOR INVESTMENT ("HFI
LOANS HELD FOR INVESTMENT ("HFI") AND LOANS HELD FOR SALE ("HFS") (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Carrying Value of Loans Held for Investment and Held for Sale | At At June 30, December 31, (in thousands) 2018 2017 Loans HFI $ 57,299 $ 736 Loans HFS 9,000 ─ Total loans $ 66,299 $ 736 |
Schedule of Loans Held For Investment [Table Text Block] | At At June 30, December 31, (in thousands) 2018 2017 UPB $ 58,050 $ 1,487 Cost basis adjustments, net (751) (751) Loans HFI, net $ 57,299 $ 736 |
Past Due Financing Receivables [Table Text Block] | At At June 30, December 31, (in thousands) 2018 2017 UPB Carrying value UPB Carrying value Total current $ 57,000 $ 57,000 $ 437 $ 437 30-59 days past due ─ ─ ─ ─ 60-89 days past due ─ ─ ─ ─ 90 days or greater 1,050 299 1,050 299 Total $ 58,050 $ 57,299 $ 1,487 $ 736 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets | At At June 30, December 31, (in thousands) 2018 2017 Other assets: Derivative assets $ 9,512 $ 6,865 Real estate owned 3,576 3,447 Accrued interest receivable 2,355 1,558 Other assets 2,142 860 Other assets held by CFVs (1) ─ 5,175 Total other assets $ 17,585 $ 17,905 (1) See Note 15, “Consolidated Funds and Ventures,” for more information. |
Schedule Of Real Estate Owned, Held For Use | At At June 30, December 31, (in thousands) 2018 2017 Building, furniture, fixtures and land improvement $ 957 $ 828 Land 2,619 2,619 Total $ 3,576 $ 3,447 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | At At June 30, 2018 December 31, 2017 Weighted-Average Weighted-Average Carrying Effective Interest Carrying Effective Interest (dollars in thousands) Value Rate Value Rate Asset Related Debt Notes payable and other debt – bond related (1) Due within one year $ 39,979 2.8 % $ 41,767 3.2 % Due after one year 56,587 2.9 42,071 2.9 Total asset related debt 96,566 2.9 83,838 3.1 Other Debt Subordinated debt (2) Due within one year 2,253 3.5 2,297 2.6 Due after one year 96,599 3.5 97,700 2.6 Notes payable and other debt Due within one year ─ 14,733 2.8 Due after one year 7,669 14.6 10,859 12.1 Total other debt 106,521 4.3 125,589 3.5 Total asset related debt and other debt 203,087 3.6 209,427 3.3 Debt related to CFVs Due within one year ─ 6,712 6.5 Due after one year ─ ─ Total debt related to CFVs ─ ─ 6,712 6.5 Total debt $ 203,087 3.6 $ 216,139 3.4 (1) Included in notes payable and other debt – bond related were unamortized debt issuance costs. The balance at June 30, 2018 was $0.1 million. The December 31, 2017 balance was de minimis. (2) The subordinated debt balances include net cost basis adjustments of $8.1 m illion and $8.3 million at June 30, 2018 and December 31, 2017, respectively, that pertain to premiums and debt issuance costs. |
Schedule of Maturities of Long-term Debt | Asset Related Debt (in thousands) and Other Debt 2018 $ 40,710 2019 12,293 2020 36,962 2021 20,804 2022 1,679 Thereafter 82,906 Net premium and debt issue costs 7,733 Total debt $ 203,087 |
Schedule of Subordinate Debt | (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFH $ 26,793 $ 2,472 $ 29,265 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 24,363 2,259 26,622 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 14,044 1,202 15,246 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 25,534 2,185 27,719 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 90,734 $ 8,118 $ 98,852 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments [Abstract] | |
Schedule of the Company's Derivative Assets and Liabilities | Fair Value At At June 30, 2018 December 31, 2017 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 2,747 $ 44 $ 2,347 $ 46 Basis swaps 956 58 439 26 Interest rate caps 1,263 ─ 788 ─ Interest rate swaps 4,439 ─ 3,291 ─ Foreign currency forward exchange 107 ─ ─ 247 Total derivative instruments $ 9,512 $ 102 $ 6,865 $ 319 |
Schedule of Derivative Notional Amounts | Notional Amounts At At June 30, December 31, (in thousands) 2018 2017 Total return swaps $ 71,844 $ 72,290 Basis swaps 84,500 100,500 Interest rate caps 80,000 80,000 Interest rate swaps 140,000 140,000 Foreign currency forward exchange 4,289 4,363 Total dollar-based derivative instruments $ 380,633 $ 397,153 |
Schedule of Net Gains Recognized Recognized In Connection With Derivative Instruments | The following table provides information about the net gains (losses) that were recognized by the Company in connection with its derivative instruments: For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Total return swaps (1) $ 1,092 $ 454 $ 1,638 $ 2,577 Basis swaps (2) 315 20 507 (9) Interest rate caps 79 (271) 475 (482) Interest rate swaps (3) (21) (1,171) 1,395 (1,015) Foreign currency forward exchange 588 ─ 347 ─ Total derivative gains (losses) $ 2,053 $ (968) $ 4,362 $ 1,071 (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 gains (losses) on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.6 million and $0.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively. Net cash received was $1.2 million and $1.6 million for the six months ended June 30, 2018 and June 30, 2017, respectively. (2) The cash paid and received on the basis swaps is settled on a net basis and recorded through “Net gains (losses) on derivatives” on the Consolidated Statements of Operations. The net cash paid was de minimis for the three months and six months ended June 30, 2018 and June 30, 2017. The cash paid and received on the interest rate swaps is settled on a net basis and recorded through “Net gains (losses) on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.1 million for the three months and six months ended June 30, 2018. Net cash paid was $0.1 million and $0.2 million for the three months and six months ended June 30, 2017. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements At June 30, (in thousands) 2018 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 162,261 $ ─ $ ─ $ 162,261 Derivative instruments 9,512 ─ 6,765 2,747 Liabilities: Derivative instruments $ 102 $ ─ $ 58 $ 44 Fair Value Measurements At December 31, (in thousands) 2017 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 143,604 $ ─ $ ─ $ 143,604 Derivative instruments 6,865 ─ 4,518 2,347 Liabilities: Derivative instruments $ 319 $ ─ $ 273 $ 46 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the three months ended June 30, 2018 related to activity presented in the preceding table: (in thousands) Net losses on bonds (1) Net gains on derivatives (2) Net change in unrealized gains related to assets and liabilities still held at June 30, 2018 $ ─ $ 501 Additional realized gains recognized ─ 591 Total gains reported in earnings $ ─ $ 1,092 (1) Amounts are classified as “Impairments” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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, 2017: (in thousands) Investments in Debt Securities 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 sales/redemptions ─ (9,349) ─ ─ Impact from settlements (2) (173) ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount includes $0.5 million of net unrealized holding gains recognized during the period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the three months ended June 30, 2017 related to activity presented in the preceding table: (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 gains recognized ─ 713 Total (losses) gains reported in earnings $ (1,089) $ 454 (1) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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, 2018: (in thousands) Investments in Debt Securities Derivative Assets Derivative Liabilities Balance, January 1, 2018 $ 143,604 $ 2,347 $ (46) Net (losses) gains included in earnings (6) 400 2 Net change in other comprehensive income (1) 983 ─ ─ Impact from deconsolidation 17,997 ─ ─ Impact from settlements (2) (317) ─ ─ Balance, June 30, 2018 $ 162,261 $ 2,747 $ (44) (1) This amount includes $1.1 million of net unrealized holding gains recognized during the period, as well as $0.1 million of unrealized holding gains that were reclassified out of AOCI into the Consolidated Statements of Operations in connection with a bond that was assessed as OTTI. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the six months ended June 30, 2018 related to activity presented in the preceding table : (in thousands) Net losses on bonds (1) Net gains on derivatives (2) Change in unrealized (losses) gains related to assets and liabilities still held at June 30, 2018 $ (6) $ 402 Additional realized gains recognized ─ 1,236 Total (losses) gains reported in earnings $ (6) $ 1,638 (1) Amounts are classified as “Impairments” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s 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) Investments in Debt Securities 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 (2) (3,458) ─ ─ ─ Balance, June 30, 2017 $ 151,662 $ 3,899 $ 3,405 $ (399) (1) This amount represents $ 1.3 million of net unrealized holding gains recognized during the period. (2) This impact considers the effect of principal payments received and amortization of cost basis adjustments. The following table provides information about the amount of realized and unrealized gains that were reported in the Company’s Consolidated Statements of Operations for the six months ended June 30, 2017 related to activity presented in the preceding table: (in thousands) Equity in losses from LTPPs Net losses on loans (1) Net gains on derivatives (2) 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 classified as “Net losses on loans” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on derivatives” in the Company’s Consolidated Statements of Operations. |
Fair Value Measurements By Level 3 Valuation Technique | Fair Value Measurement at June 30, 2018 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Investments in debt securities: Multifamily tax-exempt bonds Performing $ 103,325 Discounted cash flow Market yield 4.1 - 6.5 % 4.7 % Non-performing 12,886 Discounted cash flow Market yield 8.7 N/A Capitalization rate 7.6 N/A Net operating income (" NOI ") annual growth rate 0.5 N/A Property bids $ 13,105 - 13,567 $ 13,413 Valuation technique weighting factors 10 - 90 % N/A Subordinated cash flow 9,164 Discounted cash flow Market yield 7.6 - 7.9 7.8 % Capitalization rate 6.7 - 6.8 6.8 NOI annual growth rate 0.6 - 0.7 0.6 Infrastructure bonds 21,554 Discounted cash flow Market yield 7.4 - 9.6 8.3 Cash flow probability - future incremental tax revenue growth 75 N/A Cash flow probability - no future incremental tax revenue growth 25 N/A Other bonds 15,332 Discounted cash flow Market yield 2.2 - 4.4 3.7 Derivative instruments: Total return swaps 2,703 Discounted cash flow Market yield 4.6 - 5.4 4.8 (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, 2017 Significant Significant Valuation Unobservable Weighted (dollars in thousands) Fair Value Techniques Inputs (1) Range (1) Average (2) Recurring Fair Value Measurements: Investments in debt securities: Multifamily tax-exempt bonds Performing $ 90,963 Discounted cash flow Market yield 4.3 - 6.7 % 5.0 % Non-performing 8,033 Discounted cash flow Market yield 7.5 7.5 Capitalization rate 6.4 6.4 NOI annual growth rate (1.2) (1.2) Subordinated cash flow 12,573 Discounted cash flow Market yield 6.7 - 7.0 6.8 Capitalization rate 5.8 - 6.1 5.9 NOI annual growth rate 0.6 - 0.9 0.8 Infrastructure bonds 21,824 Discounted cash flow Market yield 7.1 - 9.2 8.0 Cash flow probability - future incremental tax revenue growth 80 80 Cash flow probability - no future incremental tax revenue growth 20 20 Other bonds 10,211 Discounted cash flow Market yield 4.2 4.2 Loans held for investment Discounted cash flow Market yield Derivative instruments: Total return swaps 2,301 Discounted cash flow Market yield 4.1 - 5.3 5.0 (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, 2018 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 27,045 $ 27,045 $ ─ $ ─ Restricted cash 15,916 15,916 ─ ─ Asset management fees and reimbursements receivable 288 ─ ─ ─ Loans held for investment 57,299 ─ ─ 57,613 Loans held for sale 9,000 ─ ─ 9,247 Liabilities: Notes payable and other debt, bond related 96,566 ─ ─ 96,624 Notes payable and other debt, non-bond related 7,669 ─ ─ 7,997 Subordinated debt issued by MFH 98,852 ─ ─ 51,013 At December 31, 2017 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 35,693 $ 35,693 $ ─ $ ─ Restricted cash 21,271 21,271 ─ ─ Restricted cash related to CFVs 23,495 23,495 ─ ─ Asset management fee receivable from TC Fund I 116 ─ ─ 116 Loans held for investment 736 ─ ─ 1,754 Loans held for investment related to CFVs 65 ─ ─ 497 Liabilities: Notes payable and other debt, bond related 83,838 ─ ─ 83,879 Notes payable and other debt, non-bond related 25,592 ─ ─ 26,014 Notes payable and other debt related to CFVs 6,712 ─ ─ ─ Subordinated debt issued by MFH 99,997 ─ ─ 43,256 |
GUARANTEES AND COLLATERAL (Tabl
GUARANTEES AND COLLATERAL (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees And Collateral [Abstract] | |
Schedule of Financial Instruments Owned and Pledged as Collateral | The following tables summarize assets that are either pledged or restricted for the Company’s use at June 30, 2018 and December 31, 2017. For prior periods, these tables also reflect certain assets held by CFVs in order to reconcile to the Company’s Consolidated Balance Sheets: At June 30, 2018 Investments Total Restricted in Debt Assets (in thousands) Cash Securities Pledged Debt and derivatives related to TRS agreements $ 9,230 $ 135,885 $ 145,115 Other (1) 6,686 ─ 6,686 Total $ 15,916 $ 135,885 $ 151,801 (1) The majority of this balance represents collateral pledged by the Company in connection with the debt that finances its 11.85% ownership interest in SAWHF. At December 31, 2017 Investments Total Restricted in Debt Investments in Other Assets (in thousands) Cash Securities Partnerships Assets Pledged Debt and derivatives related to TRS agreements $ 9,160 $ 128,902 $ ─ $ ─ $ 138,062 Other (1) 12,111 ─ ─ ─ 12,111 CFVs 23,495 ─ 99,142 5,175 127,812 Total $ 44,766 $ 128,902 $ 99,142 $ 5,175 $ 277,985 The majority of this balance represents collateral pledged by the Company in connection with the debt that finances its 11.85% ownership interest in SAWHF as well as collateral pledged by the Company in connection with the tax credit guarantee |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Summary of Net Income to Common Shareholders | The following table provides information about net income (loss) 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) 2018 2017 2018 2017 Net income (loss) from continuing operations $ 2,143 $ 1,451 $ (95) $ (3,769) Net income from discontinued operations 619 5,966 21,197 7,742 Net income to common shareholders $ 2,762 $ 7,417 $ 21,102 $ 3,973 Basic weighted-average shares (1) 5,697 5,893 5,673 5,915 Common stock equivalents (2), (3) 377 382 ─ ─ Diluted weighted-average shares 6,074 6,275 5,673 5,915 (1) Includes common shares issued and outstanding, as well as deferred shares of non-employee directors that have vested but are not issued and outstanding. (2) At June 30, 2018, 380,000 stock options were exercisable and in-the-money and had a potential dilutive share impact of 377,162 and 381,833 for the three months and six months ended June 30, 2018. For the six months ended June 30, 2018, the Company had a net loss from continuing operations and thus, any incremental shares would be anti-dilutive. At June 30, 2017, 410,000 stock options were exercisable and 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. |
Schedule of Noncontrolling Interest | At At June 30, December 31, (in thousands) 2018 2017 Guaranteed LIHTC Funds $ ─ $ 83,909 Consolidated Property Partnerships ─ 5,620 Total $ ─ $ 89,529 |
Schedule of Accumulated Other Comprehensive Income | The following table provides information related to the net change in AOCI that was allocable to common shareholders for the three months ended June 30, 2018: Investments Income Foreign in Debt Tax Currency (in thousands) Securities Expense Translation AOCI Balance, April 1, 2018 $ 50,392 $ (256) $ 177 $ 50,313 Net unrealized gains (losses) 4,465 ─ (660) 3,805 Income tax benefit ─ 242 ─ 242 Net change in AOCI 4,465 242 (660) 4,047 Balance, June 30, 2018 $ 54,857 $ (14) $ (483) $ 54,360 The following table provides information related to the net change in AOCI that was allocable to common shareholders for the three months ended June 30, 2017: Investments Income Foreign in Debt Tax Currency (in thousands) Securities Expense Translation AOCI Balance, April 1, 2017 $ 41,805 $ (243) $ (3,392) $ 38,170 Net unrealized 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 was allocable to common shareholders for the six months ended June 30, 2018: Investments Income Foreign in Debt Tax Currency (in thousands) Securities Expense Translation AOCI Balance, January 1, 2018 $ 44,459 $ ─ $ (3,306) $ 41,153 Net unrealized gains 1,118 ─ 2,823 3,941 Reclassification of unrealized gains to operations due to the OTTI of bond investments (135) ─ ─ (135) Recognition of unrealized holding gains on bond investments due to deconsolidation of LTPPs 9,415 ─ ─ 9,415 Income tax expense ─ (14) ─ (14) Net change in AOCI 10,398 (14) 2,823 13,207 Balance, June 30, 2018 $ 54,857 $ (14) $ (483) $ 54,360 The following table provides information related to the net change in AOCI that was allocable to common shareholders for the six months ended June 30, 2017: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2017 $ 40,998 $ (3,180) $ 37,818 Net unrealized 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 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Employees’ Stock-Based Compensation Plans $ (228) $ (164) $ 964 $ 1,579 Non-employee Directors’ Stock-Based Compensation Plans 164 89 328 178 Total $ (64) $ (75) $ 1,292 $ 1,757 |
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, 2017 410 $ 1.56 4.4 $ 7,149 $ 7,166 Forfeited/Expired in 2017 ─ Outstanding at December 31, 2017 410 1.56 3.4 9,322 9,342 Exercised in 2018 (3) (30) 1.15 Forfeited/Expired in 2018 ─ Outstanding at June 30, 2018 380 1.60 3.0 9,501 9,523 Number of options that were exercisable at: December 31, 2017 410 1.56 3.4 June 30, 2018 380 1.60 3.0 (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 380,000 at June 30, 2018 and 410,000 at both December 31, 2017 and January 1, 2017. (3) Of the 30,000 options exercised the Company issued 17,134 of common shares for the six months ended June 30, 2018, as the balance of the options was tendered by their holder in connection with the payment of related withholding taxes. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operations | The table below summarizes the Company’s assets and liabilities related to discontinued operations reported in its Consolidated Balance Sheets. At At June 30, December 31, (in thousands) 2018 2017 ASSETS Cash and cash equivalents $ ─ $ 3,654 Restricted cash ─ 16,073 Investments in debt securities ─ 5,450 Investments in partnerships ─ 4,456 Real estate, net ─ 23,944 Other assets ─ 7,643 Total assets of discontinued operations $ ─ $ 61,220 LIABILITIES Debt $ ─ $ 8,308 Accounts payable and accrued expenses ─ 3,454 Other liabilities ─ 5,450 Total liabilities of discontinued operations $ ─ $ 17,212 The table below provides information about income and expenses related to the Company’s discontinued operations reported in its Consolidated Statements of Operations. For the three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Interest on bonds $ ─ $ 18 $ 6 $ 41 Interest on loans and short-term investments ─ 83 6 166 Asset management fee and reimbursements ─ 6,542 842 10,871 Other income ─ 307 53 581 Interest expense ─ (32) ─ (69) Salaries and benefits ─ (1,958) (53) (4,024) General and administrative ─ (366) (68) (596) Professional fees ─ (297) (20) (646) Other expenses ─ (129) (29) 237 (Losses) gains on sales and operations of real estate, net (2) 134 61 169 Equity in income (loss) from unconsolidated funds and ventures ─ 14 1 (38) Income tax benefit (expense) 553 1,183 (22) ─ Net income from discontinued operations, net of tax 551 5,499 777 6,692 Disposal: Net gain on disposal of discontinued operations 68 ─ 20,420 ─ Net income from discontinued operations 619 5,499 $ 21,197 $ 6,692 Loss from discontinued operations allocable to noncontrolling interests ─ 467 ─ 1,050 Net income to common shareholders from discontinued operations $ 619 $ 5,966 $ 21,197 $ 7,742 |
Discontinued Operations, Cash Flow Summary | The table below provides information about operating and investing cash flows related to the Company’s discontinued operations reported in its Consolidated Statements of Cash Flows. |
CONSOLIDATED FUNDS AND VENTUR37
CONSOLIDATED FUNDS AND VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of More Information Related to Assets Consolidated Fund or Ventures | At At June 30, December 31, (in thousands) 2018 2017 Cash, cash equivalents and restricted cash $ ─ $ 23,495 Investments in LTPPs ─ 99,142 Other assets ─ 5,175 Total assets of CFVs $ ─ $ 127,812 |
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) 2018 2017 Investments in U.S. real estate partnerships (includes $4,110 and $1,046 related to variable interest entities (" VIEs ")) (1) $ 22,834 $ 19,114 Investment in SAWHF 11,577 12,695 Investment in Solar Ventures 93,795 97,011 Investments in Lower Tier Property Partnerships (" LTPPs ") related to CFVs (2) ─ 99,142 Total investments in partnerships $ 128,206 $ 227,962 (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 15, “Consolidated Funds and Ventures,” for more information. |
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) 2018 2017 Debt (1) $ ─ $ 6,712 Unfunded equity commitments to unconsolidated LTPPs ─ 8,003 Asset management fee payable ─ 31,840 Other liabilities ─ 4,010 Total liabilities of CFVs $ ─ $ 50,565 (1) At December 31, 2017, $6.7 million of this debt had a UPB equal to its carrying value, a weighted-average effective interest rate of 6.5% , and was due on demand. |
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) 2018 2017 2018 2017 Revenue: Interest and other income related to CFVs $ ─ $ 241 $ ─ $ 244 Expenses: Interest expense ─ 93 ─ 186 Professional fees ─ 65 ─ 102 Asset management fee expense ─ 1,095 ─ 2,190 Other expenses ─ 459 ─ 911 Impairments ─ 6,795 ─ 11,400 Total expenses related to CFVs ─ 8,507 ─ 14,789 Equity in losses from LTPPs of CFVs ─ (3,879) ─ (7,262) Net loss ─ (12,145) ─ (21,807) Net losses allocable to noncontrolling interests in CFVs from continuing operations ─ 11,056 ─ 19,610 Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (1,089) $ ─ $ (2,197) |
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) 2018 2017 2018 2017 Equity in losses from LTPPs ─ (1,089) $ ─ $ (2,207) Equity in income from Consolidated Property Partnerships ─ ─ ─ 10 Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (1,089) $ ─ $ (2,197) |
L I H T C Funds [Member] | |
Schedule of Investments in Partnerships | At At June 30, December 31, (in thousands) 2018 2017 Total assets of the LTPPs (1) $ ─ $ 1,085,998 Total debt of the LTPPs ─ 771,027 Total other liabilities of the LTPPs ─ 165,500 (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 three months ended For the six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Gross revenue ─ 37,691 $ ─ $ 75,365 Operating expenses ─ 22,085 ─ 44,125 Net loss and net loss attributable to entity ─ (6,242) ─ (12,201) |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 9.2 |
INVESTMENTS IN DEBT SECURITIE39
INVESTMENTS IN DEBT SECURITIES (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Non Accrual Bonds | $ 19.5 | $ 19.5 | $ 8 | ||
Non Accrual Bonds Interest Income Cash Basis Method | 0.2 | $ 0.1 | 0.2 | $ 0.1 | |
Interest Income Non Accrual Bonds Not Recognized | 0.2 | $ 0.2 | 0.3 | $ 0.3 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 13.1 | 13.1 | |||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $ 25.7 | 25.7 | |||
Increase Decrease in Fair Value Of Bonds | $ 18.7 | ||||
Weighted average pay rate on available-for-sale bonds | 6.30% | 6.30% | 6.20% | ||
Weighted Average Expected Maturity, Investments, not Currently Prepayable | 3 years 4 months 24 days | ||||
Other Debt Obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 1 | 1 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 1 | 1 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 2 | $ 2 | $ 4.1 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 15 | $ 15 | $ 15 |
INVESTMENTS IN DEBT SECURITIE40
INVESTMENTS IN DEBT SECURITIES (Bonds and Related Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 158,766 | |
Amortized Cost | 107,404 | |
Fair Value | 162,261 | $ 143,604 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | 158,766 | 142,522 |
Amortized Cost | 107,404 | 99,145 |
Gross Unrealized Gains | 55,150 | 44,790 |
Gross Unrealized Losses | (293) | (331) |
Fair Value | $ 162,261 | $ 143,604 |
FV as a % of UPB | 102.00% | 101.00% |
Mortgage Revenue Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 121,941 | $ 105,472 |
Amortized Cost | 76,447 | 67,982 |
Gross Unrealized Gains | 54,290 | 43,587 |
Gross Unrealized Losses | (134) | |
Fair Value | $ 130,603 | $ 111,569 |
FV as a % of UPB | 107.00% | 106.00% |
Other Debt Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid Principal Balance | $ 36,825 | $ 37,050 |
Amortized Cost | 30,957 | 31,163 |
Gross Unrealized Gains | 860 | 1,203 |
Gross Unrealized Losses | (159) | (331) |
Fair Value | $ 31,658 | $ 32,035 |
FV as a % of UPB | 86.00% | 86.00% |
INVESTMENTS IN DEBT SECURITIE41
INVESTMENTS IN DEBT SECURITIES (Bonds with Prepayment Features) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Bonds Unpaid Principal Balance [Abstract] | ||
Bonds unpaid principal balance for June 30, 2018 | $ 26,825 | |
Bonds unpaid principal balance, July 1 through December 31, 2018 | 1,868 | |
Bonds unpaid principal balance, 2020 | 22,080 | |
Bonds unpaid principal balance, 2021 | 46,095 | |
Bonds unpaid principal balance, 2022 | 51,898 | |
Bonds unpaid principal balance, thereafter | 10,000 | |
Unpaid principal balance | 158,766 | |
Amortized Cost, Bonds that may be prepaid without restrictions | ||
Amortized Cost, June 30, 2018 | 20,957 | |
Amortized Cost, July 1 through December 31, 2018 | 255 | |
Amortized Cost, 2020 | 12,883 | |
Amortized Cost, 2021 | 27,212 | |
Amortized Cost, 2022 | 36,097 | |
Amortized Cost, Thereafter | 10,000 | |
Amortized Cost | 107,404 | |
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties | ||
Fair Value, June 30, 2018 | 21,554 | |
Fair Value, July 1 through December 31, 2018 | 2,126 | |
Fair Value, 2020 | 23,171 | |
Fair Value, 2021 | 49,533 | |
Fair Value, 2022 | 55,773 | |
Fair Value, Thereafter | 10,104 | |
Fair Value, Total | 162,261 | $ 143,604 |
Debt Securities Excluding Treasury Securities [Member] | ||
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties | ||
Fair Value, Total | $ 162,261 |
INVESTMENTS IN DEBT SECURITIE42
INVESTMENTS IN DEBT SECURITIES (Bond Aging Analysis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Total current | $ 149,375 | $ 135,571 |
30-59 days past due | ||
60-89 days past due | ||
90 days or greater | 12,886 | 8,033 |
Investments in debt securities | 162,261 | 143,604 |
Nonaccrual bonds | 19,500 | $ 8,000 |
Debt Securities Excluding Treasury Securities [Member] | ||
Investments in debt securities | 162,261 | |
One Bond [Member] | ||
Nonaccrual bonds | $ 6,600 |
INVESTMENTS IN DEBT SECURITIE43
INVESTMENTS IN DEBT SECURITIES (Realized Gains on Bond Sales and Redemptions) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Investments in Debt Securities [Abstract] | |
Net impairment recognized on bonds held at each period-end | $ (6) |
INVESTMENTS IN PARTNERSHIPS (Na
INVESTMENTS IN PARTNERSHIPS (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2018USD ($)entity | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)entity | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 128,206 | $ 227,962 | |||
Equity in gains (losses) from equity method investments | 2,382 | $ (2,545) | |||
Commitments and Contingencies | |||||
Loans and Leases Receivable, Net Amount, Total | 57,299 | 736 | |||
U.S. Real Estate Partnerships [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 22,834 | $ 19,114 | |||
Payments to acquire equity method investments | $ 8,800 | ||||
Equity method investment, ownership percentage | 80.00% | 69.70% | |||
Number of Variable Interest Entities | entity | 5 | 2 | |||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $ 4,100 | $ 1,000 | |||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,100 | 1,000 | |||
U.S. Real Estate Partnerships formed in Q4 2014[Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | 18,700 | ||||
U.S. Real Estate Partnerships formed in Q1 2018 [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | 3,200 | ||||
Payments to acquire equity method investments | $ 3,300 | ||||
U.S. Real Estate Partnerships, LP in Affordable Housing Partnership [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 900 | ||||
Equity method investment, ownership percentage | 98.99% | ||||
IHS Managed Funds and Ventures [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 11,577 | 12,695 | |||
Equity In Income From SAWHF [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | 11,600 | ||||
Solar Facilities Investment [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 93,795 | $ 97,011 | |||
SAWHF [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 11.85% | 11.85% | |||
Solar Construction Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 86,100 | ||||
Solar Permanent Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | 3,400 | ||||
Solar Development Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investments | $ 4,300 |
INVESTMENTS IN PARTNERSHIPS AND
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Real Estate Investment Partnerships) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 128,206 | $ 227,962 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 22,834 | 19,114 |
IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 11,577 | 12,695 |
Solar Facilities Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 93,795 | 97,011 |
Lower Tier Property Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 99,142 | |
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 | $ 4,110 | $ 1,046 |
INVESTMENTS IN PARTNERSHIPS A46
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Balance Sheet Accounts Related to Equity Method Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
U.S. Real Estate Partnerships [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 59,247 | $ 57,712 |
Debt | 7,149 | 7,037 |
Other Liabilities | 32,075 | 22,030 |
IHS Managed Funds and Ventures [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 105,938 | 123,187 |
Debt | 7,947 | 15,712 |
Other Liabilities | 57 | 100 |
Solar Facilities Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 202,086 | 399,758 |
Other Liabilities | $ 3,934 | 5,111 |
Noncontrolling Interest | $ 87,699 |
INVESTMENTS IN PARTNERSHIPS A47
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Gross Revenue | $ 37,691 | |||
Operating expenses | 22,085 | |||
Net income (loss) | (6,242) | |||
U.S. Real Estate Partnerships [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross Revenue | $ 694 | 1,215 | $ 1,417 | $ 2,454 |
Operating expenses | 548 | 842 | 1,085 | 1,651 |
Net income (loss) | (367) | (518) | (676) | (1,032) |
Solar Facilities Investment [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross Revenue | 5,932 | 6,752 | 12,522 | 10,845 |
Operating expenses | 1,479 | 1,587 | 2,817 | 2,829 |
Net income (loss) | 5,136 | 5,346 | 10,219 | 8,396 |
Net income attributable to the entity | 5,136 | 3,052 | 10,219 | 4,849 |
SAWHF [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross Revenue | 1,915 | 2,557 | 2,305 | 6,864 |
Operating expenses | 613 | 2,889 | 1,551 | 8,003 |
Net income (loss) | $ (912) | $ 1,709 | $ 1,567 | $ 3,071 |
LOANS HELD FOR INVESTMENT ("H48
LOANS HELD FOR INVESTMENT ("HFI") AND LOANS HELD FOR SALE ("HFS") (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Loans Receivable Held-for-Investment, Carrying Value, Not Accruing Interest | $ 0.3 | $ 0.3 |
Impaired Financing Receivable, Unpaid Principal Balance | 1.1 | 1.1 |
Loans Receivable, Held-For-Sale, Cost Basis | 15 | 6 |
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 9 | 0 |
Loan Origination Commitments [Member] | ||
Unfunded Loan Origination Commitments | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT ("H49
LOANS HELD FOR INVESTMENT ("HFI") AND LOANS HELD FOR SALE ("HFS") (Schedule of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||
Loans and Leases Receivable, Net Amount, Total | $ 57,299 | $ 736 |
Loans Receivable Held-for-sale, Amount | 9,000 | |
Loans Receivable Held-for-investment and Held-for-sale, Amount | $ 66,299 | $ 736 |
LOANS HELD FOR INVESTMENT ("H50
LOANS HELD FOR INVESTMENT ("HFI") AND LOANS HELD FOR SALE ("HFS") (Composition of Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Loans receivable, unpaid principal balance | $ 58,050 | $ 1,487 |
Cost basis adjustments, net | (751) | (751) |
Loans and Leases Receivable, Net Amount, Total | $ 57,299 | $ 736 |
LOANS HELD FOR INVESTMENT ("H51
LOANS HELD FOR INVESTMENT ("HFI") AND LOANS HELD FOR SALE ("HFS") (Loan Aging Analysis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Current | $ 57,000 | $ 437 |
Financing Receivable, Unpaid Principal Balance, Current | 57,000 | 437 |
Financing Receivable, Net | 57,299 | 736 |
Financing Receivable, Net, Unpaid Principal Balance | 58,050 | 1,487 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 299 | 299 |
Financing Receivable, Unpaid Principal Balance, Past Due | $ 1,050 | $ 1,050 |
OTHER ASSETS (Narrative) (Detai
OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative Asset, Noncurrent | $ 9,512 | $ 9,512 | $ 6,865 | ||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | $ 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 |
OTHER ASSETS (Summary of Other
OTHER ASSETS (Summary of Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other assets, total: | ||
Derivative assets | $ 9,512 | $ 6,865 |
Real estate owned | 3,576 | 3,447 |
Accrued interest receivable | 2,355 | 1,558 |
Other assets | 2,142 | 860 |
Total other assets | $ 17,585 | 17,905 |
Consolidated Funds and Ventures [Member] | ||
Other assets, total: | ||
Total other assets | $ 5,175 |
OTHER ASSETS (REO held for use,
OTHER ASSETS (REO held for use, net) (Details) - REO held for use, net [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Real estate held for use, net | $ 3,576 | $ 3,447 |
Building, Furniture and Fixtures [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | 957 | 828 |
Land [Member] | ||
Investment [Line Items] | ||
Real estate held for use, gross | $ 2,619 | $ 2,619 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Gains (Losses) on Extinguishment of Debt | $ 3,829,000 | $ 3,829,000 | ||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | ||
Notes Payable and Other Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities, Total | 7,669,000 | 10,859,000 | ||
Subordinated Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities, Total | 96,599,000 | 97,700,000 | ||
Principal | 90,734,000 | |||
Notes Payable and Other Debt - Bond Related [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Excluding Current Maturities, Total | 56,587,000 | $ 42,071,000 | ||
TRS Financing Arrangements [Member] | ||||
Debt Instrument [Line Items] | ||||
Underlying Bond Notional Amount | $ 91,200,000 | |||
Underlying Bond Interest Rate | 6.40% | |||
Long-term Debt, Gross | $ 89,400,000 | |||
Derivative, Variable Interest Rate | 2.70% | |||
SAWHF [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 8,000,000 | |||
Carrying amount of notes payable and other debt | $ 7,700,000 | |||
Percentage Of Ownership Acquired | 11.85% | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 7,200,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | TRS Financing Arrangements [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Variable Interest Rate | 3.60% | |||
Johannesburg Interbank Agreed Rate (JIBAR) [Member] | SAWHF [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.15% | |||
Base rate for notes payable and other debt | $ 6.92 |
DEBT (Outstanding Debt Balances
DEBT (Outstanding Debt Balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 203,087 | $ 216,139 |
Debt Instrument, Interest Rate, Effective Percentage | 3.60% | 3.40% |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 203,087 | $ 209,427 |
Debt Instrument, Interest Rate, Effective Percentage | 3.60% | 3.30% |
Asset Related Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 96,566 | $ 83,838 |
Debt Instrument, Interest Rate, Effective Percentage | 2.90% | 3.10% |
Notes Payable and Other Debt - Bond Related [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 39,979 | $ 41,767 |
Debt, Due after one year | $ 56,587 | $ 42,071 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 2.80% | 3.20% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 2.90% | 2.90% |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 106,521 | $ 125,589 |
Debt Instrument, Interest Rate, Effective Percentage | 4.30% | 3.50% |
Notes Payable and Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 14,733 | |
Debt, Due after one year | $ 7,669 | $ 10,859 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 2.80% | |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 14.60% | 12.10% |
Unamortized Debt Issuance Expense | $ 100 | |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 2,253 | $ 2,297 |
Debt, Due after one year | 96,599 | $ 97,700 |
Debt, Carrying Value | $ 98,852 | |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 3.50% | 2.60% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 3.50% | 2.60% |
Net Premium and Debt Issuance Costs | $ 8,100 | $ 8,300 |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 6,712 | |
Debt, Carrying Value | $ 6,712 | |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 6.50% | |
Debt Instrument, Interest Rate, Effective Percentage | 6.50% |
DEBT (Principal Commitments) (D
DEBT (Principal Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 203,087 | $ 216,139 |
Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Total | 6,712 | |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 40,710 | |
2,019 | 12,293 | |
2,020 | 36,962 | |
2,021 | 20,804 | |
2,022 | 1,679 | |
Thereafter | 82,906 | |
Net premium and debt issue costs | 7,733 | |
Total | $ 203,087 | 209,427 |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 6,712 |
DEBT (Subordinate Debt) (Detail
DEBT (Subordinate Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 203,087 | $ 216,139 |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 90,734 | |
Net Premium and Debt Issuance Costs | 8,118 | |
Carrying Value | 98,852 | |
Subordinated Loan [Member] | Mfh Issue 1 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 26,793 | |
Net Premium and Debt Issuance Costs | 2,472 | |
Carrying Value | $ 29,265 | |
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 | $ 24,363 | |
Net Premium and Debt Issuance Costs | 2,259 | |
Carrying Value | $ 26,622 | |
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 | $ 14,044 | |
Net Premium and Debt Issuance Costs | 1,202 | |
Carrying Value | $ 15,246 | |
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 | $ 25,534 | |
Net Premium and Debt Issuance Costs | 2,185 | |
Carrying Value | $ 27,719 | |
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, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 9,512 | $ 6,865 |
Derivative Liability | 102 | 319 |
Total Return Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 2,747 | 2,347 |
Derivative Liability | 44 | 46 |
Basis Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 956 | 439 |
Derivative Liability | 58 | 26 |
Interest rate cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 1,263 | 788 |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 4,439 | 3,291 |
Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 107 | |
Derivative Liability | $ 247 |
DERIVATIVE INSTRUMENTS (Sched60
DERIVATIVE INSTRUMENTS (Schedule of Derivative Notional Amounts) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 380,633 | $ 397,153 |
Total Return Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 71,844 | 72,290 |
Basis Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 84,500 | 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 |
Foreign Exchange Forward [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 4,289 | $ 4,363 |
DERIVATIVE INSTRUMENTS (Summary
DERIVATIVE INSTRUMENTS (Summary of Derivative Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | $ 2,053 | $ (968) | $ 4,362 | $ 1,071 |
Total Return Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | 1,092 | 454 | 1,638 | 2,577 |
Payments For Proceeds From Derivative Instrument Operating Activities | 600 | 700 | 1,200 | 1,600 |
Basis Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | 315 | 20 | 507 | (9) |
Interest rate cap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | 79 | (271) | 475 | (482) |
Interest rate swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | (21) | (1,171) | 1,395 | (1,015) |
Payments For Proceeds From Derivative Instrument Operating Activities | 100 | $ 100 | 100 | $ 200 |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax, Total | $ 588 | $ 347 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized gains (losses) arising during the period | $ 4,465 | $ 539 | $ 1,118 | $ 1,346 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax | (135) | ||||
Asset Impairment Charges, Total | $ 6,795 | $ 388 | $ 11,400 | ||
Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 12.50% | 14.00% | |||
Subordinated Debt Obligations, Fair Value Disclosure | 51,000 | $ 51,000 | |||
Minimum [Member] | Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 10.00% | ||||
Subordinated Debt Obligations, Fair Value Disclosure | 43,700 | $ 43,700 | |||
Maximum [Member] | Subordinated Debt Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Inputs, Discount Rate | 15.00% | ||||
Subordinated Debt Obligations, Fair Value Disclosure | $ 60,800 | $ 60,800 |
FAIR VALUE (Fair Value of Asset
FAIR VALUE (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Loans held-for-sale | $ 9,000 | |
Derivative assets | 9,512 | $ 6,865 |
Liabilities: | ||
Derivative liabilities | 102 | 319 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Loans held for investment | 57,613 | 1,754 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Investments in debt securities | 162,261 | 143,604 |
Derivative assets | 9,512 | 6,865 |
Liabilities: | ||
Derivative liabilities | 102 | 319 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Derivative assets | 6,765 | 4,518 |
Liabilities: | ||
Derivative liabilities | 58 | 273 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Investments in debt securities | 162,261 | 143,604 |
Derivative assets | 2,747 | 2,347 |
Liabilities: | ||
Derivative liabilities | $ 44 | $ 46 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Available-for-sale Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | $ 157,824 | $ 143,604 | $ 155,981 | |
Net (losses) gains included in earnings | (6) | (2,207) | ||
Net change in other comprehensive income | 983 | 1,346 | ||
Net change in AOCI | 4,465 | |||
Impact from deconsolidation | 17,997 | |||
Impact from settlements | (28) | (317) | (3,458) | |
Balance at ending period | 162,261 | $ 151,662 | 162,261 | 151,662 |
Debt Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 152,385 | |||
Net (losses) gains included in earnings | (1,089) | |||
Net change in other comprehensive income | 539 | |||
Impact from settlements | (173) | |||
Balance at ending period | 151,662 | 151,662 | ||
Loans Receivable [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 13,248 | 3,835 | ||
Net (losses) gains included in earnings | (5,335) | |||
Impact from purchases | 14,028 | |||
Impact from originations | 1,500 | |||
Impact from sales/redemptions | (9,349) | (10,129) | ||
Balance at ending period | 3,899 | 3,899 | ||
Derivative Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | 2,250 | 3,265 | 2,347 | 2,327 |
Net (losses) gains included in earnings, derivative assets and liabilities | 497 | 140 | 400 | 1,078 |
Balance at ending period | 2,747 | 3,405 | 2,747 | 3,405 |
Derivative Liabilities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning period | (48) | |||
Net (losses) gains included in earnings, derivative assets and liabilities | 4 | (399) | 2 | (27) |
Balance at ending period | (44) | (399) | (44) | (399) |
Balance at beginning period | (46) | (372) | ||
Balance at ending period | $ (44) | $ (399) | $ (44) | $ (399) |
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 | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Available-for-sale Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in unrealized (losses) gains related to assets and liabilities still held | $ (6) | |||
Total gains (losses) reported in earnings | (6) | |||
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) | $ (2,207) | ||
Total gains (losses) reported in earnings | (1,089) | (2,207) | ||
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 | $ 501 | (259) | 402 | 1,051 |
Additional realized gains (losses) recognized | 591 | 713 | 1,236 | 1,526 |
Total gains (losses) reported in earnings | $ 1,092 | $ 454 | $ 1,638 | $ 2,577 |
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, 2018 | Dec. 31, 2017 | |
Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 103,325 | $ 90,963 |
Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 12,886 | $ 8,033 |
Market yield | 8.70% | 7.50% |
Capitalization rate | 7.60% | 6.40% |
NOI annual growth rate | 0.50% | (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 | $ 9,164 | $ 12,573 |
Available-for-sale, Infrastructure Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 21,554 | $ 21,824 |
Fair value assumptions, cash flow probability - future incremental tax growth | 75.00% | 80.00% |
Fair value assumptions, cash flow probability - no future incremental tax growth | 25.00% | 20.00% |
Other Debt Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 15,332 | $ 10,211 |
Market yield | 4.20% | |
Total Return Swap [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value, Net Derivative Asset (Liability) | $ 2,703 | $ 2,301 |
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt , Performing Bonds Segment A [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.10% | 4.30% |
Minimum [Member] | Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Property bids | $ 13,105 | |
Valuation technique weighting factors | 10.00% | |
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 | 7.60% | 6.70% |
Capitalization rate | 6.70% | 5.80% |
NOI annual growth rate | 0.60% | 0.60% |
Minimum [Member] | Available-for-sale, Infrastructure Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.40% | 7.10% |
Minimum [Member] | Other Debt Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 2.20% | |
Minimum [Member] | Total Return Swap [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.60% | 4.10% |
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 | 6.50% | 6.70% |
Maximum [Member] | Available-for-sale, Multifamily Tax-exempt , Non-performing Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Property bids | $ 13,567 | |
Valuation technique weighting factors | 90.00% | |
Maximum [Member] | Available-for-sale, Multifamily Tax-exempt, Subordinated Cash Flow Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.90% | 7.00% |
Capitalization rate | 6.80% | 6.10% |
NOI annual growth rate | 0.70% | 0.90% |
Maximum [Member] | Available-for-sale, Infrastructure Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 9.60% | 9.20% |
Maximum [Member] | Other Debt Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.40% | |
Maximum [Member] | Total Return Swap [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 5.40% | 5.30% |
Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Property bids | $ 13,413 | |
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 | 4.70% | 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 | 7.50% | |
Capitalization rate | 6.40% | |
NOI annual growth rate | (1.20%) | |
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 | 7.80% | 6.80% |
Capitalization rate | 6.80% | 5.90% |
NOI annual growth rate | 0.60% | 0.80% |
Weighted Average [Member] | Available-for-sale, Infrastructure Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 8.30% | 8.00% |
Fair value assumptions, cash flow probability - future incremental tax growth | 80.00% | |
Fair value assumptions, cash flow probability - no future incremental tax growth | 20.00% | |
Weighted Average [Member] | Other Debt Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 3.70% | 4.20% |
Weighted Average [Member] | Total Return Swap [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.80% | 5.00% |
FAIR VALUE (Carrying Amounts an
FAIR VALUE (Carrying Amounts and Fair Values of Financial Instruments ) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Loans held for sale | $ 9,000 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 27,045 | $ 35,693 |
Restricted cash | 15,916 | 21,271 |
Fair Value, Inputs, Level 1 [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Restricted cash | 23,495 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Loans held for sale | 9,247 | |
Asset management fee receivable | 116 | |
Loans held for investment | 57,613 | 1,754 |
Fair Value, Inputs, Level 3 [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Loans held for investment | 497 | |
Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Notes payable and other debt | 96,624 | 83,879 |
Non Bond Related Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Liabilities: | ||
Notes payable and other debt | 7,997 | 26,014 |
Subordinated Loan [Member] | Fair Value, Inputs, Level 3 [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | 51,013 | 43,256 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 27,045 | 35,693 |
Restricted cash | 15,916 | 21,271 |
Loans held for sale | 9,000 | |
Asset management fees and reimbursements receivable | 288 | |
Asset management fee receivable | 116 | |
Loans held for investment | 57,299 | 736 |
Reported Value Measurement [Member] | Consolidated Funds and Ventures [Member] | ||
Assets: | ||
Restricted cash | 23,495 | |
Loans held for investment | 65 | |
Reported Value Measurement [Member] | Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 96,566 | 83,838 |
Reported Value Measurement [Member] | Non Bond Related Debt [Member] | ||
Liabilities: | ||
Notes payable and other debt | 7,669 | 25,592 |
Reported Value Measurement [Member] | Debt Related To Consolidated Funds and Ventures [Member] | Consolidated Funds and Ventures [Member] | ||
Liabilities: | ||
Notes payable and other debt | 6,712 | |
Reported Value Measurement [Member] | Subordinated Loan [Member] | MFH [Member] | ||
Liabilities: | ||
Subordinated debt | $ 98,852 | $ 99,997 |
GUARANTEES AND COLLATERAL (Narr
GUARANTEES AND COLLATERAL (Narrative) (Details) | Jun. 30, 2018USD ($)agreement | Dec. 31, 2017USD ($) |
Guaranteed LIHTC Fund [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Guaranteed Funds | agreement | 1 | |
Maximum Exposure | $ 0 | $ 0 |
Carrying Amount | 0 | 0 |
Non-Guaranteed LIHTC Funds Pertaining to LTTP One of Two [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Maximum Exposure | 100,000 | 100,000 |
Non-Guaranteed LIHTC Funds Related to Two LTPPs [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Maximum Exposure | 100,000 | 100,000 |
Carrying Amount | $ 0 | $ 0 |
GUARANTEES AND COLLATERAL (Coll
GUARANTEES AND COLLATERAL (Collateral and Restricted Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 15,916 | $ 44,766 |
Bonds Available-for-Sale | 135,885 | 128,902 |
Investments in partnerships | 99,142 | |
Other Assets | 5,175 | |
Total Assets Pledged | $ 151,801 | $ 277,985 |
SAWHF [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Equity method investment, ownership percentage | 11.85% | 11.85% |
Debt and derivatives TRSs [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 9,230 | $ 9,160 |
Bonds Available-for-Sale | 135,885 | 128,902 |
Total Assets Pledged | 145,115 | 138,062 |
Other, Pledged or Restricted [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 6,686 | 12,111 |
Total Assets Pledged | $ 6,686 | 12,111 |
Consolidated Funds and Ventures [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 23,495 | |
Investments in partnerships | 99,142 | |
Other Assets | 5,175 | |
Total Assets Pledged | $ 127,812 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 07, 2018 | Jun. 26, 2018 | Jun. 26, 2018 | Mar. 13, 2018 | Mar. 09, 2018 | Aug. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 125,000 | 125,000 | |||||||
Treasury Stock, Shares, Acquired | 121,027 | ||||||||
Stock Repurchase Program, Price of Shares Repurchased | $ 27.60 | ||||||||
Maximum Percentage of Company Stock Ownership Allowed | 9.90% | 4.90% | |||||||
Held By Third Party | 4.90% | 4.90% | |||||||
Disposal Group, Consideration, Shares Transfered, Price per Share | $ 34 | $ 33 | |||||||
Consideration, common stock shares issued | 125,000 | 125,000 | |||||||
Aggregate Cost of Shares Sold | $ 4.3 | $ 4.1 | |||||||
Subsequent Event [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 187,500 | ||||||||
Stock Repurchase Program, Price of Shares Authorized to be Repurchased | $ 31.50 | ||||||||
Treasury Stock, Shares, Acquired | 3,973 | ||||||||
Stock Repurchase Program, Price of Shares Repurchased | $ 26.38 | ||||||||
Maximum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Repurchase Program, Price of Shares Repurchased | $ 30 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||||
Net income (loss) from continuing operations | $ 2,143 | $ 1,451 | $ (95) | $ (3,769) |
Net income from discontinued operations | 619 | 5,966 | 21,197 | 7,742 |
Net income to common shareholders | $ 2,762 | $ 7,417 | $ 21,102 | $ 3,973 |
Basic weighted-average shares | 5,697,000 | 5,893,000 | 5,673,000 | 5,915,000 |
Common stock equivalents | 377,000 | 382,000 | ||
Diluted weighted-average shares | 6,074,000 | 6,275,000 | 5,673,000 | 5,915,000 |
Common Stock Equivalents Employee Options | 380,000 | 410,000 | 380,000 | 410,000 |
Incremental Common Shares Attributable to Call Options and Warrants | 377,162 | 382,278 | 381,833 | 381,435 |
EQUITY (Noncontrolling Interest
EQUITY (Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 89,529 | |
L I H T C Funds [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | 83,909 | |
Consolidated Property Partnerships [Member] | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 5,620 |
EQUITY (Schedule of Accumulated
EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Reclassification of unrealized gains due to deconsolidation of Consolidated LTPPs | $ 9,415 | |||
Net change in AOCI | 13,207 | |||
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Income tax (expense), benefit | $ 242 | $ 243 | (14) | |
Net change in AOCI | 13,207 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning Balance | 41,153 | |||
Income tax (expense), benefit | 242 | 243 | (14) | |
Net change in AOCI | 13,207 | |||
Reclassification of unrealized gains due to deconsolidation of Consolidated LTPPs | 9,415 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 4,047 | 768 | 13,207 | $ 1,120 |
Ending Balance | 54,360 | 54,360 | ||
Investments in Debt Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Beginning Balance | 50,392 | 41,805 | 44,459 | 40,998 |
Net unrealized gains (losses) | 4,465 | 539 | 1,118 | 1,346 |
Reclassification of unrealized losses to operations due to impairment | (135) | |||
Reclassification of unrealized gains due to deconsolidation of Consolidated LTPPs | 9,415 | |||
Net change in AOCI | 10,398 | |||
Net change AOCI, before tax | 4,465 | 539 | 1,346 | |
Ending Balance | 54,857 | 42,344 | 54,857 | 42,344 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Net change in AOCI | 10,398 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net unrealized gains (losses) | 4,465 | 539 | 1,118 | 1,346 |
Net change AOCI, before tax | 4,465 | 539 | 1,346 | |
Net change in AOCI | 10,398 | |||
Reclassification of unrealized gains due to deconsolidation of Consolidated LTPPs | 9,415 | |||
Income Tax Expense [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Net change in AOCI | 242 | 243 | ||
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Beginning Balance | (256) | (243) | ||
Income tax (expense), benefit | (242) | (243) | (14) | |
Net change in AOCI | 242 | 243 | ||
Ending Balance | (14) | (14) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Income tax (expense), benefit | (242) | (243) | (14) | |
Net change in AOCI | 242 | 243 | ||
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 | 177 | (3,392) | (3,306) | (3,180) |
Net unrealized gains (losses) | (660) | (14) | 2,823 | (226) |
Net change in AOCI | 2,823 | |||
Net change AOCI, before tax | (660) | (14) | 226 | |
Ending Balance | (483) | (3,406) | (483) | (3,406) |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Net change in AOCI | 2,823 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Net unrealized gains (losses) | (660) | (14) | 2,823 | (226) |
Net change AOCI, before tax | (660) | (14) | 226 | |
Net change in AOCI | 2,823 | |||
Accumulated Other Comprehensive Income Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||||
Net unrealized gains (losses) | 3,805 | 525 | 3,941 | 1,120 |
Reclassification of unrealized gains due to deconsolidation of Consolidated LTPPs | 9,415 | |||
Net change in AOCI | 4,047 | 768 | 13,207 | |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||||
Beginning Balance | 50,313 | |||
Income tax (expense), benefit | (242) | 243 | (14) | |
Net change in AOCI | 4,047 | 768 | 13,207 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning Balance | 38,170 | 41,153 | 37,818 | |
Net unrealized gains (losses) | 3,805 | 525 | 3,941 | 1,120 |
Income tax (expense), benefit | (242) | 243 | (14) | |
Net change in AOCI | 4,047 | 768 | 13,207 | |
Reclassifiaction of unrealized gains to operations due to the OTTI of bond investments | (135) | |||
Reclassification of unrealized gains due to deconsolidation of Consolidated LTPPs | 9,415 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 1,120 | |||
Ending Balance | $ 54,360 | $ 38,938 | $ 54,360 | $ 38,938 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issued to employees | 30,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 394,211 | |||
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 | 380,000 | 410,000 | 410,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 377,006 | |||
Shares Issued Net of Shares Withheld for Taxes [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issued to employees | 17,134 | |||
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] | ||||
Annual compensation | $ 120 | |||
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 | 399,733 | |||
Rate Of Cash Based Compensation | 50.00% | |||
Rate of share-based compensation | 50.00% | |||
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ (64) | $ (75) | $ 1,292 | $ 1,757 |
Employees' Stock-Based Compensation Plans [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | (228) | (164) | 964 | 1,579 |
Non-employee Directors' Stock-Based Compensation Plans [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ 164 | $ 89 | $ 328 | $ 178 |
STOCK-BASED COMPENSATION (Sum76
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |||
Number of Options Outstanding at beginning of period | 410 | 410 | |
Exercised in 2018 | (30) | ||
Number of Options Outstanding at end of period | 380 | 410 | 410 |
Number of options that were exercisable | 380 | 410 | |
Weighted average Exercise Price per Option Outstanding at beginning of period | $ 1.56 | $ 1.56 | |
Weighted Average Exercise Price per Option, Exercised | 1.15 | ||
Weighted average Exercise Price per Option, Forfeited/Expired | |||
Weighted average Exercise Price per Option Outstanding at end of period | 1.60 | 1.56 | $ 1.56 |
Weighted average Exercise Price per Option Exercisable | $ 1.60 | $ 1.56 | |
Weighted Average Remaining Contractual Life per Option (in years) Outstanding | 3 years | 3 years 4 months 24 days | 4 years 4 months 24 days |
Weighted average Remaining Contractual Life per Option (in years) Exercisable | 3 years | 3 years 4 months 24 days | |
Aggregate Intrinsic Value | $ 9,501 | $ 9,322 | $ 7,149 |
Period End Liability | $ 9,523 | $ 9,342 | $ 7,166 |
STOCK-BASED COMPENSATION (Sum77
STOCK-BASED COMPENSATION (Summary of Nonemployee Director Stock Award Activity) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Cash | $ (209,000) | $ 1,463,000 | $ 1,095,000 | $ 5,267,000 |
Non-employee Directors' Stock-Based Compensation Plans [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Non-employee director compensation, cash | $ 163,750 | $ 88,750 | ||
Weighted - average Grant Date Share Price | $ 27.18 | |||
Options Vested | ||||
Directors' Fees Expense | $ 327,500 | $ 177,500 | ||
Non-employee Directors' Stock-Based Compensation Plans [Member] | Common Shares [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Granted | ||||
Non-employee Directors' Stock-Based Compensation Plans [Member] | Deferred Shares [Member] | ||||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Granted | 6,025 | 3,917 |
RELATED PARTY TRANSACTIONS AN78
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 26, 2018 | Jun. 26, 2018 | Mar. 09, 2018 | Jan. 08, 2018 | Jun. 30, 2018 | Jun. 30, 2018 |
Incentive fee | 20.00% | |||||
Aggregate cost of common stock shares issued | $ 4,300 | $ 4,100 | ||||
Consideration, common stock shares issued | 125,000 | 125,000 | ||||
Disposal Group, Consideration, Shares Transfered, Price per Share | $ 34 | $ 33 | ||||
Consideration, common stock shares issued, price per share | $ 34 | $ 33 | $ 33.50 | |||
Base quarterly external management fee | $ 1,000 | |||||
Disposal Group, Consideration, Note Receiveable | $ 57,000 | $ 57,000 | ||||
Disposal Group, Consideration, Note Receiveable, Interest Rate | 5.00% | |||||
Disposal Group, Consideration, Note Receiveable, Quarterly Installment | $ 2,850 | |||||
Disposal Group, Consideration, Note Receiveable, Interest Recognized | 700 | 1,400 | ||||
External management fees and reimbursable expenses | 2,184 | $ 4,703 | ||||
External management fee, contract terms for incentive fee | 7.00% | |||||
External Manager [Member] | ||||||
Management fees payable | 2,200 | $ 2,200 | ||||
Hunt Companies [Member] | ||||||
Interest Receivable | $ 700 | $ 700 |
DISCONTINUED OPERATIONS (Assets
DISCONTINUED OPERATIONS (Assets and Liabilities of Discontinued Operations) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 27,045 | $ 35,693 |
Restricted cash | 15,916 | 44,766 |
Investments in debt securities | 162,261 | 143,604 |
Investments in partnerships | 128,206 | 227,962 |
Other assets | 17,585 | 17,905 |
Total assets | 417,312 | 531,886 |
Debt | 203,087 | 216,139 |
Accounts payable and accrued expenses | 3,405 | 6,098 |
Other liabilities | 24,138 | 57,332 |
Total liabilities | 230,630 | 304,784 |
Disposal Group, Consideration, Note Receiveable | $ 57,000 | |
Discontinued Operations, 2018 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 3,654 | |
Restricted cash | 16,073 | |
Investments in debt securities | 5,450 | |
Investments in partnerships | 4,456 | |
Real Estate Investments, Net | 23,944 | |
Other assets | 7,643 | |
Total assets | 61,220 | |
Debt | 8,308 | |
Accounts payable and accrued expenses | 3,454 | |
Other liabilities | 5,450 | |
Total liabilities | 17,212 | |
Consolidated Funds and Ventures [Member] | ||
ASSETS | ||
Restricted cash | 23,495 | |
Investments in partnerships | 99,142 | |
Other assets | 5,175 | |
Debt | 6,712 | |
Other liabilities | $ 35,850 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Discontinued Operations [Abstract] | ||||
Interest on bonds | $ 18 | $ 6 | $ 41 | |
Interest on loans and short-term investments | 83 | 6 | 166 | |
Asset management fee and reimbursements | 6,542 | 842 | 10,871 | |
Other income | 307 | 53 | 581 | |
Interest expense | (32) | (69) | ||
Salaries and benefits | (1,958) | (53) | (4,024) | |
General and administrative | (366) | (68) | (596) | |
Professional fees | (297) | (20) | (646) | |
Other expense | (129) | (29) | 237 | |
Gains on sales and operations of real estate, net | $ (2) | 134 | 61 | 169 |
Equity in income (loss) from unconsolidated funds and ventures | 14 | 1 | (38) | |
Income tax benefit (expense) | 553 | 1,183 | (22) | |
Net income (loss) before disposal activity | 551 | 5,499 | 777 | 6,692 |
Net gains on disposal | 68 | 20,420 | ||
Net income from discontinued operations | 619 | 5,499 | 21,197 | 6,692 |
Loss from discontinued operations allocable to noncontrolling interests | 467 | 1,050 | ||
Net income to common shareholders from discontinued operations | $ 619 | $ 5,966 | $ 21,197 | $ 7,742 |
DISCONTINUED OPERATIONS (Cash F
DISCONTINUED OPERATIONS (Cash Flows of Discontinued Operations) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ (412) | $ 1,289 |
Non-cash investing and financing activities: | ||
Decrease in debt | 6,712 | |
Net decrease in noncontrolling interests | 83,909 | |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | 26 | 850 |
Capital expenditures | $ (108) | |
Non-cash investing and financing activities: | ||
Decrease in loans | (231) | |
Decrease in other assets | (35,715) | |
Decrease in debt | 8,308 | |
Decrease in accounts payable and accrued expenses | 7,201 | |
Decrease in other liabilities | 5,333 | |
Net increase in accumulated other comprehensive income | (3,404) | |
Consolidated Funds and Ventures [Member] | Discontinued Operations [Member] | ||
Non-cash investing and financing activities: | ||
Decrease in investments in debt securities | (5,450) | |
Decrease in other assets | (24,140) | |
Decrease in debt | (6,144) | |
Decrease in other liabilities | (480) | |
Net decrease in noncontrolling interests | $ 5,620 |
CONSOLIDATED FUNDS AND VENTUR82
CONSOLIDATED FUNDS AND VENTURES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
L I H T C Funds [Member] | ||||
Debt, Weighted Average Interest Rate and Cost | 6.50% | |||
Consolidated Funds and Ventures [Member] | ||||
Income (Loss) Attributable To Noncontrolling Interest | $ 11,056 | $ 19,610 | ||
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 | |||
Building [Member] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Minimum [Member] | Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 6 years | |||
Maximum [Member] | Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment, Useful Life | 7 years |
CONSOLIDATED FUNDS AND VENTUR83
CONSOLIDATED FUNDS AND VENTURES (Asset Summary for Consolidated Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Investments in debt securites | $ 162,261 | $ 143,604 |
Investments in Lower Tier Property Partnerships | 128,206 | 227,962 |
Other assets | 17,585 | 17,905 |
Total assets | $ 417,312 | 531,886 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,495 | |
Investments in Lower Tier Property Partnerships | 99,142 | |
Other assets | 5,175 | |
Total assets | $ 127,812 |
CONSOLIDATED FUNDS AND VENTUR84
CONSOLIDATED FUNDS AND VENTURES (Assets and Liabilities of LTPPs) (Details) - Lower Tier Property Partnerships Real Estate [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Investment [Line Items] | |
Total assets of Lower Tier Property Partnerships | $ 1,085,998 |
Debt | 771,027 |
Other Liabilities | $ 165,500 |
CONSOLIDATED FUNDS AND VENTUR85
CONSOLIDATED FUNDS AND VENTURES (Real Estate Held-for-sale of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Other assets | $ 17,585 | $ 17,905 |
L I H T C Funds [Member] | ||
Investment [Line Items] | ||
Cash, cash equivalents and restricted cash | 23,495 | |
Other assets | $ 5,175 |
CONSOLIDATED FUNDS AND VENTUR86
CONSOLIDATED FUNDS AND VENTURES (Liabilities of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investment [Line Items] | |||||
Debt | $ 203,087 | $ 203,087 | $ 216,139 | ||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,003 | ||||
Other liabilities | 24,138 | 24,138 | 57,332 | ||
Total liabilities | 230,630 | 230,630 | 304,784 | ||
Gross Revenue | $ 37,691 | ||||
Operating expenses | 22,085 | ||||
Net loss | $ 2,762 | (4,106) | $ 21,102 | $ (16,687) | |
Net income (loss) | (6,242) | ||||
Consolidated Funds and Ventures [Member] | |||||
Investment [Line Items] | |||||
Debt | 6,712 | ||||
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,003 | ||||
Asset management fee payable | 31,840 | ||||
Other liabilities | 4,010 | ||||
Total liabilities | $ 50,565 | ||||
Gross Revenue | 75,365 | ||||
Operating expenses | 44,125 | ||||
Net loss | $ (12,145) | (21,807) | |||
Net income (loss) | $ (12,201) |
CONSOLIDATED FUNDS AND VENTUR87
CONSOLIDATED FUNDS AND VENTURES (Information Pertaining to Income Statement of CFVs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Expenses: | ||||
Interest expense | $ 673 | $ 444 | $ 1,284 | $ 855 |
Professional fees | 587 | 936 | 3,801 | 2,433 |
Asset management fee expense | 24 | 1,101 | 43 | 2,228 |
Asset impairments | 6,795 | 388 | 11,400 | |
Total expenses from CFVs | 4,213 | 12,611 | 13,492 | 25,931 |
Equity in losses from Lower Tier Property Partnerships of CFVs | 2,382 | (2,545) | ||
Net loss | $ 2,762 | (4,106) | $ 21,102 | (16,687) |
Net (loss) income allocable to the common shareholders related to CFVs | (1,089) | |||
Lower Tier Property Partnerships [Member] | ||||
Expenses: | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | (1,089) | |||
Consolidated Funds and Ventures [Member] | ||||
Revenue: | ||||
Interest and other income | 241 | 244 | ||
Expenses: | ||||
Interest expense | 93 | 186 | ||
Professional fees | 65 | 102 | ||
Asset management fee expense | 1,095 | 2,190 | ||
Other operating expenses | 459 | 911 | ||
Asset impairments | 6,795 | 11,400 | ||
Total expenses from CFVs | 8,507 | 14,789 | ||
Equity in losses from Lower Tier Property Partnerships of CFVs | (3,879) | (7,262) | ||
Net loss | (12,145) | (21,807) | ||
Net losses allocable to noncontrolling interests in CFVs | 11,056 | 19,610 | ||
Net (loss) income allocable to the common shareholders related to CFVs | $ (1,089) | (2,197) | ||
Consolidated Funds and Ventures [Member] | Consolidated Property Partnerships [Member] | ||||
Expenses: | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | 10 | |||
Consolidated Funds and Ventures [Member] | Lower Tier Property Partnerships [Member] | ||||
Expenses: | ||||
Equity in losses from Lower Tier Property Partnerships of CFVs | $ (2,207) |