Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 07, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MMA Capital Holdings, Inc. | ||
Entity Central Index Key | 0001003201 | ||
Entity Filer Category | Accelerated Filer | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Document Fiscal Year Focus | 2018 | ||
Entity Public Float | $ 132,851,120 | ||
Entity Common Stock, Shares Outstanding | 5,881,680 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 28,243 | $ 35,693 |
Restricted cash (includes $23,495 related to consolidated funds and ventures ("CFVs") at December 31, 2017) | 5,635 | 44,766 |
Investments in debt securities (includes $85,347 and $128,902 pledged as collateral) | 97,190 | 143,604 |
Investments in partnerships (includes $99,142 related to CFVs at December 31, 2017) | 155,079 | 227,962 |
Loans held for investment (includes $67,000 of related party loans at December 31, 2018) | 67,299 | 736 |
Other assets (includes $5,175 related to CFVs at December 31, 2017) | 10,940 | 17,895 |
Assets of discontinued operations | 0 | 61,230 |
Total assets | 364,386 | 531,886 |
LIABILITIES AND EQUITY | ||
Debt (includes $6,712 related to CFVs at December 31, 2017) | 149,187 | 216,139 |
Accounts payable and accrued expenses | 2,289 | 6,098 |
Unfunded equity commitments to lower tier property partnerships related to CFVs | 0 | 8,003 |
Other liabilities (includes $35,850 related to CFVs at December 31, 2017) | 57,332 | |
Liabilities of discontinued operations | 0 | 17,212 |
Total liabilities | 151,476 | 304,784 |
Commitments and contingencies (see Note 10) | ||
Equity | ||
Noncontrolling interests in CFVs | 0 | 89,529 |
Common shareholders' equity: | ||
Common shares, no par value, 50,000,000 shares are authorized (5,777,216 and 5,525,687 shares issued and outstanding and 104,464 and 92,282 non-employee directors' deferred shares issued at December 31, 2018 and 2017) | 175,213 | 96,420 |
Accumulated other comprehensive income ("AOCI") | 37,697 | 41,153 |
Total common shareholders' equity | 212,910 | 137,573 |
Total equity | 212,910 | 227,102 |
Total liabilities and equity | $ 364,386 | $ 531,886 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted cash (includes $23,495 related to consolidated funds and ventures ("CFVs") at December 31, 2017) | $ 5,635 | $ 44,766 |
Bonds available-for-sale, pledged as collateral | 85,347 | 128,902 |
Investments in partnerships (includes $99,142 related to CFVs at December 31, 2017) | 155,079 | 227,962 |
Loans to a related party | 67,000 | |
Other assets | 10,940 | 17,895 |
Debt | $ 149,187 | 216,139 |
Other Liabilities | $ 57,332 | |
Common stock, no par value | $ 0 | $ 0 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common shares, shares issued (in shares) | 5,777,216 | 5,525,687 |
Common shares, shares outstanding (in shares) | 5,777,216 | 5,525,687 |
Common shares, non-employee directors' and employee deferred shares (in shares) | 104,464 | 92,282 |
Consolidated Funds and Ventures | ||
Restricted cash (includes $23,495 related to consolidated funds and ventures ("CFVs") at December 31, 2017) | $ 23,495 | |
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | ||
Interest on bonds | $ 9,430 | $ 9,159 |
Interest on loans and short-term investments (includes $0 and $11 related to CFVs) | 3,362 | 711 |
Total interest income | 12,792 | 9,870 |
Asset related interest expense | ||
Bond related debt | 2,496 | 1,836 |
Non-bond related debt | 61 | 0 |
Total interest expense | 2,557 | 1,836 |
Net interest income | 10,235 | 8,034 |
Non-interest revenue | ||
Other income (includes $0 and $239 related to CFVs) | 352 | 1,004 |
Total revenues, net of interest expense | 10,587 | 9,038 |
Operating and other expenses | ||
Interest expense (includes $0 and $415 related to CFVs) | 4,528 | 4,770 |
Salaries and benefits | 1,237 | 11,230 |
External management fees and reimbursable expenses | 6,869 | 0 |
General and administrative | 1,558 | 1,607 |
Professional fees (includes $0 and $672 related to CFVs) | 6,072 | 7,462 |
Impairments (includes $0 and $25,074 related to CFVs) | 388 | 26,019 |
Asset management fee expense (includes $0 and $5,698 related to CFVs) | 62 | 5,790 |
Other expenses (includes $0 and $1,825 related to CFVs) | 971 | 2,332 |
Total operating and other expenses | 21,685 | 59,210 |
Equity in income (loss) from unconsolidated funds and ventures (includes $0 and ($14,547) related to CFVs) | 7,673 | (545) |
Net gains on bonds | 21,875 | 620 |
Net gains (losses) on loans | 311 | (4,530) |
Net gains on real estate and other investments | 2,344 | 1,739 |
Net gains on derivatives | 4,587 | 1,960 |
Net (losses) gains on extinguishment of liabilities | (14) | 4,838 |
Net income (loss) from continuing operations before income taxes | 25,678 | (46,090) |
Income tax (expense) benefit | (32) | 1,307 |
Net income from discontinued operations, net of tax | 35,356 | 18,846 |
Net income (loss) | 61,002 | (25,937) |
Loss allocable to noncontrolling interests: | ||
Net losses allocable to noncontrolling interests in CFVs: | 0 | 45,339 |
Net income allocable to common shareholders | $ 61,002 | $ 19,402 |
Basic income per common share: | ||
Income (loss) from continuing operations | $ 4.46 | $ (0.19) |
Income from discontinued operations | 6.14 | 3.50 |
Income per common share | 10.60 | 3.31 |
Diluted income per common share: | ||
Income (loss) from continuing operations (in dollars per share) | 4.25 | (0.19) |
Income from discontinued operations (in dollars per share) | 5.85 | 3.50 |
Income per common share (in dollars per share) | $ 10.10 | $ 3.31 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 5,753 | 5,858 |
Diluted (in shares) | 6,037 | 5,858 |
Continuing Operations [Member] | ||
Loss allocable to noncontrolling interests: | ||
Net losses allocable to noncontrolling interests in CFVs: | $ 0 | $ 43,673 |
Discontinued Operations [Member] | ||
Loss allocable to noncontrolling interests: | ||
Net losses allocable to noncontrolling interests in CFVs: | $ 0 | $ 1,666 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | ||
Interest on loans and short-term investments (includes $0 and $11 related to CFVs) | $ 3,362 | $ 711 |
Non-interest revenue | ||
Other income (includes $0 and $239 related to CFVs) | 352 | 1,004 |
Operating and other expenses | ||
Interest expense (includes $0 and $415 related to CFVs) | 4,528 | 4,770 |
Professional fees (includes $0 and $672 related to CFVs) | 6,072 | 7,462 |
Impairments (includes $0 and $25,074 related to CFVs) | 388 | 26,019 |
Asset management fee expense (includes $0 and $5,698 related to CFVs) | 62 | 5,790 |
Other expenses (includes $0 and $1,825 related to CFVs) | 971 | 2,332 |
Equity in income (loss) from unconsolidated funds and ventures (includes $0 and ($14,547) related to CFVs) | 7,673 | (545) |
Consolidated Funds and Ventures | ||
Interest income | ||
Interest on loans and short-term investments (includes $0 and $11 related to CFVs) | 0 | 11 |
Non-interest revenue | ||
Other income (includes $0 and $239 related to CFVs) | 0 | 239 |
Operating and other expenses | ||
Interest expense (includes $0 and $415 related to CFVs) | 0 | 415 |
Professional fees (includes $0 and $672 related to CFVs) | 0 | 672 |
Impairments (includes $0 and $25,074 related to CFVs) | 0 | 25,074 |
Asset management fee expense (includes $0 and $5,698 related to CFVs) | 0 | 5,698 |
Other expenses (includes $0 and $1,825 related to CFVs) | 0 | 1,825 |
Equity in income (loss) from unconsolidated funds and ventures (includes $0 and ($14,547) related to CFVs) | $ 0 | $ (14,547) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net income allocable to common shareholders | $ 61,002 | $ 19,402 |
Net loss allocable to noncontrolling interests | 0 | (45,339) |
Net income (loss) | 61,002 | (25,937) |
Bond related changes: | ||
Net unrealized gains | 5,620 | 4,216 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (21,875) | (620) |
Reclassification of credit-related losses (gains) to the Consolidated Statements of Operations related to bond investments assessed as other-than-temporary-impairment ("OTTI") | 6 | (135) |
Reinstatement of fair value gains related to bond investments due to deconsolidation of consolidated property partnerships | 9,415 | 0 |
Net change in other comprehensive income due to bonds | (6,834) | 3,461 |
Foreign currency translation adjustment | 3,378 | (126) |
Other comprehensive (loss) income allocable to common shareholders | (3,456) | 3,335 |
Other comprehensive loss allocable to noncontrolling interests: | ||
Unrealized net losses | (26) | |
Other comprehensive loss allocable to noncontrolling interests | (26) | |
Comprehensive income to common shareholders | 57,546 | 22,737 |
Comprehensive loss to noncontrolling interests | 0 | (45,365) |
Comprehensive income (loss) | $ 57,546 | $ (22,628) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | AOCI | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 87,506 | $ 37,818 | $ 125,324 | $ 134,999 | $ 260,323 |
Balance (in shares) at Dec. 31, 2016 | 6,007 | ||||
Net income (loss) | $ 19,402 | 19,402 | (45,339) | (25,937) | |
Other comprehensive income (loss) | 3,335 | 3,335 | (26) | 3,309 | |
Distributions | (40) | (40) | |||
Purchases of shares in a subsidiary (including price adjustments on prior purchases) | (1,134) | (1,134) | (65) | (1,199) | |
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 253 | 253 | 253 | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 10 | ||||
Common share repurchases | $ (9,607) | (9,607) | (9,607) | ||
Common share repurchases (in shares) | (400) | ||||
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) | $ 61,002 | 61,002 | 61,002 | ||
Other comprehensive income (loss) | (3,456) | (3,456) | (3,456) | ||
Purchases of shares in a subsidiary (including price adjustments on prior purchases) | (73) | (73) | (73) | ||
Options exercised (value) | $ 10,303 | 10,303 | 10,303 | ||
Options exercised (shares) | 410 | ||||
Common shares (restricted and deferred) issued under employee and non-employee director share plans | $ 328 | 328 | 328 | ||
Common shares (restricted and deferred) issued under employee and non-employee director share plans (in shares) | 12 | ||||
Net change due to deconsolidation | $ (89,529) | (89,529) | |||
Cumulative change due to change in accounting principle | $ 9,206 | 9,206 | 9,206 | ||
Common shares issued, value | $ 8,375 | 8,375 | 8,375 | ||
Common shares issued, shares | 250 | ||||
Options tendered for payment of withholding taxes, value | $ (4,425) | (4,425) | (4,425) | ||
Options tendered for payment of withholding taxes, shares | (190) | ||||
Common share repurchases | $ (5,923) | (5,923) | (5,923) | ||
Common share repurchases (in shares) | (217) | ||||
Balance at Dec. 31, 2018 | $ 175,213 | $ 37,697 | $ 212,910 | $ 212,910 | |
Balance (in shares) at Dec. 31, 2018 | 5,882 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 61,002 | $ (25,937) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Provisions for credit losses and impairment (1) | 388 | 26,020 |
Net equity in (income) losses from investments in partnerships | (7,673) | 810 |
Net gains on bonds | (21,875) | (620) |
Net gains on real estate and other investments | (2,409) | (7,726) |
Gain on disposal of discontinued operations | (33,410) | 0 |
Net (gain) losses on loans | (711) | 4,530 |
Net (gains) losses on derivatives | (1,606) | 962 |
Net losses (gains) on extinguishment of liabilities | 14 | (4,838) |
Proceeds received on loans held for sale (includes $9,400 and $0 from a related party) | 9,400 | 805 |
Advances on, originations and purchases of loans held for sale | (9,000) | 0 |
Derivative terminations | 2,436 | 0 |
Distributions received from investments in partnerships | 9,903 | 6,461 |
Depreciation and other amortization (1) | (891) | 2,173 |
Foreign currency losses (gains) | 585 | (591) |
Stock-based compensation expense | 1,288 | 2,428 |
Increase in asset management fees payable related to CFVs | 0 | 3,467 |
Other, net | 1,630 | 5,608 |
Net cash provided by operating activities | 9,071 | 13,552 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Principal payments and sales proceeds received on bonds and loans held for investment | 21,159 | 23,871 |
Advances on, originations and purchases of loans held for investment | (6,000) | (15,528) |
Advances on and purchases of investments in debt securities | (5,522) | |
Investments in partnerships and real estate | (66,181) | (37,014) |
Proceeds from the sale of real estate and other investments | 1,725 | 24,136 |
Cash and restricted cash derecognized in the Disposition | (23,009) | 0 |
Restricted cash related to deconsolidated guaranteed LIHTC funds | (23,487) | 0 |
Capital distributions received from investments in partnerships | 28,925 | 17,037 |
Net cash (used in) provided by investing activities | (66,868) | 6,980 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowing activity | 12,189 | 15,248 |
Repayment of borrowings | (18,727) | (27,419) |
Repurchase of common shares | (5,923) | (9,607) |
Options tendered for payment of witholding taxes | (4,425) | 0 |
Issuance of common shares | 8,375 | 0 |
Other, net | 0 | (1,597) |
Net cash used in financing activities | (8,511) | (23,375) |
Net decrease in cash, cash equivalents and restricted cash | (66,308) | (2,843) |
Cash, cash equivalents and restricted cash at beginning of period (includes $19,727 of assets of discontinued operations as of December 31, 2017) | 100,186 | 103,029 |
Cash, cash equivalents and restricted cash at end of period | 33,878 | 100,186 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 7,516 | 7,577 |
Income taxes paid | 313 | 471 |
Non-cash investing and financing activities: | ||
Unrealized (losses) gains included in other comprehensive income | (3,456) | 3,309 |
Debt and liabilities extinguished through sales and collections on bonds | 57,360 | 1,841 |
Increase in common shareholders' equity and decrease in other liabilities due to change in accounting principles | 9,206 | 0 |
Increase in loans held for investment and debt | 5,000 | 0 |
Increase in loans from the Disposition | 57,000 | 0 |
Increase in investments in debt securities from the Disposition | 17,986 | 0 |
Increase in other assets from the Disposition | 2,142 | 0 |
Increase in deferred revenue from the Disposition | (13,000) | 0 |
Increase in other accumulated other comprehensive income from the Disposition | (9,415) | 0 |
Increase in loans held for investment, interest receivable and other liabilities and decrease in investment in partnerships | 6,138 | 0 |
Increase in common shareholders' equity and decrease in other liabilities due to stock options exercised | 10,303 | 0 |
Net decrease in investment in partnerships | (98,760) | 0 |
Decrease in other assets | (5,174) | 0 |
Decrease in debt | 6,712 | 0 |
Decrease in unfunded equity commitments to lower tier property partnerships | 8,003 | 0 |
Decrease in other liabilities | 35,850 | 0 |
Decrease in noncontrolling interests | 83,909 | 0 |
Total cash, cash equivalents and restricted cash shown in statement of cash flows | $ 100,186 | $ 103,029 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Proceeds received on loans held for sale from a related party | $ 9,400 | $ 805 |
Cash, cash equivalents and restricted cash at beginning of period, assets of discontinued operations | 19,727 | |
Consolidated Funds and Ventures | ||
Proceeds received on loans held for sale from a related party | $ 9,400 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of Significant Accounting Policies | Note 1— Summary of Significant Accounting Policies Organization MMA Capital Holdings, Inc. invests in debt associated with renewable energy infrastructure and real estate. Unless the context otherwise requires, and when used in these Notes, the “ Company ,” “ MMA ,” “ we ,” “ our ” or “ us ” refers to MMA Capital Holdings, Inc. and its subsidiaries. We were originally organized as a Delaware limited liability company in 1996 and converted to a Delaware corporation on January 1, 2019. We focus on investments with attractive risk-adjusted returns that generate positive environmental or social impacts, with an emphasis on renewable energy debt investments. Our assets and liabilities are organized into two portfolios: · Energy Capital – This portfolio consists primarily of investments that we have made through joint ventures with an institutional capital partner in loans that finance renewable energy projects; and · Other Assets and Liabilities (“ OA&L ”) – This portfolio includes our investments in bonds and related financing, certain loan receivables, cash, real estate-related investments, subordinated debt and the balance of the Company’s assets and liabilities (at December 31, 2018, investments in bonds and related financing, which were previously identified as their own portfolio in each Quarterly Report on Form 10-Q that was filed in 2018, were reallocated to the OA&L portfolio ). In emphasizing renewable energy debt investments, our objective is to grow the Company’s return on equity by further recycling equity out of existing investments, such as bond-related investments with premiums that will otherwise decrease with the passage of time and other assets that are generating lower returns, into the Energy Capital portfolio, which we believe will generate higher returns. Commencing on January 8, 2018, we became externally managed by Hunt Investment Management, LLC (our “ External Manager ”), an affiliate of Hunt Companies, Inc. (Hunt Companies, Inc. and its affiliates are hereinafter referred to as “ Hunt ”), which is an investment adviser registered with the United States (“ U.S. ”) Securities and Exchange Commission (“ SEC ”). In conjunction with this change, we completed the sale of the following businesses and assets to Hunt (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. On October 4, 2018, Hunt exercised its option as set forth in the Master Transaction Agreement dated January 8, 2018, between the Company and Hunt, to take assignment of the Company’s agreements to acquire (i) the LIHTC business of Morrison Grove Management, LLC (“ MGM ”) and (ii) certain assets pertaining to a specific LIHTC property from affiliates of MGM (these agreements are collectively referred hereinafter to as the “ MGM Agreements ”). In connection with the closing of the MGM Agreements, the Company executed a series of additional transactions completing the Company’s disposition of its MGM and LIHTC related assets. Such transactions are further discussed below within Note 13, “Related Party Transactions and Transactions with Affiliates.” 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 U.S. Operations, International Operations and Corporate Operations. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“ GAAP ”). 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 Disposition and the assignment and settlement of the MGM Agreements in the fourth quarter of 2018. We also made certain reclassifications to prior year financial statements in order to enhance their comparability with current year financial statements. Furthermore, the Company revised the presentation of its Consolidated Statements of Operations for all reporting periods presented by reclassifying all CFV-related income and expenses to be consistent with the classification approach used for other income and expenses of the Company. As a result, the Company no longer classifies CFV-related income or expenses within “Revenue from CFV,” “Expenses from CFVs,” “Net (losses) gains related to CFVs” or “Equity in losses from lower tier property partnerships of CFVs.” This presentation change had no impact on “Net income allocable to common shareholders.” 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 made estimates in certain areas, including the determination of fair values for bonds, derivative instruments, guarantee obligations and certain assets and liabilities of CFVs. Management also made estimates in the determination and measurement of impairment of investments in bonds and real estate. 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. Variable Interest Entity (“ VIE ”) Assessment We have interests in various legal entities that represent VIEs. A VIE is an entity: (i) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities; (ii) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (iii) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. We determine if a legal entity is a VIE by performing a qualitative analysis that requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. Measurement of Consolidated Assets and Liabilities If we are required to consolidate an entity for reporting purposes, we will record upon the initial consolidation of an entity the assets, liabilities and noncontrolling interests at fair value and will recognize a gain or loss for the difference between (i) the fair value of the consideration paid, fair value of noncontrolling interests and the reported amount of any previously held interests and (ii) the net amount of the fair value of the assets and liabilities consolidated. We record gains or losses that are associated with the consolidation of VIEs as “Net gains on real estate and other investments” in our Consolidated Statements of Operations. If we cease to be deemed the primary beneficiary of a VIE, we will deconsolidate a VIE for reporting purposes. We use fair value to measure the initial cost basis for any retained interests that are recorded upon the deconsolidation of a VIE. Any difference between the fair value and the previous carrying amount of our investment in the VIE is recorded in our Consolidated Statements of Operations. Consolidated Funds and Ventures Substantially all of our consolidated entities are investment entities that own real estate or real estate related investments and, as such, we make judgments related to the forecasted cash flows to be generated from the investments such as rental revenue and operating expenses, vacancy, replacement reserves and tax benefits, if any. In addition, we must make judgments about discount rates and capitalization rates. As of December 31, 2017, CFVs consisted of (i) 11 LIHTC funds for which we sold our general partner (“ GP ”) interests and agreed to indemnify the purchaser of our GP interests in such funds from investor claims related to minimum yield guarantees that are provided in connection with their investments in such funds (these 11 funds, along with two additional guaranteed LIHTC funds that are not consolidated for reporting purposes, are hereinafter referred to as “ Guaranteed Funds ”) and (ii) four partnerships, three of which own affordable housing properties. During the first quarter of 2018, the Company assigned to Hunt the Company’s interest in four consolidated property partnerships and its guarantee obligations associated with the 11 guaranteed LIHTC funds in connection with the Disposition. Consequently, the Company deconsolidated these guaranteed LIHTC funds and nearly all other CFVs that were recognized in our Consolidated Balance Sheets at December 31, 2017, upon settlement of the Disposition. Account balances related to CFVs that were reported on our Consolidated Balance Sheets at December 31, 2017, includes the following: · Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash of CFVs are reported as restricted cash by the Company. · Guaranteed Funds Investment in Lower Tier Property Partnerships At December 31, 2017, the Company consolidated 11 Guaranteed Funds. The Guaranteed Funds have limited partner equity investments in affordable housing property partnerships, which are the entities that own the affordable housing properties (“ Lower Tier Property Partnership ” or “ LTPP ”). The GPs of these LTPPs are considered the primary beneficiaries. Therefore, the LIHTC Funds do not consolidate these LTTPs for reporting purposes. These LTTPs are accounted for under the equity method as further described below in this Note 1, “Summary of Significant Accounting Policies,” under the sub-heading entitled “Investments in Partnerships.” Unfunded Equity Commitments The Guaranteed Funds have entered into partnership agreements as the limited partners of LTPPs that require future contribution of capital. The Company recognizes a liability when it is probable that the equity commitment will be funded in the future. These unfunded equity contributions are classified as “Investments in Lower Tier Property Partnerships related to CFVs” and “Unfunded equity commitments to Lower Tier Property Partnerships related to CFVs,” respectively. · Property Partnerships At December 31, 2017, the Company consolidated four partnerships because it was deemed to be the primary beneficiary of the partnerships. The Company held equity interests in these partnerships ranging from 0.01% to 1.00%. The assets held by three of these partnerships are affordable multifamily housing properties and the fourth held U.S. Treasury notes. These consolidated affordable multifamily housing properties and U.S. Treasury notes are reported in “Assets of discontinued operations” on the Consolidated Balance Sheets. Cash and Cash Equivalents Cash and cash equivalents is comprised of short-term marketable securities with original maturities of three months or less, all of which are readily convertible to cash. Restricted Cash Restricted cash represents cash and cash equivalents restricted as to withdrawal or usage. The Company may be required to pledge cash collateral in connection with secured borrowings, derivative transactions or other contractual arrangements. Investments in Debt Securities We classify and account for mortgage revenue bonds and other municipal bonds that we own as available-for-sale pursuant to requirements established in Financial Accounting Standards Board (“ FASB ”) Accounting Standards Codification (“ ASC ”) Topic 320, “ Investments – Debt and Equity Securities .” Accordingly, we measure investments in bonds at fair value (“ FV ”) in our Consolidated Balance Sheets, with unrealized gains and losses included in “AOCI.” We evaluate each bond whose fair value has declined below its amortized cost to determine whether such decline in fair value is other-than-temporary. We assess that an impairment is OTTI if one of the following conditions exists: (a) we have the intent to sell the bond; (b) it is more likely than not that we will be required to sell prior to recovery of the bond’s amortized cost basis; or (c) we do not expect to recover the amortized cost basis of the bond. If we have the intent to sell an impaired bond or it is more likely than not that we will be required to sell such bond prior to recovery of its amortized cost basis, we will recognize an impairment loss in our Consolidated Statements of Operations as a component of “Impairments” for the full difference between the bond’s fair value and its amortized cost basis. However, if we do not have the intent to sell an impaired bond and it is not more likely than not that we will be required to sell such bond prior to recovery of its amortized cost basis, we will, where applicable, recognize only the credit component of the OTTI in our Consolidated Statements of Operations as a component of “Impairments” while the balance of an unrealized holding loss associated with an impaired bond will be recognized in AOCI. The credit component of an OTTI represents the amount by which the present value of cash flows expected to be collected discounted at the bond’s original effective rate is less than a bond’s amortized cost basis. We do not intend to sell bonds that were in an unrealized loss position at December 31, 2017, and it is not more likely than not that we will be required to sell such bonds before recovery of the amortized cost of such instruments. There were no bonds in an unrealized loss position at December 31, 2018. Realized gains and losses on sales of these investments are measured using the specific identification method and are recognized in earnings at the time of disposition. The Company recognizes interest income over the contractual terms of the bonds using the interest method. Therefore, the Company will accrue interest based upon a yield that incorporates the effects of purchase premiums and discounts, as well as deferred fees and costs. Contingent interest on participating bonds is recognized when the contingencies are resolved. Bonds are placed on nonaccrual status when any portion of principal or interest is 90 days past due or on the date after which collectability of principal or interest is not reasonably assured. The Company applies interest payments received on nonaccrual bonds first to accrued interest and then as interest income. Bonds return to accrual status when principal and interest payments become current and future payments are anticipated to be fully collectible. Proceeds from the sale or repayment of bonds greater or less than their amortized cost (which would include any previously recorded impairment charges) are recorded as realized gains or losses and any previously unrealized gains included in accumulated other comprehensive income are reversed. The Company may periodically agree to modify the contractual terms of its investments in debt securities in the interest of attempting to obtain more cash or other value from a debtor than it otherwise would, or to increase the probability of receipt, by granting a concession to a borrower. If the Company makes an economic concession to a borrower that is experiencing financial difficulty, the Company will typically assess a modification or other form of economic concession to represent a troubled debt restructuring (“ TDR ”) for reporting purposes. Investments in Partnerships The Company’s investments in partnerships that are not required to be consolidated for reporting purposes are accounted for using the equity method as described in FASB ASC Topic 323, “ Equity Method Investments ,” to the extent that, based on contractual rights associated with our investments, we can exert significant influence over a partnership’s operations. Under the equity method, the Company’s investment in the partnership is recorded at cost and is subsequently adjusted to recognize the Company’s allocable share of the earnings or losses from the partnership. The Company’s allocable share of earnings or losses from the partnership is adjusted for the following: the elimination of any intra-entity profits or losses; the amortization of any basis differences between the Company’s cost and the underlying equity in net assets of the partnership; capital transactions; and other comprehensive income. Dividends received by the Company are recognized as a reduction in the carrying amount of the investment. The Company continues to record its allocable share of losses from the partnership up to the Company’s investment carrying amount, including any additional financial support made or committed to be made to the partnership. The order in which additional equity method losses are applied to other investments in the partnership is based upon the seniority and priority in liquidation of the other investments. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company, unless: (i) an imminent return to profitable operations by the partnership is assured; (ii) the Company has guaranteed obligations of the partnership or (iii) the Company has otherwise committed to provide further financial support to the partnership. The Company and its consolidated Guaranteed Funds must periodically assess the appropriateness of the carrying amount of its equity method investments to ensure that the carrying amount of its investment is not other-than-temporarily impaired whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The Company recognizes impairment-related losses in the Consolidated Statements of Operations as a component of “Impairments.” The Company classifies distributions received from its equity investments as operating activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is greater than or equal to the cumulative cash distributions. The Company classifies distributions as cash flows from investing activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is less than cumulative cash distributions. Loans Loans Held For Sale (“ HFS ”) When we originate loans that we intend to sell, we classify such loans as HFS. We report HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “Other expenses” in our Consolidated Statements of Operations. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchase premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the event that we reclassify HFS loans to loans held for investment, we record the loans at lower of cost or fair value on the date of reclassification. We report any lower of cost or fair value adjustment recognized upon reclassification as a basis adjustment to the held for investment loan. Loans Held for Investment (“ HFI ”) When we recognize loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. We report HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and 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, in such instance, such assets would be subsequently measured on a fair value basis in our Consolidated Statements of Operations as a component of “Net gains (losses) on loans.” We recognize interest income on HFI loans on an accrual basis using the interest method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. The Company recognizes a provision for loan losses in its Consolidated Statements of Operations as a component of “Other expenses.” Allowance for Loan Losses Our allowance for loan losses is a valuation allowance that reflects management’s estimate of probable losses inherent in our lending activities. Quarterly, the Company reviews each loan to assess the overall collectability of such assets. For impaired loans, which include non-performing loans as well as loans modified in a TDR, management measures impairment primarily based on the present value of payments expected to be received, discounted at the loans’ original effective contractual interest rates. Impaired loans and TDRs may also be measured based on observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less costs to sell. If the recorded investment exceeds this amount, a specific allowance is established as a component of the allowance for loan losses unless these are secured loans that are solely dependent on the collateral for repayment, in which case the amount that exceeds the fair value of the collateral is charged off. Nonaccrual Loans Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, including loans that are individually identified as being impaired, are generally placed on nonaccrual status unless the loan is well-secured and in the process of collection. Accrued interest receivable is reversed when loans are placed on nonaccrual status, provided collection is not anticipated within 12 months of being placed on nonaccrual status. Interest collections on any nonaccrual loans for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise, such collections are credited to income when received. Loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Real Estate Owned (“REO”) The Company’s REO is generally obtained when a delinquent borrower chooses to transfer a mortgaged property to us in lieu of going through a foreclosure process. The Company classifies REO in the Consolidated Balance Sheets in “Other assets.” REO is subsequently measured for reporting purposes based upon whether the Company has designated REO as HFS or held for use (“ HFU ”). REO is classified as HFS when we intend to sell the property and we are actively marketing property that is available for immediate sale in its current condition and a sale is reasonably expected to take place within one year. REO that we do not classify as HFS is designated as HFU. REO that is designated as HFS is reported in the Consolidated Balance Sheets at the lower of its carrying amount or fair value less estimated selling costs. We recognize a recovery for any subsequent increase in fair value, less estimated costs to sell, up to the cumulative loss previously recognized through the valuation allowance. We do not depreciate REO that is classified as HFS. REO that is designated as HFU is depreciated for reporting purposes and evaluated for impairment when circumstances indicate that the carrying amount of the property is no longer recoverable. An impairment loss is recognized if the carrying amount of the REO is not recoverable and exceeds its fair value. We recognize impairment-related losses in our Consolidated Statements of Operations as a component of “Other expenses.” We recognize gains or losses on sales of REO in our Consolidated Statements of Operations as a component of “Other expenses.” Derivative Instruments The Company accounts for all derivative instruments at their fair value unless a given derivative instrument is determined to be exempt from the recognition and measurement requirements of FASB ASC Topic 815, “ Derivatives and Hedging .” The Company has not designated any of its derivative investments as hedging instruments for accounting purposes. As a result, changes in the fair value of such instruments are reported in our Consolidated Statements of Operations as a component of “Net gains on derivatives.” Derivative assets are classified in our Consolidated Balance Sheets as a component of “Other assets” while derivative liabilities are classified as a component of “Other liabilities.” Guarantees At inception of a guarantee to an unconsolidated entity that requires financial statement recognition, we recognize the fair value of our obligation to stand ready to perform over the term of the guarantee in the event that specified triggering events or conditions occur. This liability is classified in Consolidated Balance Sheets as a component of “Other liabilities.” As a practical expedient, we measure the fair value of a guarantee liability based upon either cash compensation that is received at inception or the net present value of expected payments to be received from a guaranteed party over the life of such agreement. The Company will reduce this liability through the use of a systematic and rational method of amortization in which the recognized balance at inception will be evenly amortized over the life of a guarantee. However, guarantee payments made by the Company will be recorded as a reduction of the unamortized balance of a guarantee liability to the extent that the Company’s guarantee liability exceeds the amount of the payment and, in this case, periodic amortization will be prospectively adjusted to reflect a revised amount of amortization that is based upon the-then remaining balance of a guarantee liability and the period to expiration of a guarantee. We also record at the inception of a guarantee to an unconsolidated entity a guarantee asset that is measured based upon the amount of cash compensation that we received at the inception of a guarantee or based upon the net present value of contractual guarantee fees that we expect to collect over the life of a guarantee. Recognized guarantee assets are classified in our Consolidated Balance Sheets as a component of “Other assets.” Subsequent to initial recognition, we account for a guarantee asset at amortized cost. As we collect guarantee fees, we reduce our recognized guarantee asset to reflect cash payments received. We will also assess guarantee assets for other-than-temporary impairment based on changes in our estimate of the cash flows to be received. With respect to our contingent obligation to perform under a guarantee, we will recognize a liability for probable and estimable losses to the extent that a measured loss exceeds the unamortized balance of our noncontingent obligation to stand ready to perform under our guarantee. The Company recognizes guarantee-related losses in the Consolidated Statements of Operations as a component of “Other expenses” while related liabilities are classified in our Consolidated Balance Sheets as a component of “Other liabilities.” Guarantees provided by the Company in connection with the performance of a consolidated subsidiary are exempt from financial statement recognition, though disclosure of such activities is provided in Note 9, “Guarantees and Collateral.” Stock-Based Compensation The Company accounts for previously awarded employee stock-based compensation plans as liability classified awards. Compensation expense is based on the fair value of awarded instruments as of the reporting date, adjusted to reflect the vesting schedule. Subsequent compensation expense is determined by changes in the fair value of awarded instruments at subsequent reporting dates, continuing through the settlement date. As of December 31, 2018, all previously awarded and outstanding stock options had been exercised by our officers. The Company accounts for its director stock-based compensation plans as equity classified awards. Compensation expense is based on the fair value of awarded instruments at the grant date. Foreign Currency Conversion Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional currency of each entity. For certain of the foreign operations, the functional currency is the local currency, in which case the assets, liabilities and operations are translated, for consolidation purposes, from the local currency to the U.S. dollar reporting currency at period-end rates for assets and liabilities and generally at average rates for results of operations. The resulting unrealized gains or losses are reported as a component of AOCI in our Consolidated Balance Sheets. When assets or liabilities are denominated in a currency other than the entity’s functional currency, the resulting remeasurement gains or losses on foreign currency-denominated assets or liabilities are included in earnings in the Company’s Consolidated Statements of Operations as a component of “Other expenses.” Income (Loss) per Common Share Basic income (loss) per share is computed by dividing net income (loss) to common shareholders by the weighted-average number of common shares issued and outstanding during the period. The numerator used to calculate diluted income (loss) per share includes net income (loss) to common shareholders adjusted to remove the difference in income or loss associated with reporting the dilutive employee share awards classified as liabilities as opposed to equity awards. The denominator used to calculate diluted income (loss) per share includes the weighted-average number of common shares issued and outstanding during the period adjusted to add in common stock equivalents associated with unvested share awards as well as in the money option awards unless they are contingent upon a certain share price that has not yet been achieved. As of December 31, 2018, all outstanding stock options of the Company were exercised. Income Taxes All of our business activities, with the exception of our foreign investments, are conducted by entities included in our consolidated corporate federal income tax return. ASC Topic No. 740, “Income Taxes,” establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax assets (“ DTAs ”) and liabilities (“ DTLs ”) for future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. In this regard, we recognize DTAs and DTLs based on the |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES | 12 Months Ended |
Dec. 31, 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 consist of one and two municipal bonds at December 31, 2018 and December 31, 2017, respectively, that financed the development of infrastructure for a mixed-use town center development and are secured by incremental tax revenues generated from the development and its landowners. The weighted-average pay rate on the Company’s bond investments was 6.2% at December 31, 2018 and December 31, 2017. 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 December 31, 2018 and December 31, 2017. The following tables provide information about the UPB, amortized cost, gross unrealized gains, gross unrealized losses and FV associated with the Company’s investments in bonds that are classified as available-for-sale: At December 31, 2018 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Multifamily tax-exempt bonds $ 65,162 $ 38,653 $ 33,564 $ 72,217 Other real estate-related bond 27,170 20,912 4,061 24,973 Total $ 92,332 $ 59,565 $ 37,625 $ 97,190 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 Other real estate-related 37,050 31,163 1,203 (331) 32,035 Total $ 142,522 $ 99,145 $ 44,790 $ (331) $ 143,604 (1) Amortized cost consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as net OTTI recognized in “Impairments” in our Consolidated Statements of Operations. (2) 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 December 31, 2017. See Note 8, “Fair Value,” which describes factors that contributed to the $46.4 million decrease in the reported fair value of the Company’s investments in debt securities for the year ended December 31, 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 December 31, 2018, the majority of the Company’s bond investments amortize on a scheduled basis and have stated maturity dates between August 2033 and December 2048. The Company also had four 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 $3.1 million and $17.4 million, respectively, at December 31, 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 December 31, 2018, as well as stratifies such information for the remainder of the Company’s investments based upon the periods in which such instruments become prepayable at par: (in thousands) UPB Amortized Cost Fair Value December 31, 2018 $ 29,012 $ 21,180 $ 27,071 2019 5,170 4,079 5,189 2020 ─ ─ ─ 2021 27,895 12,943 31,106 2022 30,255 21,363 33,824 Thereafter ─ ─ ─ Bonds that may not be prepaid ─ ─ ─ Total $ 92,332 $ 59,565 $ 97,190 The weighted-average expected maturity of the Company’s investments in bonds that were not currently prepayable at par at December 31, 2018 was 2.8 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 December 31, December 31, (in thousands) 2018 2017 Total current $ 84,307 $ 135,571 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 12,883 8,033 Total $ 97,190 $ 143,604 Troubled Debt Restructurings The Company may periodically agree to modify the contractual terms of its investments in debt securities in the interest of attempting to obtain more cash or other value from a debtor than it otherwise would, or to increase the probability of receipt, by granting a concession to a borrower. If the Company makes an economic concession to a borrower that is experiencing financial difficulty, the Company will typically assess a modification or other form of concession to represent a TDR for reporting purposes. On August 27, 2018, the Company agreed to extend the scheduled payment date associated with one of its infrastructure bonds from September 1, 2018 to November 1, 2018. This extension provided the debtor and the Company more time to negotiate a comprehensive restructuring of both of the Company’s infrastructure bond investments. On October 30, 2018, the Company restructured the two municipal bonds that financed the development of infrastructure for a mixed-use town center development and that are secured by incremental tax revenues generated from the development. At September 30, 2018, these two bond investments had a combined UPB, amortized cost and fair value of $26.8 million, $20.9 million and $21.6 million, respectively, bore interest at a rate of 6.75% and had a weighted-average maturity of 15.4 years. Under the terms of the restructured bond investment, a single tax-exempt bond was issued, that has a UPB of $27.2 million, bears a coupon of 6.30%, has a contractual term of 30.1 years and, at December 31, 2018, had a fair value of $25.0 million. As part of this restructuring transaction, the community development district (“ CDD ”) in which the mixed-use development is located will assess owners of undeveloped land parcels an undeveloped land license fee that will supplement tax revenues that are generated from the mixed-use town center development, thereby increasing the amount of funds available to the CDD to make principal and interest payments to the Company on its infrastructure bond. At the time of restructuring, the real estate venture that owns and operates the mixed-use town center development and in which the Company has an 80% ownership interest, was the owner of all undeveloped land parcels in the CDD. Members of the venture will make capital contributions in order for the venture to satisfy its financial obligations associated with undeveloped land license fees. However, through amendments to the real estate venture’s operating agreement that effectively reimburse the Company’s venture partner for its share of undeveloped land license fees, the Company bears 100% of the economic burden of incremental license fees associated with land that is owned by the venture until such time that the land parcels are sold to third parties. For reporting purposes, the restructuring of the Company’s infrastructure bond investments was deemed to be a TDR. In this regard, the Company carried forward the amortized cost basis of its infrastructure bond investments as of the date of restructuring and will measure the fair value of its restructured bond investment prospectively based upon its amended terms. There were no TDRs for the year ended December 31, 2017. Nonaccrual Bonds The fair value of the Company’s investments in bonds that were on nonaccrual status was $12.9 million and $8.0 million at December 31, 2018 and December 31, 2017, respectively. The Company recognized interest income on a cash basis of $0.4 million and $0.3 million for the years ended December 31, 2018 and December 31, 2017, respectively. Interest income not recognized on bonds that were on nonaccrual status was $1.0 million and $0. 6 million for the years ended December 31, 2018 and December 31, 2017, respectively. Bond Sales and Redemptions The Company received cash proceeds in connection with the sale or full redemption of investments in bonds of $12.8 million and $7.4 million for the years ended December 31, 2018 and December 31, 2017, respectively. 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 year ended December 31, (in thousands) 2018 2017 OTTI losses recognized on bonds held at each period-end $ (6) $ (945) Gains recognized at time of sale or redemption 21,875 620 Total net gains (losses) on bonds $ 21,869 $ (325) |
INVESTMENTS IN PARTNERSHIPS
INVESTMENTS IN PARTNERSHIPS | 12 Months Ended |
Dec. 31, 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 December 31, December 31, (in thousands) 2018 2017 Investment in Solar Ventures $ 126,339 $ 97,011 Investments in U.S. real estate partnerships (includes $898 and $1,046 related (1) 19,961 19,114 Investment in South Africa Workforce Housing Fund (" SAWHF ") 8,779 12,695 Investments in LTPPs related to CFVs (2) ─ 99,142 Total investments in partnerships $ 155,079 $ 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 16, “Consolidated Funds and Ventures,” for more information. Investment in Solar Ventures At December 31, 2018, 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 $104.9 million, $2.9 million and $18.5 million, respectively. The Company held ownership interests of 50.0% in SCL and SPL, and 31.1% in SDL as of December 31, 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. At December 31, 2017, the Company accounted for its equity investment in Renewable Energy Lending, LLC (“ REL ”) pursuant to the equity method of accounting. However, effective June 1, 2018, with the Company’s buyout of our prior investment partner’s ownership interest in REL, the Company became the sole owner of REL and consolidated this entity for reporting purposes in all subsequent reporting periods. As a result, the Company’s equity investment in REL was eliminated for reporting purposes as of December 31, 2018 and REL’s equity investments in SCL and SPL are reported as direct investments of the Company at such reporting date. The $5.1 million purchase price paid by the Company to our prior investment partner on June 1, 2018, was allocated to the net assets acquired based upon their relative fair values. Such allocation resulted in a cumulative basis adjustment of $4.5 million being allocated to the Company’s investments in SCL and SPL, representing the difference between the Company’s acquisition cost basis of its investments and the historical cost basis of the investments at the partnership level. This basis difference is amortized over the remaining investment period of each respective partnership. For the year ended December 31, 2018, the amortization expense related to such basis difference was $0.5 million. As of December 31, 2018, the unamortized balance of the Company’s basis difference was $4.0 million. The following table provides information about the carrying amount of total assets, other liabilities and noncontrolling interests of all investees for which the Company had an equity method investment: At At December 31, December 31, 2018 2017 (in thousands) Total assets $ 279,960 $ 399,758 Other liabilities 12,833 5,111 Noncontrolling interests ─ 87,699 The following table provides information about the gross revenue, operating expenses and net income of all investees for which the Company had an equity method investment: For the year ended December 31, (in thousands) 2018 2017 Gross revenue $ 27,327 $ 29,777 Operating expenses 5,793 5,870 Net income 21,977 23,988 Net income attributable to the entity 21,977 16,227 Investments in U.S. Real Estate Partnerships At December 31, 2018, $19.1 million of the reported carrying value of investments in U.S. real estate partnerships related to an equity investment made by the Company in a real estate venture that owns and operates a mixed-use town center development and land 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 December 31, 2018, the Company held a 72.9% 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. During the first quarter of 2018, the Company acquired three limited partner interests in three affordable housing partnerships, for $3.3 million in which our ownership interest ranged from 74.25% to 74.92%. 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 December 31, 2018, the carrying value of these investments was $0.9 million. At December 31, 2018, four 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 $0.9 million and $1.0 million at December 31, 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 $0.9 million and $1.0 million at December 31, 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 December 31, December 31, 2018 2017 (in thousands) Total assets $ 56,238 $ 57,712 Debt 6,530 7,037 Other liabilities 32,165 22,030 The following table provides information about the gross revenue, operating expenses and net (loss) income of U.S. real estate partnerships in which the Company had an equity investment: For the year ended December 31, (in thousands) 2018 2017 Gross revenue $ 2,383 $ 3,814 Operating expenses 2,127 1,744 Net (loss) income and net (loss) income attributable to the entity (794) 10,722 Investment in SAWHF At December 31, 2018, the carrying value of the Company’s 11.85% equity investment in SAWHF was $8.8 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 December 31, December 31, 2018 2017 (in thousands) Total assets $ 74,803 $ 123,187 Debt ─ 15,712 Other liabilities 496 100 The following table provides information about the gross revenue, operating expenses and net (loss) income of SAWHF: For the year ended December 31, (in thousands) 2018 2017 Gross revenue $ 4,308 $ 18,327 Operating expenses 2,277 20,299 Net (loss) income and net (loss) income attributable to the entity (14,339) 3,990 |
LOANS HFI AND LOANS HFS
LOANS HFI AND LOANS HFS | 12 Months Ended |
Dec. 31, 2018 | |
Loans HFI and Loans HFS | |
Loans HFI and Loans HFS | Note 4—Loans HFI and Loans HFS The following table provides information about the carrying value of the Company’s loans: At At December 31, December 31, (in thousands) 2018 2017 Loans HFI $ 67,299 $ 736 Loans HFS ─ ─ Total loans $ 67,299 $ 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 allowances for loan losses. 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 December 31, December 31, (in thousands) 2018 2017 UPB $ 68,050 $ 1,487 Cost basis adjustments, net (751) (751) Loans HFI, net $ 67,299 $ 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 December 31, December 31, (in thousands) 2018 2017 UPB Carrying value UPB Carrying value Total current $ 67,000 $ 67,000 $ 437 $ 437 30-59 days past due ─ ─ ─ ─ 60-89 days past due ─ ─ ─ ─ 90 days or greater 1,050 299 1,050 299 Total $ 68,050 $ 67,299 $ 1,487 $ 736 At December 31, 2018 and December 31, 2017, the Company did not have any loans for which it elected the FVO. At December 31, 2018 and December 31, 2017, the UPB of HFI loans that were placed on nonaccrual status was $1.1 million while the carrying value of these loans was $0.3 million as of such reporting dates. At December 31, 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 Statements of Operations as a component of “Net gains (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 gains (losses) on loans” up to the amount of previously recognized losses. At December 31, 2018 and December 31, 2017, the cost basis and carrying value of the Company’s HFS loans were $6.0 million and zero, respectively, as of such reporting dates. During the years ended December 31, 2018 and December 31, 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. Contemporaneously with the Disposition, the Company acquired a loan with a $9.0 million UPB from an affiliate of MGM. During the fourth quarter of 2018, Hunt acquired this loan in connection with the closing under the MGM Agreements. Unfunded Loan Commitments There were no unfunded loan commitments at December 31, 2018 and December 31, 2017. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 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 December 31, December 31, (in thousands) 2018 2017 Other assets: Derivative assets $ 5,797 $ 6,865 Real estate owned 3,769 3,447 Accrued interest receivable 854 1,558 Other assets 520 850 Other assets held by CFVs (1) ─ 5,175 Total other assets $ 10,940 $ 17,895 (1) See Note 16, “Consolidated Funds and Ventures,” for more information. Derivative Assets At December 31, 2018 and December 31, 2017, the Company had $5.8 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 December 31, December 31, (in thousands) 2018 2017 Building, furniture, fixtures and land improvement $ 1,150 $ 828 Land 2,619 2,619 Total $ 3,769 $ 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 Liabilities portfolio includes the Company’s REO which consists of 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 years ended December 31, 2018 and December 31, 2017, nor were any impairment losses recognized by the Company in connection with its REO during such reporting periods. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt [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 December 31, 2018 and December 31, 2017: At At December 31, 2018 December 31, 2017 Wtd. Avg. Wtd. Avg. Effective Effective Carrying Interest Carrying Interest (dollars in thousands) Value Rate Value Rate Asset Related Debt Notes Payable and Other Debt Bond related debt (1) Due within one year $ 317 4.0 % $ 41,767 3.2 % Due after one year 38,938 3.7 42,071 2.9 Non-bond related debt Due within one year 1,500 5.0 ─ ─ Due after one year 3,500 5.0 ─ ─ Total asset related debt 44,255 3.9 83,838 3.1 Other Debt Subordinated debt (2) Due within one year 2,232 3.7 2,297 2.6 Due after one year 95,490 3.7 97,700 2.6 Notes payable and other debt (3) Due within one year ─ ─ 14,733 2.8 Due after one year 7,210 14.7 10,859 12.1 Total other debt 104,932 4.5 125,589 3.5 Total asset related debt and other debt 149,187 4.3 209,427 3.3 Debt related to CFVs (4) Due within one year ─ ─ 6,712 6.5 Total debt related to CFVs ─ ─ 6,712 6.5 Total debt $ 149,187 4.3 $ 216,139 3.4 (1) Included in notes payable and other debt – bond related debt were unamortized debt issuance costs. The balance at December 31, 2018 and December 31, 2017 was de minimis. (2) The subordinated debt balances include net cost basis adjustments of $7.9 million and $8.3 million at December 31, 2018 and December 31, 2017, respectively, that pertain to premiums and debt issuance costs. (3) Included in notes payable and other debt – other debt were unamortized debt issue costs of $0.2 million and $0.4 million at December 31, 2018 and December 31, 2017, respectively. (4) See Note 16, “Consolidated Funds and Ventures,” for more information. 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 December 31, 2018: Asset Related Debt (in thousands) and Other Debt 2019 $ 3,595 2020 29,326 2021 14,103 2022 1,980 2023 1,954 Thereafter 90,144 Net premium and debt issue costs 8,085 Total debt $ 149,187 At December 31, 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. Bond Related Debt These debt obligations pertain to investments in bonds that are classified as available-for-sale and were recognized by the Company in connection with transfers of bond investments that did not qualify as sales for reporting purposes. In most of these cases, debt obligations are recognized when the Company sold bond investments for cash consideration and concurrently executed total return swap (“ TRS ”) agreements with the buyer, which enabled the Company to retain the economic risks and returns of such investments. In cases where a TRS agreement was involved in a conveyance that was not accounted for as a sale, and as of December 31, 2018, the Company’s counterparty is required to pay the Company an amount equal to the interest payments received on the underlying bonds and 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. The Company uses the pay rate on executed TRS agreements to accrue interest on its secured borrowing obligations to its counterparty. At December 31, 2018, the weighted-average effective interest rates on these debt obligations was 3.1% In cases where a TRS agreement was not involved in a conveyance that was not accounted for as a sale, the Company uses the coupon on the conveyed bond investment to accrue interest on its secured borrowing obligations to its counterparty. At December 31, 2018, the effective interest rate on this debt obligation was 6.0%. At December 31, 2018, the maturity date of bond related debt that was recognized in transfers that involved TRS agreements ranged from July 8, 2020 to June 21, 2021. At December 31, 2018, the maturity date of bond related debt that was recognized in a transfer that did not involve a TRS agreement was February 1, 2048. Non-bond Related Debt This debt obligation bears interest at 5.0%, is payable quarterly in arrears and is scheduled to fully amortize by its maturity date of January 1, 2026. At December 31, 2018, the UPB and carrying value of this debt obligation was $5.0 million. Other Debt Other debt of the Company finances non-interest-bearing assets and other business activities of the Company. The interest expense associated with this debt is classified as “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 MMA Financial Holdings, Inc. (“ MFH ”), the Company’s wholly owned subsidiary, and that was outstanding at December 31, 2018: (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFH $ 26,526 $ 2,403 $ 28,929 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 24,120 2,195 26,315 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 13,904 1,169 15,073 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 25,279 2,126 27,405 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 89,829 $ 7,893 $ 97,722 Notes Payable and Other Debt At December 31, 2018, the UPB and carrying value of notes payable and other debt that was used to finance the Company’s 11.85% ownership interest in SAWHF was $7.4 million and $7.2 million, respectively. 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 December 31, 2018, the JIBAR base rate was 7.15%, while the weighted-average effective interest rate of the Company’s debt obligation that was used to finance its ownership in SAWHF was 14.7%. Letters of Credit The Company had no letters of credit outstanding at December 31, 2018 and December 31, 2017. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments | |
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, changes in fair value of such instruments are recognized in the Consolidated Statements of Operations as a component of “Net gains 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 December 31, 2018 December 31, 2017 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 1,130 $ ─ $ 2,347 $ 46 Basis swaps 808 ─ 439 26 Interest rate caps 998 ─ 788 ─ Interest rate swaps 2,674 ─ 3,291 ─ Foreign currency forward exchange 187 ─ ─ 247 Total carrying value of derivative instruments $ 5,797 $ ─ $ 6,865 $ 319 The following table provides information about the notional amounts of the Company’s derivative instruments: Notional Amounts At At December 31, December 31, (in thousands) 2018 2017 Total return swaps $ 18,278 $ 72,290 Basis swaps 35,000 100,500 Interest rate caps 80,000 80,000 Interest rate swaps 65,000 140,000 Foreign currency forward exchange 4,331 4,363 Total notional amount of derivative instruments $ 202,609 $ 397,153 During the year ended December 31, 2018, the notional amount of interest derivative instruments and total return swaps significantly decreased. The following table attributes the decrease in the total notional amount of such instruments to contract expirations, contract terminations and net cash settlements that occurred during 2018: Notional Amounts Balance, January 1, 2018 $ 392,790 Impact from expirations (55,000) Impact from terminations (138,607) Impact from settlements (905) Balance, December 31, 2018 $ 198,278 The following table provides information about the net gains that were recognized by the Company in connection with its derivative instruments: For the year ended December 31, (in thousands) 2018 2017 Total return swaps (1) $ 3,154 $ 3,255 Basis swaps (2) 449 196 Interest rate caps 210 (765) Interest rate swaps (3) 422 (726) Foreign currency forward exchange 352 ─ Total net gains of derivative instruments $ 4,587 $ 1,960 (1) The accrual of net interest payments that are made in connection with TRS agreements that are reported as derivative instruments are classified as a component of “Net gains on derivatives” on the Consolidated Statements of Operations. Net cash received was $2.5 million and $3.0 million for the year ended December 31, 2018 and December 31, 2017, respectively. (2) The accrual of net interest payments that are made in connection with basis swaps is classified as a component of “Net gains on derivatives” on the Consolidated Statements of Operations. The net cash received was de minimis for the year ended December 31, 2018 while the net cash paid was $0.1 million for the year ended December 31, 2017. (3) The accrual of net interest payments that are made in connection with interest rate swaps is classified as a component of “Net gains on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.5 million for the year ended December 31, 2018 while net cash paid was $0.3 million for the year ended December 31, 2017. During the year ended December 31, 2018, the Company also received $0.3 million to amend two interest rate swaps and recorded $0.3 million through “Other assets” on the Consolidated Balance Sheets. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value | |
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 non-recurring basis such as certain loans held for investment or investments in partnerships. These non-recurring 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: At December 31, Fair Value Measurements (in thousands) 2018 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 97,190 $ ─ $ ─ $ 97,190 Derivative instruments 5,797 ─ 4,667 1,130 At December 31, Fair Value Measurements (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 years ended December 31, 2018 and December 31, 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 year ended December 31, 2018: Investments in Debt Derivative Derivative (in thousands) Securities Assets Liabilities Balance, January 1, 2018 $ 143,604 $ 2,347 $ (46) Net (losses) gains included in earnings (6) 854 (41) Net change in AOCI (1) (16,249) ─ ─ Impact from deconsolidation (2) 17,998 ─ ─ Impact from sales/redemptions (47,488) ─ ─ Impact from settlements (3) (669) (2,071) 87 Balance, December 31, 2018 $ 97,190 $ 1,130 $ ─ (1) This amount includes the reclassification into the Consolidated Statements of Operations of $21.9 million of net fair value gains related to bonds that were sold or redeemed during this reporting period. This decline was partially offset by $5.6 million of net unrealized gains recognized during this reporting period. (2) This amount reflects the recognition of bond investments that were no longer eliminated for reporting purposes in the first quarter of 2018 due to the derecognition of corresponding consolidated property partnerships. (3) 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 (losses) gains that were reported in the Company’s Consolidated Statements of Operations for the year ended December 31, 2018 related to activity presented in the preceding table: Net gains on Net gains on (in thousands) bonds (1) derivatives (2) Change in unrealized (losses) gains related to assets and $ (6) $ 911 Change in unrealized losses related to assets and liabilities ─ (98) Additional realized gains recognized 21,875 2,342 Total net gains reported in earnings $ 21,869 $ 3,155 (1) Amounts are classified as “Impairments” and “Net gains on bonds” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains on derivatives” in the Company’s Consolidated Statements of Operations. 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 year ended December 31, 2017: Investments in Debt Loans Held for Derivative Derivative (in thousands) Securities Investment Assets Liabilities Balance, January 1, 2017 $ 155,981 $ 3,835 $ 2,327 $ (372) Net (losses) gains included in earnings (5,265) (5,335) 20 326 Net change in AOCI (1) 3,461 ─ ─ ─ Impact from purchases ─ 14,028 ─ ─ Impact from loan originations ─ 1,500 ─ ─ Impact from sales/redemptions (6,784) (14,028) ─ ─ Impact from settlements (2) (3,789) ─ ─ ─ Balance, December 31, 2017 $ 143,604 $ ─ $ 2,347 $ (46) (1) This amount represents $4.2 million of net unrealized holding gains recognized during the period, an amount of which was partially offset by the reclassification into the Consolidated Statements of Operations of $0.1 million of realized bond gains related to a bond that was other-than-temporarily impaired and $0.6 million of fair value gains related to bonds that were sold or redeemed during this reporting 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 (losses) gains that were reported in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017 related to activity presented in the preceding table: Equity in Net losses on losses from Net losses on Net gains on (in thousands) bonds (1) LTPPs loans (2) derivatives (3) Change in unrealized (losses) gains related to assets $ (945) $ (4,320) $ ─ $ 346 Change in unrealized losses related to assets and liabilities held at January 1, 2017, but settled during 2017 ─ ─ (5,335) ─ Additional realized gains recognized 620 ─ 805 2,909 Total net (losses) gains reported in earnings $ (325) $ (4,320) $ (4,530) $ 3,255 (1) Amounts are classified as “Impairments” and “Net gains on bonds” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on loans” in the Company’s Consolidated Statements of Operations. (3) Amounts are classified as “Net gains on derivatives” in the Company’s Consolidated Statements of Operations. Fair Value Measurements of Instruments That Are Classified as Level 3 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 market yield, 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 non-performing bonds and subordinate cash flow bonds, 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 either quotes received from third parties or contract prices associated with a purchase and sale agreement 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. · For infrastructure bond(s), 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 the instrument’s specific credit characteristics. For the year ended December 31, 2017, the Company’s projection of expected future cash flows reflected 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. At December 31, 2018, as a result of the restructuring of the Company’s infrastructure bonds during the fourth quarter of 2018, contractually due cash flows were discounted based upon the market yield of such instruments as of such reporting date. Significant unobservable inputs presented in the tables that follow 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 tables below: · Market yield – is a market rate of return used to calculate the 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. · Contract price – represents a third-party sale agreement executed in connection with the pending sale of an affordable housing property that secures one of the Company’s non-performing bond investments. 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 December 31, 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 $ 48,221 Discounted cash flow Market yield 4.4 - 6.8 % 4.8 % Non-performing 12,882 Discounted cash flow Market yield 8.2 N/A Capitalization rate 7.0 N/A Valuation technique • Net operating 0.5 N/A • Contract price $ 13,500 $ N/A Subordinated cash flow 11,114 Discounted cash flow Market yield 7.4 - 7.6 % 7.5 % Capitalization rate 6.2 - 6.5 6.4 NOI annual growth rate 0.6 - 0.7 0.7 Infrastructure bond 24,973 Discounted cash flow Market yield 7.2 N/A Derivative instruments: Total return swaps 1,130 Discounted cash flow Market yield 4.7 - 4.8 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 % % Non-performing 8,033 Discounted cash flow Market yield 7.5 Capitalization rate 6.4 NOI annual growth rate (1.2) Subordinated cash flow 12,573 Discounted cash flow Market yield 6.7 - 7.0 Capitalization rate 5.8 - 6.1 NOI annual growth rate 0.6 - 0.9 Infrastructure bonds 21,824 Discounted cash flow Market yield 7.1 - 9.2 Cash flow probability - 80 Cash flow probability - 20 Other bonds 10,211 Discounted cash flow Market yield 4.2 Derivative instruments: Total return swaps 2,301 Discounted cash flow Market yield 4.1 - 5.3 (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. Non-Recurring Changes in Fair Value During the year ended December 31, 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 year ended December 31, 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 December 31, 2018 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 28,243 $ 28,243 $ ─ $ ─ Restricted cash 5,635 5,635 ─ ─ Loans held for investment 67,299 ─ ─ 66,339 Liabilities: Notes payable and other debt - bond related 39,255 ─ ─ 39,289 Notes payable and other debt - non-bond related 12,210 ─ ─ 11,479 Subordinated debt issued by MFH 97,722 ─ ─ 46,778 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 - CFVs related 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. 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 projected contractual interest payments and contractual principal payments using such instrument’s estimated market yield, which was 13.4% and 14.0% at December 31, 2018 and December 31, 2017, respectively. As outlined in the table above, at December 31, 2018, the aggregate fair value was measured at $46.8 million. At December 31, 2018, the measured fair value of this debt would have been $55.4 million and $40.3 million using a market yield of 10.9% and 15.9%, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees and Collateral | |
Guarantees And Collateral | Note 9—Guarantees and Collateral Guarantees - LIHTC At December 31, 2018, the Company had one minimum yield guarantee associated with a nonconsolidated guaranteed LIHTC fund to indemnify the purchaser of the GP interest in that guaranteed LIHTC fund from investor claims related to such guarantee. This arrangement requires the Company to pay the fund investors any shortfall in the minimum guaranteed yield resulting from the recapture of tax credits due to foreclosure or from difficulties in maintaining compliance with LIHTC regulations with respect to the LTPPs in which the guaranteed LIHTC fund is invested. The Company does not believe it would be required to perform under this guarantee because (i) the LIHTC fund’s yield exceeds the guaranteed minimum yield and prior to December 31, 2017, the LIHTC fund had delivered all tax credits to investors resulting in no additional future exposure to the Company because the future tax credit recapture risk was not large enough to reduce the actual yield below the guaranteed yield; and (ii) as of December 31, 2018, all of the properties in the fund have reached the end of their tax credit compliance periods and we believe that the Company no longer has tax credit recapture risk because we believe all properties were in compliance through the end of their respective compliance periods. As such, at December 31, 2018 and December 31, 2017, the Company has measured the maximum exposure and the carrying value of this minimum yield guarantee associated with the nonconsolidated guaranteed LIHTC fund to be zero. This guarantee expires upon dissolution of the fund. The Company also had agreed to indemnify specific investors in non-guaranteed LIHTC funds related to the performance of one and two LTPPs as of December 31, 2018, and December 31, 2017, respectively. If a third party failed to perform on its financial obligation relating to the property’s performance, the Company would be required to indemnify impacted investors. One such indemnity expired on December 31, 2018 and the remaining indemnity expires on December 31, 2022. At December 31, 2017, the LTPP indemnification that expired on December 31, 2018 had no financial limit, as the specific guarantee required the guarantor to unconditionally fund any operating deficits of the LTPP. However, the Company did not believe it would be required to perform under such indemnification or incur any losses based upon the 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 December 31, 2018 and December 31, 2017. Guarantees – Energy Capital At December 31, 2017, as part of the formation of REL, the Company agreed to guarantee all payment and performance obligations of its subsidiary, MMA Energy Holdings, LLC (“ MEH ”) to the venture (MEH was formerly known as MMA Energy Capital). Performance under this guaranty would be required upon a breach of terms under the management agreement entered into by MEH. Because the Company controlled MEH, it did not expect that it would, under any circumstance, ever have to perform under this guarantee. During the first quarter of 2018 as part of the Disposition, the Company assigned to Hunt its guarantee obligation associated with MEH. Collateral and Restricted Assets The following tables summarize assets that are either pledged or restricted for the Company’s use at December 31, 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 December 31, 2018 Investments Total Restricted in Debt Investments in Assets (in thousands) Cash Securities Partnerships Pledged Debt and derivatives related to TRS agreements $ 4,287 $ 85,347 $ ─ $ 89,634 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,340 ─ 8,779 10,119 Other 8 ─ ─ 8 Total $ 5,635 $ 85,347 $ 8,779 $ 99,761 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 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 5,991 ─ 12,695 ─ 18,686 Other (1) 6,120 ─ ─ ─ 6,120 CFVs 23,495 ─ 99,142 5,175 127,812 Total $ 44,766 $ 128,902 $ 111,837 $ 5,175 $ 290,680 (1) The majority of this balance represents collateral pledged by the Company in connection with the tax credit guarantee. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | |
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, the Company had no future rental commitments at December 31, 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 December 31, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Equity | Note 11—Equity Common Share Information The following table provides information about net income to common shareholders as well as provides information that pertains to weighted-average share counts that were used in per share calculations as presented on the Consolidated Statements of Operations: For the year ended December 31, (in thousands) 2018 2017 Net income (loss) from continuing operations $ 25,646 $ (1,110) Net income from discontinued operations 35,356 20,512 Net income to common shareholders $ 61,002 $ 19,402 Basic weighted-average shares (1) 5,753 5,858 Common stock equivalents (2), (3) 284 ─ Diluted weighted-average shares 6,037 5,858 (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) The weighted-average potential dilutive shares outstanding, inclusive of the options exercised during the year based on the exercise date, had a potential dilutive share impact of 284,305 for the year ended December 31, 2018. All stock options were exercised during 2018 leaving no outstanding options as of December 31, 2018. (3) At December 31, 2017, 410,000 stock options were exercisable and in-the-money and had a potential dilutive share impact of 382,790. For the year ended December 31, 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 the repurchase of up to 125,000 common shares, at a maximum price of $30.00 per share. The Company then adopted a 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. O n November 6, 2018, the Board authorized the amendment of the 2018 Plan to increase (i) the total shares authorized for repurchase to 218,750 and (ii) the maximum authorized share repurchase price per share to $32.96, which represented the Company’s diluted common shareholders’ equity at September 30, 2018. During 2018, the Company purchased 218,750 common shares at an average price of $27.08. The 2018 Plan expired on December 31, 2018. 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 a Tax Benefits Rights Agreement (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 until the earlier of (i) a period of five years or (ii) 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 such limitation to the acquisition of 9.9% of the Company’s issued and outstanding shares in any rolling 12‑month period. At December 31, 2018, the Company had three shareholders, including one of its executive officers, Michael L. Falcone, that held greater than a 4.9% interest in the Company. In order to facilitate satisfaction of share purchase obligations related to his 2017 bonus award and permitting his stock option awards to be exercised, the Board of Directors named Mr. Falcone an exempt person in accordance with the Rights Plan but only to the extent of settling such share purchase obligations and options. Mr. Falcone satisfied his share purchase obligations and exercised all of his share purchase option awards as of December 31, 2018, and, due to the aforementioned action of the Board of Directors, there was no triggering event for purposes of the Rights Plan. In accordance with the Master Transaction Agreement dated January 8, 2018, Hunt remains an exempt person for purposes of the Rights Plan to the extent it purchases no more than 9.9% of the Company’s shares in any rolling 12-month period without causing a triggering event. Noncontrolling Interests The following table provides information about the noncontrolling interests in CFVs: At At December 31, December 31, (in thousands) 2018 2017 Guaranteed LIHTC Funds $ ─ $ 83,909 Consolidated property partnerships ─ 5,620 Total $ ─ $ 89,529 At December 31, 2017, noncontrolling interest holders were comprised of limited and general partners in the 11 guaranteed LIHTC funds and property partnerships that were consolidated for reporting purposes as such reporting date. During the first quarter of 2018, and as a result of the Disposition, the Company deconsolidated the 11 guaranteed LIHTC funds and derecognized nearly all other CFVs, including previously consolidated property partnerships that were recognized in our Consolidated Balance Sheets at December 31, 2017. As a result, noncontrolling interests in such funds and properties were not recognized in the Company’s financial statements at December 31, 2018. See Note 16, “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 year ended December 31, 2018: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2018 $ 44,459 $ (3,306) $ 41,153 Net unrealized gains 5,620 3,378 8,998 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (21,875) ─ (21,875) Reclassification of credit-related losses to the Consolidated Statements of Operations related to bond investments assessed as OTTI 6 ─ 6 Reinstatement of fair value gains related to bond investments due to deconsolidation of consolidated property partnerships 9,415 ─ 9,415 Net change in AOCI (6,834) 3,378 (3,456) Balance, December 31, 2018 $ 37,625 $ 72 $ 37,697 The following table provides information related to the net change in AOCI that was allocable to common shareholders for the year ended December 31, 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) 4,216 (126) 4,090 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (620) ─ (620) Reclassification of credit-related gains to the Consolidated Statements of Operations related to bond investments assessed as OTTI (135) ─ (135) Net change in AOCI 3,461 (126) 3,335 Balance, December 31, 2017 $ 44,459 $ (3,306) $ 41,153 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation | |
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 year ended December 31, (in thousands) 2018 2017 Employees’ Stock-Based Compensation Plans $ 961 $ 2,175 Non-employee Directors’ Stock-Based Compensation Plans 655 505 Total $ 1,616 $ 2,680 Employees’ Stock-Based Compensation Plans At December 31, 2018, there were 571,066 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 571,066 shares available under the plans, 73,556 are available to be issued in the form of either stock options or shares, while the remaining 497,510 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. 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. All stock options were vested and exercised as of December 31, 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) (410) 1.56 Forfeited/Expired in 2018 ─ Outstanding at December 31, 2018 ─ ─ ─ ─ ─ Number of options that were exercisable at: December 31, 2017 410 1.56 3.4 December 31, 2018 ─ ─ ─ (1) Intrinsic value is based on outstanding options. (2) Only options that were amortized based on a vesting schedule have a liability balance. These options were 410,000 at December 31, 2017 and January 1, 2017. (3) When exercised, stock options were net share settled. For the year ended December 31, 2018, 410,000 stock options were exercised, which resulted in a $9.3 million reduction to the Company’s reported “Other liabilities” within its Consolidated Balance Sheets at December 31, 2018. Of the 410,000 stock options that were exercised, the Company issued 220,279 common shares for the year ended December 31, 2018, and 189,721 stock options were tendered to the Company by their holders in connection with the payment of related withholding taxes and exercise price. 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 393,576 were available to be issued at December 31, 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. 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. Under this plan, 50% of such compensation is paid in cash and the remaining sum through common share-based grants. The table below summarizes non-employee director compensation, including cash, vested options and common and deferred shares, for services rendered for the years ended December 31, 2018 and December 31, 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 December 31, 2018 $ 327,500 ─ 12,182 $ 26.88 ─ $ 655,000 December 31, 2017 252,500 ─ 10,419 24.23 ─ 505,000 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions and Transactions with Affiliates [Abstract] | |
Related Party Transactions and Transactions with Affiliates | Note 13—Related Party Transactions and Transactions with Affiliates Transactions with Hunt External Management Fees and Expense Reimbursements In conjunction with the Disposition, we entered into a management agreement with the External Manager (the “ Management Agreement ”) that took effect on January 8, 2018. At the time of the Disposition, all employees of the Company were hired by the External Manager. In consideration for the management services being provided by the External Manager, the Company pays the External Manager a base management fee, which is payable quarterly in arrears in an amount equal to (i) 0.50% of the Company’s first $500 million of common shareholders’ equity determined in accordance with GAAP in the U.S. on a fully diluted basis, adjusted to exclude the effect of (a) the value of the Company’s net operating loss carryforwards, and (b) any gains or losses attributable to noncontrolling interests (“ GAAP Common Shareholders’ Equity ”); and (ii) 0.25% of the Company’s GAAP Common Shareholders’ Equity in excess of $500 million. Additionally, the Company agreed to pay the External Manager an incentive fee equal to 20% of the total annual return of diluted common shareholders’ equity per share in excess of 7%. The Company also agreed to reimburse the External Manager for certain allocable overhead costs including an allocable share of the costs of (i) noninvestment personnel of the External Manager and an affiliate thereof who spend all or a portion of their time managing the Company’s operations and reporting as a public company (based on their time spent on such matters) and (ii) the Chief Executive Officer (“ CEO ”) and Chief Financial Officer (“ CFO ”) based on the percentage of their time spent managing the Company. Reimbursement of compensation-related expenses is, however, subject to an annual cap of $2.5 million through 2019 and $3.5 million thereafter, until the Company’s GAAP common shareholders’ equity exceeds $500 million. The current term of the Management Agreement extends to December 31, 2022 and automatically renews thereafter for additional two-year terms. Either of the Company or the External Manager may, upon written notice, decline to renew or terminate the Management Agreement without cause, effective at the end of the initial term or any renewal term. If the Company declines to renew or terminates the Management Agreement without cause or the External Manager terminates for cause, the Company is required to pay a termination fee to the External Manager equal to three times the sum of the average annual base and incentive management fees, plus one times the sum of the average Energy Capital business expense reimbursements and the employee cost reimbursement expense, in each case, during the prior two-year period. The Company may also terminate the Management Agreement for cause, including in the event of a payment default under the Hunt note which causes the Hunt note to become immediately due and payable. No termination fee is payable upon a termination by the Company for cause or upon a termination by the Manager without cause. For the year ended December 31, 2018, no incentive fee was earned by our External Manager. During the year ended December 31, 2018, the Company recognized in its Consolidated Statements of Operations $6.9 million of management fees and 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 had an initial term of seven years, is prepayable at any time and bears interest at the rate of 5% per annum. On October 4, 2018, the Company’s receivable from Hunt increased to $67.0 million as part of Hunt’s settlement under the MGM Agreements. The UPB on the note will amortize in 20 equal quarterly payments of $3.35 million beginning on March 31, 2020. During the year ended December 31, 2018, the Company recognized $2.9 million of interest income associated with this note receivable in the Consolidated Statements of Operations. At December 31, 2018, no accrued interest remained payable by Hunt. Loan HFS During the fourth quarter of 2018, in connection with the closing under the MGM Agreements, Hunt acquired the Company’s $9.0 million HFS loan that was previously acquired from an affiliate of MGM during the first quarter of 2018. Hunt paid the Company $9.4 million to complete this transfer. Investment in Partnerships On November 28, 2018, the Company, our investment partner and Hunt entered into an agreement whereby Hunt was admitted as a partner of SDL solely for the purpose of investment in a specific loan. The maximum principal amount of the loan is $58.8 million with Hunt and the Company obligated to contribute 30% and 20%, respectively, and our investment partner is obligated to contribute the remaining 50% of the funding commitment of such loan. At December 31, 2018, Hunt had contributed $10.8 million into SDL to fund its portion of such loan. 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. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | Note 14—Income Taxes Provision for Income Taxes The Company was organized as a limited liability company that had elected to be taxed as a corporation for income tax purposes and, on January 1, 2019, converted into a corporation. All of our business activities, with the exception of our foreign investments, are conducted by entities included in our consolidated corporate federal income tax return. The following table summarizes the components of our provision for income taxes for the years ended December 31, 2018 and December 31, 2017: For the year ended December 31, (in thousands) 2018 2017 Federal income tax benefit: Current $ ─ $ ─ Deferred ─ 846 State income tax benefit (expense): Current (32) 337 Deferred ─ 124 Foreign income tax benefit (expense): Current ─ ─ Deferred ─ ─ Provision (expense) benefit for income taxes $ (32) $ 1,307 The following table reflects the effective income tax reconciliation from continuing operations for the years ended December 31, 2018 and December 31, 2017: For the year ended December 31, (in thousands) 2018 2017 Loss from continuing operations before income taxes $ 25,678 $ (46,090) Income tax (expense) benefit at federal statutory rate (5,392) 16,131 Permanent differences: Impact on taxes from entities not subject to tax 498 (15,936) State income taxes, net of federal tax effect (1,652) (42) Impact from other comprehensive income 4,594 ─ State net operating loss adjustment 507 (2,354) Impact from changes in tax law ─ (54,581) Other (314) 733 Net decrease in the valuation allowance 1,727 57,356 Provision (expense) benefit for income taxes $ (32) $ 1,307 DTAs and DTLs We recognize DTAs and DTLs for future tax consequences arising from differences between the carrying amounts of existing assets and liabilities under GAAP and their respective tax bases. We evaluate our DTAs for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. At December 31, 2018, we continued to conclude that the negative evidence in favor of non-recoverability of our DTAs outweighed the positive evidence and that it is not more likely than not that our DTAs will be realized. Our framework for assessing the recoverability of DTAs requires us to weigh all available evidence, including, but not limited to: · the sustainability of recent profitability required to realize the DTAs; · the cumulative net income or losses in our consolidated statements of operations and comprehensive income in recent years; and · unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years. The following table summarizes the carrying value of our DTAs, net of valuation allowance at December 31, 2018 and December 31, 2017: At At December 31, December 31, (in thousands) 2018 2017 Deferred tax assets: Net operating loss, tax credits and other tax carryforwards $ 123,902 $ 121,574 Guaranteed fees ─ 2,829 Asset management fees ─ 5,470 Cancellation of subordinated debt 3,464 3,581 Other (2,866) 6,533 Total deferred tax assets 124,500 139,987 Less: valuation allowance (124,500) (139,987) Total deferred tax assets, net $ ─ $ ─ The following table summarizes the change in the valuation allowance for the years ended December 31, 2018 and December 31, 2017: For the year ended December 31, (in thousands) 2018 2017 Balance, January 1 $ 139,987 $ 203,794 Net reductions due to discontinued operations (11,072) (6,451) Net reductions due to continuing operations (1,727) (57,356) Cumulative change due to change in accounting principle (2,688) ─ Balance, December 31 $ 124,500 $ 139,987 At December 31, 2018 and December 31, 2017, the Company determined that it was not more likely than not that its deferred tax assets would be fully realized and, therefore, the Company recorded a deferred tax asset valuation allowance of $124.5 million and $140.0 million, respectively. The Company considered information such as forecasted earnings, future taxable income and tax planning strategies in measuring the required valuation allowance. The Company will continue to assess whether the deferred tax assets are realizable and will adjust the valuation allowance as needed. For the tax year ending December 31, 2018 and December 31, 2017, the Company had income taxes payable (net of current taxes receivable) of zero and $0.1 million, respectively, reported through “Accounts payable and accrued expenses” on our Consolidated Balance Sheets. At December 31, 2018 and December 31, 2017, the Company had pre-tax federal NOLs of $396.1 million and $378.9 million, respectively, which are available to reduce future federal income taxes and begin to expire in 2028. On December 22, 2017, the Tax Act was signed into law. The Tax Act introduced significant changes to the Internal Revenue Code. As a result of the reduction under the Tax Act of the corporate tax rate from 35% to 21% for years during which the Company’s deferred tax assets may be realized, the Company reduced its deferred tax assets and related valuation allowance by approximately $54 million at December 31, 2017. Due to the full valuation allowance, this did not impact our overall deferred tax asset position. Significant judgment is required in determining and evaluating income tax positions. The Company establishes additional provisions for income taxes when there are certain tax positions that could be challenged and that may not be supportable upon review by taxing authorities. The Company had no liabilities for uncertain tax positions at December 31, 2018 and December 31, 2017. The changes to tax positions that only affect timing are comprised of temporary differences that, if recognized, would increase the amount of the NOL carryforwards and would be subject to the Company’s full valuation allowance; therefore, a liability is not recorded for these uncertain tax positions. A reconciliation of the beginning and ending amount for uncertain tax positions, including amounts that only affect timing, is as follows: For the year ended December 31, (in thousands) 2018 2017 Balance, January 1 $ 1,863 $ 2,550 Net decreases for tax positions of prior years ─ (841) Net (decreases) increases due to tax positions that only affect timing (1,863) 154 Balance, December 31 $ ─ $ 1,863 The impact of the uncertain tax positions that only affect timing decreased to zero at December 31, 2018 as a result of MMA’s bonus accrual going to zero in 2018 due to the Disposition. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations | |
Discontinued Operations | Note 15—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 were deconsolidated in connection with the Disposition and were 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 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. On October 4, 2018, Hunt exercised its option as set forth in the Master Transaction Agreement dated January 8, 2018, between the Company and Hunt, to take assignment of the Company’s agreements to acquire (i) the LIHTC business of MGM and (ii) certain assets pertaining to a specific LIHTC property from affiliates of MGM. In connection with the closing under the MGM Agreements, the Company executed a series of additional transactions completing the Company’s disposition of its MGM and LIHTC related assets. Such transactions included the $9.4 million acquisition by Hunt of the HFS loan that the Company had previously acquired for $9.0 million from an affiliate of MGM, as well as included the Company’s remaining general partner interests in two nonconsolidated LIHTC funds. During the fourth quarter of 2018, the Company recognized $13.4 million of incremental gains within discontinued operations associated with the components of the aforementioned transactions that were assessed to require such classification. The table below summarizes the Company’s assets and liabilities related to discontinued operations reported in its Consolidated Balance Sheets: At At December 31, 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 ─ 7,653 Total assets of discontinued operations $ ─ $ 61,230 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 year ended December 31, (in thousands) 2018 2017 Interest on bonds $ 6 $ 77 Interest on loans and short-term investments 746 394 Asset management fee and reimbursements 1,370 24,590 Other income 53 1,093 Interest expense ─ (123) Salaries and benefits (53) (8,134) General and administrative (68) (1,420) Professional fees (45) (1,916) Other expenses (527) (1,591) Gains on sales and operations of real estate, net 63 6,549 Equity in income from unconsolidated funds and ventures 1 18 Income tax expense ─ (692) Net income from discontinued operations, net of tax 1,546 18,845 Disposal: Net gains on loans 400 ─ Net losses on derivatives ─ (250) Net gain on sale of business ─ 251 Net gain on disposal of discontinued operations (1) 33,410 ─ Net income from discontinued operations $ 35,356 $ 18,846 Loss from discontinued operations allocable to noncontrolling interests ─ 1,666 Net income to common shareholders from discontinued operations $ 35,356 $ 20,512 (1) Includes $3.4 million of cumulative translation adjustments reclassified out of AOCI and into earnings due to the sale of our international asset and investment management business as part of the Disposition. 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 year ended December 31, (in thousands) 2018 2017 Depreciation and amortization $ 29 $ 1,290 Capital expenditures ─ (123) 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) (35,724) ─ 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) 18,333 ─ Decrease in noncontrolling interests in CFVs 5,620 ─ Increase in accumulated other comprehensive income (3,404) ─ |
CONSOLIDATED FUNDS AND VENTURES
CONSOLIDATED FUNDS AND VENTURES | 12 Months Ended |
Dec. 31, 2018 | |
Consolidated Funds and Ventures [Abstract] | |
Consolidated Funds and Ventures | Note 16—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 December 31, 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 December 31, 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 year ended December 31, (in thousands) 2018 2017 Gross revenue $ ─ $ 150,711 Operating expenses ─ 88,118 Net loss and net loss attributable to entity ─ (23,387) 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 December 31, 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 year ended December 31, (in thousands) 2018 2017 Revenue: Interest and other income related to CFVs $ ─ $ 250 Expenses: Interest expense ─ 415 Professional fees ─ 672 Asset management fee expense ─ 5,698 Other expenses ─ 1,825 Impairments ─ 25,074 Total expenses related to CFVs ─ 33,684 Equity in losses from LTPPs of CFVs ─ (14,547) Net loss ─ (47,981) Net losses allocable to noncontrolling interests in CFVs from continuing operations ─ 43,673 Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (4,308) The following table provides details of net loss allocable to the common shareholders related to CFVs: For the year ended December 31, (in thousands) 2018 2017 Equity in losses from LTPPs $ ─ $ (4,320) Equity in income from consolidated property partnerships ─ 12 Other expenses ─ ─ Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (4,308) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information [Abstract] | |
Segment Information | Note 17—Segment Information At December 31, 2018, the Company invests in debt associated with renewable energy infrastructure and real estate 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. Therefore, all required segment information can be found in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“ GAAP ”). 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 Disposition and the assignment and settlement of the MGM Agreements in the fourth quarter of 2018. We also made certain reclassifications to prior year financial statements in order to enhance their comparability with current year financial statements. Furthermore, the Company revised the presentation of its Consolidated Statements of Operations for all reporting periods presented by reclassifying all CFV-related income and expenses to be consistent with the classification approach used for other income and expenses of the Company. As a result, the Company no longer classifies CFV-related income or expenses within “Revenue from CFV,” “Expenses from CFVs,” “Net (losses) gains related to CFVs” or “Equity in losses from lower tier property partnerships of CFVs.” This presentation change had no impact on “Net income allocable to common shareholders.” |
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 made estimates in certain areas, including the determination of fair values for bonds, derivative instruments, guarantee obligations and certain assets and liabilities of CFVs. Management also made estimates in the determination and measurement of impairment of investments in bonds and real estate. 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. Variable Interest Entity (“ VIE ”) Assessment We have interests in various legal entities that represent VIEs. A VIE is an entity: (i) that has total equity at risk that is not sufficient to finance its activities without additional subordinated financial support from other entities; (ii) where the group of equity holders does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, or the obligation to absorb the entity’s expected losses or the right to receive the entity’s expected residual returns, or both, or (iii) where the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. We determine if a legal entity is a VIE by performing a qualitative analysis that requires certain subjective decisions including, but not limited to, the design of the entity, the variability that the entity was designed to create and pass along to its interest holders, the rights of the parties and the purpose of the arrangement. Measurement of Consolidated Assets and Liabilities If we are required to consolidate an entity for reporting purposes, we will record upon the initial consolidation of an entity the assets, liabilities and noncontrolling interests at fair value and will recognize a gain or loss for the difference between (i) the fair value of the consideration paid, fair value of noncontrolling interests and the reported amount of any previously held interests and (ii) the net amount of the fair value of the assets and liabilities consolidated. We record gains or losses that are associated with the consolidation of VIEs as “Net gains on real estate and other investments” in our Consolidated Statements of Operations. If we cease to be deemed the primary beneficiary of a VIE, we will deconsolidate a VIE for reporting purposes. We use fair value to measure the initial cost basis for any retained interests that are recorded upon the deconsolidation of a VIE. Any difference between the fair value and the previous carrying amount of our investment in the VIE is recorded in our Consolidated Statements of Operations. Consolidated Funds and Ventures Substantially all of our consolidated entities are investment entities that own real estate or real estate related investments and, as such, we make judgments related to the forecasted cash flows to be generated from the investments such as rental revenue and operating expenses, vacancy, replacement reserves and tax benefits, if any. In addition, we must make judgments about discount rates and capitalization rates. As of December 31, 2017, CFVs consisted of (i) 11 LIHTC funds for which we sold our general partner (“ GP ”) interests and agreed to indemnify the purchaser of our GP interests in such funds from investor claims related to minimum yield guarantees that are provided in connection with their investments in such funds (these 11 funds, along with two additional guaranteed LIHTC funds that are not consolidated for reporting purposes, are hereinafter referred to as “ Guaranteed Funds ”) and (ii) four partnerships, three of which own affordable housing properties. During the first quarter of 2018, the Company assigned to Hunt the Company’s interest in four consolidated property partnerships and its guarantee obligations associated with the 11 guaranteed LIHTC funds in connection with the Disposition. Consequently, the Company deconsolidated these guaranteed LIHTC funds and nearly all other CFVs that were recognized in our Consolidated Balance Sheets at December 31, 2017, upon settlement of the Disposition. Account balances related to CFVs that were reported on our Consolidated Balance Sheets at December 31, 2017, includes the following: · Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash of CFVs are reported as restricted cash by the Company. · Guaranteed Funds Investment in Lower Tier Property Partnerships At December 31, 2017, the Company consolidated 11 Guaranteed Funds. The Guaranteed Funds have limited partner equity investments in affordable housing property partnerships, which are the entities that own the affordable housing properties (“ Lower Tier Property Partnership ” or “ LTPP ”). The GPs of these LTPPs are considered the primary beneficiaries. Therefore, the LIHTC Funds do not consolidate these LTTPs for reporting purposes. These LTTPs are accounted for under the equity method as further described below in this Note 1, “Summary of Significant Accounting Policies,” under the sub-heading entitled “Investments in Partnerships.” Unfunded Equity Commitments The Guaranteed Funds have entered into partnership agreements as the limited partners of LTPPs that require future contribution of capital. The Company recognizes a liability when it is probable that the equity commitment will be funded in the future. These unfunded equity contributions are classified as “Investments in Lower Tier Property Partnerships related to CFVs” and “Unfunded equity commitments to Lower Tier Property Partnerships related to CFVs,” respectively. · Property Partnerships At December 31, 2017, the Company consolidated four partnerships because it was deemed to be the primary beneficiary of the partnerships. The Company held equity interests in these partnerships ranging from 0.01% to 1.00%. The assets held by three of these partnerships are affordable multifamily housing properties and the fourth held U.S. Treasury notes. These consolidated affordable multifamily housing properties and U.S. Treasury notes are reported in “Assets of discontinued operations” on the Consolidated Balance Sheets. |
Cash and Cash Equivalents, Restricted Cash | Cash and Cash Equivalents Cash and cash equivalents is comprised of short-term marketable securities with original maturities of three months or less, all of which are readily convertible to cash. Restricted Cash Restricted cash represents cash and cash equivalents restricted as to withdrawal or usage. The Company may be required to pledge cash collateral in connection with secured borrowings, derivative transactions or other contractual arrangements. |
Investments in Debt Securities and Investments in Partnerships | Investments in Debt Securities We classify and account for mortgage revenue bonds and other municipal bonds that we own as available-for-sale pursuant to requirements established in Financial Accounting Standards Board (“ FASB ”) Accounting Standards Codification (“ ASC ”) Topic 320, “ Investments – Debt and Equity Securities .” Accordingly, we measure investments in bonds at fair value (“ FV ”) in our Consolidated Balance Sheets, with unrealized gains and losses included in “AOCI.” We evaluate each bond whose fair value has declined below its amortized cost to determine whether such decline in fair value is other-than-temporary. We assess that an impairment is OTTI if one of the following conditions exists: (a) we have the intent to sell the bond; (b) it is more likely than not that we will be required to sell prior to recovery of the bond’s amortized cost basis; or (c) we do not expect to recover the amortized cost basis of the bond. If we have the intent to sell an impaired bond or it is more likely than not that we will be required to sell such bond prior to recovery of its amortized cost basis, we will recognize an impairment loss in our Consolidated Statements of Operations as a component of “Impairments” for the full difference between the bond’s fair value and its amortized cost basis. However, if we do not have the intent to sell an impaired bond and it is not more likely than not that we will be required to sell such bond prior to recovery of its amortized cost basis, we will, where applicable, recognize only the credit component of the OTTI in our Consolidated Statements of Operations as a component of “Impairments” while the balance of an unrealized holding loss associated with an impaired bond will be recognized in AOCI. The credit component of an OTTI represents the amount by which the present value of cash flows expected to be collected discounted at the bond’s original effective rate is less than a bond’s amortized cost basis. We do not intend to sell bonds that were in an unrealized loss position at December 31, 2017, and it is not more likely than not that we will be required to sell such bonds before recovery of the amortized cost of such instruments. There were no bonds in an unrealized loss position at December 31, 2018. Realized gains and losses on sales of these investments are measured using the specific identification method and are recognized in earnings at the time of disposition. The Company recognizes interest income over the contractual terms of the bonds using the interest method. Therefore, the Company will accrue interest based upon a yield that incorporates the effects of purchase premiums and discounts, as well as deferred fees and costs. Contingent interest on participating bonds is recognized when the contingencies are resolved. Bonds are placed on nonaccrual status when any portion of principal or interest is 90 days past due or on the date after which collectability of principal or interest is not reasonably assured. The Company applies interest payments received on nonaccrual bonds first to accrued interest and then as interest income. Bonds return to accrual status when principal and interest payments become current and future payments are anticipated to be fully collectible. Proceeds from the sale or repayment of bonds greater or less than their amortized cost (which would include any previously recorded impairment charges) are recorded as realized gains or losses and any previously unrealized gains included in accumulated other comprehensive income are reversed. The Company may periodically agree to modify the contractual terms of its investments in debt securities in the interest of attempting to obtain more cash or other value from a debtor than it otherwise would, or to increase the probability of receipt, by granting a concession to a borrower. If the Company makes an economic concession to a borrower that is experiencing financial difficulty, the Company will typically assess a modification or other form of economic concession to represent a troubled debt restructuring (“ TDR ”) for reporting purposes. Investments in Partnerships The Company’s investments in partnerships that are not required to be consolidated for reporting purposes are accounted for using the equity method as described in FASB ASC Topic 323, “ Equity Method Investments ,” to the extent that, based on contractual rights associated with our investments, we can exert significant influence over a partnership’s operations. Under the equity method, the Company’s investment in the partnership is recorded at cost and is subsequently adjusted to recognize the Company’s allocable share of the earnings or losses from the partnership. The Company’s allocable share of earnings or losses from the partnership is adjusted for the following: the elimination of any intra-entity profits or losses; the amortization of any basis differences between the Company’s cost and the underlying equity in net assets of the partnership; capital transactions; and other comprehensive income. Dividends received by the Company are recognized as a reduction in the carrying amount of the investment. The Company continues to record its allocable share of losses from the partnership up to the Company’s investment carrying amount, including any additional financial support made or committed to be made to the partnership. The order in which additional equity method losses are applied to other investments in the partnership is based upon the seniority and priority in liquidation of the other investments. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company, unless: (i) an imminent return to profitable operations by the partnership is assured; (ii) the Company has guaranteed obligations of the partnership or (iii) the Company has otherwise committed to provide further financial support to the partnership. The Company and its consolidated Guaranteed Funds must periodically assess the appropriateness of the carrying amount of its equity method investments to ensure that the carrying amount of its investment is not other-than-temporarily impaired whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The Company recognizes impairment-related losses in the Consolidated Statements of Operations as a component of “Impairments.” The Company classifies distributions received from its equity investments as operating activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is greater than or equal to the cumulative cash distributions. The Company classifies distributions as cash flows from investing activities in our Consolidated Statements of Cash Flows when cumulative equity in earnings is less than cumulative cash distributions. |
Loans Held for Sale and Loans Held for Investment | Loans Held For Sale (“ HFS ”) When we originate loans that we intend to sell, we classify such loans as HFS. We report HFS loans at the lower of cost or fair value. Any excess of an HFS loan’s cost over its fair value is recognized as a valuation allowance, with changes in the valuation allowance recognized as “Other expenses” in our Consolidated Statements of Operations. We recognize interest income on HFS loans on an accrual basis, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. Purchase premiums, discounts and other cost basis adjustments on HFS loans are deferred upon loan acquisition, included in the cost basis of the loan, and not amortized. We determine any lower of cost or fair value adjustment on HFS loans at an individual loan level. In the event that we reclassify HFS loans to loans held for investment, we record the loans at lower of cost or fair value on the date of reclassification. We report any lower of cost or fair value adjustment recognized upon reclassification as a basis adjustment to the held for investment loan. Loans Held for Investment (“ HFI ”) When we recognize loans that we have the ability and the intent to hold for the foreseeable future or until maturity, we classify the loans as HFI. We report HFI loans at the unpaid principal balance, net of unamortized premiums and discounts, other cost basis adjustments, and 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, in such instance, such assets would be subsequently measured on a fair value basis in our Consolidated Statements of Operations as a component of “Net gains (losses) on loans.” We recognize interest income on HFI loans on an accrual basis using the interest method over the contractual life of the loan, including the amortization of any deferred cost basis adjustments, such as the premium or discount at acquisition, unless we determine that the ultimate collection of contractual principal or interest payments in full is not reasonably assured. The Company recognizes a provision for loan losses in its Consolidated Statements of Operations as a component of “Other expenses.” |
Allowance for Loan Losses | Allowance for Loan Losses Our allowance for loan losses is a valuation allowance that reflects management’s estimate of probable losses inherent in our lending activities. Quarterly, the Company reviews each loan to assess the overall collectability of such assets. For impaired loans, which include non-performing loans as well as loans modified in a TDR, management measures impairment primarily based on the present value of payments expected to be received, discounted at the loans’ original effective contractual interest rates. Impaired loans and TDRs may also be measured based on observable market prices, or for loans that are solely dependent on the collateral for repayment, the estimated fair value of the collateral less costs to sell. If the recorded investment exceeds this amount, a specific allowance is established as a component of the allowance for loan losses unless these are secured loans that are solely dependent on the collateral for repayment, in which case the amount that exceeds the fair value of the collateral is charged off. |
Nonaccrual Loans | Nonaccrual Loans Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, including loans that are individually identified as being impaired, are generally placed on nonaccrual status unless the loan is well-secured and in the process of collection. Accrued interest receivable is reversed when loans are placed on nonaccrual status, provided collection is not anticipated within 12 months of being placed on nonaccrual status. Interest collections on any nonaccrual loans for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise, such collections are credited to income when received. Loans may be restored to accrual status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. |
Real Estate Owned (“REO”) | Real Estate Owned (“REO”) The Company’s REO is generally obtained when a delinquent borrower chooses to transfer a mortgaged property to us in lieu of going through a foreclosure process. The Company classifies REO in the Consolidated Balance Sheets in “Other assets.” REO is subsequently measured for reporting purposes based upon whether the Company has designated REO as HFS or held for use (“ HFU ”). REO is classified as HFS when we intend to sell the property and we are actively marketing property that is available for immediate sale in its current condition and a sale is reasonably expected to take place within one year. REO that we do not classify as HFS is designated as HFU. REO that is designated as HFS is reported in the Consolidated Balance Sheets at the lower of its carrying amount or fair value less estimated selling costs. We recognize a recovery for any subsequent increase in fair value, less estimated costs to sell, up to the cumulative loss previously recognized through the valuation allowance. We do not depreciate REO that is classified as HFS. REO that is designated as HFU is depreciated for reporting purposes and evaluated for impairment when circumstances indicate that the carrying amount of the property is no longer recoverable. An impairment loss is recognized if the carrying amount of the REO is not recoverable and exceeds its fair value. We recognize impairment-related losses in our Consolidated Statements of Operations as a component of “Other expenses.” We recognize gains or losses on sales of REO in our Consolidated Statements of Operations as a component of “Other expenses.” |
Derivative Instruments | Derivative Instruments The Company accounts for all derivative instruments at their fair value unless a given derivative instrument is determined to be exempt from the recognition and measurement requirements of FASB ASC Topic 815, “ Derivatives and Hedging .” The Company has not designated any of its derivative investments as hedging instruments for accounting purposes. As a result, changes in the fair value of such instruments are reported in our Consolidated Statements of Operations as a component of “Net gains on derivatives.” Derivative assets are classified in our Consolidated Balance Sheets as a component of “Other assets” while derivative liabilities are classified as a component of “Other liabilities.” |
Guarantees | Guarantees At inception of a guarantee to an unconsolidated entity that requires financial statement recognition, we recognize the fair value of our obligation to stand ready to perform over the term of the guarantee in the event that specified triggering events or conditions occur. This liability is classified in Consolidated Balance Sheets as a component of “Other liabilities.” As a practical expedient, we measure the fair value of a guarantee liability based upon either cash compensation that is received at inception or the net present value of expected payments to be received from a guaranteed party over the life of such agreement. The Company will reduce this liability through the use of a systematic and rational method of amortization in which the recognized balance at inception will be evenly amortized over the life of a guarantee. However, guarantee payments made by the Company will be recorded as a reduction of the unamortized balance of a guarantee liability to the extent that the Company’s guarantee liability exceeds the amount of the payment and, in this case, periodic amortization will be prospectively adjusted to reflect a revised amount of amortization that is based upon the-then remaining balance of a guarantee liability and the period to expiration of a guarantee. We also record at the inception of a guarantee to an unconsolidated entity a guarantee asset that is measured based upon the amount of cash compensation that we received at the inception of a guarantee or based upon the net present value of contractual guarantee fees that we expect to collect over the life of a guarantee. Recognized guarantee assets are classified in our Consolidated Balance Sheets as a component of “Other assets.” Subsequent to initial recognition, we account for a guarantee asset at amortized cost. As we collect guarantee fees, we reduce our recognized guarantee asset to reflect cash payments received. We will also assess guarantee assets for other-than-temporary impairment based on changes in our estimate of the cash flows to be received. With respect to our contingent obligation to perform under a guarantee, we will recognize a liability for probable and estimable losses to the extent that a measured loss exceeds the unamortized balance of our noncontingent obligation to stand ready to perform under our guarantee. The Company recognizes guarantee-related losses in the Consolidated Statements of Operations as a component of “Other expenses” while related liabilities are classified in our Consolidated Balance Sheets as a component of “Other liabilities.” Guarantees provided by the Company in connection with the performance of a consolidated subsidiary are exempt from financial statement recognition, though disclosure of such activities is provided in Note 9, “Guarantees and Collateral.” |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for previously awarded employee stock-based compensation plans as liability classified awards. Compensation expense is based on the fair value of awarded instruments as of the reporting date, adjusted to reflect the vesting schedule. Subsequent compensation expense is determined by changes in the fair value of awarded instruments at subsequent reporting dates, continuing through the settlement date. As of December 31, 2018, all previously awarded and outstanding stock options had been exercised by our officers. The Company accounts for its director stock-based compensation plans as equity classified awards. Compensation expense is based on the fair value of awarded instruments at the grant date. |
Foreign Currency Conversion | Foreign Currency Conversion Assets, liabilities and operations of foreign subsidiaries are recorded based on the functional currency of each entity. For certain of the foreign operations, the functional currency is the local currency, in which case the assets, liabilities and operations are translated, for consolidation purposes, from the local currency to the U.S. dollar reporting currency at period-end rates for assets and liabilities and generally at average rates for results of operations. The resulting unrealized gains or losses are reported as a component of AOCI in our Consolidated Balance Sheets. When assets or liabilities are denominated in a currency other than the entity’s functional currency, the resulting remeasurement gains or losses on foreign currency-denominated assets or liabilities are included in earnings in the Company’s Consolidated Statements of Operations as a component of “Other expenses.” |
Income (Loss) per Common Share | Income (Loss) per Common Share Basic income (loss) per share is computed by dividing net income (loss) to common shareholders by the weighted-average number of common shares issued and outstanding during the period. The numerator used to calculate diluted income (loss) per share includes net income (loss) to common shareholders adjusted to remove the difference in income or loss associated with reporting the dilutive employee share awards classified as liabilities as opposed to equity awards. The denominator used to calculate diluted income (loss) per share includes the weighted-average number of common shares issued and outstanding during the period adjusted to add in common stock equivalents associated with unvested share awards as well as in the money option awards unless they are contingent upon a certain share price that has not yet been achieved. As of December 31, 2018, all outstanding stock options of the Company were exercised. |
Income Taxes | Income Taxes All of our business activities, with the exception of our foreign investments, are conducted by entities included in our consolidated corporate federal income tax return. ASC Topic No. 740, “Income Taxes,” establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax assets (“ DTAs ”) and liabilities (“ DTLs ”) for future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. In this regard, we recognize DTAs and DTLs based on the differences in the book and tax bases of assets and liabilities. We measure DTAs and DTLs using enacted tax rates that are applicable to the period(s) that the differences are expected to reverse. We adjust DTAs and DTLs for the effects of changes in tax laws and rates in the period of enactment. We recognize investment and other tax credits through our effective tax rate calculation assuming that we will be able to realize the full benefit of the credits. We reduce our DTAs by an allowance if, based on the weight of available positive and negative evidence, it is more likely than not (a probability of greater than 50%) that we will not realize some portion, or all, of the DTA. We account for uncertain tax positions using a two-step approach whereby we recognize an income tax benefit if, based on the technical merits of a tax position, it is more likely than not that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation. We then measure the recognized tax benefit based on the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. We establish additional provisions for income taxes when there are certain tax positions that could be challenged and it is more likely than not these positions will not be sustained upon review by taxing authorities. |
New Accounting Guidance | New Accounting Guidance Adoption of New Accounting Standards Accounting for Revenue from Contracts with Customers In May 2014, the 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 year ended December 31, 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 Part II, Item 7. “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 year ended December 31, 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 this guidance 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 year ended December 31, 2018. Accounting for Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance amends the classification and measurement of financial instruments, including equity investments not accounted for under the equity method of accounting. Although this ASU retains many current requirements, it significantly revised an entity’s accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. Additionally, certain disclosure requirements associated with the fair value of financial instruments were amended. We adopted this new guidance on its effective date of January 1, 2018. Upon adoption of this guidance, the Company assessed that certain of our equity investments did not have a readily determinable fair value, resulting in the Company electing the measurement alternative. As such, during the first quarter of 2018, the Company recognized a $0.4 million impairment within our Consolidated Statements of Operations. In February 2018, ASU No. 2018‑03, “Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities” was issued. 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. In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This guidance amends the amortization period for certain callable debt securities held at a premium, shortening such period to the earliest call date. This new guidance is effective for us on January 1, 2019. On January 1, 2019, upon adoption of this new guidance we expect to recognize a cumulative effect adjustment of approximately $0.3 million to retained earnings. In August 2018, the FASB issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This guidance eliminates certain disclosure requirements for fair value measurements, requires public entities to disclose certain new information and modifies some disclosure requirements. 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 “ Tax 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 have considered the impact of this new guidance and do not expect its adoption to materially impact our consolidated financial statements. Accounting for Stock Compensation In 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 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 have considered the impact of this new guidance and do not expect its adoption to materially impact our consolidated financial statements. |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | At December 31, 2018 Gross Amortized Unrealized FV as a % (in thousands) UPB Cost (1) Gains FV of UPB Multifamily tax-exempt bonds $ 65,162 $ 38,653 $ 33,564 $ 72,217 Other real estate-related bond 27,170 20,912 4,061 24,973 Total $ 92,332 $ 59,565 $ 37,625 $ 97,190 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 Other real estate-related 37,050 31,163 1,203 (331) 32,035 Total $ 142,522 $ 99,145 $ 44,790 $ (331) $ 143,604 (1) Amortized cost consists of the UPB, unamortized premiums, discounts and other cost basis adjustments, as well as net OTTI recognized in “Impairments” in our Consolidated Statements of Operations. (2) 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 December 31, 2017. |
Bonds with Prepayment Features | (in thousands) UPB Amortized Cost Fair Value December 31, 2018 $ 29,012 $ 21,180 $ 27,071 2019 5,170 4,079 5,189 2020 ─ ─ ─ 2021 27,895 12,943 31,106 2022 30,255 21,363 33,824 Thereafter ─ ─ ─ Bonds that may not be prepaid ─ ─ ─ Total $ 92,332 $ 59,565 $ 97,190 |
Past Due Analysis of Available-for-sale Securities Bonds, Current | At At December 31, December 31, (in thousands) 2018 2017 Total current $ 84,307 $ 135,571 30-59 days past due ─ ─ 60-89 days past due ─ ─ 90 days or greater 12,883 8,033 Total $ 97,190 $ 143,604 |
Gain (Loss) on Investments | For the year ended December 31, (in thousands) 2018 2017 OTTI losses recognized on bonds held at each period-end $ (6) $ (945) Gains recognized at time of sale or redemption 21,875 620 Total net gains (losses) on bonds $ 21,869 $ (325) |
INVESTMENTS IN PARTNERSHIPS (Ta
INVESTMENTS IN PARTNERSHIPS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investments in Partnerships | At At December 31, December 31, (in thousands) 2018 2017 Investment in Solar Ventures $ 126,339 $ 97,011 Investments in U.S. real estate partnerships (includes $898 and $1,046 related (1) 19,961 19,114 Investment in South Africa Workforce Housing Fund (" SAWHF ") 8,779 12,695 Investments in LTPPs related to CFVs (2) ─ 99,142 Total investments in partnerships $ 155,079 $ 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 16, “Consolidated Funds and Ventures,” for more information. |
U.S. Real Estate Partnerships | |
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 December 31, December 31, 2018 2017 (in thousands) Total assets $ 56,238 $ 57,712 Debt 6,530 7,037 Other liabilities 32,165 22,030 The following table provides information about the gross revenue, operating expenses and net (loss) income of U.S. real estate partnerships in which the Company had an equity investment: For the year ended December 31, (in thousands) 2018 2017 Gross revenue $ 2,383 $ 3,814 Operating expenses 2,127 1,744 Net (loss) income and net (loss) income attributable to the entity (794) 10,722 |
Solar Ventures | |
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 all investees for which the Company had an equity method investment: At At December 31, December 31, 2018 2017 (in thousands) Total assets $ 279,960 $ 399,758 Other liabilities 12,833 5,111 Noncontrolling interests ─ 87,699 The following table provides information about the gross revenue, operating expenses and net income of all investees for which the Company had an equity method investment: For the year ended December 31, (in thousands) 2018 2017 Gross revenue $ 27,327 $ 29,777 Operating expenses 5,793 5,870 Net income 21,977 23,988 Net income attributable to the entity 21,977 16,227 |
SAWHF | |
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 December 31, December 31, 2018 2017 (in thousands) Total assets $ 74,803 $ 123,187 Debt ─ 15,712 Other liabilities 496 100 The following table provides information about the gross revenue, operating expenses and net (loss) income of SAWHF: For the year ended December 31, (in thousands) 2018 2017 Gross revenue $ 4,308 $ 18,327 Operating expenses 2,277 20,299 Net (loss) income and net (loss) income attributable to the entity (14,339) 3,990 |
LOANS HFI AND LOANS HFS (Tables
LOANS HFI AND LOANS HFS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans HFI and Loans HFS | |
Schedule of carrying value of Loans held for investment and held for sale | At At December 31, December 31, (in thousands) 2018 2017 Loans HFI $ 67,299 $ 736 Loans HFS ─ ─ Total loans $ 67,299 $ 736 |
Schedule of loans Held For Investments | At At December 31, December 31, (in thousands) 2018 2017 UPB $ 68,050 $ 1,487 Cost basis adjustments, net (751) (751) Loans HFI, net $ 67,299 $ 736 |
Schedule of UPB and amortized cost of loans that are current and past due with respect to principal or interest payments | At At December 31, December 31, (in thousands) 2018 2017 UPB Carrying value UPB Carrying value Total current $ 67,000 $ 67,000 $ 437 $ 437 30-59 days past due ─ ─ ─ ─ 60-89 days past due ─ ─ ─ ─ 90 days or greater 1,050 299 1,050 299 Total $ 68,050 $ 67,299 $ 1,487 $ 736 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets | At At December 31, December 31, (in thousands) 2018 2017 Other assets: Derivative assets $ 5,797 $ 6,865 Real estate owned 3,769 3,447 Accrued interest receivable 854 1,558 Other assets 520 850 Other assets held by CFVs (1) ─ 5,175 Total other assets $ 10,940 $ 17,895 (1) See Note 16, “Consolidated Funds and Ventures,” for more information. |
Schedule Of Real Estate Owned, Held For Use | At At December 31, December 31, (in thousands) 2018 2017 Building, furniture, fixtures and land improvement $ 1,150 $ 828 Land 2,619 2,619 Total $ 3,769 $ 3,447 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Schedule of Debt | At At December 31, 2018 December 31, 2017 Wtd. Avg. Wtd. Avg. Effective Effective Carrying Interest Carrying Interest (dollars in thousands) Value Rate Value Rate Asset Related Debt Notes Payable and Other Debt Bond related debt (1) Due within one year $ 317 4.0 % $ 41,767 3.2 % Due after one year 38,938 3.7 42,071 2.9 Non-bond related debt Due within one year 1,500 5.0 ─ ─ Due after one year 3,500 5.0 ─ ─ Total asset related debt 44,255 3.9 83,838 3.1 Other Debt Subordinated debt (2) Due within one year 2,232 3.7 2,297 2.6 Due after one year 95,490 3.7 97,700 2.6 Notes payable and other debt (3) Due within one year ─ ─ 14,733 2.8 Due after one year 7,210 14.7 10,859 12.1 Total other debt 104,932 4.5 125,589 3.5 Total asset related debt and other debt 149,187 4.3 209,427 3.3 Debt related to CFVs (4) Due within one year ─ ─ 6,712 6.5 Total debt related to CFVs ─ ─ 6,712 6.5 Total debt $ 149,187 4.3 $ 216,139 3.4 (1) Included in notes payable and other debt – bond related debt were unamortized debt issuance costs. The balance at December 31, 2018 and December 31, 2017 was de minimis. (2) The subordinated debt balances include net cost basis adjustments of $7.9 million and $8.3 million at December 31, 2018 and December 31, 2017, respectively, that pertain to premiums and debt issuance costs. (3) Included in notes payable and other debt – other debt were unamortized debt issue costs of $0.2 million and $0.4 million at December 31, 2018 and December 31, 2017, respectively. (4) See Note 16, “Consolidated Funds and Ventures,” for more information. |
Schedule of Maturities of Long-term Debt | Asset Related Debt (in thousands) and Other Debt 2019 $ 3,595 2020 29,326 2021 14,103 2022 1,980 2023 1,954 Thereafter 90,144 Net premium and debt issue costs 8,085 Total debt $ 149,187 |
Schedule of Subordinate Debt | (dollars in thousands) Net Premium Interim and Debt Principal Issuer Principal Issuance Costs Carrying Value Payments Maturity Date Coupon MFH $ 26,526 $ 2,403 $ 28,929 Amortizing March 30, 2035 3-month LIBOR plus 2.0% MFH 24,120 2,195 26,315 Amortizing April 30, 2035 3-month LIBOR plus 2.0% MFH 13,904 1,169 15,073 Amortizing July 30, 2035 3-month LIBOR plus 2.0% MFH 25,279 2,126 27,405 Amortizing July 30, 2035 3-month LIBOR plus 2.0% Total $ 89,829 $ 7,893 $ 97,722 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments | |
Schedule of the Company's Derivative Assets and Liabilities | Fair Value At At December 31, 2018 December 31, 2017 (in thousands) Assets Liabilities Assets Liabilities Total return swaps $ 1,130 $ ─ $ 2,347 $ 46 Basis swaps 808 ─ 439 26 Interest rate caps 998 ─ 788 ─ Interest rate swaps 2,674 ─ 3,291 ─ Foreign currency forward exchange 187 ─ ─ 247 Total carrying value of derivative instruments $ 5,797 $ ─ $ 6,865 $ 319 |
Schedule of Derivative Notional Amounts | Notional Amounts At At December 31, December 31, (in thousands) 2018 2017 Total return swaps $ 18,278 $ 72,290 Basis swaps 35,000 100,500 Interest rate caps 80,000 80,000 Interest rate swaps 65,000 140,000 Foreign currency forward exchange 4,331 4,363 Total notional amount of derivative instruments $ 202,609 $ 397,153 |
Schedule of notional amounts of company derivative instruments | Notional Amounts Balance, January 1, 2018 $ 392,790 Impact from expirations (55,000) Impact from terminations (138,607) Impact from settlements (905) Balance, December 31, 2018 $ 198,278 |
Schedule of Net Gains Recognized Recognized In Connection With Derivative Instruments | The following table provides information about the net gains that were recognized by the Company in connection with its derivative instruments: For the year ended December 31, (in thousands) 2018 2017 Total return swaps (1) $ 3,154 $ 3,255 Basis swaps (2) 449 196 Interest rate caps 210 (765) Interest rate swaps (3) 422 (726) Foreign currency forward exchange 352 ─ Total net gains of derivative instruments $ 4,587 $ 1,960 (1) The accrual of net interest payments that are made in connection with TRS agreements that are reported as derivative instruments are classified as a component of “Net gains on derivatives” on the Consolidated Statements of Operations. Net cash received was $2.5 million and $3.0 million for the year ended December 31, 2018 and December 31, 2017, respectively. (2) The accrual of net interest payments that are made in connection with basis swaps is classified as a component of “Net gains on derivatives” on the Consolidated Statements of Operations. The net cash received was de minimis for the year ended December 31, 2018 while the net cash paid was $0.1 million for the year ended December 31, 2017. The accrual of net interest payments that are made in connection with interest rate swaps is classified as a component of “Net gains on derivatives” on the Consolidated Statements of Operations. Net cash received was $0.5 million for the year ended December 31, 2018 while net cash paid was $0.3 million for the year ended December 31, 2017. During the year ended December 31, 2018, the Company also received $0.3 million to amend two interest rate swaps and recorded $0.3 million through “Other assets” on the Consolidated Balance Sheets |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | At December 31, Fair Value Measurements (in thousands) 2018 Level 1 Level 2 Level 3 Assets: Investments in debt securities $ 97,190 $ ─ $ ─ $ 97,190 Derivative instruments 5,797 ─ 4,667 1,130 At December 31, Fair Value Measurements (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 | 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 year ended December 31, 2018: Investments in Debt Derivative Derivative (in thousands) Securities Assets Liabilities Balance, January 1, 2018 $ 143,604 $ 2,347 $ (46) Net (losses) gains included in earnings (6) 854 (41) Net change in AOCI (1) (16,249) ─ ─ Impact from deconsolidation (2) 17,998 ─ ─ Impact from sales/redemptions (47,488) ─ ─ Impact from settlements (3) (669) (2,071) 87 Balance, December 31, 2018 $ 97,190 $ 1,130 $ ─ (1) This amount includes the reclassification into the Consolidated Statements of Operations of $21.9 million of net fair value gains related to bonds that were sold or redeemed during this reporting period. This decline was partially offset by $5.6 million of net unrealized gains recognized during this reporting period. (2) This amount reflects the recognition of bond investments that were no longer eliminated for reporting purposes in the first quarter of 2018 due to the derecognition of corresponding consolidated property partnerships. (3) 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 (losses) gains that were reported in the Company’s Consolidated Statements of Operations for the year ended December 31, 2018 related to activity presented in the preceding table: Net gains on Net gains on (in thousands) bonds (1) derivatives (2) Change in unrealized (losses) gains related to assets and $ (6) $ 911 Change in unrealized losses related to assets and liabilities ─ (98) Additional realized gains recognized 21,875 2,342 Total net gains reported in earnings $ 21,869 $ 3,155 (1) Amounts are classified as “Impairments” and “Net gains on bonds” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains on derivatives” in the Company’s Consolidated Statements of Operations. 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 year ended December 31, 2017: Investments in Debt Loans Held for Derivative Derivative (in thousands) Securities Investment Assets Liabilities Balance, January 1, 2017 $ 155,981 $ 3,835 $ 2,327 $ (372) Net (losses) gains included in earnings (5,265) (5,335) 20 326 Net change in AOCI (1) 3,461 ─ ─ ─ Impact from purchases ─ 14,028 ─ ─ Impact from loan originations ─ 1,500 ─ ─ Impact from sales/redemptions (6,784) (14,028) ─ ─ Impact from settlements (2) (3,789) ─ ─ ─ Balance, December 31, 2017 $ 143,604 $ ─ $ 2,347 $ (46) (1) This amount represents $4.2 million of net unrealized holding gains recognized during the period, an amount of which was partially offset by the reclassification into the Consolidated Statements of Operations of $0.1 million of realized bond gains related to a bond that was other-than-temporarily impaired and $0.6 million of fair value gains related to bonds that were sold or redeemed during this reporting 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 (losses) gains that were reported in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017 related to activity presented in the preceding table: Equity in Net losses on losses from Net losses on Net gains on (in thousands) bonds (1) LTPPs loans (2) derivatives (3) Change in unrealized (losses) gains related to assets $ (945) $ (4,320) $ ─ $ 346 Change in unrealized losses related to assets and liabilities held at January 1, 2017, but settled during 2017 ─ ─ (5,335) ─ Additional realized gains recognized 620 ─ 805 2,909 Total net (losses) gains reported in earnings $ (325) $ (4,320) $ (4,530) $ 3,255 (1) Amounts are classified as “Impairments” and “Net gains on bonds” in the Company’s Consolidated Statements of Operations. (2) Amounts are classified as “Net gains (losses) on loans” in the Company’s Consolidated Statements of Operations. (3) Amounts are classified as “Net gains on derivatives” in the Company’s Consolidated Statements of Operations. |
Fair Value Measurements By Level 3 Valuation Technique | Fair Value Measurement at December 31, 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 $ 48,221 Discounted cash flow Market yield 4.4 - 6.8 % 4.8 % Non-performing 12,882 Discounted cash flow Market yield 8.2 N/A Capitalization rate 7.0 N/A Valuation technique • Net operating 0.5 N/A • Contract price $ 13,500 $ N/A Subordinated cash flow 11,114 Discounted cash flow Market yield 7.4 - 7.6 % 7.5 % Capitalization rate 6.2 - 6.5 6.4 NOI annual growth rate 0.6 - 0.7 0.7 Infrastructure bond 24,973 Discounted cash flow Market yield 7.2 N/A Derivative instruments: Total return swaps 1,130 Discounted cash flow Market yield 4.7 - 4.8 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 % % Non-performing 8,033 Discounted cash flow Market yield 7.5 Capitalization rate 6.4 NOI annual growth rate (1.2) Subordinated cash flow 12,573 Discounted cash flow Market yield 6.7 - 7.0 Capitalization rate 5.8 - 6.1 NOI annual growth rate 0.6 - 0.9 Infrastructure bonds 21,824 Discounted cash flow Market yield 7.1 - 9.2 Cash flow probability - 80 Cash flow probability - 20 Other bonds 10,211 Discounted cash flow Market yield 4.2 Derivative instruments: Total return swaps 2,301 Discounted cash flow Market yield 4.1 - 5.3 (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 December 31, 2018 Carrying Fair Value (in thousands) Amount Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 28,243 $ 28,243 $ ─ $ ─ Restricted cash 5,635 5,635 ─ ─ Loans held for investment 67,299 ─ ─ 66,339 Liabilities: Notes payable and other debt - bond related 39,255 ─ ─ 39,289 Notes payable and other debt - non-bond related 12,210 ─ ─ 11,479 Subordinated debt issued by MFH 97,722 ─ ─ 46,778 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 - CFVs related 6,712 ─ ─ ─ Subordinated debt issued by MFH 99,997 ─ ─ 43,256 |
GUARANTEES AND COLLATERAL (Tabl
GUARANTEES AND COLLATERAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees and Collateral | |
Schedule of Financial Instruments Owned and Pledged as Collateral | At December 31, 2018 Investments Total Restricted in Debt Investments in Assets (in thousands) Cash Securities Partnerships Pledged Debt and derivatives related to TRS agreements $ 4,287 $ 85,347 $ ─ $ 89,634 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 1,340 ─ 8,779 10,119 Other 8 ─ ─ 8 Total $ 5,635 $ 85,347 $ 8,779 $ 99,761 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 Debt and derivatives related to the Company's 11.85% ownership interest in SAWHF 5,991 ─ 12,695 ─ 18,686 Other (1) 6,120 ─ ─ ─ 6,120 CFVs 23,495 ─ 99,142 5,175 127,812 Total $ 44,766 $ 128,902 $ 111,837 $ 5,175 $ 290,680 The majority of this balance represents collateral pledged by the Company in connection with the tax credit guarantee. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Summary of Net Income to Common Shareholders | For the year ended December 31, (in thousands) 2018 2017 Net income (loss) from continuing operations $ 25,646 $ (1,110) Net income from discontinued operations 35,356 20,512 Net income to common shareholders $ 61,002 $ 19,402 Basic weighted-average shares (1) 5,753 5,858 Common stock equivalents (2), (3) 284 ─ Diluted weighted-average shares 6,037 5,858 (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) The weighted-average potential dilutive shares outstanding, inclusive of the options exercised during the year based on the exercise date, had a potential dilutive share impact of 284,305 for the year ended December 31, 2018. All stock options were exercised during 2018 leaving no outstanding options as of December 31, 2018. (3) At December 31, 2017, 410,000 stock options were exercisable and in-the-money and had a potential dilutive share impact of 382,790. For the year ended December 31, 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 December 31, 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 year ended December 31, 2018: Investments Foreign in Debt Currency (in thousands) Securities Translation AOCI Balance, January 1, 2018 $ 44,459 $ (3,306) $ 41,153 Net unrealized gains 5,620 3,378 8,998 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (21,875) ─ (21,875) Reclassification of credit-related losses to the Consolidated Statements of Operations related to bond investments assessed as OTTI 6 ─ 6 Reinstatement of fair value gains related to bond investments due to deconsolidation of consolidated property partnerships 9,415 ─ 9,415 Net change in AOCI (6,834) 3,378 (3,456) Balance, December 31, 2018 $ 37,625 $ 72 $ 37,697 The following table provides information related to the net change in AOCI that was allocable to common shareholders for the year ended December 31, 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) 4,216 (126) 4,090 Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations (620) ─ (620) Reclassification of credit-related gains to the Consolidated Statements of Operations related to bond investments assessed as OTTI (135) ─ (135) Net change in AOCI 3,461 (126) 3,335 Balance, December 31, 2017 $ 44,459 $ (3,306) $ 41,153 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation | |
Summary of Stock-Based Compensation Expense | For the year ended December 31, (in thousands) 2018 2017 Employees’ Stock-Based Compensation Plans $ 961 $ 2,175 Non-employee Directors’ Stock-Based Compensation Plans 655 505 Total $ 1,616 $ 2,680 |
Summary of Option Activity | 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) (410) 1.56 Forfeited/Expired in 2018 ─ Outstanding at December 31, 2018 ─ ─ ─ ─ ─ Number of options that were exercisable at: December 31, 2017 410 1.56 3.4 December 31, 2018 ─ ─ ─ (1) Intrinsic value is based on outstanding options. (2) Only options that were amortized based on a vesting schedule have a liability balance. These options were 410,000 at December 31, 2017 and January 1, 2017. (3) When exercised, stock options were net share settled. For the year ended December 31, 2018, 410,000 stock options were exercised, which resulted in a $9.3 million reduction to the Company’s reported “Other liabilities” within its Consolidated Balance Sheets at December 31, 2018. Of the 410,000 stock options that were exercised, the Company issued 220,279 common shares for the year ended December 31, 2018, and 189,721 stock options were tendered to the Company by their holders in connection with the payment of related withholding taxes and exercise price. |
Summary of Nonemployee Director Stock Award Activity | The table below summarizes non-employee director compensation, including cash, vested options and common and deferred shares, for services rendered for the years ended December 31, 2018 and December 31, 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 December 31, 2018 $ 327,500 ─ 12,182 $ 26.88 ─ $ 655,000 December 31, 2017 252,500 ─ 10,419 24.23 ─ 505,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Summary of components of provision for income taxes | For the year ended December 31, (in thousands) 2018 2017 Federal income tax benefit: Current $ ─ $ ─ Deferred ─ 846 State income tax benefit (expense): Current (32) 337 Deferred ─ 124 Foreign income tax benefit (expense): Current ─ ─ Deferred ─ ─ Provision (expense) benefit for income taxes $ (32) $ 1,307 |
Summary of effective income tax reconciliation | For the year ended December 31, (in thousands) 2018 2017 Loss from continuing operations before income taxes $ 25,678 $ (46,090) Income tax (expense) benefit at federal statutory rate (5,392) 16,131 Permanent differences: Impact on taxes from entities not subject to tax 498 (15,936) State income taxes, net of federal tax effect (1,652) (42) Impact from other comprehensive income 4,594 ─ State net operating loss adjustment 507 (2,354) Impact from changes in tax law ─ (54,581) Other (314) 733 Net decrease in the valuation allowance 1,727 57,356 Provision (expense) benefit for income taxes $ (32) $ 1,307 |
Summary of carrying value of DTAs, net of valuation allowance | At At December 31, December 31, (in thousands) 2018 2017 Deferred tax assets: Net operating loss, tax credits and other tax carryforwards $ 123,902 $ 121,574 Guaranteed fees ─ 2,829 Asset management fees ─ 5,470 Cancellation of subordinated debt 3,464 3,581 Other (2,866) 6,533 Total deferred tax assets 124,500 139,987 Less: valuation allowance (124,500) (139,987) Total deferred tax assets, net $ ─ $ ─ |
Summary of changes in valuation allowance | For the year ended December 31, (in thousands) 2018 2017 Balance, January 1 $ 139,987 $ 203,794 Net reductions due to discontinued operations (11,072) (6,451) Net reductions due to continuing operations (1,727) (57,356) Cumulative change due to change in accounting principle (2,688) ─ Balance, December 31 $ 124,500 $ 139,987 |
Schedule of amount for uncertain tax positions | For the year ended December 31, (in thousands) 2018 2017 Balance, January 1 $ 1,863 $ 2,550 Net decreases for tax positions of prior years ─ (841) Net (decreases) increases due to tax positions that only affect timing (1,863) 154 Balance, December 31 $ ─ $ 1,863 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations | |
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 December 31, 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 ─ 7,653 Total assets of discontinued operations $ ─ $ 61,230 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 year ended December 31, (in thousands) 2018 2017 Interest on bonds $ 6 $ 77 Interest on loans and short-term investments 746 394 Asset management fee and reimbursements 1,370 24,590 Other income 53 1,093 Interest expense ─ (123) Salaries and benefits (53) (8,134) General and administrative (68) (1,420) Professional fees (45) (1,916) Other expenses (527) (1,591) Gains on sales and operations of real estate, net 63 6,549 Equity in income from unconsolidated funds and ventures 1 18 Income tax expense ─ (692) Net income from discontinued operations, net of tax 1,546 18,845 Disposal: Net gains on loans 400 ─ Net losses on derivatives ─ (250) Net gain on sale of business ─ 251 Net gain on disposal of discontinued operations (1) 33,410 ─ Net income from discontinued operations $ 35,356 $ 18,846 Loss from discontinued operations allocable to noncontrolling interests ─ 1,666 Net income to common shareholders from discontinued operations $ 35,356 $ 20,512 (1) Includes $3.4 million of cumulative translation adjustments reclassified out of AOCI and into earnings due to the sale of our international asset and investment management business as part of the Disposition. |
Discontinued Operations, Cash Flow Summary | For the year ended December 31, (in thousands) 2018 2017 Depreciation and amortization $ 29 $ 1,290 Capital expenditures ─ (123) 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) (35,724) ─ 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) 18,333 ─ Decrease in noncontrolling interests in CFVs 5,620 ─ Increase in accumulated other comprehensive income (3,404) ─ |
CONSOLIDATED FUNDS AND VENTUR_2
CONSOLIDATED FUNDS AND VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of More Information Related to Assets Consolidated Fund or Ventures | At At December 31, 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 | At At December 31, December 31, (in thousands) 2018 2017 Investment in Solar Ventures $ 126,339 $ 97,011 Investments in U.S. real estate partnerships (includes $898 and $1,046 related (1) 19,961 19,114 Investment in South Africa Workforce Housing Fund (" SAWHF ") 8,779 12,695 Investments in LTPPs related to CFVs (2) ─ 99,142 Total investments in partnerships $ 155,079 $ 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 16, “Consolidated Funds and Ventures,” for more information. |
Schedule of More Information Related to Liabilities Consolidated Fund and Venture | At At December 31, 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 year ended December 31, (in thousands) 2018 2017 Revenue: Interest and other income related to CFVs $ ─ $ 250 Expenses: Interest expense ─ 415 Professional fees ─ 672 Asset management fee expense ─ 5,698 Other expenses ─ 1,825 Impairments ─ 25,074 Total expenses related to CFVs ─ 33,684 Equity in losses from LTPPs of CFVs ─ (14,547) Net loss ─ (47,981) Net losses allocable to noncontrolling interests in CFVs from continuing operations ─ 43,673 Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (4,308) |
Schedule of Net Income to Shareholders Related to Consolidated Funds and Ventures | For the year ended December 31, (in thousands) 2018 2017 Equity in losses from LTPPs $ ─ $ (4,320) Equity in income from consolidated property partnerships ─ 12 Other expenses ─ ─ Net loss allocable to the common shareholders related to CFVs from continuing operations $ ─ $ (4,308) |
L I H T C Funds | |
Schedule of Investments in Partnerships | At At December 31, 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 year ended December 31, (in thousands) 2018 2017 Gross revenue $ ─ $ 150,711 Operating expenses ─ 88,118 Net loss and net loss attributable to entity ─ (23,387) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | Jan. 01, 2019USD ($) | Mar. 31, 2018USD ($)segment | Dec. 31, 2017USD ($)segmentPartnershipfund | Dec. 31, 2018security |
Number of reportable segments | segment | 1 | 3 | ||
Number of bonds in an unrealized loss position | security | 0 | |||
ASU 2017-05 | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 9.2 | |||
ASU 2016-02 | ||||
Impairment of equity investments | $ 0.4 | |||
Forecast | ASU 2017-08 | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 0.3 | |||
Guaranteed Funds | ||||
Number of unconsolidated Guaranteed Funds | fund | 2 | |||
Consolidated Funds and Ventures | ||||
Number of partnerships | Partnership | 4 | |||
Number of partnerships owning affordable housing properties | Partnership | 3 | |||
Consolidated Funds and Ventures | Guaranteed Funds | ||||
Number of LIHTC funds for which general partner interests were sold with certain indemnifications to purchaser | fund | 11 | |||
Consolidated Funds and Ventures | Maximum | Guaranteed Funds | ||||
Ownership percentage | 1.00% | |||
Consolidated Funds and Ventures | Minimum | Guaranteed Funds | ||||
Ownership percentage | 0.01% |
INVESTMENTS IN DEBT SECURITIE_2
INVESTMENTS IN DEBT SECURITIES (Narrative) (Details) $ in Thousands | Oct. 30, 2018USD ($)item | Sep. 30, 2018USD ($)item | Dec. 31, 2018USD ($)itemsecurity | Dec. 31, 2017USD ($)securityitem |
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of municipal bonds | item | 1 | 2 | ||
Interest rate on bond investments | 6.20% | 6.20% | ||
Unpaid principal balance of bond investments | $ 92,332 | |||
Amortized cost of bond investments | 59,565 | |||
Fair value of bond investments | 97,190 | $ 143,604 | ||
Nonaccrual bonds | 12,900 | 8,000 | ||
Non Accrual Bonds Interest Income Cash Basis Method | 400 | 300 | ||
Interest Income Nonaccrual Bonds Not Recognized | 1,000 | 600 | ||
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 3,100 | |||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 17,400 | |||
Increase (Decrease) in Fair Value Of Bonds | $ 46,400 | |||
Number of non-amortizing bonds | security | 4 | |||
Proceeds From Sale or Redemption Of Available For Sale Securities | $ 12,800 | 7,400 | ||
Weighted average expected maturity, investments, not currently prepayable at par at period end | 2 years 9 months 18 days | |||
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Unpaid principal balance of bond investments | $ 92,332 | 142,522 | ||
Amortized cost of bond investments | 59,565 | 99,145 | ||
Fair value of bond investments | 97,190 | $ 143,604 | ||
Infrastructure Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Interest rate on bond investments | 6.75% | |||
Pay rate on available-for-sale bonds | 6.30% | |||
Number of TDRs | item | 2 | 2 | 0 | |
Unpaid principal balance of bond investments | $ 27,200 | $ 26,800 | ||
Amortized cost of bond investments | 20,900 | |||
Fair value of bond investments | $ 21,600 | |||
Weighted average maturity of bond investments | 15 years 4 months 24 days | |||
Contractual term of bond investments | 30 years 1 month 6 days | |||
Fair value | $ 25,000 | |||
Ownership interest (as a percent) | 80.00% | |||
Incremental license fee (as a percent) | 100.00% | |||
Multfamily Tax-Exempt Bonds and Other Real Estate-Related Bond Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 1 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 15,000 |
INVESTMENTS IN DEBT SECURITIE_3
INVESTMENTS IN DEBT SECURITIES (Bonds and Related Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | $ 92,332 | |
Amortized Cost | 59,565 | |
Fair Value | 97,190 | $ 143,604 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | 92,332 | 142,522 |
Amortized Cost | 59,565 | 99,145 |
Gross Unrealized Gains | 37,625 | 44,790 |
Gross Unrealized Losses | (331) | |
Fair Value | $ 97,190 | $ 143,604 |
FV as a % of UPB | 105.00% | 101.00% |
Multifamily Tax-Exempt Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | $ 65,162 | $ 105,472 |
Amortized Cost | 38,653 | 67,982 |
Gross Unrealized Gains | 33,564 | 43,587 |
Fair Value | $ 72,217 | $ 111,569 |
FV as a % of UPB | 111.00% | 106.00% |
Other Real Estate-Related Bond Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unpaid principal balance of bond investments | $ 27,170 | $ 37,050 |
Amortized Cost | 20,912 | 31,163 |
Gross Unrealized Gains | 4,061 | 1,203 |
Gross Unrealized Losses | (331) | |
Fair Value | $ 24,973 | $ 32,035 |
FV as a % of UPB | 92.00% | 86.00% |
INVESTMENTS IN DEBT SECURITIE_4
INVESTMENTS IN DEBT SECURITIES (Bonds with Prepayment Features) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Bonds Unpaid Principal Balance [Abstract] | ||
Bonds unpaid principal balance for December 31, 2018 | $ 29,012 | |
Bonds unpaid principal balance, 2019 | 5,170 | |
Bonds unpaid principal balance, 2021 | 27,895 | |
Bonds unpaid principal balance, 2022 | 30,255 | |
Unpaid principal balance | 92,332 | |
Amortized Cost, Bonds that may be prepaid without restrictions | ||
Amortized Cost, December 31, 2018 | 21,180 | |
Amortized Cost, 2019 | 4,079 | |
Amortized Cost, 2021 | 12,943 | |
Amortized Cost, 2022 | 21,363 | |
Amortized Cost | 59,565 | |
Fair Value, Bonds that may be prepaid without restrictions, premiums or penalties | ||
Fair Value, December 31, 2018 | 27,071 | |
Fair Value, 2019 | 5,189 | |
Fair Value, 2021 | 31,106 | |
Fair Value, 2022 | 33,824 | |
Fair Value, Total | $ 97,190 | $ 143,604 |
INVESTMENTS IN DEBT SECURITIE_5
INVESTMENTS IN DEBT SECURITIES (Bond Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
INVESTMENTS IN DEBT SECURITIES [Abstract] | ||
Total current | $ 84,307 | $ 135,571 |
90 days or greater | 12,883 | 8,033 |
Fair Value, Total | 97,190 | 143,604 |
Nonaccrual bonds | $ 12,900 | $ 8,000 |
BONDS AVAILABLE-FOR-SALE (Reali
BONDS AVAILABLE-FOR-SALE (Realized Gains on Bond Sales and Redemptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
INVESTMENTS IN DEBT SECURITIES [Abstract] | ||
Net impairment recognized on bonds held at each period-end | $ (6) | $ (945) |
Gains recognized at time of sale or redemption | 21,875 | 620 |
Total net gains (losses) on bonds | $ 21,869 | $ (325) |
INVESTMENTS IN PARTNERSHIPS (Na
INVESTMENTS IN PARTNERSHIPS (Narrative) (Details) $ in Thousands | Jun. 01, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2018USD ($)entity | Dec. 31, 2017USD ($)entity |
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 155,079 | $ 227,962 | |||
Equity in gains (losses) from equity method investments | 7,673 | (810) | |||
Commitments and Contingencies. | |||||
Loans and Leases Receivable, Net Amount, Total | 67,299 | 736 | |||
U.S. Real Estate Partnerships | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 19,961 | $ 19,114 | |||
Number of Variable Interest Entities | entity | 4 | 2 | |||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $ 900 | $ 1,000 | |||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 900 | 1,000 | |||
U.S. Real Estate Partnerships formed in Q4 2014[Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 19,100 | ||||
Payments to acquire equity method investments | $ 8,800 | ||||
Equity method investment, ownership percentage | 80.00% | 72.90% | |||
U.S. Real Estate Partnerships formed in Q1 2018 [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 900 | ||||
Payments to acquire equity method investments | $ 3,300 | ||||
Solar Ventures | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | 126,339 | 97,011 | |||
Cumulative basis adjustment | $ 4,500 | 4,000 | |||
Amortization of cumulative basis difference | 500 | ||||
Solar Construction Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 104,900 | ||||
Equity method investment, ownership percentage | 50.00% | ||||
Solar Permanent Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 2,900 | ||||
Equity method investment, ownership percentage | 50.00% | ||||
Solar Development Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 18,500 | ||||
Equity method investment, ownership percentage | 31.10% | ||||
Renewable Energy Lending, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Purchase price paid | $ 5,100 | ||||
SAWHF | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value of equity investments | $ 8,779 | $ 12,695 | |||
Equity method investment, ownership percentage | 11.85% | ||||
Minimum | U.S. Real Estate Partnerships formed in Q1 2018 [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 74.25% | ||||
Maximum | U.S. Real Estate Partnerships formed in Q1 2018 [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 74.92% |
INVESTMENTS IN PARTNERSHIPS AND
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Real Estate Investment Partnerships) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 155,079 | $ 227,962 |
Solar Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 126,339 | 97,011 |
U.S. Real Estate Partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 19,961 | 19,114 |
U.S. Real Estate Partnerships | Variable Interest Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | 898 | 1,046 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 8,779 | 12,695 |
LTPP | Consolidated Funds and Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investments in partnerships | $ 99,142 |
INVESTMENTS IN PARTNERSHIPS A_2
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Balance Sheet Accounts Related to Equity Method Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Real Estate Partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 56,238 | $ 57,712 |
Debt | 6,530 | 7,037 |
Other Liabilities | 32,165 | 22,030 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 74,803 | 123,187 |
Debt | 15,712 | |
Other Liabilities | 496 | 100 |
Solar Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Total assets | 279,960 | 399,758 |
Other Liabilities | $ 12,833 | 5,111 |
Noncontrolling Interest | $ 87,699 |
INVESTMENTS IN PARTNERSHIPS A_3
INVESTMENTS IN PARTNERSHIPS AND VENTURES (Schedule of Income Loss in Earnings of Unconsolidated Venture) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Real Estate Partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross revenue | $ 2,383 | $ 3,814 |
Operating expenses | 2,127 | 1,744 |
Net income (loss) | (794) | 10,722 |
Solar Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross revenue | 27,327 | 29,777 |
Operating expenses | 5,793 | 5,870 |
Net income (loss) | 21,977 | 23,988 |
Net income attributable to the entity | 21,977 | 16,227 |
SAWHF | ||
Schedule of Equity Method Investments [Line Items] | ||
Gross revenue | 4,308 | 18,327 |
Operating expenses | 2,277 | 20,299 |
Net income (loss) | $ (14,339) | $ 3,990 |
LOANS HFI AND LOANS HFS (Narrat
LOANS HFI AND LOANS HFS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Held-for-investment loans, nonaccrual status, unpaid principal balance | $ 1.1 | $ 1.1 |
Loans Receivable Held-for-Investment, Carrying Value, Nonaccruing Interest | 0.3 | 0.3 |
Loans Receivable, Held-For-Sale, Cost Basis | 6 | 6 |
HFI loans that were 90 days or more past due and still accruing interest | 0 | 0 |
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 0 | 0 |
MGM disposition | ||
Loans receivable acquired, unpaid principal balance | 9 | |
Loan Origination Commitments | ||
Unfunded loan commitments | $ 0 | $ 0 |
LOANS HFI AND LOANS HFS (Carryi
LOANS HFI AND LOANS HFS (Carrying Value of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans HFI and Loans HFS | ||
Loans held for investment | $ 67,299 | $ 736 |
Total loans | $ 67,299 | $ 736 |
LOANS HFI AND LOANS HFS (Compos
LOANS HFI AND LOANS HFS (Composition of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans HFI and Loans HFS | ||
UPB | $ 68,050 | $ 1,487 |
Cost basis adjustments, net | (751) | (751) |
Loans HFI, net | $ 67,299 | $ 736 |
LOANS HFI AND LOANS HFS (Loan A
LOANS HFI AND LOANS HFS (Loan Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Recorded Investment, Current | $ 67,000 | $ 437 |
Loans Receivable, Unpaid Principal Balance, Current | 67,000 | 437 |
Loans Receivable, Net | 67,299 | 736 |
Loans Receivable, Net, Unpaid Principal Balance | 68,050 | 1,487 |
90 days or greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Recorded Investment, Past Due | 299 | 299 |
Loans Receivable, Unpaid Principal Balance, Past Due | $ 1,050 | $ 1,050 |
OTHER ASSETS (Narrative) (Detai
OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Asset, Noncurrent | $ 5,797 | $ 6,865 |
Impairment losses recognized | $ 0 | 0 |
Buildings | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Land improvements | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Land | ||
Depreciation | $ 0 | $ 0 |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment, Useful Life | 6 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment, Useful Life | 7 years |
OTHER ASSETS (Summary of Other
OTHER ASSETS (Summary of Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other assets: | ||
Derivative assets | $ 5,797 | $ 6,865 |
Real estate owned | 3,769 | 3,447 |
Accrued interest receivable | 854 | 1,558 |
Other assets | 520 | 850 |
Total other assets | $ 10,940 | 17,895 |
Consolidated Funds and Ventures | ||
Other assets: | ||
Other assets | 5,175 | |
Total other assets | $ 5,175 |
OTHER ASSETS (REO held for use,
OTHER ASSETS (REO held for use, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Real estate held for use, net | $ 3,769 | $ 3,447 |
Building, furniture, fixtures and land improvement | ||
Investment [Line Items] | ||
Real estate held for use, gross | 1,150 | 828 |
Land | ||
Investment [Line Items] | ||
Real estate held for use, gross | $ 2,619 | $ 2,619 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 04, 2018 | |
Debt Instrument [Line Items] | |||
Effective interest rate | 4.30% | 3.40% | |
Carrying Value | $ 149,187 | $ 216,139 | |
Gains (Losses) on Extinguishment of Debt | (14) | 4,838 | |
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | |
SAWHF | |||
Debt Instrument [Line Items] | |||
Ownership interest (as a percent) | 11.85% | ||
Asset Related Debt | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.90% | 3.10% | |
Carrying Value | $ 44,255 | $ 83,838 | |
Notes Payable and Other Debt | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities, Total | $ 7,210 | 10,859 | |
Notes Payable and Other Debt | SAWHF | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rates of debt obligations | 14.70% | ||
Principal amount of debt | $ 7,400 | ||
Carrying Value | $ 7,200 | ||
Ownership interest (as a percent) | 11.85% | ||
Bond related debt | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 6.00% | ||
Long-term Debt, Excluding Current Maturities, Total | $ 38,938 | $ 42,071 | |
Non-bond related debt | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.00% | ||
Principal amount of debt | 5,000 | ||
Carrying Value | 5,000 | ||
Long-term Debt, Excluding Current Maturities, Total | $ 3,500 | ||
Other Debt | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.50% | 3.50% | |
Carrying Value | $ 104,932 | $ 125,589 | |
Subordinated Loan | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities, Total | $ 95,490 | $ 97,700 | |
Total return swaps | Bond related debt | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rates of debt obligations | 3.10% | ||
Johannesburg Interbank Agreed Rate (JIBAR) [Member] | Notes Payable and Other Debt | SAWHF | |||
Debt Instrument [Line Items] | |||
Fixed spread (as a percent) | 5.15% | ||
Base rate (as percentage) | 7.15% |
DEBT (Outstanding Debt Balances
DEBT (Outstanding Debt Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 149,187 | $ 216,139 |
Debt Instrument, Interest Rate, Effective Percentage | 4.30% | 3.40% |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 149,187 | $ 209,427 |
Debt Instrument, Interest Rate, Effective Percentage | 4.30% | 3.30% |
Asset Related Debt | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 44,255 | $ 83,838 |
Debt Instrument, Interest Rate, Effective Percentage | 3.90% | 3.10% |
Bond related debt | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 317 | $ 41,767 |
Debt, Due after one year | $ 38,938 | $ 42,071 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 4.00% | 3.20% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 3.70% | 2.90% |
Debt Instrument, Interest Rate, Effective Percentage | 6.00% | |
Non-bond related debt | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 1,500 | |
Debt, Due after one year | 3,500 | |
Debt, Carrying Value | $ 5,000 | |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 5.00% | |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 5.00% | |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt, Carrying Value | $ 104,932 | $ 125,589 |
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | 3.50% |
Subordinated Loan | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | $ 2,232 | $ 2,297 |
Debt, Due after one year | $ 95,490 | $ 97,700 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 3.70% | 2.60% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 3.70% | 2.60% |
Net Premium and Debt Issuance Costs | $ 7,900 | $ 8,300 |
Notes Payable and Other Debt | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 0 | 14,733 |
Debt, Due after one year | $ 7,210 | $ 10,859 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 0.00% | 2.80% |
Debt Instrument, Interest Rate, Effective Percentage, Noncurrent Portion | 14.70% | 12.10% |
Unamortized debt issue costs | $ 200 | $ 400 |
Debt Related To Consolidated Funds and Ventures [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Due within one year | 0 | 6,712 |
Debt, Carrying Value | $ 0 | $ 6,712 |
Debt Instrument, Interest Rate, Effective Percentage, Current Portion | 0.00% | 6.50% |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 6.50% |
DEBT (Principal Commitments) (D
DEBT (Principal Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 149,187 | $ 216,139 |
Asset Related Debt And Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
2019 | 3,595 | |
2020 | 29,326 | |
2021 | 14,103 | |
2022 | 1,980 | |
2023 | 1,954 | |
Thereafter | 90,144 | |
Net Premium and Debt Issuance Costs | 8,085 | |
Total | $ 149,187 | $ 209,427 |
DEBT (Subordinate Debt) (Detail
DEBT (Subordinate Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 149,187 | $ 216,139 |
Subordinated Loan | MMA Financial Holdings, Inc. Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 89,829 | |
Net premium and debt issue costs | 7,893 | |
Carrying Value | 97,722 | |
Subordinated Loan | Mfh Issue 1 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 26,526 | |
Net premium and debt issue costs | 2,403 | |
Carrying Value | $ 28,929 | |
Maturity Date | March 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Subordinated Loan | Mfh Issue 2 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 24,120 | |
Net premium and debt issue costs | 2,195 | |
Carrying Value | $ 26,315 | |
Maturity Date | April 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Subordinated Loan | Mfh Issue 3 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 13,904 | |
Net premium and debt issue costs | 1,169 | |
Carrying Value | $ 15,073 | |
Maturity Date | July 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% | |
Subordinated Loan | Mfh Issue 4 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | $ 25,279 | |
Net premium and debt issue costs | 2,126 | |
Carrying Value | $ 27,405 | |
Maturity Date | July 30, 2035 | |
Coupon Interest Rate | 3-month LIBOR plus 2.0% |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of the Company's Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 5,797 | $ 6,865 |
Derivative Liability | 319 | |
Total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 1,130 | 2,347 |
Derivative Liability | 46 | |
Basis swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 808 | 439 |
Derivative Liability | 26 | |
Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 998 | 788 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 2,674 | 3,291 |
Foreign currency forward exchange | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 187 | |
Derivative Liability | $ 247 |
DERIVATIVE INSTRUMENTS (Sched_2
DERIVATIVE INSTRUMENTS (Schedule of Derivative Notional Amounts) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | $ 202,609 | $ 397,153 |
Total return swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 18,278 | 72,290 |
Basis swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 35,000 | 100,500 |
Interest rate caps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 80,000 | 80,000 |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | 65,000 | 140,000 |
Foreign currency forward exchange | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of derivative instruments | $ 4,331 | $ 4,363 |
DERIVATIVE INSTRUMENTS (Decreas
DERIVATIVE INSTRUMENTS (Decrease in Reported Notional Amount) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Balance, January 1, 2018 | $ 397,153 |
Balance, December 31, 2018 | 202,609 |
Interest derivative instruments and total return swaps | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Balance, January 1, 2018 | 392,790 |
Impact from expirations | (55,000) |
Impact from terminations | (138,607) |
Impact from settlements | (905) |
Balance, December 31, 2018 | $ 198,278 |
DERIVATIVE INSTRUMENTS (Summary
DERIVATIVE INSTRUMENTS (Summary of Derivative Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | $ 4,587 | $ 1,960 |
Derivative assets | 5,797 | 6,865 |
Total return swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 3,154 | 3,255 |
Net proceeds from derivative instrument | 2,500 | 3,000 |
Derivative assets | 1,130 | 2,347 |
Basis swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 449 | 196 |
Net payments for derivative instrument | 100 | |
Derivative assets | 808 | 439 |
Interest rate caps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 210 | (765) |
Derivative assets | 998 | 788 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 422 | (726) |
Net proceeds from derivative instrument | 500 | |
Net payments for derivative instrument | 300 | |
Derivative assets | 2,674 | $ 3,291 |
Two interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net proceeds from derivative instrument | 300 | |
Two interest rate swaps | Other assets [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative assets | 300 | |
Foreign currency forward exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net gains of derivative instruments | 352 | |
Derivative assets | $ 187 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impairment losses | $ 400 | |
Transfers into Level 3 | 0 | $ 0 |
Transfers out of Level 3 | $ 0 | $ 0 |
Subordinated Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Market yield | 13.40% | 14.00% |
Aggregate fair value | $ 46,800 | |
Minimum | Subordinated Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Market yield | 10.90% | |
Aggregate fair value | $ 40,300 | |
Maximum | Subordinated Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Market yield | 15.90% | |
Aggregate fair value | $ 55,400 |
FAIR VALUE (Fair Value of Asset
FAIR VALUE (Fair Value of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Investments in debt securities | $ 97,190 | $ 143,604 |
Loans held for investment | 67,299 | 736 |
Derivative assets | 5,797 | 6,865 |
Liabilities: | ||
Derivative liabilities | 319 | |
Level 2 | ||
Assets: | ||
Derivative assets | 4,667 | 4,518 |
Liabilities: | ||
Derivative liabilities | 273 | |
Level 3 | ||
Assets: | ||
Investments in debt securities | 97,190 | 143,604 |
Loans held for investment | 66,339 | 1,754 |
Derivative assets | $ 1,130 | 2,347 |
Liabilities: | ||
Derivative liabilities | $ 46 |
FAIR VALUE (Activity for Assets
FAIR VALUE (Activity for Assets and Liabilities Measured on Recurring Level 3 Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Reclassification of net fair value gains on sold/redeemed bonds | $ 21,875 | $ 620 |
Net unrealized gains (losses) arising during the period | 5,620 | 4,216 |
Derivative Liabilities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning period | (46) | |
Balance at ending period | (46) | |
Investments in Debt Securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at start of period | 143,604 | |
Balance at end of period | 143,604 | |
Reclassification of net fair value gains on sold/redeemed bonds | 21,900 | |
Net unrealized gains (losses) arising during the period | 5,600 | |
Derivative Assets | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning period | 2,347 | |
Balance at ending period | 2,347 | |
Level 3 | Derivative Liabilities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning period | (46) | (372) |
Net (losses) gains included in earnings | (41) | 326 |
Impact from settlements | 87 | |
Balance at ending period | (46) | |
Level 3 | Investments in Debt Securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at start of period | 143,604 | 155,981 |
Net (losses) gain included in earnings | (6) | (5,265) |
Net change in AOCI (1) | (16,249) | 3,461 |
Impact from deconsolidation | 17,998 | |
Impacts from sales/redemptions | (47,488) | (6,784) |
Impacts from settlements | (669) | (3,789) |
Balance at end of period | (97,190) | 143,604 |
Reclassification of net fair value gains on sold/redeemed bonds | 600 | |
Net unrealized gains (losses) arising during the period | 4,200 | |
Reclassification of realized losses (gains) to the Consolidated Statements of Operations related to bond investments assessed as other-than-temporary-impairment ("OTTI") | 100 | |
Level 3 | Loans Held for Investment | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at start of period | 3,835 | |
Net (losses) gain included in earnings | (5,335) | |
Impacts from purchases | 14,028 | |
Impact from originations | 1,500 | |
Impacts from sales/redemptions | (14,028) | |
Level 3 | Derivative Assets | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning period | 2,347 | 2,327 |
Net (losses) gains included in earnings | 854 | 20 |
Impact from settlements | (2,071) | |
Balance at ending period | $ 1,130 | $ 2,347 |
FAIR VALUE (Amount of Activity
FAIR VALUE (Amount of Activity Pertaining to Level 3 Assets and Liabilities Included in Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Change in unrealized (losses) gains related to assets and liabilities held | $ (6) | $ (945) |
Additional realized gains recognized | 21,875 | 620 |
Total net (losses) gains reported in earnings | 21,869 | (325) |
Equity in Losses From LTPPs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Change in unrealized (losses) gains related to assets and liabilities held | (4,320) | |
Total net (losses) gains reported in earnings | (4,320) | |
Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Change in unrealized losses related to assets and liabilities settled during the period | (5,335) | |
Additional realized gains recognized | 805 | |
Total net (losses) gains reported in earnings | (4,530) | |
Derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Change in unrealized (losses) gains related to assets and liabilities held | 911 | 346 |
Change in unrealized losses related to assets and liabilities settled during the period | (98) | |
Additional realized gains recognized | 2,342 | 2,909 |
Total net (losses) gains reported in earnings | $ 3,155 | $ 3,255 |
FAIR VALUE (Fair Value Measurem
FAIR VALUE (Fair Value Measurements By Level 3 Valuation Technique) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Multifamily tax-exempt bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Capitalization rate | 7.00% | 6.40% |
NOI annual growth rate | 0.50% | (1.20%) |
Contract price | $ 13,500 | |
Multifamily tax-exempt bonds, Performing | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 48,221 | $ 90,963 |
Multifamily tax-exempt bonds, Non-performing | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 12,882 | $ 8,033 |
Market yield | 8.20% | 7.50% |
Multifamily tax-exempt bonds, Subordinated cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 11,114 | $ 12,573 |
Infrastructure bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 24,973 | $ 21,824 |
Market yield | 7.20% | |
Cash flow probability - future incremental tax | 80.00% | |
Cash flow probability - no future incremental tax | 20.00% | |
Other Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 10,211 | |
Market yield | 4.20% | |
Total return swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 1,130 | $ 2,301 |
Minimum | Multifamily tax-exempt bonds, Performing | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.40% | 4.30% |
Minimum | Multifamily tax-exempt bonds, Subordinated cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.40% | 6.70% |
Capitalization rate | 6.20% | 5.80% |
NOI annual growth rate | 0.60% | 0.60% |
Minimum | Infrastructure bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.10% | |
Minimum | Total return swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.70% | 4.10% |
Maximum | Multifamily tax-exempt bonds, Performing | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 6.80% | 6.70% |
Maximum | Multifamily tax-exempt bonds, Subordinated cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.60% | 7.00% |
Capitalization rate | 6.50% | 6.10% |
NOI annual growth rate | 0.70% | 0.90% |
Maximum | Infrastructure bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 9.20% | |
Maximum | Total return swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.80% | 5.30% |
Weighted Average | Multifamily tax-exempt bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Capitalization rate | 6.40% | |
NOI annual growth rate | (1.20%) | |
Weighted Average | Multifamily tax-exempt bonds, Performing | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.80% | 5.00% |
Weighted Average | Multifamily tax-exempt bonds, Non-performing | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.50% | |
Weighted Average | Multifamily tax-exempt bonds, Subordinated cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 7.50% | 6.80% |
Capitalization rate | 6.40% | 5.90% |
NOI annual growth rate | 0.70% | 0.80% |
Weighted Average | Infrastructure bonds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 8.00% | |
Cash flow probability - future incremental tax | 80.00% | |
Cash flow probability - no future incremental tax | 20.00% | |
Weighted Average | Other Bonds [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Market yield | 4.20% | |
Weighted Average | Total return swaps | ||
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and cash equivalents | $ 28,243 | $ 35,693 |
Restricted cash | 5,635 | 21,271 |
Asset management fee receivable | 116 | |
Loans held for investment | 67,299 | 736 |
Consolidated Funds and Ventures | ||
Assets: | ||
Restricted cash | 23,495 | |
Loans held for investment | 65 | |
Liabilities: | ||
Notes payable and other debt | 6,712 | |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 28,243 | 35,693 |
Restricted cash | 5,635 | 21,271 |
Level 1 | Consolidated Funds and Ventures | ||
Assets: | ||
Restricted cash | 23,495 | |
Level 3 | ||
Assets: | ||
Asset management fee receivable | 116 | |
Loans held for investment | 66,339 | 1,754 |
Level 3 | Consolidated Funds and Ventures | ||
Assets: | ||
Loans held for investment | 497 | |
Bond Related Debt | ||
Liabilities: | ||
Notes payable and other debt | 39,255 | 83,838 |
Bond Related Debt | Level 3 | ||
Liabilities: | ||
Notes payable and other debt | 39,289 | 83,879 |
Non-Bond Related Debt | ||
Liabilities: | ||
Notes payable and other debt | 12,210 | 25,592 |
Non-Bond Related Debt | Level 3 | ||
Liabilities: | ||
Notes payable and other debt | 11,479 | 26,014 |
Subordinated Loan | MFH | ||
Liabilities: | ||
Subordinated debt | 97,722 | 99,997 |
Subordinated Loan | Level 3 | MFH | ||
Liabilities: | ||
Subordinated debt | $ 46,778 | $ 43,256 |
GUARANTEES AND COLLATERAL (Narr
GUARANTEES AND COLLATERAL (Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($)fund | Dec. 31, 2017USD ($) |
Guaranteed LIHTC Funds | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Guaranteed Funds | fund | 1 | |
Non-Guaranteed Funds [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Maximum Exposure | $ 0.1 | $ 0.1 |
Carrying Amount | $ 0 | $ 0 |
GUARANTEES AND COLLATERAL (Coll
GUARANTEES AND COLLATERAL (Collateral and Restricted Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 5,635 | $ 44,766 |
Bonds Available-for-Sale | 85,347 | 128,902 |
Investments in partnerships | 8,779 | 111,837 |
Other Assets | 5,175 | |
Total Assets Pledged | 99,761 | $ 290,680 |
SAWHF | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 1,340 | |
Investments in partnerships | 8,779 | |
Total Assets Pledged | $ 10,119 | |
Ownership interest (as a percent) | 11.85% | 11.85% |
Debt and derivatives | SAWHF | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 5,991 | |
Investments in partnerships | 12,695 | |
Total Assets Pledged | 18,686 | |
Debt and derivatives TRSs | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | $ 4,287 | 9,160 |
Bonds Available-for-Sale | 85,347 | 128,902 |
Total Assets Pledged | 89,634 | 138,062 |
Other | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Restricted cash | 8 | 6,120 |
Total Assets Pledged | $ 8 | 6,120 |
Consolidated Funds and Ventures | ||
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 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies | |
Future rental commitments | $ 0 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands | Jun. 26, 2018USD ($)$ / sharesshares | Mar. 09, 2018USD ($)$ / sharesshares | Jan. 04, 2018 | Jan. 03, 2018 | May 05, 2015shares | Mar. 31, 2018fund | Dec. 31, 2018shareholderdirector$ / sharesshares | Nov. 06, 2018$ / sharesshares | Aug. 07, 2018$ / sharesshares | Mar. 13, 2018$ / sharesshares |
Class of Stock [Line Items] | ||||||||||
Maximum percentage of Company stock ownership allowed | 9.90% | 4.90% | ||||||||
Minority interest held by third parties | 4.90% | |||||||||
Number of rights issued per common stock | 1 | |||||||||
Right term | 5 years | |||||||||
Number of shareholders held more than 4.9% | shareholder | 3 | |||||||||
Number of executives held more than 4.9% | director | 1 | |||||||||
Number of Low Income Housing Tax Credit (LIHTC) funds deconsolidated | fund | 11 | |||||||||
Hunt | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common shares issued (in shares) | 125,000 | 125,000 | ||||||||
Common shares issued | $ | $ 4,300 | $ 4,100 | ||||||||
Common shares issued (per share) | $ / shares | $ 34 | $ 33 | ||||||||
2018 Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of common shares | 218,750 | |||||||||
Average cost common stock repurchased (per share) | $ / shares | $ 27.08 | |||||||||
Maximum | 2018 Plan | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares authorized to be repurchased | 218,750 | 187,500 | 125,000 | |||||||
Share price (per share) | $ / shares | $ 32.96 | $ 31.50 | $ 30 |
EQUITY (Summary of Net Income t
EQUITY (Summary of Net Income to Common Shareholders) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity | ||
Net income (loss) from continuing operations | $ 25,646 | $ (1,110) |
Net income from discontinued operations | 35,356 | 20,512 |
Net income to common shareholders | $ 61,002 | $ 19,402 |
Basic weighted-average shares | 5,753,000 | 5,858,000 |
Common stock equivalents | 284,000 | |
Diluted weighted-average shares | 6,037,000 | 5,858,000 |
Common Stock Equivalents Employee Options | 410,000 | |
Incremental Common Shares Attributable to Call Options and Warrants | 284,305 | 382,790 |
EQUITY (Noncontrolling Interest
EQUITY (Noncontrolling Interests) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 0 | $ 89,529 |
Guaranteed LIHTC Funds | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | 83,909 | |
Consolidated Property partnerships | ||
Noncontrolling Interest [Line Items] | ||
Minority Interest | $ 5,620 |
EQUITY (Schedule of Accumulated
EQUITY (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | $ (21,875) | $ (620) |
Reinstatement of fair value gains related to bond investments due to deconsolidation of consolidated property partnerships | 9,415 | 0 |
Net change in AOCI | (3,456) | 3,309 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||
Net change in AOCI | (3,456) | 3,309 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning Balance | 41,153 | |
Net change in AOCI | (3,456) | 3,309 |
Recognition of unrealized holding gains on bond investments due to deconsolidation of consolidated property partnerships | 9,415 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (3,456) | 3,335 |
Ending Balance | 37,697 | 41,153 |
Investments in Debt Securities | ||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||
Beginning Balance | 44,459 | 40,998 |
Net unrealized gains (losses) | 5,620 | 4,216 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (21,875) | (620) |
Reclassification of credit-related losses to the Consolidated Statements of Operations related to bond investments assessed as OTTI | 6 | (135) |
Reinstatement of fair value gains related to bond investments due to deconsolidation of consolidated property partnerships | 9,415 | |
Net change in AOCI | (6,834) | 3,461 |
Ending Balance | 37,625 | 44,459 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||
Net change in AOCI | (6,834) | 3,461 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized gains (losses) | 5,620 | 4,216 |
Net change in AOCI | (6,834) | 3,461 |
Recognition of unrealized holding gains on bond investments due to deconsolidation of consolidated property partnerships | 9,415 | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||
Beginning Balance | (3,306) | (3,180) |
Net unrealized gains (losses) | 3,378 | (126) |
Net change in AOCI | 3,378 | (126) |
Ending Balance | 72 | (3,306) |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||
Net change in AOCI | 3,378 | (126) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized gains (losses) | 3,378 | (126) |
Net change in AOCI | 3,378 | (126) |
AOCI | ||
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Debt Securities [Abstract] | ||
Beginning Balance | 41,153 | 37,818 |
Net unrealized gains (losses) | 8,998 | 4,090 |
Reclassification of fair value gains on sold or redeemed bonds into the Consolidated Statements of Operations | (21,875) | (620) |
Reclassification of credit-related losses to the Consolidated Statements of Operations related to bond investments assessed as OTTI | 6 | (135) |
Reinstatement of fair value gains related to bond investments due to deconsolidation of consolidated property partnerships | 9,415 | |
Net change in AOCI | (3,456) | 3,335 |
Ending Balance | 37,697 | 41,153 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ||
Net change in AOCI | (3,456) | 3,335 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized gains (losses) | 8,998 | 4,090 |
Net change in AOCI | (3,456) | $ 3,335 |
Recognition of unrealized holding gains on bond investments due to deconsolidation of consolidated property partnerships | $ 9,415 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | Aug. 03, 2017 | Dec. 31, 2018 |
Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issued to employees | 410,000 | |
Employees' Stock-Based Compensation Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance | 571,066 | |
Employees' Stock-Based Compensation Plans | Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance | 497,510 | |
Employees' Stock-Based Compensation Plans | Employee Stock Options or Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance | 73,556 | |
Non-employee Directors' Stock-Based Compensation Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual compensation | $ 120,000 | |
Number of shares available for issuance | 1,130,000 | |
Number of shares currently available for issuance | 393,576 | |
Compensation paid in cash (as percentage) | 50.00% | |
Compensation paid in shares (as percentage) | 50.00% | |
Audit Committee Chair | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional Stock based Compensation | $ 20,000 | |
Chairman of Board of Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional Stock based Compensation | 15,000 | |
Other Committee Chairs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional Stock based Compensation | $ 10,000 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Compensation expense | $ 1,616 | $ 2,680 |
Employees' Stock-Based Compensation Plans | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Compensation expense | 961 | 2,175 |
Non-employee Directors' Stock-Based Compensation Plans | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Compensation expense | $ 655 | $ 505 |
STOCK-BASED COMPENSATION (Sum_2
STOCK-BASED COMPENSATION (Summary of Option Activity) (Details) - Employee Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | |||
Number of Options Outstanding at beginning of period | 410,000 | 410,000 | |
Exercised | (410,000) | ||
Number of Options Outstanding at end of period | 410,000 | 410,000 | |
Number of options that were exercisable | 410,000 | ||
Weighted-average Exercise Price per Option | |||
Weighted average Exercise Price per Option Outstanding at beginning of period | $ 1.56 | $ 1.56 | |
Weighted Average Exercise Price per Option, Exercised | $ 1.56 | ||
Weighted average Exercise Price per Option Outstanding at end of period | 1.56 | $ 1.56 | |
Weighted average Exercise Price per Option Exercisable | $ 1.56 | ||
Additional disclosures | |||
Weighted Average Remaining Contractual Life per Option (in years) Outstanding | 3 years 4 months 24 days | 4 years 4 months 24 days | |
Weighted average Remaining Contractual Life per Option (in years) Exercisable | 3 years 4 months 24 days | ||
Aggregate Intrinsic Value | $ 9,322 | $ 7,149 | |
Period End Liability | $ 9,342 | $ 7,166 | |
Reduction in other liabilities | $ 9,300 | ||
Common shares issued for exercise of stock options | 220,279 | ||
Shares tendered in connection with the payment of withholding taxes | 189,721 |
STOCK-BASED COMPENSATION (Sum_3
STOCK-BASED COMPENSATION (Summary of Nonemployee Director Stock Award Activity) (Details) - Non-employee Directors' Stock-Based Compensation Plans - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Non-employee director compensation, cash | $ 327,500 | $ 252,500 |
Weighted - average Grant Date Share Price | $ 26.88 | $ 24.23 |
Directors' Fees Expense | $ 655,000 | $ 505,000 |
Deferred Shares | ||
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||
Granted | 12,182 | 10,419 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES (Details) | Nov. 28, 2018 | Oct. 04, 2018USD ($) | Jun. 26, 2018USD ($)$ / sharesshares | Mar. 09, 2018USD ($)$ / sharesshares | Jan. 08, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)installment | Dec. 31, 2017USD ($) |
Base management fee percentage on first $500 million share capital | 0.50% | |||||||
Base management fee percentage in excess of $500 million share capital | 0.25% | |||||||
Annual reimbursement cap until 2019 | $ 2,500,000 | |||||||
Annual reimbursement cap after 2019 until share capital exceeds of $500 million | $ 3,500,000 | |||||||
Renewal period of the agreement | 2 years | |||||||
Agreement Violation Termination Fee Includes An Amount Times Sum of Average Annual Base and Incentive Management Fee | 3 | |||||||
Agreement Violation Termination Fee Includes An Amount Times Sum of Average Energy Capital Business Expense Reimbursement and Employee Cost Reimbursement Expense | 1 | |||||||
Termination fee period | 2 years | |||||||
Consideration on disposal | $ 57,000,000 | $ 57,000,000 | ||||||
Notes receivable | 57,000,000 | $ 57,000,000 | ||||||
Increase in receivable | $ 67,000,000 | |||||||
Interest rate for note | 5.00% | |||||||
External management fees and reimbursable expenses | $ 6,869,000 | $ 0 | ||||||
Term of note receivable | 7 years | |||||||
MGM disposition | ||||||||
HFS loan acquired by Hunt | 9,000,000 | $ 9,000,000 | ||||||
Investment in Partnerships (SDL) | ||||||||
Percentage of loan amount contribution | 20.00% | |||||||
Hunt | ||||||||
Disposal Group, Consideration, Note Receivable, Quarterly Installment | $ 3,350,000 | |||||||
Number of quarterly payments | installment | 20 | |||||||
Interest recognized | $ 2,900,000 | |||||||
Interest Receivable | 0 | 0 | ||||||
Hunt | MGM disposition | ||||||||
HFS loan acquired by Hunt | 9,000,000 | 9,000,000 | ||||||
Price of loan acquired by hunt | 9,400,000 | |||||||
Hunt | External Management Fees and Expenses Reimbursement | ||||||||
Incentive fee | 20.00% | |||||||
External management fee, contract in excess for incentive fee. | 7.00% | |||||||
Expense reimbursements payable partially offset by other income | 200,000 | |||||||
Incentive fee | 0 | |||||||
External management fees and reimbursable expenses | 6,900,000 | |||||||
Hunt | External Management Fees and Expenses Reimbursement | External Manager | ||||||||
Management fees and expense reimbursements payable | 1,100,000 | 1,100,000 | ||||||
Hunt | Investment in Partnerships (SDL) | ||||||||
Maximum potential loan contribution | 58,800,000 | 58,800,000 | ||||||
Percentage of loan amount contribution | 30.00% | |||||||
Amount of loan contribution | $ 10,800,000 | $ 10,800,000 | ||||||
Hunt | Common shares in disposition | ||||||||
Shares issued (in shares) | shares | 125,000 | 125,000 | ||||||
Shares issued | $ 4,300,000 | $ 4,100,000 | ||||||
Purchase price (per share) | $ / shares | $ 34 | $ 33 | ||||||
Hunt | Common shares in disposition | Private Placement | ||||||||
Shares issued (in shares) | shares | 250,000 | |||||||
Purchase price (per share) | $ / shares | $ 33.50 | |||||||
Solar Development Lending, LLC [Member] | ||||||||
Percentage of loan amount contribution | 50.00% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | ||
Taxes Payable | $ 0 | $ 100,000 |
Corporate tax rate (as percentage) | 21.00% | 35.00% |
Reduction in deferred tax assets | $ (54,000,000) | |
Decrease in valuation allowance | (54,000,000) | |
Pre-tax federal NOLs | $ 396,100,000 | $ 378,900,000 |
NOL expiration date | Jan. 1, 2028 | |
Bonus accrual | $ 0 |
INCOME TAXES (Provision for inc
INCOME TAXES (Provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | ||
Federal income tax benefit, Deferred | $ 846 | |
State income tax benefit (expense), Current | $ (32) | 337 |
State income tax benefit (expense), Deferred | 124 | |
Provision (expense) benefit for income taxes | $ (32) | $ 1,307 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | ||
Loss from continuing operations before income taxes | $ 25,678 | $ (46,090) |
Income tax (expense) benefit at federal statutory rate | (5,392) | 16,131 |
Permanent differences: | ||
Impact on taxes from entities not subject to tax | 498 | (15,936) |
State income taxes, net of federal tax effect | (1,652) | (42) |
Impact from other comprehensive income | 4,594 | |
State net operating loss adjustment | 507 | (2,354) |
Impact from changes in tax law | (54,581) | |
Other | (314) | 733 |
Net decrease in the valuation allowance | 1,727 | 57,356 |
Provision (expense) benefit for income taxes | $ (32) | $ 1,307 |
INCOME TAXES (Carrying value of
INCOME TAXES (Carrying value of DTAs) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | |||
Net operating loss, tax credits and other tax carryforwards | $ 123,902 | $ 121,574 | |
Guaranteed fees | 2,829 | ||
Asset management fees | 5,470 | ||
Cancellation of subordinated debt | 3,464 | 3,581 | |
Other | (2,866) | 6,533 | |
Total deferred tax assets | 124,500 | 139,987 | |
Less: valuation allowance | $ (124,500) | $ (139,987) | $ (203,794) |
INCOME TAXES (Change in the val
INCOME TAXES (Change in the valuation allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | ||
Balance at beginning | $ 139,987 | $ 203,794 |
Net reductions due to discontinued operations | (11,072) | (6,451) |
Net reductions due to continuing operations | (1,727) | (57,356) |
Cumulative change due to change in accounting principle | 2,688 | |
Balance at ending | $ 124,500 | $ 139,987 |
INCOME TAXES (Uncertain tax pos
INCOME TAXES (Uncertain tax positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | ||
Balance at beginning | $ 1,863 | $ 2,550 |
Net decreases for tax positions of prior years | (841) | |
Net (decreases) increases due to tax positions that only affect timing | $ (1,863) | 154 |
Balance at ending | $ 1,863 |
DISCONTINUED OPERATIONS (Assets
DISCONTINUED OPERATIONS (Assets and Liabilities of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gains on disposal | $ 13,400 | $ 33,410 | $ 0 |
ASSETS | |||
Cash and cash equivalents | 28,243 | 28,243 | 35,693 |
Restricted cash | 5,635 | 5,635 | 44,766 |
Investments in debt securities | 97,190 | 97,190 | 143,604 |
Investments in partnerships | 155,079 | 155,079 | 227,962 |
Other assets | 10,940 | 10,940 | 17,895 |
Total assets | 364,386 | 364,386 | 531,886 |
LIABILITIES | |||
Debt | 149,187 | 149,187 | 216,139 |
Accounts payable and accrued expenses | 2,289 | 2,289 | 6,098 |
Other liabilities | 57,332 | ||
Total liabilities | 151,476 | 151,476 | 304,784 |
Discontinued Operations, 2018 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gains on disposal | 251 | ||
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 | 7,653 | ||
Total assets | 61,230 | ||
LIABILITIES | |||
Debt | 8,308 | ||
Accounts payable and accrued expenses | 3,454 | ||
Other liabilities | 5,450 | ||
Total liabilities | $ 17,212 | ||
MGM disposition | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Sale of Loans Held-for-sale | 9,400 | ||
Loan acquired | $ 9,000 | $ 9,000 |
DISCONTINUED OPERATIONS (Schedu
DISCONTINUED OPERATIONS (Schedule of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gain on sale of business | $ 13,400 | $ 33,410 | $ 0 |
Net income from discontinued operations | 35,356 | 18,846 | |
Net income to common shareholders from discontinued operations | 35,356 | 20,512 | |
Discontinued Operations, 2018 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Interest on bonds | 6 | 77 | |
Interest on loans and short-term investments | 746 | 394 | |
Asset management fee and reimbursements | 1,370 | 24,590 | |
Other income | 53 | 1,093 | |
Interest expense | (123) | ||
Salaries and benefits | (53) | (8,134) | |
General and administrative | (68) | (1,420) | |
Professional fees | (45) | (1,916) | |
Other expense | (527) | (1,591) | |
Gains on sales and operations of real estate, net | 63 | 6,549 | |
Equity in income (loss) from unconsolidated funds and ventures | 1 | 18 | |
Income tax expense | (692) | ||
Net income from discontinued operations, net of tax | 1,546 | 18,845 | |
Net gains on loans | 400 | ||
Net losses on derivatives | (250) | ||
Net gain on sale of business | 251 | ||
Net gain on disposal of discontinued operations | 33,410 | ||
Net income from discontinued operations | 35,356 | 18,846 | |
Loss from discontinued operations allocable to noncontrolling interests | 1,666 | ||
Net income to common shareholders from discontinued operations | 35,356 | $ 20,512 | |
Cumulative translation adjustments | $ 3,400 |
DISCONTINUED OPERATIONS (Cash F
DISCONTINUED OPERATIONS (Cash Flows of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ (891) | $ 2,173 |
Non-cash investing and financing activities: | ||
Decrease in debt | 6,712 | 0 |
Decrease in noncontrolling interests | 83,909 | 0 |
Discontinued Operations, 2018 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | 29 | 1,290 |
Capital expenditures | $ (123) | |
Non-cash investing and financing activities: | ||
Decrease in loans | (231) | |
Decrease in other assets | (35,724) | |
Decrease in debt | 8,308 | |
Decrease in accounts payable and accrued expenses | 7,201 | |
Decrease in other liabilities | 18,333 | |
Increase in accumulated other comprehensive income | (3,404) | |
Consolidated Funds and Ventures | Discontinued Operations, 2018 | ||
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 | |
Decrease in noncontrolling interests | $ 5,620 |
CONSOLIDATED FUNDS AND VENTUR_3
CONSOLIDATED FUNDS AND VENTURES (Asset Summary for Consolidated Funds) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Investments in debt securities | $ 97,190 | $ 143,604 |
Investments in Lower Tier Property Partnerships | 155,079 | 227,962 |
Real estate held for use, net | 3,769 | 3,447 |
Other assets | 10,940 | 17,895 |
Total assets | $ 364,386 | 531,886 |
Consolidated Funds and Ventures | ||
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 VENTUR_4
CONSOLIDATED FUNDS AND VENTURES (Assets and Liabilities of LTPPs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | ||
Net loss | $ 61,002 | $ (25,937) |
Lower Tier Property Partnerships Real Estate | ||
Investment [Line Items] | ||
Total assets | 1,085,998 | |
Debt | 771,027 | |
Other Liabilities | 165,500 | |
Gross revenue | 150,711 | |
Operating expenses | 88,118 | |
Net loss | $ (23,387) |
CONSOLIDATED FUNDS AND VENTUR_5
CONSOLIDATED FUNDS AND VENTURES (Liabilities of Consolidated LIHTC Funds) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Investment [Line Items] | ||
Debt | $ 216,139 | $ 149,187 |
Unfunded equity commitments to unconsolidated Lower Tier Property Partnerships | 8,003 | 0 |
Total liabilities | 304,784 | $ 151,476 |
Consolidated Funds and Ventures | ||
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, consolidated | 4,010 | |
Total liabilities | $ 50,565 | |
Weighted-average effective interest rate | 6.50% |
CONSOLIDATED FUNDS AND VENTUR_6
CONSOLIDATED FUNDS AND VENTURES (Information Pertaining to Income Statement of CFVs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Expenses: | ||
Interest expense | $ 2,557 | $ 1,836 |
Professional fees | 6,072 | 7,462 |
Asset management fee expense | 62 | 5,790 |
Impairment losses | 388 | 26,019 |
Total expenses from CFVs | 21,685 | 59,210 |
Equity in income (losses) from Lower Tier Property Partnerships of CFVs | 7,673 | (810) |
Net loss | 61,002 | (25,937) |
Consolidated Funds and Ventures | ||
Revenue: | ||
Interest and other income | 250 | |
Expenses: | ||
Interest expense | 415 | |
Professional fees | 0 | 672 |
Asset management fee expense | 0 | 5,698 |
Other expenses | 1,825 | |
Impairment losses | $ 0 | 25,074 |
Total expenses from CFVs | 33,684 | |
Equity in income (losses) from Lower Tier Property Partnerships of CFVs | (14,547) | |
Net loss | (47,981) | |
Net losses allocable to noncontrolling interests in CFVs | 43,673 | |
Net (loss) income allocable to the common shareholders related to CFVs | (4,308) | |
Consolidated Property partnerships | ||
Expenses: | ||
Equity in income (losses) from Lower Tier Property Partnerships of CFVs | 12 | |
LTPP | ||
Expenses: | ||
Equity in income (losses) from Lower Tier Property Partnerships of CFVs | $ (4,320) |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Segment Information [Abstract] | ||
Number of reportable segments | 1 | 3 |
Uncategorized Items - mmac-2018
Label | Element | Value |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 44,766,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 5,635,000 |