Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NEW YORK MORTGAGE TRUST INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 111,843,236 | ||
Entity Public Float | $ 660,147,923 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,273,685 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Investment securities, available for sale, at fair value (including $43,897 and $40,734 held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively and pledged securities of $690,592 and $639,683, as of December 31, 2016 and December 31, 2015, respectively) | [1] | $ 818,976 | $ 765,454 |
Multi-family loans held in securitization trusts, at fair value | 6,939,844 | 7,105,336 | |
Derivative assets | 150,296 | 228,775 | |
Cash and cash equivalents | 83,554 | 61,959 | |
Investment in unconsolidated entities | 79,259 | 87,662 | |
Mezzanine loan and preferred equity investments | 100,150 | 44,151 | |
Goodwill | 25,222 | 0 | |
Receivables and other assets | 156,092 | 83,995 | |
Total Assets | 8,951,631 | 9,056,242 | |
Liabilities: | |||
Financing arrangements | 773,142 | 577,413 | |
Securitized debt | 158,867 | 116,541 | |
Derivative liabilities | 498 | 1,500 | |
Payable for securities purchased | 148,015 | 227,969 | |
Accrued expenses and other liabilities | 65,969 | 59,527 | |
Subordinated debentures | 45,000 | 45,000 | |
Total liabilities | 8,100,469 | 8,175,716 | |
Commitments and Contingencies | |||
Stockholders' Equity: | |||
Common stock, $0.01 par value, 400,000,000 shares authorized, 111,474,521 and 109,401,721 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively | 1,115 | 1,094 | |
Additional paid-in capital | 748,599 | 734,610 | |
Accumulated other comprehensive income (loss) | 1,639 | (2,854) | |
Accumulated deficit | (62,537) | (11,583) | |
Company's stockholders' equity | 848,075 | 880,526 | |
Non-controlling interest | 3,087 | 0 | |
Total equity | 851,162 | 880,526 | |
Total Liabilities and Stockholders' Equity | 8,951,631 | 9,056,242 | |
Financing arrangements, portfolio investments | |||
Liabilities: | |||
Financing arrangements | 773,142 | 577,413 | |
Residential mortgage loans held in securitization trusts | |||
Liabilities: | |||
Financing arrangements | 192,419 | 212,155 | |
Residential collateralized debt obligations | |||
Liabilities: | |||
Collateralized debt obligations | 91,663 | 116,710 | |
Multi-family collateralized debt obligations, at fair value | |||
Liabilities: | |||
Collateralized debt obligations | 6,624,896 | 6,818,901 | |
Residential mortgage loans held in securitization trusts (net) | |||
ASSETS | |||
Residential mortgage loans | 95,144 | 119,921 | |
Distressed residential mortgage loans, net (including $195,347 and $114,214 held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively) | |||
ASSETS | |||
Residential mortgage loans | 503,094 | 558,989 | |
Series B Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock, $0.01 par value, 7.75% Series B cumulative redeemable, $25 liquidation preference per share, 6,000,000 shares authorized, 3,000,000 shares issued and outstanding | 72,397 | 72,397 | |
Series C Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock, $0.01 par value, 7.75% Series B cumulative redeemable, $25 liquidation preference per share, 6,000,000 shares authorized, 3,000,000 shares issued and outstanding | $ 86,862 | $ 86,862 | |
[1] | Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pledged Securities | $ 690,592 | $ 639,683 |
Distressed residential mortgage loans, net, held in securitization trusts | 195,347 | 114,214 |
Assets of consolidated VEIs | 7,330,872 | 7,412,093 |
Liabilities of consolidated VIEs | $ 6,902,536 | $ 7,077,175 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 6,600,000 | 6,600,000 |
Preferred stock, shares outstanding (in shares) | 6,600,000 | 6,600,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 111,474,521 | 109,401,721 |
Common stock, shares outstanding (in shares) | 111,474,521 | 109,401,721 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, dividend rate (as a percent) | 7.75% | 7.75% |
Series C Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 4,140,000 | 4,140,000 |
Preferred stock, shares issued (in shares) | 3,600,000 | 3,600,000 |
Preferred stock, shares outstanding (in shares) | 3,600,000 | 3,600,000 |
Preferred stock, dividend rate (as a percent) | 7.875% | 7.875% |
Available-for-sale Securities | ||
Investment securities held in securitization | $ 43,897 | $ 40,734 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST INCOME: | |||
Investment securities and other | $ 33,696 | $ 36,390 | $ 54,391 |
Total interest income | 319,306 | 336,838 | 378,847 |
INTEREST EXPENSE: | |||
Interest expense | 17,764 | 13,737 | 5,569 |
Subordinated debentures | 2,061 | 1,881 | 1,859 |
Total interest expense | 254,668 | 260,651 | 301,010 |
NET INTEREST INCOME | 64,638 | 76,187 | 77,837 |
OTHER INCOME (LOSS): | |||
Recovery (provision) for loan losses | 838 | (1,363) | (1,939) |
Realized (loss) gain on investment securities and related hedges, net | (3,645) | (4,617) | 42,091 |
Gain on de-consolidation of multi-family loans held in securitization trust and multi-family collateralized debt obligations | 0 | 1,483 | 0 |
Realized gain on distressed residential mortgage loans | 14,865 | 31,251 | 14,380 |
Unrealized gain (loss) on investment securities and related hedges, net | 7,070 | (2,641) | (7,667) |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 3,032 | 12,368 | 56,931 |
Loss on extinguishment of debt | 0 | 0 | (3,397) |
Other income | 19,078 | 9,360 | 4,809 |
Total other income | 41,238 | 45,841 | 105,208 |
Base management and incentive fees | 9,261 | 19,188 | 24,530 |
Expenses related to distressed residential mortgage loans | 10,714 | 10,364 | 6,429 |
Other general and administrative expenses | 15,246 | 9,928 | 9,500 |
Total general, administrative and other expenses | 35,221 | 39,480 | 40,459 |
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 70,655 | 82,548 | 142,586 |
Income tax expense | 3,095 | 4,535 | 6,395 |
NET INCOME | 67,560 | 78,013 | 136,191 |
Net income attributable to non-controlling interest | (9) | ||
NET INCOME ATTRIBUTABLE TO COMPANY | 67,551 | 78,013 | 136,191 |
Preferred stock dividends | (12,900) | (10,990) | (5,812) |
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 54,651 | $ 67,023 | $ 130,379 |
Basic income per common share (in dollars per share) | $ 0.50 | $ 0.62 | $ 1.48 |
Diluted income per common share (in dollars per share) | $ 0.50 | $ 0.62 | $ 1.48 |
Weighted average shares outstanding-basic (in shares) | 109,594 | 108,399 | 87,867 |
Weighted average shares outstanding-diluted (in shares) | 109,594 | 108,399 | 87,867 |
Securitized debt | |||
INTEREST EXPENSE: | |||
Interest expense | $ 11,044 | $ 11,126 | $ 16,762 |
Multi-family loans held in securitization trusts | |||
INTEREST INCOME: | |||
Interest income | 249,191 | 257,417 | 301,877 |
Residential mortgage loans held in securitization trusts | |||
INTEREST INCOME: | |||
Interest income | 3,770 | 3,728 | 3,755 |
Distressed residential mortgage loans | |||
INTEREST INCOME: | |||
Interest income | 32,649 | 39,303 | 18,824 |
Multi-family collateralized debt obligations | |||
INTEREST EXPENSE: | |||
Interest expense | 222,553 | 232,971 | 275,916 |
Residential collateralized debt obligations | |||
INTEREST EXPENSE: | |||
Interest expense | $ 1,246 | $ 936 | $ 904 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 54,651 | $ 67,023 | $ 130,379 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Increase (decrease) in fair value of available for sale securities | 4,695 | (2,975) | 20,881 |
Reclassification adjustment for net gain included in net income | 0 | (9,063) | (13,033) |
Decrease in fair value of derivative instruments utilized for cash flow hedges | (202) | (831) | (906) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 4,493 | (12,869) | 6,942 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 59,144 | $ 54,154 | $ 137,321 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Company Stockholders' Equity | Non-Controlling Interest | Common Stock | Common StockCommon Stock | Common StockAdditional Paid-In Capital | Common StockRetained Earnings (Accumulated Deficit) | Common StockTotal Company Stockholders' Equity | Preferred Stock | Preferred StockPreferred Stock | Preferred StockRetained Earnings (Accumulated Deficit) | Preferred StockTotal Company Stockholders' Equity |
Beginning balance at Dec. 31, 2013 | $ 480,666 | $ 641 | $ 72,397 | $ 404,555 | $ 0 | $ 3,073 | $ 480,666 | $ 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 136,191 | 136,191 | 136,191 | ||||||||||||||
Stock issuance | $ 297,726 | $ 410 | $ 297,316 | $ 297,726 | |||||||||||||
Dividends declared | (97,786) | $ (97,786) | (97,786) | $ (5,812) | $ (5,812) | $ (5,812) | |||||||||||
Reclassification adjustment for net gain included in net income | (13,033) | (13,033) | (13,033) | ||||||||||||||
Increase (decrease) in fair value of available for sale securities | 20,881 | 20,881 | 20,881 | ||||||||||||||
Increase (decrease) in fair value of derivative instruments utilized for cash flow hedges | (906) | (906) | (906) | ||||||||||||||
Ending balance at Dec. 31, 2014 | 817,927 | 1,051 | 72,397 | 701,871 | 32,593 | 10,015 | 817,927 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 78,013 | 78,013 | 78,013 | ||||||||||||||
Stock issuance | 32,782 | 43 | 32,739 | 32,782 | 86,862 | $ 86,862 | 86,862 | ||||||||||
Dividends declared | (111,199) | (111,199) | (111,199) | (10,990) | (10,990) | (10,990) | |||||||||||
Reclassification adjustment for net gain included in net income | (9,063) | (9,063) | (9,063) | ||||||||||||||
Increase (decrease) in fair value of available for sale securities | (2,975) | (2,975) | (2,975) | ||||||||||||||
Increase (decrease) in fair value of derivative instruments utilized for cash flow hedges | (831) | (831) | (831) | ||||||||||||||
Ending balance at Dec. 31, 2015 | 880,526 | 1,094 | 159,259 | 734,610 | (11,583) | (2,854) | 880,526 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 67,560 | 67,551 | 67,551 | 9 | |||||||||||||
Stock issuance | 14,010 | $ 21 | $ 13,989 | 14,010 | |||||||||||||
Dividends declared | $ (105,605) | $ (105,605) | $ (105,605) | $ (12,900) | $ (12,900) | $ (12,900) | |||||||||||
Reclassification adjustment for net gain included in net income | 0 | ||||||||||||||||
Increase (decrease) in fair value of available for sale securities | 4,695 | 4,695 | 4,695 | ||||||||||||||
Increase (decrease) in fair value of derivative instruments utilized for cash flow hedges | (202) | (202) | (202) | ||||||||||||||
Noncontrolling Interest, Increase from Business Combination | 3,078 | 3,078 | |||||||||||||||
Ending balance at Dec. 31, 2016 | $ 851,162 | $ 1,115 | $ 159,259 | $ 748,599 | $ (62,537) | $ 1,639 | $ 848,075 | $ 3,087 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash Flows from Operating Activities: | |||
Net income | $ 67,560 | $ 78,013 | $ 136,191 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization (accretion) | 7,648 | 542 | (2,671) |
Realized loss (gain) on investment securities and related hedges, net | 3,645 | 4,617 | (42,091) |
Realized gain on distressed residential mortgage loans | (14,865) | (31,251) | (14,380) |
Unrealized (gain) loss on investment securities and related hedges, net | (7,070) | 2,641 | 7,667 |
Gain on de-consolidation of multi-family loans held in securitization trusts and multi-family collateralized debt obligations | 0 | (1,483) | 0 |
Gain on remeasurement of existing membership interest in businesses acquired | (5,052) | 0 | 0 |
Gain on bargain purchase on businesses acquired | (65) | 0 | 0 |
Unrealized gain on loans and debt held in multi-family securitization trusts | (3,032) | (12,368) | (56,931) |
Loss on extinguishment of debt | 0 | 0 | 3,397 |
Net decrease in loans held for sale | 432 | 323 | 87 |
(Recovery of) provision for loan losses | (838) | 1,363 | 1,939 |
Income from unconsolidated entity, mezzanine loan and preferred equity investments | (22,202) | (12,997) | (4,562) |
Distributions of income from unconsolidated entity, mezzanine loan and preferred equity investments | 15,801 | 9,827 | 2,238 |
Amortization of stock based compensation, net | 514 | 983 | 1,180 |
Changes in operating assets and liabilities: | |||
Receivables and other assets | 6,756 | 10,945 | (3,631) |
Accrued expenses and other liabilities and accrued expenses, related parties | 4,612 | (14,819) | 9,118 |
Net cash provided by operating activities | 53,844 | 36,336 | 37,551 |
Cash Flows from Investing Activities: | |||
Acquisition of businesses, net of cash acquired | (28,468) | 0 | 0 |
Restricted cash | (35,172) | 33,448 | (10,150) |
Proceeds from sales of investment securities | 208,229 | 99,235 | 93,578 |
Purchases of investment securities | (423,175) | (152,883) | (20,273) |
Redemption (purchases) of FHLBI stock | 5,445 | (5,445) | 0 |
Purchases of other assets | (103) | (61) | (254) |
Funding of mezzanine loans, equity and preferred equity investments | (46,896) | (58,215) | (49,816) |
Principal repayments received on mezzanine loans and preferred equity investments | 4,464 | 4,308 | 5,590 |
Return of capital from investments in limited partnerships and limited liability companies | 10,940 | 0 | 0 |
Net (payments) proceeds from other derivative instruments settled during the period | (933) | (5,766) | 1,124 |
Principal paydowns on investment securities - available for sale | 136,836 | 105,774 | 98,877 |
Proceeds from sale of real estate owned | 2,131 | 1,044 | 3,882 |
Proceeds from sales of loans held in multi-family securitization trusts | 0 | 65,587 | 0 |
Net cash provided by (used in) investing activities | 33,662 | 283,965 | (125,016) |
Cash Flows from Financing Activities: | |||
Proceeds from (payments made on) financing arrangements, net of FHLBI advances and payments | 175,993 | (99,011) | 99,789 |
Payments made on securitized debt | 166,347 | 0 | 0 |
Common stock issuance, net | 13,496 | 31,799 | 296,546 |
Preferred stock issuance, net | 0 | 86,862 | 0 |
Payments made on collateralized debt obligations | (126,018) | (116,136) | (75,796) |
Early Repayment of Senior Debt | (16,255) | 0 | 0 |
Net cash (used in) provided by financing activities | (65,911) | (333,940) | 131,265 |
Net Increase (Decrease) in Cash and Cash Equivalents | 21,595 | (13,639) | 43,800 |
Cash and Cash Equivalents - Beginning of Period | 61,959 | 75,598 | 31,798 |
Cash and Cash Equivalents - End of Period | 83,554 | 61,959 | 75,598 |
Supplemental Disclosure: | |||
Cash paid for interest | 300,992 | 307,162 | 352,232 |
Cash paid for income taxes | 4,061 | 4,922 | 8,295 |
Non-Cash Investment Activities: | |||
Purchase of investment securities not yet settled | 148,015 | 227,969 | 283,537 |
Consolidation of multi-family loans held in securitization trusts | 0 | 1,075,529 | 0 |
Consolidation of multi-family collateralized debt obligations | 0 | 1,009,942 | 0 |
Common Stock | |||
Cash Flows from Financing Activities: | |||
Dividends paid | (105,108) | (113,318) | (86,705) |
Non-Cash Financing Activities: | |||
Dividends declared on stock to be paid in subsequent period | 26,754 | 26,256 | 28,376 |
Preferred Stock | |||
Cash Flows from Financing Activities: | |||
Dividends paid | (12,900) | (9,218) | (5,812) |
Non-Cash Financing Activities: | |||
Dividends declared on stock to be paid in subsequent period | 3,225 | 3,225 | 1,453 |
Financing arrangements, residential mortgage loans | |||
Cash Flows from Investing Activities: | |||
Principal repayments received on loans | 23,648 | 28,166 | 12,687 |
Purchases of residential mortgage loans and distressed residential mortgage loans | (82,167) | (156,005) | (405,427) |
Distressed residential mortgage loans held in securitization trusts (net) | |||
Cash Flows from Investing Activities: | |||
Principal repayments received on loans | 122,552 | 238,798 | 64,715 |
Multi-family collateralized debt obligations | |||
Cash Flows from Investing Activities: | |||
Principal repayments received on loans | 136,331 | 85,980 | 80,451 |
Residential collateralized debt obligations | |||
Cash Flows from Financing Activities: | |||
Payments made on collateralized debt obligations | (25,152) | (28,952) | (12,918) |
Collateralized Loan Obligation | |||
Cash Flows from Financing Activities: | |||
Payments made on collateralized debt obligations | $ (136,314) | $ (85,966) | $ (83,839) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization New York Mortgage Trust, Inc., together with its consolidated subsidiaries (“NYMT,” "we," "our," or the “Company”), is a real estate investment trust, or REIT, in the business of acquiring, investing in, financing and managing primarily mortgage-related assets and financial assets. Our objective is to deliver stable distributions to our stockholders over diverse economic conditions through a combination of income generated by net interest margin and net realized capital gains from our diversified investment portfolio. Our portfolio includes residential mortgage loans, including loans sourced from distressed markets, multi-family CMBS, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity securities issued by entities that invest in residential and commercial real estate, non-Agency RMBS, Agency RMBS consisting of fixed-rate, adjustable-rate and hybrid adjustable-rate RMBS and Agency IOs consisting of interest only and inverse interest-only RMBS that represent the right to the interest component of the cash flow from a pool of mortgage loans and certain other investments in mortgage-related and financial assets. The Company conducts its business through the parent company, New York Mortgage Trust, Inc., and several subsidiaries, including special purpose subsidiaries established for residential loan, distressed residential loan and CMBS securitization purposes, taxable REIT subsidiaries ("TRSs") and qualified REIT subsidiaries ("QRSs"). The Company consolidates all of its subsidiaries under generally accepted accounting principles in the United States of America (“GAAP”). The Company is organized and conducts its operations to qualify as a REIT for federal income tax purposes. As such, the Company will generally not be subject to federal income taxes on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by the due date of its federal income tax return and complies with various other requirements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Definitions – The following defines certain of the commonly used terms in these financial statements: “RMBS” refers to residential adjustable-rate, hybrid adjustable-rate, fixed-rate, interest only and inverse interest only and principal only mortgage-backed securities; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of mortgage loans issued or guaranteed by a federally chartered corporation (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the U.S. government, such as the Government National Mortgage Association (“Ginnie Mae”); “Non-Agency RMBS” refers to RMBS backed by prime jumbo mortgage loans, including re-performing and non-performing loans; “IOs” refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans; “POs” refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; “Agency IOs” refers to an IO that represents the right to the interest component of the cash flows from a pool of residential mortgage loans issued or guaranteed by a GSE or an agency of the U.S. government; “ARMs” refers to adjustable-rate residential mortgage loans; “Prime ARM loans” and “residential securitized loans” each refer to prime credit quality residential ARM loans (“prime ARM loans”) held in securitization trusts formed in 2005; “Agency ARMs” refers to Agency RMBS comprised of adjustable-rate and hybrid adjustable-rate RMBS; “Agency fixed-rate RMBS” refers to Agency RMBS comprised of fixed-rate RMBS; “CMBS” refers to commercial mortgage-backed securities comprised of commercial mortgage pass-through securities, as well as IO or PO securities that represent the right to a specific component of the cash flow from a pool of commercial mortgage loans; “Multi-family CMBS” refers to CMBS backed by commercial mortgage loans on multi-family properties; “CDOs” refers to collateralized debt obligations; and “CLO” refers to collateralized loan obligations. Basis of Presentation – The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made significant estimates in several areas, including valuation of its CMBS investments, multi-family loans held in securitization trusts and multi-family CDOs, as well as income recognition on distressed residential mortgage loans purchased at a discount. Although the Company’s estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially impact the Company’s results of operations and its financial condition. Reclassifications – Certain prior period amounts have been reclassified in the consolidated financial statements to conform to current period presentation. Business Combinations – The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in net income. Net cash paid to acquire a business is classified as investing activities on the accompanying consolidated statements of cash flows. On May 16, 2016, the Company acquired the outstanding membership interests in RiverBanc LLC (“RiverBanc”), RB Multifamily Investors LLC (“RBMI”), and RB Development Holding Company, LLC (“RBDHC”) that were not previously owned by the Company through the consummation of separate membership interest purchase agreements, thereby increasing the Company's ownership of each of these entities to 100% ( see Note 21 ). These transactions were accounted for by applying the acquisition method for business acquisitions under ASC 805. Principles of Consolidation and Variable Interest Entities (VIE) – The accompanying consolidated financial statements of the Company include the accounts of all its subsidiaries which are majority-owned, controlled by the Company or a variable interest entity (“VIE”) where the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Company consolidates a VIE when it is the primary beneficiary of such VIE, herein referred to as “Consolidated VIE”. As primary beneficiary, it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. Investment Securities Available for Sale – The Company's investment securities, where the fair value option has not been elected and which are reported at fair value with unrealized gains and losses reported in Other Comprehensive Income (“OCI”), include Agency RMBS, non-Agency RMBS and CMBS. The Company has elected the fair value option for its Agency IOs, U.S. Treasury securities, certain Agency ARMs and Agency fixed-rate RMBS within the Agency IO portfolio, which measures unrealized gains and losses through earnings in the accompanying consolidated statements of operations. The fair value option was elected for these investment securities to better match the accounting for these investment securities with the related derivative instruments within the Agency IO portfolio, which are not designated as hedging instruments for accounting purposes. The Company generally intends to hold its investment securities until maturity; however, from time to time, it may sell any of its securities as part of the overall management of its business. As a result, our investment securities are classified as available for sale securities. Realized gains and losses recorded on the sale of investment securities available for sale are based on the specific identification method and included in realized (loss) gain on investment securities and related hedges in the accompanying consolidated statements of operations. Interest income on our investment securities available for sale is accrued based on the outstanding principal balance and their contractual terms. Purchase premiums or discounts on investment securities are amortized or accreted to interest income over the estimated life of the investment securities using the effective yield method. Adjustments to amortization are made for actual prepayment activity. Interest income on certain of our credit sensitive securities, such as our CMBS that were purchased at a discount to par value, is recognized based on the security’s effective interest rate. The effective interest rate on these securities is based on management’s estimate of the projected cash flows from each security, which are estimated based on assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, management reviews and, if appropriate, adjusts its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield/interest income recognized on these securities. A portion of the purchase discount on the Company’s first loss tranche PO multi-family CMBS is designated as non-accretable purchase discount or credit reserve, which partially mitigates the Company’s risk of loss on the mortgages collateralizing such multi-family CMBS, and is not expected to be accreted into interest income. The amount designated as a credit reserve may be adjusted over time, based on the actual performance of the security, its underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a security with a credit reserve is more favorable than forecasted, a portion of the amount designated as credit reserve may be accreted into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and writedowns of such securities to a new cost basis could be required. The Company accounts for debt securities that are of high credit quality (generally those rated AA or better by a Nationally Recognized Statistical Rating Organization, or NRSRO), at date of acquisition in accordance with ASC 320-10, Investments - Debt and Equity Securities ("ASC 320-10"). The Company accounts for debt securities that are not of high credit quality (i.e., those whose risk of loss is more than remote) or securities that can be contractually prepaid such that we would not recover our initial investment at the date of acquisition in accordance with ASC 325-40, Investments - Beneficial Interest in Securitized Financial Assets ("ASC 325-40"). The Company considers credit ratings, the underlying credit risk and other market factors in determining whether the debt securities are of high credit quality; however, securities rated lower than AA or an equivalent rating are not considered of high credit quality and are accounted for in accordance with ASC 325-40. If ratings are inconsistent among NRSROs, the Company uses the lower rating in determining whether the securities are of high credit quality. The Company assesses its impaired securities on at least a quarterly basis and designates such impairments as either “temporary” or “other-than-temporary” by applying the guidance prescribed in ASC 320-10. When the fair value of an investment security is less than its amortized cost as of the reporting balance sheet date, the security is considered impaired. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then it must recognize an other-than-temporary impairment through earnings equal to the entire difference between the investment’s amortized cost and its fair value as of the balance sheet date. If the Company does not expect to sell an other-than-temporarily impaired security, only the portion of the other-than-temporary impairment related to credit losses is recognized through earnings with the remainder recognized as a component of other comprehensive income (loss) on the accompanying consolidated balance sheets. Impairments recognized through other comprehensive income (loss) do not impact earnings. Following the recognition of an other-than-temporary impairment through earnings, a new cost basis is established for the security, which may not be adjusted for subsequent recoveries in fair value through earnings. However, other-than-temporary impairments recognized through earnings may be accreted back to the amortized cost basis of the security on a prospective basis through interest income. The determination as to whether an other-than-temporary impairment exists and, if so, the amount considered other-than-temporarily impaired is subjective, as such determinations are based on both factual and subjective information available at the time of assessment as well as the Company’s estimates of the future performance and cash flow projections. As a result, the timing and amount of other-than-temporary impairments constitute material estimates that are susceptible to significant change. In determining the other-than temporary impairment related to credit losses for securities that are not of high credit quality, the Company compares the present value of the remaining cash flows expected to be collected at the prior reporting date or purchase date, whichever is most recent, against the present value of the cash flows expected to be collected at the current financial reporting date. The Company considers information available about the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities and delinquency rates. Residential Mortgage Loans Held in Securitization Trusts – Residential mortgage loans held in securitization trusts are comprised of certain ARM loans transferred to Consolidated VIEs that have been securitized into sequentially rated classes of beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Residential mortgage loans held in securitization trusts are carried at their unpaid principal balances, net of unamortized premium or discount, unamortized loan origination costs and allowance for loan losses. Interest income is accrued and recognized as revenue when earned according to the terms of the mortgage loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. We establish an allowance for loan losses based on management's judgment and estimate of credit losses inherent in our portfolio of residential mortgage loans held in securitization trusts. Estimation involves the consideration of various credit-related factors, including but not limited to, macro-economic conditions, current housing market conditions, loan-to-value ratios, delinquency status, historical credit loss severity rates, purchased mortgage insurance, the borrower's current economic condition and other factors deemed to warrant consideration. Additionally, we look at the balance of any delinquent loan and compare that to the current value of the collateralizing property. We utilize various home valuation methodologies including appraisals, broker pricing opinions, internet-based property data services to review comparable properties in the same area or consult with a broker in the property's area. Acquired Distressed Residential Mortgage Loans – Distressed residential mortgage loans are comprised of pools of fixed and adjustable rate residential mortgage loans acquired by the Company at a discount, with evidence of credit deterioration since their origination and where it is probable that the Company will not collect all contractually required principal payments. Distressed residential mortgage loans held in securitization trusts are distressed residential mortgage loans transferred to Consolidated VIEs that have been securitized into beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Acquired distressed residential mortgage loans that have evidence of deteriorated credit quality at acquisition are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). Management evaluates whether there is evidence of credit quality deterioration as of the acquisition date using indicators such as past due or modified status, risk ratings, recent borrower credit scores and recent loan-to-value percentages. Acquired distressed residential mortgage loans are recorded at fair value at the date of acquisition, with no allowance for loan losses. Under ASC 310-30, the acquired loans may be accounted for individually or aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an expectation of aggregate cash flows. Once a pool is assembled, it is treated as if it was one loan for purposes of applying the accounting guidance. Under ASC 310-30, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans in each pool or individually using a level yield methodology. Accordingly, our acquired distressed residential mortgage loans accounted for under ASC 310-30 are not subject to classification as nonaccrual classification in the same manner as our residential mortgage loans that were not distressed when acquired by us. Rather, interest income on acquired distressed residential mortgage loans relates to the accretable yield recognized at the pool level or on an individual loan basis, and not to contractual interest payments received at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference,” includes estimates of both the impact of prepayments and expected credit losses over the life of the individual loan, or the pool (for loans grouped into a pool). Management monitors actual cash collections against its expectations, and revised cash flow expectations are prepared as necessary. A decrease in expected cash flows in subsequent periods may indicate that the loan pool or individual loan, as applicable, is impaired, thus requiring the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods initially reduces any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for prospectively as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool or individual loan, as applicable. The impacts of (i) prepayments, (ii) changes in variable interest rates, and (iii) any other changes in the timing of expected cash flows are recognized prospectively as adjustments to interest income. A distressed residential mortgage loan disposal, which may include a loan sale, receipt of payment in full from the borrower or foreclosure, results in removal of the loan from the loan pool at its allocated carrying amount. In the event of a sale of the loan and receipt of payment (in full or partial) from the borrower, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds or payment from the borrower and the allocated carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, an individual loan is removed from the pool and a loss is recognized if the carrying value exceeds the fair value of the collateral less costs to sell. A gain is not recognized if the fair value of collateral less costs to sell exceeds the carrying value. The Company uses the specific allocation method for the removal of loans as the estimated cash flows and related carrying amount for each individual loan are known. In these cases, the remaining accretable yield is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed by the re-assessment of the estimate of cash flows for the pool prospectively. Acquired distressed residential mortgage loans subject to modification are not removed from the pool even if those loans would otherwise be considered troubled debt restructurings because the pool, and not the individual loan, represents the unit of account. For individual loans not accounted for in pools that are sold or satisfied by payment in full, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds or payment from the borrower and the carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, a loss is recognized if the carrying value exceeds the fair value of the collateral less costs to sell. A gain is not recognized if the fair value of collateral less costs to sell exceeds the carrying value. Multi-Family Loans Held in Securitization Trusts – Multi-family loans held in securitization trusts are comprised of multi-family mortgage loans held in five Freddie Mac-sponsored multi-family K-Series securitizations (the “Consolidated K-Series”) as of December 31, 2016 and December 31, 2015 . Based on a number of factors, we determined that we were the primary beneficiary of each VIE within the Consolidated K-Series, met the criteria for consolidation and, accordingly, have consolidated these Freddie Mac-sponsored multi-family K-Series securitizations, including their assets, liabilities, income and expenses in our financial statements. The Company has elected the fair value option on each of the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations be reflected in the Company's accompanying consolidated statements of operations. The Company adopted Accounting Standards Update ("ASU") 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, effective January 1, 2016. As a result, the Company measures both the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity ("CFE") using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. As the Company’s securitization trusts are considered qualifying CFEs, the Company determines the fair value of multi-family loans held in securitization trusts based on the fair value of its multi-family collateralized debt obligations and its retained interests from these securitizations (eliminated in consolidation in accordance with U.S. GAAP), as the fair value of these instruments is more observable. Interest income is accrued and recognized as revenue when earned according to the terms of the multi-family loans and when, in the opinion of management, it is collectible. The accrual of interest on multi-family loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. The multi-family loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Mezzanine Loan and Preferred Equity Investments - The Company invests in mezzanine loans and preferred equity of entities that have significant real estate assets. The mezzanine loan is secured by a pledge of the borrower’s equity ownership in the property. Unlike a mortgage, this loan does not represent a lien on the property. Therefore, it is always junior and subordinate to any first lien as well as second liens, if applicable, on the property. These loans are senior to any preferred equity or common equity interests. A preferred equity investment is an equity investment in the entity that owns the underlying property. Preferred equity is not secured by the underlying property, but holders have priority relative to common equity holders on cash flow distributions and proceeds from capital events. In addition, preferred equity holders may be able to enhance their position and protect their equity position with covenants that limit the entity’s activities and grant the holder the exclusive right to control the property after an event of default. Mezzanine loans and preferred equity investments, where the risks and payment characteristics are equivalent to mezzanine loans, are accounted for as loans and are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances, and are included in receivables and other assets in the accompanying consolidated balance sheets. The Company has evaluated its mezzanine loan and preferred equity investments for accounting treatment as loans versus equity investment utilizing the guidance provided by the ADC Arrangements Subsection of ASC 310, Receivables . For mezzanine loan and preferred equity investments where the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate, the Company accretes or amortizes any discounts or premiums and deferred fees and expenses over the life of the related asset utilizing the effective interest method or straight line-method, if the result is not materially different. Management evaluates the collectability of both interest and principal of each of our loans, if circumstances warrant, to determine whether they are impaired. A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a loan is impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the investment to the estimated fair value of the loan or, as a practical expedient, to the value of the collateral if the loan is collateral dependent. Interest income is accrued and recognized as revenue when earned according to the terms of the loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Mezzanine loans and preferred equity investments where the risks and payment characteristics are equivalent to an equity investment are accounted for using the equity method of accounting. See “ Investment in Unconsolidated Entities ”. Mortgage Loans Held for Investment – Mortgage loans held for investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances, and are included in receivables and other assets. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in interest income. A loan is considered to be impaired when it is probable that based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Based on the facts and circumstances of the individual loans being impaired, loan specific valuation allowances are established for the excess carrying value of the loan over either: (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate; (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent; or (iii) the loan’s observable market price. Investment in Unconsolidated Entities – Non-controlling, unconsolidated ownership interests in an entity may be accounted for using the equity method or the cost method. In circumstances where the Company has a non-controlling interest but either owns a significant interest or is able to exert influence over the affairs of the enterprise, the Company utilizes the equity method of accounting. Under the equity method of accounting, the initial investment is increased each period for additional capital contributions and a proportionate share of the entity’s earnings or preferred return and decreased for cash distributions and a proportionate share of the entity’s losses. Management periodically reviews its investments for impairment based on projected cash flows from the entity over the holding period. When any impairment is identified, the investments are written down to recoverable amounts. The Company may elect the fair value option for an investment in an unconsolidated entity that is accounted for using the equity method. The Company elected the fair value option for certain investments in unconsolidated entities that own interests (directly or indirectly) in commercial and residential real estate assets because the Company determined that such presentation represents the underlying economics of the respective investment. The Company records the change in fair value of its investment in other income in the consolidated statements of operations. The Company had investments in unconsolidated entities at fair value option included in investment in unconsolidated entities in the amounts of $60.3 million and $67.6 million as of December 31, 2016 and December 31, 2015 , respectively. Real Estate Under Development – The Company's expenditures which directly relate to the acquisition, development, construction and improvement of properties are capitalized, at cost. During the development period, which culminates once a property is substantially complete and ready for intended use, operating and carrying costs such as interest expense, real estate taxes, insurance and other direct costs are capitalized. Advertising and general administrative costs that do not relate to the development of a property are expensed as incurred. Real estate under development as of December 31, 2016 and December 31, 2015 of $17.5 million and $0 , respectively, is included in receivables and other assets on the consolidated balance sheets. The Company periodically evaluates its long-lived assets for indicators of impairment. The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions and legal and environmental concerns, as well as the Company's ability to hold and its intent with regard to each asset. Future events could occur which would cause the Company to conclude that impairment indicators exist and an impairment is warranted. If impairment indicators exist for long-lived assets to be held and used, and the expected future un |
Investment Securities Available
Investment Securities Available For Sale | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities Available For Sale | Investment Securities Available For Sale Investment securities available for sale consisted of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Amortized Costs Unrealized Fair Value Amortized Costs Unrealized Fair Value Gains Losses Gains Losses Agency RMBS (1) : Agency ARMs Freddie Mac $ 39,138 $ 24 $ (528 ) $ 38,634 $ 62,383 $ 41 $ (770 ) $ 61,654 Fannie Mae 69,031 71 (698 ) 68,404 92,605 121 (1,334 ) 91,392 Ginnie Mae 6,011 — (204 ) 5,807 20,172 55 (260 ) 19,967 Total Agency ARMs 114,180 95 (1,430 ) 112,845 175,160 217 (2,364 ) 173,013 Agency Fixed Rate Freddie Mac 26,338 — (644 ) 25,694 31,076 — (719 ) 30,357 Fannie Mae 312,515 — (10,035 ) 302,480 380,684 — (12,149 ) 368,535 Ginnie Mae 457 — (4 ) 453 25,923 9 (111 ) 25,821 Total Agency Fixed Rate 339,310 — (10,683 ) 328,627 437,683 9 (12,979 ) 424,713 Agency IOs (1) Freddie Mac 19,768 559 (3,363 ) 16,964 28,970 680 (4,471 ) 25,179 Fannie Mae 27,597 478 (4,777 ) 23,298 39,603 433 (6,341 ) 33,695 Ginnie Mae 49,788 1,223 (6,382 ) 44,629 63,050 511 (7,045 ) 56,516 Total Agency IOs 97,153 2,260 (14,522 ) 84,891 131,623 1,624 (17,857 ) 115,390 Total Agency RMBS 550,643 2,355 (26,635 ) 526,363 744,466 1,850 (33,200 ) 713,116 Non-Agency RMBS 162,220 1,218 (154 ) 163,284 1,727 51 (211 ) 1,567 U.S. Treasury securities (1) 2,920 — (33 ) 2,887 10,113 — (76 ) 10,037 CMBS (2) 113,955 12,876 (389 ) 126,442 28,692 12,042 — 40,734 Total investment securities available for sale $ 829,738 $ 16,449 $ (27,211 ) $ 818,976 $ 784,998 $ 13,943 $ (33,487 ) $ 765,454 (1) Included in investment securities available for sale are Agency IOs, Agency RMBS and U.S. Treasury securities managed by Midway that are measured at fair value through earnings. (2) Included in CMBS is $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015 , respectively. Realized Gain or Loss Activity During the year ended December 31, 2016 , the Company received total proceeds of approximately $208.2 million realizing approximately $2.3 million of net losses, from the sale of investment securities available for sale. During the year ended December 31, 2015 , the Company received total proceeds of approximately $99.2 million , realizing approximately $2.1 million of net gains, from the sale of investment securities available for sale. During the year ended December 31, 2014 , the Company received total proceeds of approximately $93.6 million , realizing approximately $39.1 million of net gains, from the sale of investment securities available for sale. Weighted Average Life Actual maturities of our available for sale securities are generally shorter than stated contractual maturities (with maturities up to 30 years ), as they are affected by periodic payments and prepayments of principal on the underlying mortgages. As of December 31, 2016 and 2015 , the weighted average life of the Company’s available for sale securities portfolio was approximately 4.3 years and 5.0 years , respectively. The following table sets forth the weighted average lives our investment securities available for sale as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): Weighted Average Life December 31, 2016 December 31, 2015 0 to 5 years $ 606,079 $ 518,594 Over 5 to 10 years 177,765 219,747 10+ years 35,132 27,113 Total $ 818,976 $ 765,454 Portfolio Interest Reset Periods The following tables set forth the stated interest reset periods of our investment securities available for sale and investment securities available for sale held in securitization trusts at December 31, 2016 and December 31, 2015 at carrying value (dollar amounts in thousands): December 31, 2016 December 31, 2015 Less than 6 months 6 to 24 months More than 24 months Total Less than 6 months 6 to 24 months More than 24 months Total Agency RMBS $ 53,043 $ 27,272 $ 446,048 $ 526,363 $ 92,693 $ 44,700 $ 575,723 $ 713,116 Non-Agency RMBS 50,080 — 113,204 163,284 188 1,379 — 1,567 U.S. Treasury securities — — 2,887 2,887 10,037 — — 10,037 CMBS 82,545 — 43,897 126,442 — — 40,734 40,734 Total investment securities available for sale $ 185,668 $ 27,272 $ 606,036 $ 818,976 $ 102,918 $ 46,079 $ 616,457 $ 765,454 Unrealized Losses in OCI The following tables present the Company's investment securities available for sale in an unrealized loss position reported through OCI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 Less than 12 Months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 96,357 $ (1,290 ) $ 328,474 $ (10,819 ) $ 424,831 $ (12,109 ) Non-Agency RMBS — — 596 (154 ) 596 (154 ) CMBS 16,523 (389 ) — — 16,523 (389 ) Total investment securities available for sale $ 112,880 $ (1,679 ) $ 329,070 $ (10,973 ) $ 441,950 $ (12,652 ) December 31, 2015 Less than 12 Months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 71,587 $ (688 ) $ 476,157 $ (14,497 ) $ 547,744 $ (15,185 ) Non-Agency RMBS 771 — 796 (211 ) 1,567 (211 ) CMBS — — — — — — Total investment securities available for sale $ 72,358 $ (688 ) $ 476,953 $ (14,708 ) $ 549,311 $ (15,396 ) Other than Temporary Impairment For the years ended December 31, 2016 , 2015 and 2014 , the Company did not recognize other-than-temporary impairment through earnings. |
Residential Mortgage Loans Held
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned | Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned Residential mortgage loans held in securitization trusts (net) consist of the following at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Unpaid principal balance $ 98,303 $ 122,545 Deferred origination costs – net 623 775 Reserve for loan losses (3,782 ) (3,399 ) Total $ 95,144 $ 119,921 Allowance for Loan Losses - The following table presents the activity in the Company's allowance for loan losses on residential mortgage loans held in securitization trusts for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 3,399 $ 3,631 $ 2,989 Provisions for loan losses 612 1,161 998 Transfer to real estate owned (117 ) — (356 ) Charge-offs (112 ) (1,393 ) — Balance at the end of period $ 3,782 $ 3,399 $ 3,631 On an ongoing basis, the Company evaluates the adequacy of its allowance for loan losses. The Company’s allowance for loan losses at December 31, 2016 was $3.8 million , representing 385 basis points of the outstanding principal balance of residential loans held in securitization trusts, as compared to 277 basis points as of December 31, 2015 . As part of the Company’s allowance for loan loss adequacy analysis, management will assess an overall level of allowances while also assessing credit losses inherent in each non-performing residential mortgage loan held in securitization trusts. These estimates involve the consideration of various credit related factors, including but not limited to, current housing market conditions, current loan to value ratios, delinquency status, the borrower’s current economic and credit status and other relevant factors. Real Estate Owned – The following table presents the activity in the Company’s real estate owned held in residential securitization trusts for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 December 31, 2014 Balance at beginning of period $ 411 $ 965 $ 1,108 Write downs (9 ) — (103 ) Transfer from mortgage loans held in securitization trusts 352 — 537 Disposal (604 ) (554 ) (577 ) Balance at the end of period $ 150 $ 411 $ 965 Real estate owned held in residential securitization trusts are included in receivables and other assets on the accompanying consolidated balance sheets and write downs are included in provision for loan losses in the statement of operations for reporting purposes. All of the Company’s mortgage loans and real estate owned held in residential securitization trusts are pledged as collateral for the Residential CDOs issued by the Company. The Company’s net investment in the residential securitization trusts, which is the maximum amount of the Company’s investment that is at risk to loss and represents the difference between (i) the carrying amount of the mortgage loans, real estate owned and receivables held in residential securitization trusts and (ii) the amount of Residential CDOs outstanding, was $4.4 million and $4.4 million , as of December 31, 2016 and December 31, 2015 , respectively. Delinquency Status of Our Residential Mortgage Loans Held in Securitization Trusts As of December 31, 2016 , we had 31 delinquent loans with an aggregate principal amount outstanding of approximately $18.7 million categorized as Residential Mortgage Loans Held in Securitization Trusts (net), of which $11.2 million , or 60% , are under some form of temporary modified payment plan. The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including real estate owned (REO) through foreclosure, as of December 31, 2016 (dollar amounts in thousands): December 31, 2016 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 1 $ 247 0.25 % 61 - 90 — $ — — 90+ 30 $ 18,416 18.68 % Real estate owned through foreclosure 1 $ 268 0.27 % As of December 31, 2015 , we had 31 delinquent loans with an aggregate principal amount outstanding of approximately $18.0 million categorized as Residential Mortgage Loans Held in Securitization Trusts (net), of which $11.9 million , or 67% , were under some form of modified payment plan. The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including REO through foreclosure, as of December 31, 2015 (dollar amounts in thousands): December 31, 2015 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 3 $ 825 0.67 % 61 - 90 2 $ 1,763 1.43 % 90+ 26 $ 15,365 12.48 % Real estate owned through foreclosure 3 $ 574 0.47 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and REO held in residential securitization trusts at December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 New York 33.8 % 35.6 % Massachusetts 19.9 % 20.7 % New Jersey 10.8 % 11.1 % Florida 8.9 % 7.7 % Connecticut 7.4 % 6.5 % Schedule IV - Mortgage Loans on Real Estate (dollar amounts in thousands) December 31, 2016 Asset Type Number of Loans Interest Rate Maturity Date Carrying Value Principal Amount of Loans Subject to Delinquent Principal or Interest Distressed residential mortgage loans First mortgage loans Original loan amount $0 - $99,999 2,999 1.01% - 14.99% 8/18/2007 - 5/1/2062 $ 142,652 $ 21,783 Original loan amount $100,000 - $199,999 1,484 1.75% - 12.85% 11/1/2009 - 1/1/2057 160,433 24,407 Original loan amount $200,000 - $299,999 457 0.00% - 12.04% 9/15/2016 - 8/1/2061 84,261 13,810 Original loan amount over $299,999 335 0.75% - 10.46% 4/1/2020 - 7/1/2057 115,748 20,868 Residential mortgage loans held in securitization trusts First mortgage loans Original loan amount $0 - $99,999 11 3.13% - 3.63% 10/1/2034 - 8/1/2035 662 — Original loan amount $100,000 - $199,999 65 2.75% - 4.25% 10/1/2034 - 1/1/2036 7,646 525 Original loan amount $200,000 - $299,999 76 2.88% - 5.25% 8/1/2032 - 12/1/2035 14,739 2,211 Original loan amount $300,000 - $399,999 44 1.75% - 4.13% 8/1/2033 - 1/1/2036 11,821 1,079 Original loan amount $400,000 - $499,999 28 2.38% - 3.75% 8/1/2033 - 12/1/2035 9,785 1,261 Original loan amount over $499,999 63 1.63% - 3.88% 8/1/2033 - 12/1/2035 50,492 13,341 Other mortgage loans Residential and commercial first mortgage loans 47 2.63% - 15.00% 12/15/2013 - 10/1/2046 9,607 1,760 Residential second mortgage loans 259 5.88% - 9.00% 11/1/2030 - 1/1/2047 17,769 — Multi-family loans First mortgage loans 376 3.04% - 6.18% 1/1/2017 - 8/1/2023 6,939,844 — $ 7,565,459 $ 101,045 Reconciliation of Balance Sheet Reported Amounts of Mortgage Loans on Real Estate For the year ended December 31, (in thousands) 2016 2015 2014 Beginning balance $ 7,792,422 $ 9,107,248 $ 8,543,904 Additions during period: Purchases 82,167 156,952 405,427 Accretion of purchase discount 32,688 39,537 18,704 Deconsolidation — 1,483 — Change in realized and unrealized gains (losses) 10,794 — 390,370 Deductions during period: Repayments of principal (175,216 ) (130,651 ) (100,689 ) Collection of interest (32,928 ) (36,344 ) (18,478 ) Transfer to REO (8,892 ) (2,829 ) (2,380 ) Cost of mortgages sold (96,344 ) (1,241,266 ) (75,610 ) Provision for loan loss 847 (1,363 ) (1,881 ) Change in realized and unrealized gains (losses) — (59,262 ) — Amortization of premium (40,079 ) (41,083 ) (52,119 ) Balance at end of period $ 7,565,459 $ 7,792,422 $ 9,107,248 |
Distressed Residential Mortgage
Distressed Residential Mortgage Loans | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Distressed Residential Mortgage Loans | Distressed Residential Mortgage Loans As of December 31, 2016 and December 31, 2015 , the carrying value of the Company’s distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, amounts to approximately $503.1 million and $559.0 million , respectively. The Company considers its purchase price for the distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, to be at fair value at the date of acquisition. The Company only establishes an allowance for loan losses subsequent to acquisition. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the distressed residential mortgage loans acquired during the years ended December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Contractually required principal and interest $ 188,444 $ 327,611 Non-accretable yield (14,512 ) (17,276 ) Expected cash flows to be collected 173,932 310,335 Accretable yield (114,153 ) (158,149 ) Fair value at the date of acquisition $ 59,779 $ 152,186 The following table details activity in accretable yield for the distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, for the years ended December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Balance at beginning of period $ 579,009 $ 640,416 Additions 128,386 173,497 Disposals (144,242 ) (195,615 ) Accretion (32,641 ) (39,289 ) Balance at end of period (1) $ 530,512 $ 579,009 (1) Accretable yield is the excess of the distressed residential mortgage loans’ cash flows expected to be collected over the purchase price. The cash flows expected to be collected represents the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions include accretable yield estimates for purchases made during the period and reclassification to accretable yield from nonaccretable yield. Deletions include distressed residential mortgage loan dispositions, which include refinancing, sale and foreclosure of the underlying collateral and resulting removal of the distressed residential mortgage loans from the accretable yield, and reclassifications from accretable to nonaccretable yield. The reclassifications between accretable and nonaccretable yield and the accretion of interest income is based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to update its estimates regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the twelve-month periods ended December 31, 2016 and December 31, 2015 is not necessarily indicative of future results. The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance in our distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, as of December 31, 2016 and December 31, 2015 , respectively, are as follows: December 31, 2016 December 31, 2015 Florida 12.2 % 12.6 % California 8.8 % 7.7 % North Carolina 7.7 % 8.1 % Georgia 6.0 % 6.1 % New York 5.4 % 5.2 % Maryland 5.2 % 5.4 % The Company’s distressed residential mortgage loans held in securitization trusts with a carrying value of approximately $195.3 million and $114.2 million at December 31, 2016 and December 31, 2015 , respectively, are pledged as collateral for certain of the Securitized Debt issued by the Company (see Note 9) . In addition, distressed residential mortgage loans with a carrying value of approximately $279.9 million and $307.0 million at December 31, 2016 and December 31, 2015 , respectively, are pledged as collateral for a Master Repurchase Agreement, with Deutsche Bank AG, Cayman Islands Branch (see Note 12) . |
Consolidated K-Series
Consolidated K-Series | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Consolidated K-Series | Consolidated K-Series The Company has elected the fair value option on the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations in the assets and liabilities of the Consolidated K-Series be reflected in the Company's statements of operations. Our investment in the Consolidated K-Series is limited to the first loss tranche PO securities and/or certain IOs issued by certain Freddie Mac K-Series securitizations with an aggregate net carrying value of $314.9 million and $286.4 million at December 31, 2016 and 2015 , respectively ( see Note 9 ). The condensed consolidated balance sheets of the Consolidated K-Series at December 31, 2016 and December 31, 2015 , respectively, are as follows (dollar amounts in thousands): Balance Sheets December 31, 2016 December 31, 2015 Assets Multi-family loans held in securitization trusts $ 6,939,844 $ 7,105,336 Receivables 24,098 24,579 Total Assets $ 6,963,942 $ 7,129,915 Liabilities and Equity Multi-family CDOs $ 6,624,896 $ 6,818,901 Accrued expenses 24,003 24,483 Total Liabilities 6,648,899 6,843,384 Equity 315,043 286,531 Total Liabilities and Equity $ 6,963,942 $ 7,129,915 The multi-family loans held in securitization trusts had unpaid aggregate principal balances of approximately $6.7 billion and $6.8 billion at December 31, 2016 and December 31, 2015 , respectively. The multi-family CDOs had aggregate unpaid principal balances of approximately $6.7 billion and $6.8 billion at December 31, 2016 and December 31, 2015 , respectively. As of December 31, 2016 and 2015 , the current weighted average interest rate on these Multi-Family CDOs was 3.97% and 3.98% , respectively. In February 2015, the Company sold a first loss tranche PO security that was part of the Consolidated K-Series obtaining total proceeds of approximately $44.3 million and realizing a gain of approximately $1.5 million . The sale resulted in a de-consolidation of $1.1 billion in Multi-Family loans held in a securitization trust and $1.0 billion in Multi-Family CDOs. The Company does not have any claims to the assets or obligations for the liabilities of the Consolidated K-Series other than the securities represented by our first loss tranche securities. We have elected the fair value option for the Consolidated K-Series. The net fair value of our investment in the Consolidated K-Series, which represents the difference between the carrying values of multi-family loans held in securitization trusts less the carrying value of multi-family CDOs, approximates the fair value of our underlying securities. The fair value of our underlying securities is determined using the same valuation methodology as our CMBS investments available for sale (see Note 16) . The condensed consolidated statements of operations of the Consolidated K-Series for the years ended December 31, 2016 , 2015 , and 2014 , respectively, are as follows (dollar amounts in thousands): Years Ended December 31, Statements of Operations 2016 2015 2014 Interest income $ 249,191 $ 257,417 $ 301,877 Interest expense 222,553 232,971 275,916 Net interest income 26,638 24,446 25,961 Unrealized gain on multi-family loans and debt held in securitization trusts, net 3,032 12,368 56,931 Net Income $ 29,670 $ 36,814 $ 82,892 The geographic concentrations of credit risk exceeding 5% of the total loan balances related to our CMBS investments included in investment securities available for sale and multi-family loans held in securitization trusts as of December 31, 2016 and December 31, 2015 , respectively, are as follows: December 31, 2016 December 31, 2015 California 13.8 % 13.8 % Texas 12.4 % 12.3 % New York 8.1 % 8.0 % Maryland 5.3 % 5.2 % |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investment in Unconsolidated Entities The Company's investments in unconsolidated entities accounted for under the equity method consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Autumnwood Investments LLC — $ 2,092 — $ 2,127 200 RHC Hoover, LLC 63 % 8,886 63 % 8,649 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 45 % 7,949 — — RiverBanc LLC (1) ("RiverBanc") — — 20 % 597 Kiawah River View Investors LLC (2) ("KRVI") — — 31 % 8,718 Total $ 18,927 $ 20,091 (1) As of May 16, 2016, RiverBanc became a wholly-owned subsidiary of the Company as a result of the Company's acquisition of the remaining ownership interests in RiverBanc held by other unaffiliated entities ( see Note 21 ). (2) As of May 16, 2016, the Company consolidated KRVI in its consolidated financial statements ( see Note 9 ). The Company's investments in unconsolidated entities accounted for at fair value consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount RB Development Holding Company, LLC (1) ("RBDHC") — $ — 63 % $ 1,927 RB Multifamily Investors LLC (1) (2) ("RBMI") — — 70 % 56,891 Morrocroft Neighborhood Stabilization Fund II, LP 11 % 9,732 13 % 8,753 Evergreens JV Holdings, LLC (3) 85 % 3,810 — — Bent Tree JV Holdings, LLC (3) 78 % 9,890 — — Summerchase LR Partners LLC (3) 80 % 4,410 — — Lake Mary Realty Partners, LLC (3) 80 % 7,690 — — The Preserve at Port Royal Venture, LLC (3) 77 % 12,280 — — WR Savannah Holdings, LLC (3) 90 % 12,520 — — Total $ 60,332 $ 67,571 (1) As of May 16, 2016, RBDHC and RBMI became wholly-owned subsidiaries of the Company as a result of the Company's acquisition of the remaining ownership interests in those entities held by other unaffiliated entities ( see Note 21 ). (2) As of December 31, 2015, includes the Company's preferred and common equity interests in this entity. (3) Investments held by RBMI that are consolidated into the Company's financial statements beginning May 16, 2016. The following table presents income (loss) from investments in unconsolidated entities for the years ended December 31, 2016 , 2015 , and 2014 (dollar amounts in thousands): For the Years Ended December 31, Investment Name 2016 2015 2014 Autumnwood Investments LLC $ 260 $ 281 $ 276 200 RHC Hoover, LLC 1,370 394 — BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 433 — — RiverBanc LLC 125 815 2,644 Kiawah River View Investors LLC 1,250 866 611 RB Development Holding Company, LLC 107 (9 ) 373 RB Multifamily Investors LLC 2,262 5,263 657 Morrocroft Neighborhood Stabilization Fund II, LP 910 254 — Evergreens JV Holdings, LLC 199 — — Bent Tree JV Holdings, LLC 411 — — Summerchase LR Partners LLC 380 — — Lake Mary Realty Partners, LLC 554 — — The Preserve at Port Royal Venture, LLC 834 — — WR Savannah Holdings, LLC 692 — — Summary combined financial information for the Company's investments in unconsolidated entities as of December 31, 2016 and December 31, 2015 and for the years ended December 31, 2016 , 2015 , and 2014 is shown below (dollars amounts in thousands). December 31, 2016 December 31, 2015 Balance Sheets: Real estate, net $ 346,078 $ 111,216 Investments in unconsolidated entities — 31,636 Mezzanine loan and preferred equity investments — 23,629 Other assets 16,042 35,293 Total assets $ 362,120 $ 201,774 Notes payable, net $ 236,388 $ 41,918 Other liabilities 6,686 8,624 Total liabilities 243,074 50,542 Members' equity 119,046 151,232 Total liabilities and members' equity $ 362,120 $ 201,774 For the Years Ended December 31, 2016 2015 2014 Operating Statements: (1) Rental revenues $ 26,397 $ 2,121 $ — Other income 3,131 3,732 12,034 Operating expenses 19,227 9,267 3,097 Income (loss) before debt service, acquisition costs, and depreciation and amortization 10,301 (3,414 ) 8,937 Interest expense (6,149 ) (356 ) — Acquisition costs (1,448 ) (1,660 ) — Depreciation and amortization (15,879 ) (1,711 ) (8 ) Net (loss) income $ (13,175 ) $ (7,141 ) $ 8,929 (1) The Company records income (loss) from investments in unconsolidated entities under either the equity method of accounting or the fair value option. Accordingly, the combined net (loss) income shown above is not indicative of the income recognized by the Company from investments in unconsolidated entities. |
Mezzanine Loan and Preferred Eq
Mezzanine Loan and Preferred Equity Investments | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Mezzanine Loan and Preferred Equity Investments | Mezzanine Loan and Preferred Equity Investments Mezzanine loan and preferred equity investments consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment amount $ 101,154 $ 44,529 Deferred loan fees, net (1,004 ) (378 ) Total $ 100,150 $ 44,151 There were no delinquent mezzanine loan or preferred equity investments as of December 31, 2016 and December 31, 2015 . The geographic concentrations of credit risk exceeding 5% of the total mezzanine loan and preferred equity investment amounts as of December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 Texas 43.3 % 31.4 % Virginia 14.9 % 9.4 % South Carolina 9.4 % 10.0 % Kentucky 7.2 % 16.0 % Massachusetts 6.9 % 15.7 % Georgia 6.3 % — Florida 5.1 % — |
Use of Special Purpose Entities
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) | Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) The Company uses SPEs to facilitate transactions that involve securitizing financial assets or re-securitizing previously securitized financial assets. The objective of such transactions may include obtaining non-recourse financing, obtaining liquidity or refinancing the underlying securitized financial assets on improved terms. Securitization involves transferring assets to an SPE to convert all or a portion of those assets into cash before they would have been realized in the normal course of business through the SPE’s issuance of debt or equity instruments. Investors in an SPE usually have recourse only to the assets in the SPE and depending on the overall structure of the transaction, may benefit from various forms of credit enhancement, such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. The Company has entered into resecuritization and financing transactions which required the Company to analyze and determine whether the SPEs that were created to facilitate the transactions are VIEs in accordance with ASC 810, Consolidation , and if so, whether the Company is the primary beneficiary requiring consolidation. The Company evaluated the following resecuritization and financing transactions: 1) its Residential CDOs; 2) its multi-family CMBS re-securitization transaction; 3) its collateralized recourse financing transactions and 4) its distressed residential mortgage loan securitization transactions (each a “Financing VIE” and collectively, the “Financing VIEs”) and concluded that the entities created to facilitate each of the transactions are VIEs and that the Company is the primary beneficiary of these VIEs. Accordingly, the Company consolidated the Financing VIEs as of December 31, 2016 . The Company invests in multi-family CMBS consisting of PO securities that represent the first loss tranche of the securitizations from which they were issued, and certain IOs issued from Freddie Mac-sponsored multi-family K-Series securitization trusts. The Company has evaluated these CMBS investments in Freddie Mac-sponsored K-Series securitization trusts to determine whether they are VIEs and if so, whether the Company is the primary beneficiary requiring consolidation. The Company has determined that five Freddie Mac-sponsored multi-family K-Series securitization trusts are VIEs as of December 31, 2016 and December 31, 2015 . The Company also determined that it is the primary beneficiary of each VIE within the Consolidated K-Series and accordingly, has consolidated its assets, liabilities, income and expenses in the accompanying consolidated financial statements ( see Notes 2 and 6 ). Of the Company’s multi-family CMBS investments included in the Consolidated K-Series, four and one of these investments are not deposited as collateral to any Financing VIE as of December 31, 2016 and December 31, 2015 , respectively. In analyzing whether the Company is the primary beneficiary of the Consolidated K-Series and the Financing VIEs, the Company considered its involvement in each of the VIEs, including the design and purpose of each VIE, and whether its involvement reflected a controlling financial interest that resulted in the Company being deemed the primary beneficiary of the VIEs. In determining whether the Company would be considered the primary beneficiary, the following factors were assessed: • whether the Company has both the power to direct the activities that most significantly impact the economic performance of the VIE; and • whether the Company has a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. On May 16, 2016, the Company acquired the remaining outstanding membership interests in RBDHC, resulting in 100% ownership. RBDHC owns 50% of KRVI, a limited liability company that owns developed land and residential homes under development in Kiawah Island, SC, for which RiverBanc is the manager. The Company has evaluated KRVI to determine if it is a VIE and if so, whether the Company is the primary beneficiary requiring consolidation. The Company has determined that KRVI is a VIE for which RBDHC is the primary beneficiary as the Company, collectively through its wholly-owned subsidiaries RiverBanc and RBDHC, has both the power to direct the activities that most significantly impact the economic performance of KRVI and has a right to receive benefits or absorb losses of KRVI that could be potentially significant to KRVI. Accordingly, the Company has consolidated KRVI in its consolidated financial statements with a non-controlling interest for the third-party ownership of KRVI membership interests. The Consolidated K-Series, the Financing VIEs, and KRVI are collectively referred to in this footnote as "Consolidated VIEs". The following tables present a summary of the assets and liabilities of these Consolidated VIEs as of December 31, 2016 and December 31, 2015 , respectively. Intercompany balances have been eliminated for purposes of this presentation. Assets and Liabilities of Consolidated VIEs as of December 31, 2016 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Multi- family CMBS (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 186 $ 186 Investment securities available for sale, at fair value held in securitization trusts 43,897 — — — — 43,897 Residential mortgage loans held in securitization trusts (net) — — 95,144 — — 95,144 Distressed residential mortgage loans held in securitization trusts, (net) — 195,347 — — — 195,347 Multi-family loans held in securitization trusts, at fair value 1,196,835 — — 5,743,009 — 6,939,844 Receivables and other assets 4,420 13,610 912 19,753 17,759 56,454 Total assets $ 1,245,152 $ 208,957 $ 96,056 $ 5,762,762 $ 17,945 $ 7,330,872 Residential collateralized debt obligations $ — $ — $ 91,663 $ — $ — $ 91,663 Multi-family collateralized debt obligations, at fair value 1,137,002 — — 5,487,894 — 6,624,896 Securitized debt 28,332 130,535 — — — 158,867 Accrued expenses and other liabilities 4,400 1,336 20 19,753 1,601 27,110 Total liabilities $ 1,169,734 $ 131,871 $ 91,683 $ 5,507,647 $ 1,601 $ 6,902,536 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 6 ). (2) The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of December 31, 2016 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of this securitization transaction, which have been eliminated in consolidation. (3) Four of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series are not held in a Financing VIE as of December 31, 2016 . In October 2016, the Company repaid $55.9 million of outstanding notes from its November 2013 collateralized recourse financing, which was comprised of securities issued from three separate Freddie Mac-sponsored multi-family K-Series securitizations. In connection with the repayment of the notes, the Company terminated and de-consolidated the Financing VIE that facilitated this financing transaction and securities serving as collateral on the notes were transferred back to the Company. Assets and Liabilities of Consolidated VIEs as of December 31, 2015 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS re-securitization (1) Collateralized Recourse Financing (2) Distressed Residential Mortgage Loan Securitization (3) Residential Mortgage Loan Securitization Multi- (2) Total Investment securities available for sale, at fair value held in securitization trusts $ 40,734 $ — $ — $ — $ — $ 40,734 Residential mortgage loans held in securitization trusts (net) — — — 119,921 — 119,921 Distressed residential mortgage loans held in securitization trusts (net) — — 114,214 — — 114,214 Multi-family loans held in securitization trusts, at fair value 1,224,036 4,633,061 — — 1,248,239 7,105,336 Receivables and other assets 4,458 15,057 5,717 1,200 5,456 31,888 Total assets $ 1,269,228 $ 4,648,118 $ 119,931 $ 121,121 $ 1,253,695 $ 7,412,093 Residential collateralized debt obligations $ — $ — $ — $ 116,710 $ — $ 116,710 Multi-family collateralized debt obligations, at fair value 1,168,470 4,464,340 — — 1,186,091 6,818,901 Securitized debt 27,613 55,629 33,299 — — 116,541 Accrued expenses and other liabilities 4,436 14,750 368 13 5,456 25,023 Total liabilities $ 1,200,519 $ 4,534,719 $ 33,667 $ 116,723 $ 1,191,547 $ 7,077,175 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by the Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 6 ). (2) The multi-family CMBS serving as collateral under the November 2013 collateralized recourse financing are comprised of securities issued from three separate Freddie Mac-sponsored multifamily K-Series securitizations. The Financing VIE consolidated these K-Series securitizations, including their assets, liabilities and expenses, in its financial statements as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in such K-Series securitizations ( see Note 6 ). One of the Company's Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series is not held in a Financing VIE as of December 31, 2015 . (3) The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by the first liens on one to four family properties. Balances are related to distressed residential mortgage loan securitizations transactions completed in 2013. The outstanding notes from these transactions were repaid in February 2016, which resulted in the termination and de-consolidation of the Financing VIE that facilitated these financing transactions. The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS or distressed residential mortgage loans (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Collateralized Recourse Financings (2) Distressed Residential Mortgage Loan Securitizations Principal Amount at December 31, 2016 $ 33,553 $ — $ 132,319 Principal Amount at December 31, 2015 $ 33,781 $ 55,853 $ 33,656 Carrying Value at December 31, 2016 (3) $ 28,332 $ — $ 130,535 Carrying Value at December 31, 2015 (3) $ 27,613 $ 55,629 $ 33,299 Pass-through rate of Notes issued 5.35% One-month LIBOR plus 5.25% 4.00% - 4.85% (1) The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. (2) The Company entered into a CMBS Master Repurchase Agreement with a three -year term for the purpose of financing a portion of its multi-family CMBS portfolio. In connection with the transaction, the Company agreed to guarantee the due and punctual payment of its wholly-owned subsidiary's obligations under the CMBS Master Repurchase Agreement. In October 2016, the Company repaid the $55.9 million of outstanding notes. (3) Classified as securitized debt in the liability section of the Company’s accompanying consolidated balance sheets. The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): Scheduled Maturity (principal amount) December 31, 2016 December 31, 2015 Within 24 months $ — $ 89,509 Over 24 months to 36 months 132,319 — Over 36 months 33,553 33,781 Total 165,872 123,290 Discount (5,589 ) (5,763 ) Debt Issuance Cost (1,416 ) (986 ) Carrying value $ 158,867 $ 116,541 There is no guarantee that the Company will receive any cash flows from these securitization trusts. Residential Mortgage Loan Securitization Transaction The Company has completed four residential mortgage loan securitizations (other than the distressed residential mortgage loan securitizations discussed above) since inception; the first three were accounted for as permanent financings and have been included in the Company’s accompanying consolidated financial statements. The fourth was accounted for as a sale and accordingly, is not included in the Company's accompanying consolidated financial statements. Unconsolidated VIEs The Company has evaluated its multi-family CMBS investments in two Freddie Mac-sponsored K-Series securitizations as of December 31, 2016 and 2015 , respectively, and its mezzanine loan, preferred equity and other equity investments to determine whether they are VIEs and should be consolidated by the Company. Based on a number of factors, the Company determined that it does not have a controlling financial interest and is not the primary beneficiary of these VIEs. The following table presents the classification and carrying value of unconsolidated VIEs as of December 31, 2016 and 2015 (dollar amounts in thousands): December 31, 2016 Investment securities available for sale, at fair value, held in securitization trusts Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-Family CMBS $ 43,897 $ 74 $ — $ — $ 43,971 Mezzanine/Construction loan on multi-family properties — — 18,881 — 18,881 Preferred equity investment on multi-family properties — — 81,269 18,928 100,197 Equity investments in entities that invest in multi-family properties — — — 22,252 22,252 Total assets $ 43,897 $ 74 $ 100,150 $ 41,180 $ 185,301 December 31, 2015 Investment securities available for sale, at fair value, held in securitization trusts Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-Family CMBS $ 40,734 $ 76 $ — $ — $ 40,810 Mezzanine/Construction loan on multi-family properties — — 8,663 8,718 17,381 Preferred equity investment on multi-family properties — — 35,488 10,776 46,264 Equity investments in entities that invest in multi-family properties — — — 66,242 66,242 Total assets $ 40,734 $ 76 $ 44,151 $ 85,736 $ 170,697 Our maximum loss exposure on the multi-family CMBS investments and mezzanine loan, preferred equity and other equity investments is approximately $185.3 million and $170.7 million at December 31, 2016 and December 31, 2015 , respectively. The Company’s maximum exposure does not exceed the carrying value of its investments. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into derivative instruments in connection with its risk management activities. These derivative instruments include interest rate swaps, swaptions and futures. The Company may also purchase or sell short TBAs, purchase put or call options on U.S. Treasury futures or invest in other types of mortgage derivative securities. Derivatives Not Designated as Hedging Instruments The following table presents the fair value of derivative instruments that were not designated as hedging instruments and their location in our consolidated balance sheets at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): Balance Sheet Location December 31, 2016 December 31, 2015 TBA Securities Derivative assets $ 148,139 $ 226,929 Eurodollar futures Derivative assets 1,175 — Options on U.S. Treasury futures Derivative assets — 15 Interest rate swap futures Derivative assets 444 706 Swaptions Derivative assets 431 821 Eurodollar futures Derivative liabilities — 1,242 U.S. Treasury futures Derivative liabilities 107 — Interest rate swaps (1) Derivative liabilities 384 258 (1) Includes interest rate swaps in our Agency IO portfolio. There was no netting of interest rate swaps at December 31, 2016 and December 31, 2015 . The tables below summarize the activity of derivative instruments not designated as hedges for the years ended December 31, 2016 and 2015 , respectively (dollar amounts in thousands). Notional Amount For the Year Ended December 31, 2016 December 31, 2015 Additions Settlement, Expiration or Exercise December 31, 2016 TBA securities $ 222,000 $ 4,070,000 $ (4,143,000 ) $ 149,000 U.S. Treasury futures — 201,900 (184,800 ) 17,100 Interest rate swap futures (137,200 ) 868,800 (883,300 ) (151,700 ) Eurodollar futures (2,769,000 ) 6,323,000 (6,129,000 ) (2,575,000 ) Options on U.S. Treasury futures 28,000 111,000 (139,000 ) — Swaptions 159,000 — (5,000 ) 154,000 Interest rate swaps 10,000 5,000 — 15,000 Notional Amount For the Year Ended December 31, 2015 December 31, 2014 Additions Settlement, Expiration or Exercise December 31, 2015 TBA securities $ 273,000 $ 3,801,000 $ (3,852,000 ) $ 222,000 U.S. Treasury futures 2,300 150,200 (152,500 ) — Interest rate swap futures (190,100 ) 1,165,200 (1,112,300 ) (137,200 ) Eurodollar futures (2,961,000 ) 2,925,000 (2,733,000 ) (2,769,000 ) Options on U.S. Treasury futures 21,000 375,000 (368,000 ) 28,000 Swaptions 180,000 9,000 (30,000 ) 159,000 Interest rate swaps 10,000 — — 10,000 The following table presents the components of realized and unrealized gains and losses related to our derivative instruments that were not designated as hedging instruments included in other income category in our consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 : Years Ended December 31, 2016 2015 2014 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) TBA $ 3,998 $ 534 $ 5,244 $ (2,253 ) $ 13,708 $ 2,472 Eurodollar futures (1) (3,202 ) 2,417 (2,321 ) (342 ) (2,146 ) 533 Interest rate swaps — (126 ) — (26 ) 259 (232 ) Swaptions — 568 — (658 ) — (1,068 ) U.S. Treasury and Interest rate swap futures and options (2,040 ) (336 ) (9,631 ) 579 (8,831 ) (3,332 ) Total $ (1,244 ) $ 3,057 $ (6,708 ) $ (2,700 ) $ 2,990 $ (1,627 ) (1) At December 31, 2016 , the Eurodollar futures consist of 2,575 contracts with expiration dates ranging between March 2017 and June 2018 . The use of TBAs exposes the Company to market value risk, as the market value of the securities that the Company is required to purchase pursuant to a TBA transaction may increase or decrease from the agreed-upon purchase price. At December 31, 2016 and December 31, 2015 , our consolidated balance sheets include TBA-related liabilities of $148.0 million and $228.0 million included in payable for securities purchased, respectively. Open TBA purchases and sales involving the same counterparty, same underlying deliverable and the same settlement date are reflected in our consolidated financial statements on a net basis. TBA sales amounting to approximately $114.4 million were netted against TBA purchases amounting to approximately $262.4 million at December 31, 2016 . There was $55.1 million netting of TBA sales against TBA purchases of $283.1 million at December 31, 2015 . Derivatives Designated as Hedging Instruments The Company’s interest rate swaps, except interest swaps included in its Agency IO portfolio, are used to hedge the variable cash flows associated with borrowings made under our financing arrangements, including FHLBI advances until January 2016 when we repaid them, and are designated as cash flow hedges. There were no costs incurred at the inception of the Company's interest rate swaps, under which the Company agrees to pay a fixed rate of interest and receive a variable interest rate based on one month LIBOR, on the notional amount of the interest rate swaps. The Company documents its risk-management policies, including objectives and strategies, as they relate to its hedging activities, and upon entering into hedging transactions, documents the relationship between the hedging instrument and the hedged liability contemporaneously. The Company assesses, both at inception of a hedge and on an on-going basis, whether or not the hedge is “highly effective” when using the matched term basis. The Company discontinues hedge accounting on a prospective basis and recognizes changes in the fair value through earnings when: (i) it is determined that the derivative is no longer effective in offsetting cash flows of a hedged item (including forecasted transactions); (ii) it is no longer probable that the forecasted transaction will occur; or (iii) it is determined that designating the derivative as a hedge is no longer appropriate. The Company’s derivative instruments are carried on the Company’s balance sheets at fair value, as assets, if their fair value is positive, or as liabilities, if their fair value is negative. For the Company’s derivative instruments that are designated as “cash flow hedges,” changes in their fair value are recorded in accumulated other comprehensive income (loss), provided that the hedges are effective. A change in fair value for any ineffective amount of the Company’s derivative instruments would be recognized in earnings. The Company has not recognized any change in the value of its existing derivative instruments designated as cash flow hedges through earnings as a result of ineffectiveness of any of its hedges. The following table presents the fair value of derivative instruments designated as hedging instruments and their location in the Company’s consolidated balance sheets at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): Balance Sheet Location December 31, 2016 December 31, 2015 Interest rate swaps Derivative assets $ 108 $ 304 Interest rate swaps Derivative liabilities 6 $ — The Company has netting arrangements by counterparty with respect to its interest rate swaps. Contracts in a liability position of $29.1 thousand have been netted against the asset position of $133.5 thousand and contracts in a liability position of $0.3 million have been netted against the asset position of $0.3 million in the accompanying consolidated balance sheets at December 31, 2016 and December 31, 2015 , respectively. The following table presents the impact of the Company’s interest rate swaps designated as hedging instruments on the Company’s accumulated other comprehensive income (loss) for the years ended December 31, 2016 , 2015 and 2014 (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Accumulated other comprehensive income (loss) for derivative instruments: Balance at beginning of the period $ 304 $ 1,135 $ 2,041 Unrealized (loss) gain on interest rate swaps (202 ) (831 ) (906 ) Balance at end of the period $ 102 $ 304 $ 1,135 The Company estimates that over the next 12 months , approximately $49.2 thousand of the net unrealized losses on the interest rate swaps will be reclassified from accumulated other comprehensive income (loss) into earnings. The following table details the impact of the Company’s interest rate swaps designated as hedging instruments included in interest expense for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Interest Rate Swaps: Interest expense-investment securities $ 743 $ 1,619 $ 1,848 The following table presents information about our interest rate swaps (including interest rate swaps in our Agency IO portfolio) whereby we receive floating rate payments in exchange for fixed rate payments as of December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Swap Maturities Notional Amount Weighted Average Fixed Interest Rate Weighted Average Notional Amount Weighted Average Fixed Interest Rate Weighted Average 2017 $ 215,000 0.83 % 0.74 % $ 215,000 0.83 % 0.39 % 2019 10,000 2.25 % 0.97 % 10,000 2.25 % 0.59 % Total $ 225,000 0.90 % 0.75 % $ 225,000 0.90 % 0.40 % The following table presents information about our interest rate swaps in our Agency IO portfolio whereby we receive fixed rate payments in exchange for floating rate payments as of December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Swap Maturities Notional Weighted Average Weighted Average Notional Weighted Average Weighted Average 2026 $ 5,000 1.80 % 1.00 % $ — — — Total $ 5,000 1.80 % 1.00 % $ — — — The use of derivatives exposes the Company to counterparty credit risks in the event of a default by a counterparty. If a counterparty defaults under the applicable derivative agreement, the Company may be unable to collect payments to which it is entitled under its derivative agreements, and may have difficulty collecting the assets it pledged as collateral against such derivatives. The Company currently has in place with all counterparties bi-lateral margin agreements requiring a party to post collateral to the Company for any valuation deficit. This arrangement is intended to limit the Company’s exposure to losses in the event of a counterparty default. The Company is required to pledge assets under a bi-lateral margin arrangement, including either cash or Agency RMBS, as collateral for its interest rate swaps, futures contracts and TBAs, whose collateral requirements vary by counterparty and change over time based on the market value, notional amount, and remaining term of the agreement. In the event the Company is unable to meet a margin call under one of its agreements, thereby causing an event of default or triggering an early termination event under one of its agreements, the counterparty to such agreement may have the option to terminate all of such counterparty’s outstanding transactions with the Company. In addition, under this scenario, any close-out amount due to the counterparty upon termination of the counterparty’s transactions would be immediately payable by the Company pursuant to the applicable agreement. The Company believes it was in compliance with all margin requirements under its agreements as of December 31, 2016 and 2015 . The Company had $6.1 million and $6.3 million of restricted cash related to margin posted for its agreements as of December 31, 2016 and 2015 , respectively. The restricted cash held by third parties is included in receivables and other assets in the accompanying consolidated balance sheets. |
Financing Arrangements, Portfol
Financing Arrangements, Portfolio Investments | 12 Months Ended |
Dec. 31, 2016 | |
Financing arrangements, portfolio investments | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |
Financing Arrangements, Portfolio Investments | Financing Arrangements, Portfolio Investments The Company entered into repurchase agreements with third party financial institutions to finance its investment portfolio. These financing arrangements are short-term borrowings that bear interest rates typically based on a spread to LIBOR, and are secured by the securities which they finance. At December 31, 2016 , the Company had repurchase agreements with an outstanding balance of $773.1 million and a weighted average interest rate of 1.92% . At December 31, 2015 , the Company had repurchase agreements and FHLBI advances with an outstanding balance of $577.4 million and a weighted average interest rate of 0.71% . The following table presents detailed information about the Company’s borrowings under financing arrangements and associated assets pledged as collateral at December 31, 2016 and December 31, 2015 (dollar amounts in thousands): 2016 2015 Assets Pledged as Collateral Outstanding Borrowings Fair Value of Collateral Pledged Amortized Cost Of Collateral Pledged Outstanding Borrowings (1) Fair Value of Collateral Pledged Amortized Cost Of Collateral Pledged Agency ARMs $ 102,088 $ 109,552 $ 110,903 $ 227,609 $ 141,585 $ 143,754 Agency Fixed Rate 289,619 308,411 318,544 261,644 374,691 386,853 Agency IOs/U.S. Treasury Securities 60,862 82,153 93,819 88,160 123,407 139,218 Non-Agency 113,749 150,944 149,969 — — — CMBS (2) 206,824 294,083 216,092 — — — Balance at end of the period $ 773,142 $ 945,143 $ 889,327 $ 577,413 $ 639,683 $ 669,825 (1) Includes FHLBI advances amounting to $121.0 million as of December 31, 2015. (2) Includes first loss tranche PO securities with a fair value amounting to $254.6 million included in the Consolidated K-Series as of December 31, 2016. As of December 31, 2016 and 2015 , the average days to maturity for all financing arrangements,including FHLBI advances, were 12 days and 27 days , respectively. The Company’s accrued interest payable on outstanding financing arrangements, including FHLBI advances, at December 31, 2016 and 2015 amounts to $1.1 million and $0.3 million , respectively, and is included in accrued expenses and other liabilities on the Company’s consolidated balance sheets. The following table presents contractual maturity information about the Company’s outstanding financing arrangements, including FHLBI advances, at December 31, 2016 and 2015 (dollar amounts in thousands): Contractual Maturity December 31, 2016 December 31, 2015 Within 30 days $ 729,134 $ 468,402 Over 30 days to 90 days 44,008 85,423 Over 90 days — 23,588 Total $ 773,142 $ 577,413 As of December 31, 2016 , the outstanding balance under our financing arrangements was funded at an advance rate of 84.6% that implies an average haircut of 15.4% . As of December 31, 2016 , the weighted average “haircut” related to our repurchase agreement financing for our Agency RMBS (excluding Agency IOs), non-Agency RMBS, CMBS and Agency IOs was approximately 5% , 25% , 27% and 25% , respectively. In the event we are unable to obtain sufficient short-term financing through financing arrangements or our lenders start to require additional collateral, we may have to liquidate our investment securities at a disadvantageous time, which could result in losses. Any losses resulting from the disposition of our investment securities in this manner could have a material adverse effect on our operating results and net profitability. At December 31, 2016 and December 31, 2015 , the Company had financing arrangements with eight and six counterparties, respectively. At December 31, 2016 , the Company's only exposure where the amount at risk was in excess of 5% of the Company's stockholders' equity was to Deutsche Bank AG, London Branch at 5.1% . At December 31, 2015 , we had no counterparties where the amount at risk was in excess of 5% of the Company's stockholders’ equity. The amount at risk is defined as the fair value of securities pledged as collateral to the financing arrangement in excess of the financing arrangement liability. As of December 31, 2016 , our available liquid assets include unrestricted cash and cash equivalents, overnight deposits and unencumbered securities that we believe may be posted as margin. The Company had $83.6 million in cash and cash equivalents, $35.6 million in overnight deposits in our Agency IO portfolio included in restricted cash and $85.1 million in unencumbered investment securities to meet additional haircuts or market valuation requirements. The unencumbered securities that we believe may be posted as margin as of December 31, 2016 included $29.1 million of Agency RMBS, $43.6 million of CMBS and $12.3 million of non-Agency RMBS. The cash and unencumbered securities, which collectively represent 26.4% of our financing arrangements, are liquid and could be monetized to pay down or collateralize a liability immediately. |
Financing Arrangements, Residen
Financing Arrangements, Residential Mortgage Loans | 12 Months Ended |
Dec. 31, 2016 | |
Financing arrangements, residential mortgage loans | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Financing Arrangements, Residential Mortgage Loans | Financing Arrangements, Residential Mortgage Loans The Company has a master repurchase agreement with Deutsche Bank AG, Cayman Islands Branch with a maximum aggregate committed principal amount of $200.0 million and a maximum uncommitted principal amount of $50.0 million to fund distressed residential mortgage loans, expiring on December 13, 2017 . At December 31, 2015 , the master repurchase agreement provided for an aggregate principal committed amount of up to $250.0 million . The outstanding balance on this master repurchase agreement as of December 31, 2016 and December 31, 2015 amounts to approximately $193.8 million and $214.5 million , respectively, bearing interest at one-month LIBOR plus 2.50% ( 3.26% and 2.92% at December 31, 2016 and December 31, 2015 , respectively). In addition, the Company has entered into a master repurchase agreement with Deutsche Bank AG, Cayman Islands Branch in an aggregate principal amount of up to $100.0 million , to fund the future purchase of residential mortgage loans. The outstanding balance on the master repurchase agreement will bear interest at one-month LIBOR plus 4.0% and expires on May 25, 2017. There was no outstanding balance on this master repurchase agreement as of December 31, 2016 and December 31, 2015 . During the terms of the master repurchase agreements, proceeds from the residential mortgage loans, including the Company's distressed residential mortgage loans, will be applied to pay any price differential and to reduce the aggregate repurchase price of the collateral. The financings under the master repurchase agreements are subject to margin calls to the extent the market value of the residential mortgage loans falls below specified levels and repurchase may be accelerated upon an event of default under the master repurchase agreements. The master repurchase agreements contain various covenants, including among other things, the maintenance of certain amounts of net worth, liquidity and leverage ratios. The Company is in compliance with such covenants as of February 28, 2017 . |
Residential Collateralized Debt
Residential Collateralized Debt Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Residential Collateralized Debt Obligations | Residential Collateralized Debt Obligations The Company’s Residential CDOs, which are recorded as liabilities on the Company’s consolidated balance sheets, are secured by ARM loans pledged as collateral, which are recorded as assets of the Company. As of December 31, 2016 and 2015 , the Company had Residential CDOs outstanding of $91.7 million and $116.7 million , respectively. As of December 31, 2016 and 2015 , the current weighted average interest rate on these CDOs was 1.37% and 0.8% , respectively. The Residential CDOs are collateralized by ARM loans with a principal balance of $98.3 million and $122.5 million at December 31, 2016 and 2015 , respectively. The Company retained the owner trust certificates, or residual interest for three securitizations, and, as of December 31, 2016 and 2015 , had a net investment in the residential securitization trusts of $4.4 million and $4.4 million , respectively. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2016 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | Subordinated Debentures Subordinated debentures are trust preferred securities that are fully guaranteed by the Company with respect to distributions and amounts payable upon liquidation, redemption or repayment. The following table summarizes the key details of the Company’s subordinated debentures as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): NYM Preferred Trust I NYM Preferred Trust II Principal value of trust preferred securities $ 25,000 $ 20,000 Interest Rate Three month LIBOR plus 3.75%, resetting quarterly Three month LIBOR plus 3.95%, resetting quarterly Scheduled maturity March 30, 2035 October 30, 2035 As of February 28, 2017 the Company has not been notified, and is not aware, of any event of default under the covenants for the subordinated debentures. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loans Sold to Third Parties – In the normal course of business, the Company is obligated to repurchase loans based on violations of representations and warranties in its loan sale agreements. The Company did not repurchase any loans during the three years ended December 31, 2016 . Outstanding Litigation – The Company is at times subject to various legal proceedings arising in the ordinary course of business. As of December 31, 2016 , the Company does not believe that any of its current legal proceedings, individually or in the aggregate, will have a material adverse effect on its operations, financial condition or cash flows. Leases – As of December 31, 2016 , the Company has entered into multi-year lease agreements for office space accounted for as non-cancelable operating leases. Total property lease expense on these leases for the years ended December 31, 2016 , 2015 , and 2014 amounted to $0.3 million , $0.2 million , and $0.2 million , respectively. The leases are secured by cash deposits in the amount of $0.2 million . As of December 31, 2016 , obligations under non-cancelable operating leases are as follows (dollar amounts in thousands): Year Ending December 31, Total 2017 $ 337 2018 348 2019 353 2020 298 2021 217 Thereafter 435 $ 1,988 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has established and documented processes for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, then fair value is based upon internally developed models that primarily use inputs that are market-based or independently-sourced market parameters, including interest rate yield curves. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of valuation hierarchy are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following describes the valuation methodologies used for the Company’s financial instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. a. Investment Securities Available for Sale – Fair value for the investment securities in our portfolio, except the CMBS held in securitization trusts, are valued using a third-party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. The dealers will incorporate common market pricing methods, including a spread measurement to the Treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. If quoted prices for a security are not reasonably available from a dealer, the security will be re-classified as a Level 3 security and, as a result, management will determine the fair value based on characteristics of the security that the Company receives from the issuer and available market information. Management reviews all prices used in determining fair value to ensure they represent current market conditions. This review includes surveying similar market transactions, comparisons to interest pricing models as well as offerings of like securities by dealers. The Company's investment securities, except the CMBS held in securitization trusts, are valued based upon readily observable market parameters and are classified as Level 1 or 2 fair values. The Company’s CMBS held in securitization trusts are comprised of securities for which there are not substantially similar securities that trade frequently. The Company classifies these securities as Level 3 fair values. Fair value of the Company’s CMBS investments held in securitization trusts is based on an internal valuation model that considers expected cash flows from the underlying loans and yields required by market participants. The significant unobservable inputs used in the measurement of these investments are projected losses of certain identified loans within the pool of loans and a discount rate. The discount rate used in determining fair value incorporates default rate, loss severity and current market interest rates. The discount rate ranges from 4.5% to 10.5% . Significant increases or decreases in these inputs would result in a significantly lower or higher fair value measurement. b. Multi-Family Loans Held in Securitization Trusts – Multi-family loans held in securitization trusts are carried at fair value as a result of a fair value election and classified as Level 3 fair values. Effective January 1, 2016, the Company determines the fair value of multi-family loans held in securitization trusts based on the fair value of its Multi-Family CDOs and its retained interests from these securitizations (eliminated in consolidation in accordance with U.S. GAAP), as the fair value of these instruments is more observable. Prior to January 1, 2016, fair value was based on an internal valuation model that considers expected cash flows from the underlying loans and yields required by market participants. The significant unobservable inputs used in the measurement of these investments are discount rates. The discount rate used in determining fair value incorporates default rate, loss severity and current market interest rates. c. Derivative Instruments – The fair value of interest rate swaps, swaptions, options and TBAs are based on dealer quotes. The fair value of futures is based on exchange-traded prices. The Company’s derivatives are classified as Level 1 or Level 2 fair values. d. Multi-Family CDOs – Multi-Family collateralized debt obligations are recorded at fair value and classified as Level 3 fair values. The fair value of Multi-Family CDOs is determined using a third party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. The dealers will consider contractual cash payments and yields expected by market participants. Dealers also incorporate common market pricing methods, including a spread measurement to the Treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. The Company’s Multi-Family CDOs are classified as Level 3 fair values. e. Investments in Unconsolidated Entities – Fair value for investments in unconsolidated entities is determined based on a valuation model using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets in the unconsolidated entities and a discount rate. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 in the fair value hierarchy. Any changes to the valuation methodology are reviewed by management to ensure the changes are appropriate. As markets and products develop and the pricing for certain products becomes more transparent, the Company continues to refine its valuation methodologies. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of each reporting date, which may include periods of market dislocation, during which time price transparency may be reduced. This condition could cause the Company’s financial instruments to be reclassified from Level 2 to Level 3 in future periods. The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015 , respectively, on the Company’s consolidated balance sheets (dollar amounts in thousands): Measured at Fair Value on a Recurring Basis at December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets carried at fair value Investment securities available for sale: Agency RMBS $ — $ 526,363 $ — $ 526,363 $ — $ 713,116 $ — $ 713,116 Non-Agency RMBS — 163,284 — 163,284 — 1,567 — 1,567 U.S. Treasury Securities 2,887 — — 2,887 10,037 — — 10,037 CMBS — 82,545 43,897 126,442 — — 40,734 40,734 Multi-family loans held in securitization trusts — — 6,939,844 6,939,844 — — 7,105,336 7,105,336 Derivative Assets: TBA Securities — 148,139 — 148,139 — 226,929 — 226,929 Options on U.S. Treasury futures — — — — 15 — — 15 Interest rate swap futures 444 — — 444 706 — — 706 Interest rate swaps — 108 — 108 — 304 — 304 Swaptions — 431 — 431 — 821 — 821 Eurodollar Futures 1,175 — — 1,175 — — — — Investments in unconsolidated entities — — 60,332 60,332 — — 67,571 67,571 Total $ 4,506 $ 920,870 $ 7,044,073 $ 7,969,449 $ 10,758 $ 942,737 $ 7,213,641 $ 8,167,136 Liabilities carried at fair value Multi-family collateralized debt obligations $ — $ — $ 6,624,896 $ 6,624,896 $ — $ — $ 6,818,901 $ 6,818,901 Derivative liabilities: US Treasury Futures 107 — — 107 — — — — Interest rate swaps — 391 — 391 — 258 — 258 Eurodollar futures — — — — 1,242 — — 1,242 Total $ 107 $ 391 $ 6,624,896 $ 6,625,394 $ 1,242 $ 258 $ 6,818,901 $ 6,820,401 The following table details changes in valuation for the Level 3 assets for the years ended December 31, 2016 , 2015 and 2014 , respectively (amounts in thousands): Level 3 Assets: Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 7,213,641 $ 8,442,604 $ 8,209,702 Total gains (realized/unrealized) Included in earnings (1) (19,460 ) (90,662 ) 384,826 Included in other comprehensive income (loss) 224 (360 ) (5,863 ) Sales (2) — (1,075,529 ) (93,578 ) Transfers in (3) 52,176 — — Transfers out (4) (56,756 ) — — Contributions 3,200 26,461 33,075 Paydowns (141,263 ) (85,979 ) (80,451 ) Distributions (7,689 ) (2,894 ) (1,712 ) Sale of real estate owned — — (3,395 ) Balance at the end of period $ 7,044,073 $ 7,213,641 $ 8,442,604 (1) Amounts included in interest income from multi-family loans held in securitization trusts, unrealized gain on multi-family loans and debt held in securitization trusts, realized gain (loss) on investment securities and related hedges, gain on de-consolidation, and other income. (2) In February 2015, the Company sold a first loss PO security from one of the Company’s Consolidated K-Series securitizations obtaining total proceeds of approximately $44.3 million and realizing a gain of approximately $1.5 million . The sale resulted in a de-consolidation of $1.1 billion in Multi-Family loans held in a securitization trust and $1.0 billion in Multi-Family CDOs. (3) Transfers into Level 3 are investments in unconsolidated entities held by RiverBanc and RBMI for which the Company accounts under the equity method of accounting with a fair value election. These transfers in are a result of the Company’s acquisition of the outstanding membership interests in RiverBanc and RBMI that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements. (s ee Note 21 ). (4) Transfers out of Level 3 are the Company’s previously held membership interests in RBMI and RBDHC that were accounted for under the equity method of accounting with a fair value election. These transfers out are a result of the Company’s acquisition of the outstanding membership interests in RBMI and RBDHC that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements. ( see Note 21 ). The following table details changes in valuation for the Level 3 liabilities for the years ended December 31, 2016 , 2015 and 2014 , respectively (amounts in thousands): Level 3 Liabilities: Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 6,818,901 $ 8,048,053 $ 7,871,020 Total gains (realized/unrealized) Included in earnings (1) (57,687 ) (133,245 ) 260,872 Included in other comprehensive income — — — Purchases/(Sales) (2) — (1,009,942 ) — Paydowns (136,318 ) (85,965 ) (83,839 ) Balance at the end of period $ 6,624,896 $ 6,818,901 $ 8,048,053 (1) Amounts included in interest expense on multi-family collateralized debt obligations, realized gain (loss) on investment securities and related hedges, net and unrealized gain on multi-family loans and debt held in securitization trusts, net. (2) In February 2015, the Company sold a first loss PO security from one of the Company’s Consolidated K-Series securitizations obtaining total proceeds of approximately $44.3 million and realizing a gain of approximately $1.5 million . The sale resulted in a de-consolidation of $1.1 billion in Multi-Family loans held in a securitization trust and $1.0 billion in Multi-Family CDOs. The following table details the changes in unrealized gains (losses) included in earnings for our Level 3 assets and liabilities for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Change in unrealized gains (losses) – assets $ 10,794 $ (61,957 ) $ 390,371 Change in unrealized (losses) gains – liabilities (7,762 ) 74,325 (333,440 ) Net change in unrealized gains included in earnings for assets and liabilities $ 3,032 $ 12,368 $ 56,931 The following table presents assets measured at fair value on a non-recurring basis as of December 31, 2016 and 2015 , respectively, on the Company's consolidated balance sheets (dollar amounts in thousands): Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Residential Mortgage loans held in securitization trusts – impaired loans (net) $ — $ — $ 9,050 $ 9,050 $ — $ — $ 8,976 $ 8,976 Real estate owned held in residential securitization trusts — — 150 150 — — 411 411 The following table presents gains (losses) incurred for assets measured at fair value on a non-recurring basis for the years ended December 31, 2016 , 2015 and 2014 , respectively, on the Company’s consolidated statements of operations (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Residential mortgage loans held in securitization trusts – impaired loans (net) $ (482 ) $ (1,261 ) $ (998 ) Real estate owned held in residential securitization trusts (130 ) 100 (103 ) Residential Mortgage Loans Held in Securitization Trusts – Impaired Loans (net) – Impaired residential mortgage loans held in securitization trusts are recorded at amortized cost less specific loan loss reserves. Impaired loan value is based on management’s estimate of the net realizable value taking into consideration local market conditions of the property, updated appraisal values of the property and estimated expenses required to remediate the impaired loan. Real Estate Owned Held in Residential Securitization Trusts – Real estate owned held in the residential securitization trusts are recorded at net realizable value. Any subsequent adjustment will result in the reduction in carrying value with the corresponding amount charged to earnings. Net realizable value is based on an estimate of disposal taking into consideration local market conditions of the property, updated appraisal values of the property and estimated expenses required to sell the property. The following table presents the carrying value and estimated fair value of the Company’s financial instruments at December 31, 2016 and 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 83,554 $ 83,554 $ 61,959 $ 61,959 Investment securities available for sale (1) Level 1, 2 or 3 818,976 818,976 765,454 765,454 Residential mortgage loans held in securitization trusts (net) Level 3 95,144 88,718 119,921 109,120 Distressed residential mortgage loans (net) (2) Level 3 503,094 504,915 558,989 564,310 Multi-family loans held in securitization trusts, at fair value Level 3 6,939,844 6,939,844 7,105,336 7,105,336 Derivative assets Level 1 or 2 150,296 150,296 228,775 228,775 Mortgage loans held for sale (net) (3) Level 3 7,847 7,959 5,471 5,557 Mortgage loans held for investment (3) Level 3 19,529 19,641 2,706 2,846 Mezzanine loan and preferred equity investments (4) Level 3 100,150 101,408 44,151 44,540 Investments in unconsolidated entities (5) Level 3 79,259 79,390 87,662 87,558 Financial Liabilities: Financing arrangements, portfolio investments Level 2 $ 773,142 $ 773,142 $ 577,413 $ 577,413 Financing arrangements, distressed residential mortgage loans Level 2 192,419 192,419 212,155 212,155 Residential collateralized debt obligations Level 3 91,663 85,568 116,710 105,606 Multi-family collateralized debt obligations, at fair value Level 3 6,624,896 6,624,896 6,818,901 6,818,901 Securitized debt Level 3 158,867 163,884 116,541 123,776 Derivative liabilities Level 1 or 2 498 498 1,500 1,500 Payable for securities purchased Level 1 148,015 148,015 227,969 227,969 Subordinated debentures Level 3 45,000 43,132 45,000 42,731 (1) Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015 , respectively. (2) Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $195.3 million and $114.2 million at December 31, 2016 and December 31, 2015 , respectively and distressed residential mortgage loans with a carrying value amounting to approximately $307.7 million and $444.8 million at December 31, 2016 and December 31, 2015 , respectively. (3) Included in receivables and other assets in the accompanying consolidated balance sheets. (4) Includes mezzanine loan and preferred equity investments accounted for as loans (see Note 8 ). (5) Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $60.3 million and $67.6 million at December 31, 2016 and December 31, 2015, respectively. In addition to the methodology to determine the fair value of the Company’s financial assets and liabilities reported at fair value on a recurring basis and non-recurring basis, as previously described, the following methods and assumptions were used by the Company in arriving at the fair value of the Company’s other financial instruments in the table immediately above: a. Cash and cash equivalents – Estimated fair value approximates the carrying value of such assets. b. Residential mortgage loans held in securitization trusts (net) – Residential mortgage loans held in securitization trusts are recorded at amortized cost. Fair value is based on an internal valuation model that considers the aggregated characteristics of groups of loans such as, but not limited to, collateral type, index, interest rate, margin, length of fixed-rate period, life cap, periodic cap, underwriting standards, age and credit estimated using the estimated market prices for similar types of loans. c. Distressed residential mortgage loans (net) – Fair value is estimated using pricing models taking into consideration current interest rates, loan amount, payment status and property type, and forecasts of future interest rates, home prices and property values, prepayment speeds, default, loss severities, and actual purchases and sales of similar loans. d. Receivable for securities sold – Estimated fair value approximates the carrying value of such assets. e. Mortgage loans held for sale (net) - The fair value of mortgage loans held for sale (net) are estimated by the Company based on the price that would be received if the loans were sold as whole loans taking into consideration the aggregated characteristics of the loans such as, but not limited to, collateral type, index, interest rate, margin, length of fixed interest rate period, life time cap, periodic cap, underwriting standards, age and credit. f. Mezzanine loan and preferred equity investments – Estimated fair value is determined by both market comparable pricing and discounted cash flows. The discounted cash flows are based on the underlying contractual cash flows and estimated changes in market yields. The fair value also reflects consideration of changes in credit risk since the origination or time of initial investment. g. Financing arrangements – The fair value of these financing arrangements approximates cost as they are short term in nature. h. Residential collateralized debt obligations – The fair value of these CDOs is based on discounted cash flows as well as market pricing on comparable obligations. i. Securitized debt – The fair value of securitized debt is based on discounted cash flows using management’s estimate for market yields. j. Payable for securities purchased – Estimated fair value approximates the carrying value of such liabilities. k. Subordinated debentures – The fair value of these subordinated debentures is based on discounted cash flows using management’s estimate for market yields. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity (a) Dividends on Preferred Stock The Company had 200,000,000 authorized shares of preferred stock, par value $0.01 per share, with 6,600,000 shares issued and outstanding as of December 31, 2016 and 2015 . On June 4, 2013, the Company issued 3,000,000 shares of 7.75% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”), with a par value of $0.01 per share and a liquidation preference of $25 per share, in an underwritten public offering, for net proceeds of approximately $72.4 million , after deducting underwriting discounts and offering expenses. As of December 31, 2016 and December 31, 2015 , there were 6,000,000 shares of Series B Preferred Stock authorized. The Series B Preferred Stock is entitled to receive a dividend at a rate of 7.75% per year on the $25 liquidation preference and is senior to the common stock with respect to distributions upon liquidation, dissolution or winding up. On April 22, 2015, the Company issued 3,600,000 shares of 7.875% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), with a par value of $0.01 per share and a liquidation preference of $25 per share, in an underwritten public offering, for net proceeds of approximately $86.9 million , after deducting underwriting discounts and offering expenses. As of December 31, 2016 and December 31, 2015 , there were 4,140,000 shares of Series C Preferred Stock authorized. The Series C Preferred Stock is entitled to receive a dividend at a rate of 7.875% per year on the $25 liquidation preference and is senior to the common stock with respect to dividends and distribution of assets upon liquidation, dissolution or winding up. The Series B Preferred Stock and Series C Preferred Stock generally do not have any voting rights, subject to an exception in the event the Company fails to pay dividends on such stock for six or more quarterly periods (whether or not consecutive). Under such circumstances, holders of the Series B Preferred Stock and Series C Preferred Stock, voting together as a single class with the holders of all other classes or series of our preferred stock upon which like voting rights have been conferred and are exercisable and which are entitled to vote as a class with the Series B Preferred Stock and Series C Preferred Stock, will be entitled to vote to elect two additional directors to the Company’s Board of Directors (the “Board”) until all unpaid dividends have been paid or declared and set apart for payment. In addition, certain material and adverse changes to the terms of the Series B Preferred Stock and Series C Preferred Stock cannot be made without the affirmative vote of holders of at least two-thirds of the outstanding shares of Series B Preferred Stock or Series C Preferred Stock, respectively. Neither the Series B Preferred Stock and the Series C Preferred Stock are redeemable by the Company prior to June 4, 2018, in the case of the Series B Preferred Stock, or April 22, 2020, in the case of the Series C Preferred Stock, except under circumstances intended to preserve the Company’s qualification as a REIT and except upon the occurrence of a Change of Control (as defined in the Articles Supplementary designating the Series B Preferred Stock and Series C Preferred Stock, respectively). On and after June 4, 2018 and April 22, 2020, the Company may, at its option, redeem the Series B Preferred Stock and Series C Preferred stock, respectively, in whole or in part, at any time or from time to time, for cash at a redemption price equal to $25.00 per share, plus any accumulated and unpaid dividends. In addition, upon the occurrence of a Change of Control, the Company may, at its option, redeem the Series B Preferred Stock and Series C Preferred Stock, in whole or in part, within 120 days after the first date, on which such Change of Control occurred, for cash at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends. Each of the Series B Preferred Stock and Series C Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted into the Company’s common stock in connection with a Change of Control. Upon the occurrence of a Change of Control, each holder of Series B Preferred Stock and Series C Preferred Stock will have the right (unless the Company has exercised its right to redeem the Series B Preferred Stock or Series C Preferred Stock, respectively) to convert some or all of the Series B Preferred Stock or Series C Preferred Stock held by such holder into a number of shares of our common stock per share of Series B Preferred Stock or Series C Preferred Stock determined by a formula, in each case, on the terms and subject to the conditions described in the applicable Articles Supplementary for such series. From the time of original issuance of the Series B Preferred Stock and the Series C Preferred Stock through December 31, 2016 , the Company has declared and paid all required quarterly dividends on such series of stock. The following table presents the relevant dates with respect to such quarterly cash dividends on the Series B Preferred Stock commencing January 1, 2014 through December 31, 2016 and Series C Preferred Stock from its respective time of original issuance through December 31, 2016 : Series B Preferred Stock Series C Preferred Stock Declaration Date Record Date Payment Date Cash Declaration Date Record Date Payment Date Cash Dividend Per Share December 15, 2016 January 1, 2017 January 15, 2017 $ 0.484375 December 15, 2016 January 1, 2017 January 15, 2017 $ 0.4921875 September 15, 2016 October 1, 2016 October 15, 2016 0.484375 September 15, 2016 October 1, 2016 October 15, 2016 0.4921875 June 16, 2016 July 1, 2016 July 15, 2016 0.484375 June 16, 2016 July 1, 2016 July 15, 2016 0.4921875 March 18, 2016 April 1, 2016 April 15, 2016 0.484375 March 18, 2016 April 1, 2016 April 15, 2016 0.4921875 December 16, 2015 January 1, 2016 January 15, 2016 0.484375 December 16, 2015 January 1, 2016 January 15, 2016 0.4921875 September 18, 2015 October 1, 2015 October 15, 2015 0.484375 September 18, 2015 October 1, 2015 October 15, 2015 0.4921875 June 18, 2015 July 1, 2015 July 15, 2015 0.484375 June 18, 2015 July 1, 2015 July 15, 2015 0.4539100 (1) March 18, 2015 April 1, 2015 April 15, 2015 0.484375 — — — — December 12, 2014 January 1, 2015 January 15, 2015 0.484375 — — — — September 18, 2014 October 1, 2014 October 15, 2014 0.484375 — — — — June 18, 2014 July 1, 2014 July 15, 2014 0.484375 — — — — March 13, 2014 April 1, 2014 April 15, 2014 0.484375 — — — — (1) Cash dividend for the partial quarterly period that began on April 22, 2015 and ended on July 14, 2015. (b) Dividends on Common Stock The following table presents cash dividends declared by the Company on its common stock with respect to each of the quarterly periods commencing January 1, 2014 and ended December 31, 2016 : Period Declaration Date Record Date Payment Date Cash Dividend Per Share Fourth Quarter 2016 December 15, 2016 December 27, 2016 January 26, 2017 $ 0.24 Third Quarter 2016 September 15, 2016 September 26, 2016 October 28, 2016 0.24 Second Quarter 2016 June 16, 2016 June 27, 2016 July 25, 2016 0.24 First Quarter 2016 March 18, 2016 March 28, 2016 April 25, 2016 0.24 Fourth Quarter 2015 December 16, 2015 December 28, 2015 January 25, 2016 0.24 Third Quarter 2015 September 18, 2015 September 28, 2015 October 26, 2015 0.24 Second Quarter 2015 June 18, 2015 June 29, 2015 July 27, 2015 0.27 First Quarter 2015 March 18, 2015 March 30, 2015 April 27, 2015 0.27 Fourth Quarter 2014 December 12, 2014 December 22, 2014 January 26, 2015 0.27 Third Quarter 2014 September 18, 2014 September 29, 2014 October 27, 2014 0.27 Second Quarter 2014 June 18, 2014 June 30, 2014 July 25, 2014 0.27 First Quarter 2014 March 13, 2014 March 24, 2014 April 25, 2014 0.27 During 2016 , dividends for our common stock were $0.96 per share. For tax reporting purposes, the 2016 dividends were classified as ordinary income and return of capital in the amounts of $0.44 and $0.52 per share, respectively. During 2015 , dividends for our common stock were $1.02 per share. For tax reporting purposes, the 2015 dividends were classified as ordinary income, capital gain distribution and return of capital in the amounts of $0.40 , $0.07 and $0.55 , respectively, per share. During 2014 , dividends for our common stock were $1.08 per share. For tax reporting purposes, the 2014 dividends were classified as ordinary income, capital gain distribution and return of capital in the amounts of $0.61 , $0.35 and $0.12 , respectively, per share. (c) Public Offering of Common Stock The table below presents information with respect to shares of the Company’s common stock issued through underwritten public offerings during the three years ended December 31, 2016 (amounts in thousands): Share Issue Date Shares Issued Net Proceeds (1) November 26, 2014 14,410 $ 110,784 April 7, 2014 14,950 $ 109,916 January 10, 2014 11,500 $ 75,846 (1) Proceeds are net of underwriting costs and offering expenses paid by the Company. (d) Equity Distribution Agreements On March 20, 2015, the Company entered into separate equity distribution agreements with each of JMP Securities LLC (“JMP”) and MLV & Co. LLC (“MLV”), pursuant to which the Company may sell up to $75,000,000 of aggregate value of (i) shares of the Company’s common stock, par value $0.01 per and (ii) shares of the Company’s Series B Preferred Stock (the “Series B Preferred Stock” and, together with the Common Stock, the “Offered Securities”), from time to time. On August 25, 2016, the Company entered into an amendment to the equity distribution agreement with JMP (as amended, the “JMP Agreement”) and a separate equity distribution agreement (the “Ladenburg Equity Distribution Agreement” and, together with the JMP Agreement, the “Equity Distribution Agreements”) with Ladenburg Thalmann & Co. Inc. (“Ladenburg” and, together with JMP, the “Agents”), pursuant to which the Company may sell the Offered Securities remaining under the existing ATM Program through the Agents. The Company has no obligation to sell any of the shares under the Equity Distribution Agreements and may at any time suspend solicitations and offers under the Equity Distribution Agreements. On August 19, 2016, in anticipation of the Company’s execution of the Equity Distribution Agreements described above, the Company delivered to MLV notice of termination of the equity distribution agreement, dated as of March 20, 2015, by and between the Company and MLV, which termination became effective on August 22, 2016. During the twelve months ended December 31, 2016 , the Company issued 1,905,206 shares under the Equity Distribution Agreements, at an average sales price of $6.87 per share, resulting in total net proceeds to the Company of $12.8 million , after deducting the placement fees. As of December 31, 2016 , approximately $39.8 million of securities remains available for issuance under the Equity Distribution Agreements. During the twelve months ended December 31, 2015 , the Company issued 2,789,439 shares of its common stock under these Equity Distribution Agreements, at an average sales price of $7.91 per share, resulting in total net proceeds to the Company of $21.6 million , after deducting the placement fees. On March 20, 2015, in connection with the Company’s execution of the Equity Distribution Agreements described above, the Company delivered to JMP a notice of termination of the Equity Distribution Agreement dated June 11, 2012 (the “Prior Equity Distribution Agreement”), which termination became effective March 23, 2015. The Prior Equity Distribution Agreement provided for the sale by the Company of common stock having a maximum aggregate value of up to $25,000,000 from time to time through JMP, as the Company’s agent. During the twelve months ended December 31, 2015 , the Company issued 1,326,676 shares under the Prior Equity Distribution Agreement, at an average sales price of $7.89 per share resulting in total net proceeds to the Company of $10.3 million , after deducting the placement fees. During the term of the Prior Equity Distribution Agreement, the Company sold a total of 2,153,989 shares of its common stock at an average price of $7.63 per share pursuant to the Prior Distribution Agreement, resulting in aggregate net proceeds to the Company of approximately $16.1 million . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company calculates basic net income per share by dividing net income for the period by weighted-average shares of common stock outstanding for that period. Diluted net income per share takes into account the effect of dilutive instruments, such as convertible preferred stock, stock options and unvested restricted or performance stock, but uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. There were no dilutive instruments for the years ended December 31, 2016 , 2015 and 2014 . The following table presents the computation of basic and dilutive net income per share for the periods indicated (amounts in thousands, except per share amounts): For the Years Ended December 31, 2016 2015 2014 Numerator : Net income attributable to Company's common stockholders – Basic $ 54,651 $ 67,023 $ 130,379 Net income attributable to Company's common stockholders– Dilutive $ 54,651 $ 67,023 $ 130,379 Denominator: Weighted average basic and dilutive shares outstanding 109,594 108,399 87,867 EPS: Basic EPS $ 0.50 $ 0.62 $ 1.48 Dilutive EPS $ 0.50 $ 0.62 $ 1.48 |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plan | Stock Incentive Plan Pursuant to the Company’s 2010 Stock Incentive Plan (the “2010 Plan”), as approved by the Company's stockholders, eligible employees, officers and directors of the Company have the opportunity to acquire the Company's common stock through the award of common stock, restricted common stock, performance share awards and other equity awards under the 2010 Plan. The maximum number of shares that may be issued under the 2010 Plan is 1,190,000 . Of the common stock authorized at December 31, 2016 and December 31, 2015 , 326,663 shares and 551,609 shares, respectively, were reserved for issuance under the 2010 Plan. The Company's non-employee directors have been issued 207,014 and 146,935 shares under the 2010 Plan as of December 31, 2016 and December 31, 2015 , respectively. The Company’s employees have been issued 562,280 and 401,827 shares under the 2010 Plan as of December 31, 2016 and December 31, 2015 , respectively. At December 31, 2016 and December 31, 2015 , there were 319,058 and 280,457 shares of non-vested restricted stock outstanding under the 2010 Plan. (a) Restricted Common Stock Awards During the years ended December 31, 2016 , 2015 and 2014 , the Company recognized non-cash compensation expense of $1.0 million , $0.9 million and $0.4 million , respectively. Dividends are paid on all restricted stock issued, whether those shares have vested or not. In general, non-vested restricted stock is forfeited upon the recipient's termination of employment. There were no forfeitures during the years ended December 31, 2016 , 2015 and 2014 . A summary of the activity of the Company's non-vested restricted stock under the 2010 Plan for the years ended December 31, 2016 , 2015 and 2014 , respectively, is presented below: 2016 2015 2014 Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Non-vested shares at January 1 280,457 $ 7.63 162,171 $ 7.26 94,873 $ 7.01 Granted 160,453 5.11 185,650 7.79 104,517 7.39 Vested (121,852 ) 7.54 (67,364 ) 7.18 (37,219 ) 6.97 Non-vested shares as of December 31 319,058 $ 6.40 280,457 $ 7.63 162,171 $ 7.26 Weighted-average restricted stock granted during the period 160,453 $ 5.11 185,650 $ 7.79 104,517 $ 7.39 (1) The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. At December 31, 2016 and December 31, 2015 , the Company had unrecognized compensation expense of $1.2 million and $1.3 million , respectively, related to the non-vested shares of restricted common stock under the 2010 Plan. The unrecognized compensation expense at December 31, 2016 is expected to be recognized over a weighted average period of 1.8 years . The total fair value of restricted shares vested during the years ended December 31, 2016 , 2015 and 2014 was $0.6 million , $0.5 million and $0.3 million , respectively. The requisite service period for restricted shares at issuance is three years . (b) Performance Share Awards In May 2015, the Compensation Committee of the Board of Directors approved a performance share award (“PSA”) under the 2010 Plan to the Company’s Chairman and Chief Executive Officer. At the time of grant, the target number of shares pursuant to the PSA consisted of 89,629 shares of common stock. The PSA had a grant date fair value of approximately $0.4 million . The PSA award under which the number of underlying shares of Company common stock that can be earned will generally range from 0% to 200% of the target number of shares, with the target number of shares increased to reflect the value of the reinvestment of any dividends declared on Company common stock during the vesting period. Vesting of the PSA will occur at the end of three years based on three -year total stockholder return, or TSR, as follows: • If three -year TSR is less than 33% , then 0% of the PSUs will vest; • If three -year TSR is greater than or equal to 33% and the TSR is not in the bottom quartile of an identified peer group, then 100% of the PSAs will vest; • If three -year TSR is greater than or equal to 33% and the TSR is in the top quartile of an identified peer group, then 200% of the PSAs will vest; • If three -year TSR is greater than or equal to 33% and the TSR is in the bottom quartile of an identified peer group, then 50% of the PSAs will vest. TSR is defined, with respect to the Company and each member of the identified peer group, as applicable, as the average annual total shareholder return based on common stock price appreciation/depreciation during the applicable measurement period or until the date of a change of control, whichever first occurs, plus the value on the last day of the applicable measurement period or the date of a change of control of common shares if all cash dividends declared on a common share during such period were reinvested in additional common shares. Under the terms of the agreement pursuant to which the PSA was granted (the "PSA Agreement"), the PSA is subject to the terms and conditions of the 2010 Plan and in the event of any conflict between the terms of the 2010 Plan and the PSA Agreement, the terms of the 2010 Plan govern. The 2010 Plan provides that the Compensation Committee may determine that the amount payable when an award of performance shares is earned may be settled in cash, by the issuance of shares, or a combination thereof. The maximum number of shares which may be issued under the PSA is limited to 94,043 shares of common stock. In the event the PSA is earned at a level that would cause the Company to issue more than 94,043 shares, the dollar value of the PSA earned in excess of 94,043 shares will be paid in cash, subject to the terms of the 2010 Plan. The grant date fair values of PSAs were determined through a Monte-Carlo simulation of the Company’s common stock total shareholder return and the common stock total shareholder return of its peer companies to determine the TSR of the Company’s common stock relative to its peer companies over a future period of three years. For the 2015 PSA grant, the inputs used by the model to determine the fair value are (i) historical stock return volatilities of the Company and its peer companies over the most recent three year period, (ii) a risk free rate based on the three year U.S. Treasury rate on grant date, and (iii) historical pairwise stock return correlations between the Company and its peer companies over the most recent three year period. Compensation expense related to PSAs was $ 0.1 million for the year ended December 31, 2016 . As of December 31, 2016 , there was $0.2 million of unrecognized compensation cost related to the unvested portion of the PSA. The 2010 Plan also provides that the maximum number of shares of common stock for which awards may be granted to any participant in any calendar year is 250,000 shares (the “Annual Share Limit”). In the event that PSA is earned at a level that would cause the grants to a participant exceed the Annual Share Limit, the dollar value of the PSA earned in excess of the limit will be paid in cash, subject to the terms of the 2010 Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the years ended December 31, 2016 , 2015 and 2014 , the Company qualified to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes 100% of its taxable income to stockholders and does not engage in prohibited transactions. Certain activities the Company performs may produce income that will not be qualifying income for REIT purposes. The Company has designated its TRSs to engage in these activities. The tables below reflect the taxes accrued at the TRS level and the tax attributes included in the consolidated financial statements. The income tax provision for the years ended December 31, 2016 , 2015 and 2014 is comprised of the following components (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Current income tax expense Federal $ 2,771 $ 3,158 $ 4,572 State 187 1,283 2,423 Total current income tax expense $ 2,958 $ 4,441 $ 6,995 Deferred income tax expense (benefit) Federal $ 104 $ 69 $ (458 ) State 33 25 (142 ) Total deferred income tax expense (benefit) $ 137 $ 94 $ (600 ) Total provision $ 3,095 $ 4,535 $ 6,395 The Company’s estimated taxable income differs from the statutory U.S. federal rate as a result of state and local taxes, non-taxable REIT income, valuation allowance and other differences. A reconciliation of the statutory income tax provision to the effective income tax provision for the years ended December 31, 2016 , 2015 and 2014 , respectively, are as follows (dollar amounts in thousands). December 31, 2016 2015 2014 Provision at statutory rate $ 24,561 35.0 % $ 28,892 35.0 % $ 49,316 35.0 % Non-taxable REIT income (20,672 ) (29.5 ) (25,733 ) (31.2 ) (44,247 ) (31.4 ) State and local tax provision 187 0.3 1,284 1.6 2,420 1.7 Other (502 ) (0.7 ) 24,047 29.1 (1,227 ) (0.9 ) Valuation allowance (479 ) (0.7 ) (23,955 ) (29.0 ) 133 0.1 Total provision $ 3,095 4.4 % $ 4,535 5.5 % $ 6,395 4.5 % Deferred Tax Assets and Liabilities The major sources of temporary differences included in the deferred tax assets and their deferred tax effect as of December 31, 2016 and 2015 are as follows (dollar amounts in thousands): December 31, 2016 December 31, 2015 Deferred tax assets Net operating loss carryforward $ 2,287 $ 2,083 Net capital loss carryforward 1,123 2,029 Other 3,059 3,043 Total deferred tax assets (1) $ 6,469 $ 7,155 Deferred tax liabilities Deferred tax liabilities $ 303 $ 192 Total deferred tax liabilities (2) $ 303 $ 192 Valuation allowance (5,978 ) (6,457 ) Total net deferred tax asset $ 188 $ 506 (1) Included in receivables and other assets in the accompanying consolidated balance sheets. (2) Included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. As of December 31, 2016 , the Company through a wholly owned TRS, had incurred net operating losses in the aggregate amount of approximately $5.0 million . The Company’s carryforward net operating losses will expire between 2033 and 2034 if they are not offset by future taxable income. Additionally, as of December 31, 2016 , the Company, through one of its wholly owned TRSs, had also incurred approximately $2.5 million in capital losses. The Company’s carryforward capital losses will expire between 2018 and 2020 if they are not offset by future capital gains. At December 31, 2016 , the Company has recorded a valuation allowance against the deferred tax assets management does not believe it is more likely than not to be realized. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions. The Company is no longer subject to tax examinations by tax authorities for years prior to 2013. The Company has assessed its tax positions for all open years, which includes 2013 to 2016 and concluded that there are no material uncertainties to be recognized. In addition, based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On May 16, 2016 (the “Acquisition Date”), the Company acquired the outstanding common equity interests in RiverBanc, RBMI, and RBDHC (collectively, the “Acquirees”) that were not previously owned by the Company through the consummation of separate membership interest purchase agreements, thereby increasing the Company's ownership of each of these entities to 100% . The results of the Acquirees’ operations have been included in the consolidated financial statements since the Acquisition Date. Prior to the Acquisition Date, the Company owned 20.0% , 67.19% and 62.5% of the outstanding common equity interests in RiverBanc, RBMI and RBDHC, respectively. RiverBanc is an investment management firm and registered investment adviser under the Investment Advisers Act of 1940 that was founded in 2010 and has sourced and managed direct and indirect investments in multi-family apartment properties on behalf of both public and private institutional investors, including the Company, RBMI and RBDHC. Prior to the completion of the RiverBanc acquisition, RiverBanc had served as an external manager of the Company pursuant to an investment management agreement, for which it received base management and incentive fees. In connection with the acquisition, the Company terminated its investment management agreement with RiverBanc on May 17, 2016. As of March 31, 2016, RiverBanc managed approximately $371.5 million of the Company’s capital. In acquiring a 100% ownership interest in RiverBanc, the Company has internalized the management of its multi-family investments. The Company expects to achieve certain synergies related to processes and personnel as a result of this internalization. In connection with the acquisitions, on the Acquisition Date, the Company named Kevin M. Donlon, the founder and Chief Executive Officer of RiverBanc, President of the Company and entered into an employment agreement with Mr. Donlon effective on the Acquisition Date. On June 16, 2016, the Company’s Board of Directors approved the appointment of Mr. Donlon as a director of the Company. Prior to the completion of the acquisitions described above, Donlon Family LLC beneficially owned 59.40% , 5.47% and 6.25% of the outstanding common equity interests in RiverBanc, RMI and RBDHC, respectively. Mr. Donlon beneficially owns 100% of Donlon Family LLC. The estimated Acquisition Date fair value of the consideration transferred totaled $53.5 million, which consisted of the following (dollar amounts in thousands): Cash (1) $ 29,073 Contingent consideration 3,800 Fair value of previously held membership interests 20,608 Total consideration transferred $ 53,481 (1) Includes $16.3 million paid to Donlon Family LLC and reflects a post-closing working capital adjustment of $20 thousand delivered to the sellers of RiverBanc on July 15, 2016. Prior to the Acquisition Date, the Company accounted for its previously held membership interests in the Acquirees as equity method investments, utilizing the fair value election for both RBMI and RBDHC. The Acquisition Date fair value of the Company's previously held membership interests in the Acquirees was $20.6 million and is included in the measurement of consideration transferred. In the year ended December 31, 2016 , the Company recorded a net gain as a result of remeasuring its previously held membership interests in RiverBanc, RBMI, and RBDHC totaling $5.0 million. This net gain is included in other income on the Company's consolidated statements of operations. The Company determined the estimated fair value of its previously held membership interests in RiverBanc using assumptions for the timing and amount of expected net future cash flow for the managed portfolio and a discount rate. The Company determined the estimated fair value of its previously held membership interests in RBMI and RBDHC using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets and a discount rate. The contingent consideration includes two components: • A cash holdback in the amount of $3.0 million to be released to Donlon Family LLC upon the purchase by Mr. Donlon or his affiliates of $3.0 million in Company common shares on the open market within 90 days of the Acquisition Date. This cash holdback was paid to Donlon Family LLC on June 10, 2016 upon satisfaction of the conditions to the release of this holdback. • A severance holdback in the amount of $0.8 million to fund the aggregate amount of all severance compensation and severance benefits to be paid or provided to current or former RiverBanc employees as a result of the acquisition. The severance holdback was settled in cash and paid to a separated employee on June 30, 2016 and the holdback amount in excess of actual severance costs was delivered to the sellers of RiverBanc on July 15, 2016. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed by the Company at the Acquisition Date (dollar amounts in thousands). The membership interest purchase agreement for the acquisition of RiverBanc included a post-closing working capital adjustment that was calculated at $20 thousand and settled with the sellers of RiverBanc on July 15, 2016. Additionally, the excess severance holdback amount described above was settled with the sellers of RiverBanc on July 15, 2016. The Company engaged a third party for valuations of certain intangible assets. Cash $ 4,325 Investment in unconsolidated entities 52,176 Mezzanine loan and preferred equity investments 23,638 Real estate under development (1) 14,922 Receivables and other assets 911 Intangible assets (1) 3,490 Total identifiable assets acquired $ 99,462 Construction loan payable (2) $ 8,499 Accrued expenses and other liabilities 2,864 Total liabilities assumed $ 11,363 Preferred equity (3) $ 56,697 Net identifiable assets acquired $ 31,402 Goodwill (4) $ 25,222 Gain on bargain purchase (5) (65 ) Non-controlling interest (6) (3,078 ) Net assets acquired $ 53,481 (1) Included in receivables and other assets on the consolidated balance sheets. (2) Construction loan payable to the Company is eliminated on the consolidated balance sheets. (3) Includes $40.4 million of preferred equity owned by the Company that is eliminated on the consolidated balance sheets. Remaining $16.3 million of preferred equity owned by third parties was redeemed on June 10, 2016 and June 24, 2016. (4) Goodwill recognized in the acquisition of RiverBanc. (5) Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC. (6) Represents third-party ownership of KRVI membership interests ( see Note 9 ). The Company consolidates its investment in KRVI. The third-party ownership in KRVI is represented in the consolidated financial statements and the pro forma net income attributable to the Company's common stockholders as non-controlling interests. The fair value of the non-controlling interests in KRVI is estimated to be $3.1 million . The fair value of the non-controlling interests in KRVI, a private company, was estimated using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying real estate. The $3.5 million of intangible assets relates to the RiverBanc acquisition and was recognized at estimated fair value on the Acquisition Date. Intangible assets include an acquired trade name, acquired technology, and employment/non-compete agreements with useful lives ranging from 1 to 10 years. The $25.2 million of goodwill recognized is attributable primarily to expected synergies and economies of scale from combining with RiverBanc and the assembled workforce of RiverBanc. For the Company’s ongoing evaluation of Goodwill for impairment in accordance with ASC 350, Intangibles - Goodwill and Other , the Company’s multifamily investment portfolio (inclusive of RiverBanc) will be considered a reporting unit. As of December 31, 2016 , there were changes in the recognized amounts of Goodwill resulting from the acquisition of RiverBanc as a result of payment of the post-closing working capital adjustment of $20 thousand and adjustments to the estimated fair value of intangible assets in the amount of $0.4 million . The Company evaluated goodwill as of October 1, 2016 and no impairment was indicated. The acquisition of both RBMI and RBDHC was negotiated directly with the sellers and the fair value of identifiable assets acquired and liabilities assumed exceed the fair value of the consideration transferred. Subsequently, the Company reassessed the identification and recognition of identifiable assets acquired and liabilities assumed, the Company’s previously held membership interests, and the consideration transferred and concluded that all items were recognized and that the valuation procedures and measurements were appropriate. Accordingly, the Company recorded a net gain on bargain purchase of $0.1 million that is included in other income on the Company’s consolidated statements of operations. The amount of revenue of the Acquirees included in the Company’s consolidated statements of operations from the Acquisition Date to the period ended December 31, 2016 is $5.3 million . The following represents the pro forma consolidated revenue and net income attributable to the Company's common stockholders as if the Acquirees had been included in the consolidated results of the Company for the years ended December 31, 2016 and 2015 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 Revenue $ 356,138 $ 390,576 Net income attributable to Company's common stockholders $ 51,782 $ 72,707 Basic pro forma income per share $ 0.47 $ 0.67 Diluted pro forma income per share $ 0.47 $ 0.67 These amounts have been calculated after applying the Company’s accounting policies and adjustments for consolidation and amortization that would have been charged assuming the estimated fair value adjustments to intangible assets had been applied on January 1, 2015. Material, nonrecurring pro forma adjustments directly attributable to the business combinations have been included in the pro forma consolidated revenue and net income attributable to the Company's common stockholders shown above as if the transaction occurred on January 1, 2015. These adjustments include a $5.0 million net gain on remeasurement of the Company's previously held membership interests, a $0.1 million net gain on bargain purchase, and the estimated related income tax expense of $2.1 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company terminated its management agreement with RiverBanc on May 17, 2016 as a result of the Company's acquisition of the remaining 80% membership interest in RiverBanc, which resulted in consolidation of RiverBanc into the Company's financial statements (see Note 21 ). Prior to May 16, 2016 , RiverBanc sourced and managed direct and indirect investments in multi-family properties on behalf of the Company pursuant to a management agreement entered into on April 5, 2011 and amended and restated on March 13, 2013 . The amended and restated management agreement had an effective date of January 1, 2013 and had an initial term that expired on December 31, 2015 and was subject to annual automatic one-year renewals (subject to any notice of termination). Prior to May 16, 2016 and as of December 31, 2015 , the Company owned a 20% membership interest in RiverBanc. For the years ended December 31, 2016 , 2015 and 2014 , the Company recognized approximately $0.1 million , $0.8 million and $2.6 million in equity income related to its investment in RiverBanc, respectively. For the years ended December 31, 2016 , 2015 and 2014 , the Company expensed $1.8 million , $8.1 million and $14.8 million in fees to RiverBanc, respectively. As of December 31, 2015, the Company had fees payable to RiverBanc of $1.7 million included in accrued expenses and other liabilities. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) The following table is a comparative breakdown of our unaudited quarterly results for the immediately preceding eight quarters (amounts in thousands, except per share data): Three Months Ended Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016 Interest income $ 81,626 $ 79,766 $ 79,525 $ 78,389 Interest expense 63,984 63,102 64,007 63,575 Net interest income $ 17,642 $ 16,664 $ 15,518 $ 14,814 Other Income (loss): Recovery (provision) for loan losses $ 645 $ 42 $ (26 ) $ 177 Realized gain (loss) on investment securities and related hedges, net 1,266 1,761 2,306 (8,978 ) Realized gain on distressed residential mortgage loans 5,548 26 6,416 2,875 Unrealized (loss) gain on investment securities and related hedges, net (2,490 ) (667 ) 1,563 8,664 Unrealized gain on multi-family loans and debt held in securitization trusts, net 818 784 738 692 Other income 3,073 8,125 5,635 2,245 Total other income $ 8,860 $ 10,071 $ 16,632 $ 5,675 General, administrative and other expenses 9,360 9,936 8,705 7,220 Income from operations before income taxes $ 17,142 $ 16,799 $ 23,445 $ 13,269 Income tax expense 191 2,366 163 375 Net income $ 16,951 $ 14,433 $ 23,282 $ 12,894 Net loss (income) attributable to non-controlling interest — 2 (14 ) 3 Net income attributable to Company $ 16,951 $ 14,435 $ 23,268 $ 12,897 Preferred stock dividends (3,225 ) (3,225 ) (3,225 ) (3,225 ) Net income attributable to Company's common stockholders $ 13,726 $ 11,210 $ 20,043 $ 9,672 Per share basic income $ 0.13 $ 0.10 $ 0.18 $ 0.09 Per share diluted income $ 0.13 $ 0.10 $ 0.18 $ 0.09 Dividends declared per common share $ 0.24 $ 0.24 $ 0.24 $ 0.24 Weighted average shares outstanding-basic 109,402 109,489 109,569 109,911 Weighted average shares outstanding-diluted 109,402 109,489 109,569 109,911 Three Months Ended Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 Interest income $ 88,985 $ 84,400 $ 82,587 $ 80,866 Interest expense 67,384 64,097 64,295 64,875 Net interest income $ 21,601 $ 20,303 $ 18,292 $ 15,991 Other Income: (Provision) recovery for loan losses $ (436 ) $ (112 ) $ (1,117 ) $ 302 Realized gain (loss) on investment securities and related hedges, net 1,124 (1,291 ) (2,895 ) (1,555 ) Gain on de-consolidation of multi-family loans held in securitization trust and multi-family collateralized debt obligations 1,483 — — — Realized gain (loss) on distressed residential mortgage loans 676 3,614 27,224 (263 ) Unrealized (loss) gain on investment securities and related hedges, net (5,728 ) 4,716 (2,631 ) 1,002 Unrealized gain (loss) on multi-family loans and debt held in securitization trusts, net 13,628 5,418 (2,170 ) (4,508 ) Other income 2,286 2,300 1,807 2,967 Total other income (loss) $ 13,033 $ 14,645 $ 20,218 $ (2,055 ) General, administrative and other expenses $ 10,846 $ 9,139 $ 9,830 $ 9,665 Income from operations before income taxes $ 23,788 $ 25,809 $ 28,680 $ 4,271 Income tax expense 245 1,178 3,048 64 Net income attributable to Company $ 23,543 $ 24,631 $ 25,632 $ 4,207 Preferred stock dividends (1,453 ) (3,087 ) (3,225 ) (3,225 ) Net income attributable to Company's common stockholders $ 22,090 $ 21,544 $ 22,407 $ 982 Per share basic income $ 0.21 $ 0.20 $ 0.20 $ 0.01 Per share diluted income $ 0.21 $ 0.20 $ 0.20 $ 0.01 Dividends declared per common share $ 0.27 $ 0.27 $ 0.24 $ 0.24 Weighted average shares outstanding-basic 105,488 109,252 109,402 109,402 Weighted average shares outstanding-diluted 105,488 109,252 109,402 109,402 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 23, 2017 , the Company completed the issuance and sale to Nomura Securities International, Inc. of $138.0 million aggregate principal amount of its 6.25% Senior Convertible Notes due 2022 (the "Convertible Notes"), including $18.0 million aggregate principal amount of the Convertible Notes issued upon exercise of Nomura's over-allotment option, in a public offering. The net proceeds to the Company from the sale of the Convertible Notes, after deducting the underwriter's discounts and commissions and estimated offering expenses, is approximately $127.3 million . The Convertible Notes were issued at 96% of the principal amount, bear interest at a rate equal to 6.25% per year, payable semi-annually in arrears on January 15 and July 15 of each year, commencing July 15, 2017, and are expected to mature on January 15, 2022, unless earlier converted or repurchased. The Company does not have the right to redeem the Convertible Notes prior to maturity and no sinking fund is provided for the Convertible Notes. Holders of the Convertible Notes will be permitted to convert their Convertible Notes into shares of the Company's common stock at any time prior to the close of business on the business day immediately proceeding January 15, 2022 . The conversion rate for the Convertible Notes, which is subject to adjustment upon the occurrence of certain specified events, initially equals 142.7144 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of approximately $7.01 per share of the Company’s common stock, based on a $1,000 principal amount of the Convertible Notes. |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned Residential mortgage loans held in securitization trusts (net) consist of the following at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Unpaid principal balance $ 98,303 $ 122,545 Deferred origination costs – net 623 775 Reserve for loan losses (3,782 ) (3,399 ) Total $ 95,144 $ 119,921 Allowance for Loan Losses - The following table presents the activity in the Company's allowance for loan losses on residential mortgage loans held in securitization trusts for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 3,399 $ 3,631 $ 2,989 Provisions for loan losses 612 1,161 998 Transfer to real estate owned (117 ) — (356 ) Charge-offs (112 ) (1,393 ) — Balance at the end of period $ 3,782 $ 3,399 $ 3,631 On an ongoing basis, the Company evaluates the adequacy of its allowance for loan losses. The Company’s allowance for loan losses at December 31, 2016 was $3.8 million , representing 385 basis points of the outstanding principal balance of residential loans held in securitization trusts, as compared to 277 basis points as of December 31, 2015 . As part of the Company’s allowance for loan loss adequacy analysis, management will assess an overall level of allowances while also assessing credit losses inherent in each non-performing residential mortgage loan held in securitization trusts. These estimates involve the consideration of various credit related factors, including but not limited to, current housing market conditions, current loan to value ratios, delinquency status, the borrower’s current economic and credit status and other relevant factors. Real Estate Owned – The following table presents the activity in the Company’s real estate owned held in residential securitization trusts for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 December 31, 2014 Balance at beginning of period $ 411 $ 965 $ 1,108 Write downs (9 ) — (103 ) Transfer from mortgage loans held in securitization trusts 352 — 537 Disposal (604 ) (554 ) (577 ) Balance at the end of period $ 150 $ 411 $ 965 Real estate owned held in residential securitization trusts are included in receivables and other assets on the accompanying consolidated balance sheets and write downs are included in provision for loan losses in the statement of operations for reporting purposes. All of the Company’s mortgage loans and real estate owned held in residential securitization trusts are pledged as collateral for the Residential CDOs issued by the Company. The Company’s net investment in the residential securitization trusts, which is the maximum amount of the Company’s investment that is at risk to loss and represents the difference between (i) the carrying amount of the mortgage loans, real estate owned and receivables held in residential securitization trusts and (ii) the amount of Residential CDOs outstanding, was $4.4 million and $4.4 million , as of December 31, 2016 and December 31, 2015 , respectively. Delinquency Status of Our Residential Mortgage Loans Held in Securitization Trusts As of December 31, 2016 , we had 31 delinquent loans with an aggregate principal amount outstanding of approximately $18.7 million categorized as Residential Mortgage Loans Held in Securitization Trusts (net), of which $11.2 million , or 60% , are under some form of temporary modified payment plan. The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including real estate owned (REO) through foreclosure, as of December 31, 2016 (dollar amounts in thousands): December 31, 2016 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 1 $ 247 0.25 % 61 - 90 — $ — — 90+ 30 $ 18,416 18.68 % Real estate owned through foreclosure 1 $ 268 0.27 % As of December 31, 2015 , we had 31 delinquent loans with an aggregate principal amount outstanding of approximately $18.0 million categorized as Residential Mortgage Loans Held in Securitization Trusts (net), of which $11.9 million , or 67% , were under some form of modified payment plan. The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including REO through foreclosure, as of December 31, 2015 (dollar amounts in thousands): December 31, 2015 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 3 $ 825 0.67 % 61 - 90 2 $ 1,763 1.43 % 90+ 26 $ 15,365 12.48 % Real estate owned through foreclosure 3 $ 574 0.47 % The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and REO held in residential securitization trusts at December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 New York 33.8 % 35.6 % Massachusetts 19.9 % 20.7 % New Jersey 10.8 % 11.1 % Florida 8.9 % 7.7 % Connecticut 7.4 % 6.5 % Schedule IV - Mortgage Loans on Real Estate (dollar amounts in thousands) December 31, 2016 Asset Type Number of Loans Interest Rate Maturity Date Carrying Value Principal Amount of Loans Subject to Delinquent Principal or Interest Distressed residential mortgage loans First mortgage loans Original loan amount $0 - $99,999 2,999 1.01% - 14.99% 8/18/2007 - 5/1/2062 $ 142,652 $ 21,783 Original loan amount $100,000 - $199,999 1,484 1.75% - 12.85% 11/1/2009 - 1/1/2057 160,433 24,407 Original loan amount $200,000 - $299,999 457 0.00% - 12.04% 9/15/2016 - 8/1/2061 84,261 13,810 Original loan amount over $299,999 335 0.75% - 10.46% 4/1/2020 - 7/1/2057 115,748 20,868 Residential mortgage loans held in securitization trusts First mortgage loans Original loan amount $0 - $99,999 11 3.13% - 3.63% 10/1/2034 - 8/1/2035 662 — Original loan amount $100,000 - $199,999 65 2.75% - 4.25% 10/1/2034 - 1/1/2036 7,646 525 Original loan amount $200,000 - $299,999 76 2.88% - 5.25% 8/1/2032 - 12/1/2035 14,739 2,211 Original loan amount $300,000 - $399,999 44 1.75% - 4.13% 8/1/2033 - 1/1/2036 11,821 1,079 Original loan amount $400,000 - $499,999 28 2.38% - 3.75% 8/1/2033 - 12/1/2035 9,785 1,261 Original loan amount over $499,999 63 1.63% - 3.88% 8/1/2033 - 12/1/2035 50,492 13,341 Other mortgage loans Residential and commercial first mortgage loans 47 2.63% - 15.00% 12/15/2013 - 10/1/2046 9,607 1,760 Residential second mortgage loans 259 5.88% - 9.00% 11/1/2030 - 1/1/2047 17,769 — Multi-family loans First mortgage loans 376 3.04% - 6.18% 1/1/2017 - 8/1/2023 6,939,844 — $ 7,565,459 $ 101,045 Reconciliation of Balance Sheet Reported Amounts of Mortgage Loans on Real Estate For the year ended December 31, (in thousands) 2016 2015 2014 Beginning balance $ 7,792,422 $ 9,107,248 $ 8,543,904 Additions during period: Purchases 82,167 156,952 405,427 Accretion of purchase discount 32,688 39,537 18,704 Deconsolidation — 1,483 — Change in realized and unrealized gains (losses) 10,794 — 390,370 Deductions during period: Repayments of principal (175,216 ) (130,651 ) (100,689 ) Collection of interest (32,928 ) (36,344 ) (18,478 ) Transfer to REO (8,892 ) (2,829 ) (2,380 ) Cost of mortgages sold (96,344 ) (1,241,266 ) (75,610 ) Provision for loan loss 847 (1,363 ) (1,881 ) Change in realized and unrealized gains (losses) — (59,262 ) — Amortization of premium (40,079 ) (41,083 ) (52,119 ) Balance at end of period $ 7,565,459 $ 7,792,422 $ 9,107,248 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Basis of Presentation | Basis of Presentation – The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management has made significant estimates in several areas, including valuation of its CMBS investments, multi-family loans held in securitization trusts and multi-family CDOs, as well as income recognition on distressed residential mortgage loans purchased at a discount. Although the Company’s estimates contemplate current conditions and how it expects them to change in the future, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially impact the Company’s results of operations and its financial condition. |
Reclassifications | Reclassifications – Certain prior period amounts have been reclassified in the consolidated financial statements to conform to current period presentation. |
Business Combinations | Business Combinations – The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. The Company accounts for business combinations by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . Transaction costs related to acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and liabilities. Contingent consideration is classified as a liability or equity, as applicable. Contingent consideration in connection with the acquisition of a business is measured at fair value on acquisition date, and unless classified as equity, is remeasured at fair value each reporting period thereafter until the consideration is settled, with changes in fair value included in net income. Net cash paid to acquire a business is classified as investing activities on the accompanying consolidated statements of cash flows. |
Principles of Consolidation and Variable Interest Entities | Principles of Consolidation and Variable Interest Entities (VIE) – The accompanying consolidated financial statements of the Company include the accounts of all its subsidiaries which are majority-owned, controlled by the Company or a variable interest entity (“VIE”) where the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The Company consolidates a VIE when it is the primary beneficiary of such VIE, herein referred to as “Consolidated VIE”. As primary beneficiary, it has both the power to direct the activities that most significantly impact the economic performance of the VIE and a right to receive benefits or absorb losses of the entity that could be potentially significant to the VIE. The Company is required to reconsider its evaluation of whether to consolidate a VIE each reporting period, based upon changes in the facts and circumstances pertaining to the VIE. |
Investment Securities Available for Sale | Investment Securities Available for Sale – The Company's investment securities, where the fair value option has not been elected and which are reported at fair value with unrealized gains and losses reported in Other Comprehensive Income (“OCI”), include Agency RMBS, non-Agency RMBS and CMBS. The Company has elected the fair value option for its Agency IOs, U.S. Treasury securities, certain Agency ARMs and Agency fixed-rate RMBS within the Agency IO portfolio, which measures unrealized gains and losses through earnings in the accompanying consolidated statements of operations. The fair value option was elected for these investment securities to better match the accounting for these investment securities with the related derivative instruments within the Agency IO portfolio, which are not designated as hedging instruments for accounting purposes. The Company generally intends to hold its investment securities until maturity; however, from time to time, it may sell any of its securities as part of the overall management of its business. As a result, our investment securities are classified as available for sale securities. Realized gains and losses recorded on the sale of investment securities available for sale are based on the specific identification method and included in realized (loss) gain on investment securities and related hedges in the accompanying consolidated statements of operations. Interest income on our investment securities available for sale is accrued based on the outstanding principal balance and their contractual terms. Purchase premiums or discounts on investment securities are amortized or accreted to interest income over the estimated life of the investment securities using the effective yield method. Adjustments to amortization are made for actual prepayment activity. Interest income on certain of our credit sensitive securities, such as our CMBS that were purchased at a discount to par value, is recognized based on the security’s effective interest rate. The effective interest rate on these securities is based on management’s estimate of the projected cash flows from each security, which are estimated based on assumptions related to fluctuations in interest rates, prepayment speeds and the timing and amount of credit losses. On at least a quarterly basis, management reviews and, if appropriate, adjusts its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses, and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield/interest income recognized on these securities. A portion of the purchase discount on the Company’s first loss tranche PO multi-family CMBS is designated as non-accretable purchase discount or credit reserve, which partially mitigates the Company’s risk of loss on the mortgages collateralizing such multi-family CMBS, and is not expected to be accreted into interest income. The amount designated as a credit reserve may be adjusted over time, based on the actual performance of the security, its underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a security with a credit reserve is more favorable than forecasted, a portion of the amount designated as credit reserve may be accreted into interest income over time. Conversely, if the performance of a security with a credit reserve is less favorable than forecasted, the amount designated as credit reserve may be increased, or impairment charges and writedowns of such securities to a new cost basis could be required. The Company accounts for debt securities that are of high credit quality (generally those rated AA or better by a Nationally Recognized Statistical Rating Organization, or NRSRO), at date of acquisition in accordance with ASC 320-10, Investments - Debt and Equity Securities ("ASC 320-10"). The Company accounts for debt securities that are not of high credit quality (i.e., those whose risk of loss is more than remote) or securities that can be contractually prepaid such that we would not recover our initial investment at the date of acquisition in accordance with ASC 325-40, Investments - Beneficial Interest in Securitized Financial Assets ("ASC 325-40"). The Company considers credit ratings, the underlying credit risk and other market factors in determining whether the debt securities are of high credit quality; however, securities rated lower than AA or an equivalent rating are not considered of high credit quality and are accounted for in accordance with ASC 325-40. If ratings are inconsistent among NRSROs, the Company uses the lower rating in determining whether the securities are of high credit quality. The Company assesses its impaired securities on at least a quarterly basis and designates such impairments as either “temporary” or “other-than-temporary” by applying the guidance prescribed in ASC 320-10. When the fair value of an investment security is less than its amortized cost as of the reporting balance sheet date, the security is considered impaired. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then it must recognize an other-than-temporary impairment through earnings equal to the entire difference between the investment’s amortized cost and its fair value as of the balance sheet date. If the Company does not expect to sell an other-than-temporarily impaired security, only the portion of the other-than-temporary impairment related to credit losses is recognized through earnings with the remainder recognized as a component of other comprehensive income (loss) on the accompanying consolidated balance sheets. Impairments recognized through other comprehensive income (loss) do not impact earnings. Following the recognition of an other-than-temporary impairment through earnings, a new cost basis is established for the security, which may not be adjusted for subsequent recoveries in fair value through earnings. However, other-than-temporary impairments recognized through earnings may be accreted back to the amortized cost basis of the security on a prospective basis through interest income. The determination as to whether an other-than-temporary impairment exists and, if so, the amount considered other-than-temporarily impaired is subjective, as such determinations are based on both factual and subjective information available at the time of assessment as well as the Company’s estimates of the future performance and cash flow projections. As a result, the timing and amount of other-than-temporary impairments constitute material estimates that are susceptible to significant change. In determining the other-than temporary impairment related to credit losses for securities that are not of high credit quality, the Company compares the present value of the remaining cash flows expected to be collected at the prior reporting date or purchase date, whichever is most recent, against the present value of the cash flows expected to be collected at the current financial reporting date. The Company considers information available about the past and expected future performance of underlying mortgage loans, including timing of expected future cash flows, prepayment rates, default rates, loss severities and delinquency rates. |
Residential Mortgage Loans Held in Securitization Trusts | Residential Mortgage Loans Held in Securitization Trusts – Residential mortgage loans held in securitization trusts are comprised of certain ARM loans transferred to Consolidated VIEs that have been securitized into sequentially rated classes of beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Residential mortgage loans held in securitization trusts are carried at their unpaid principal balances, net of unamortized premium or discount, unamortized loan origination costs and allowance for loan losses. Interest income is accrued and recognized as revenue when earned according to the terms of the mortgage loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. We establish an allowance for loan losses based on management's judgment and estimate of credit losses inherent in our portfolio of residential mortgage loans held in securitization trusts. Estimation involves the consideration of various credit-related factors, including but not limited to, macro-economic conditions, current housing market conditions, loan-to-value ratios, delinquency status, historical credit loss severity rates, purchased mortgage insurance, the borrower's current economic condition and other factors deemed to warrant consideration. Additionally, we look at the balance of any delinquent loan and compare that to the current value of the collateralizing property. We utilize various home valuation methodologies including appraisals, broker pricing opinions, internet-based property data services to review comparable properties in the same area or consult with a broker in the property's area. |
Acquired Distressed Residential Mortgage Loans | Acquired Distressed Residential Mortgage Loans – Distressed residential mortgage loans are comprised of pools of fixed and adjustable rate residential mortgage loans acquired by the Company at a discount, with evidence of credit deterioration since their origination and where it is probable that the Company will not collect all contractually required principal payments. Distressed residential mortgage loans held in securitization trusts are distressed residential mortgage loans transferred to Consolidated VIEs that have been securitized into beneficial interests. The Company accounted for these securitization trusts as financings which are consolidated into the Company’s financial statements. Acquired distressed residential mortgage loans that have evidence of deteriorated credit quality at acquisition are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality ("ASC 310-30"). Management evaluates whether there is evidence of credit quality deterioration as of the acquisition date using indicators such as past due or modified status, risk ratings, recent borrower credit scores and recent loan-to-value percentages. Acquired distressed residential mortgage loans are recorded at fair value at the date of acquisition, with no allowance for loan losses. Under ASC 310-30, the acquired loans may be accounted for individually or aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an expectation of aggregate cash flows. Once a pool is assembled, it is treated as if it was one loan for purposes of applying the accounting guidance. Under ASC 310-30, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans in each pool or individually using a level yield methodology. Accordingly, our acquired distressed residential mortgage loans accounted for under ASC 310-30 are not subject to classification as nonaccrual classification in the same manner as our residential mortgage loans that were not distressed when acquired by us. Rather, interest income on acquired distressed residential mortgage loans relates to the accretable yield recognized at the pool level or on an individual loan basis, and not to contractual interest payments received at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “nonaccretable difference,” includes estimates of both the impact of prepayments and expected credit losses over the life of the individual loan, or the pool (for loans grouped into a pool). Management monitors actual cash collections against its expectations, and revised cash flow expectations are prepared as necessary. A decrease in expected cash flows in subsequent periods may indicate that the loan pool or individual loan, as applicable, is impaired, thus requiring the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods initially reduces any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for prospectively as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans in the pool or individual loan, as applicable. The impacts of (i) prepayments, (ii) changes in variable interest rates, and (iii) any other changes in the timing of expected cash flows are recognized prospectively as adjustments to interest income. A distressed residential mortgage loan disposal, which may include a loan sale, receipt of payment in full from the borrower or foreclosure, results in removal of the loan from the loan pool at its allocated carrying amount. In the event of a sale of the loan and receipt of payment (in full or partial) from the borrower, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds or payment from the borrower and the allocated carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, an individual loan is removed from the pool and a loss is recognized if the carrying value exceeds the fair value of the collateral less costs to sell. A gain is not recognized if the fair value of collateral less costs to sell exceeds the carrying value. The Company uses the specific allocation method for the removal of loans as the estimated cash flows and related carrying amount for each individual loan are known. In these cases, the remaining accretable yield is unaffected and any material change in remaining effective yield caused by the removal of the loan from the pool is addressed by the re-assessment of the estimate of cash flows for the pool prospectively. Acquired distressed residential mortgage loans subject to modification are not removed from the pool even if those loans would otherwise be considered troubled debt restructurings because the pool, and not the individual loan, represents the unit of account. For individual loans not accounted for in pools that are sold or satisfied by payment in full, a gain or loss on sale is recognized and reported based on the difference between the sales proceeds or payment from the borrower and the carrying amount of the acquired distressed residential mortgage loan. In the case of a foreclosure, a loss is recognized if the carrying value exceeds the fair value of the collateral less costs to sell. A gain is not recognized if the fair value of collateral less costs to sell exceeds the carrying value. |
Multi-Family Loans Held in Securitization Trusts | Multi-Family Loans Held in Securitization Trusts – Multi-family loans held in securitization trusts are comprised of multi-family mortgage loans held in five Freddie Mac-sponsored multi-family K-Series securitizations (the “Consolidated K-Series”) as of December 31, 2016 and December 31, 2015 . Based on a number of factors, we determined that we were the primary beneficiary of each VIE within the Consolidated K-Series, met the criteria for consolidation and, accordingly, have consolidated these Freddie Mac-sponsored multi-family K-Series securitizations, including their assets, liabilities, income and expenses in our financial statements. The Company has elected the fair value option on each of the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations be reflected in the Company's accompanying consolidated statements of operations. The Company adopted Accounting Standards Update ("ASU") 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity, effective January 1, 2016. As a result, the Company measures both the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity ("CFE") using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. As the Company’s securitization trusts are considered qualifying CFEs, the Company determines the fair value of multi-family loans held in securitization trusts based on the fair value of its multi-family collateralized debt obligations and its retained interests from these securitizations (eliminated in consolidation in accordance with U.S. GAAP), as the fair value of these instruments is more observable. Interest income is accrued and recognized as revenue when earned according to the terms of the multi-family loans and when, in the opinion of management, it is collectible. The accrual of interest on multi-family loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. The multi-family loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. |
Mezzanine Loan and Preferred Equity Investments and Mortgage Loans Held for Investment | Mortgage Loans Held for Investment – Mortgage loans held for investment are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances, and are included in receivables and other assets. Interest income is accrued on the principal amount of the loan based on the loan’s contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in interest income. A loan is considered to be impaired when it is probable that based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Based on the facts and circumstances of the individual loans being impaired, loan specific valuation allowances are established for the excess carrying value of the loan over either: (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate; (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent; or (iii) the loan’s observable market price. |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities – Non-controlling, unconsolidated ownership interests in an entity may be accounted for using the equity method or the cost method. In circumstances where the Company has a non-controlling interest but either owns a significant interest or is able to exert influence over the affairs of the enterprise, the Company utilizes the equity method of accounting. Under the equity method of accounting, the initial investment is increased each period for additional capital contributions and a proportionate share of the entity’s earnings or preferred return and decreased for cash distributions and a proportionate share of the entity’s losses. Management periodically reviews its investments for impairment based on projected cash flows from the entity over the holding period. When any impairment is identified, the investments are written down to recoverable amounts. The Company may elect the fair value option for an investment in an unconsolidated entity that is accounted for using the equity method. The Company elected the fair value option for certain investments in unconsolidated entities that own interests (directly or indirectly) in commercial and residential real estate assets because the Company determined that such presentation represents the underlying economics of the respective investment. The Company records the change in fair value of its investment in other income in the consolidated statements of operations. |
Real Estate Under Development | Real Estate Under Development – The Company's expenditures which directly relate to the acquisition, development, construction and improvement of properties are capitalized, at cost. During the development period, which culminates once a property is substantially complete and ready for intended use, operating and carrying costs such as interest expense, real estate taxes, insurance and other direct costs are capitalized. Advertising and general administrative costs that do not relate to the development of a property are expensed as incurred. Real estate under development as of December 31, 2016 and December 31, 2015 of $17.5 million and $0 , respectively, is included in receivables and other assets on the consolidated balance sheets. The Company periodically evaluates its long-lived assets for indicators of impairment. The judgments regarding the existence of impairment indicators are based on factors such as operational performance, market conditions and legal and environmental concerns, as well as the Company's ability to hold and its intent with regard to each asset. Future events could occur which would cause the Company to conclude that impairment indicators exist and an impairment is warranted. If impairment indicators exist for long-lived assets to be held and used, and the expected future undiscounted cash flows are less than the carrying amount of the asset, then the Company will record an impairment loss for the difference between the fair value of the asset and its carrying amount. If the asset is to be disposed of, then an impairment loss is recognized for the difference between the estimated fair value of the asset, less costs to sell, and its carrying amount. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, amounts due from banks and overnight deposits, all of which have original maturities of 90 days or less. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. |
Goodwill | Goodwill – Goodwill represents the excess of the fair value of consideration transferred in a business combination over the fair values of identifiable assets acquired, liabilities assumed and non-controlling interests, if any, in an acquired entity, net of fair value of any previously held interest in the acquired entity. Goodwill is not amortized but tested for impairment annually or more frequently if events or circumstances indicate that goodwill may be impaired. Goodwill of $25.2 million as of December 31, 2016 relates to the Company's multifamily investment reporting unit. Goodwill is evaluated for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist, by initially performing a qualitative screen and, if necessary, then comparing fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than the carrying value, a second step is performed to determine the implied fair value of goodwill. If the implied fair value of goodwill is lower than its carrying value, an impairment charge equal to the difference is recorded. |
Intangible Assets | Intangible Assets – Intangible assets consisting of acquired trade name, acquired technology, and employment/non-compete agreements with useful lives ranging from 1 to 10 years are included in receivables and other assets on the consolidated balance sheets. Intangible assets with estimable useful lives are amortized on a straight-line basis over their respective estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The useful lives of intangible assets are evaluated on an annual basis to determine whether events and circumstances warrant a revision to the remaining useful life. |
Receivables and Other Assets | Receivables and Other Assets – Receivables and other assets as of December 31, 2016 and 2015 include restricted cash held by third parties of $56.0 million and $20.8 million , respectively. Included in restricted cash is $ 35.6 million and $ 11.6 million held in our Agency IO portfolio to be used for trading purposes and $6.1 million and $6.3 million held by counterparties as collateral for hedging instruments as of December 31, 2016 and 2015 , respectively. Interest receivable on multi-family loans held in securitization trusts is also included in receivables and other assets in the amounts of $24.1 million and $24.6 million as of December 31, 2016 and 2015 , respectively. |
Derivative Financial Instruments | Derivative Financial Instruments – In accordance with ASC 815, Derivatives and Hedging , the Company records derivative financial instruments on its consolidated balance sheet as assets or liabilities at fair value. Changes in fair value are accounted for depending on the use of the derivative instruments and whether they qualify for hedge accounting treatment. In connection with our investment in Agency IOs, the Company uses several types of derivative instruments such as interest rate swaps, futures, put and call options on futures and TBAs to hedge the interest rate risk, as well as spread risk associated with these investments. The Company also purchases, or sells short, To-Be-Announced securities (“TBAs”) through its Agency IO portfolio. TBAs are forward-settling purchases and sales of Agency RMBS where the underlying pools of mortgage loans are “To-Be-Announced.” Pursuant to these TBA transactions, we agree to purchase or sell, for future settlement, Agency RMBS with certain principal and interest terms and certain types of underlying collateral, but the particular Agency RMBS to be delivered is not identified until shortly before the TBA settlement date. For TBA contracts that we have entered into, we have not asserted that physical settlement is probable, therefore we have not designated these forward commitments as hedging instruments. The use of TBAs, futures, options on futures and interest rate swaps in our Agency IO portfolio hedge the overall risk profile of investment securities in the portfolio. The derivative instruments in our Agency IO portfolio are not designated as hedging instruments, therefore realized and unrealized gains and losses associated with these derivative instruments are recognized through earnings and reported as part of the other income category in the Company's consolidated statements of operations. The Company also uses interest rate swaps to hedge the variable cash flows associated with borrowings made under our financing arrangements and Residential CDOs. We typically pay a fixed rate and receive a floating rate based on one month LIBOR, on the notional amount of the interest rate swaps. The floating rate we receive under our swap agreements has the effect of offsetting the repricing characteristics and cash flows of our financing arrangements. These interest rate swaps, qualify as a cash flow hedge, where the effective portion of the gain or loss on the derivative instrument is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instruments in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. |
Termination of Hedging Relationships | Termination of Hedging Relationships – The Company employs risk management monitoring procedures to ensure that the designated hedging relationships are demonstrating, and are expected to continue to demonstrate, a high level of effectiveness. Hedge accounting is discontinued on a prospective basis if it is determined that the hedging relationship is no longer highly effective or expected to be highly effective in offsetting changes in fair value of the hedged item. Additionally, the Company may elect to un-designate a hedge relationship during an interim period and re-designate upon the rebalancing of a hedge profile and the corresponding hedge relationship. When hedge accounting is discontinued, the Company continues to carry the derivative instruments at fair value with changes recorded in earnings. |
Manager Compensation | Manager Compensation – We are a party to separate investment management agreements with Headlands Asset Management LLC (“Headlands”) and The Midway Group, LP (“Midway”), with Headlands providing investment management services with respect to our investments in certain distressed residential mortgage loans and Midway providing investment management services with respect to our investments in Agency IOs. These investment management agreements provide for the payment to our investment managers of a management fee, incentive fee and reimbursement of certain operating expenses, which are accrued and expensed during the period for which they are earned or incurred. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) – The Company’s comprehensive income/(loss) attributable to the Company's common stockholders includes net income, the change in net unrealized gains/(losses) on its available for sale securities and its derivative hedging instruments, currently comprised of interest rate swaps, (to the extent that such changes are not recorded in earnings), adjusted by realized net gains/(losses) reclassified out of accumulated other comprehensive income/(loss) for available for sale securities, reduced by dividends declared on the Company’s preferred stock and increased/decreased for net loss/income attributable to noncontrolling interest. |
Employee Benefits Plans | Employee Benefits Plans – The Company sponsors a defined contribution plan (the “Plan”) for all eligible domestic employees. The Plan qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The Company made $0.1 million in contributions to the Plan for the year ended December 31, 2016 . |
Stock Based Compensation | Stock Based Compensation – The Company has awarded restricted stock to eligible employees and officers as part of their compensation. Compensation expense for equity based awards and stock issued for services are recognized over the vesting period of such awards and services based upon the fair value of the award at the grant date In May 2015, the Company granted certain Performance Share Awards (“PSAs”) which cliff vest after a three -year period, subject to the achievement of certain performance criteria based on a formula tied to the Company’s achievement of three -year total stockholder return (“TSR”) and the Company’s TSR relative to the TSR of certain peer companies. The feature in this award constitutes a “market condition” which impacts the amount of compensation expense recognized for these awards. The grant date fair values of PSAs were determined through Monte-Carlo simulation analysis. |
Income Taxes | Income Taxes – The Company operates in such a manner so as to qualify as a REIT under the requirements of the Internal Revenue Code. Requirements for qualification as a REIT include various restrictions on ownership of the Company’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders, of which 85% plus any undistributed amounts from the prior year must be distributed within the taxable year in order to avoid the imposition of an excise tax. Distribution of the remaining balance may extend until timely filing of the Company’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of the Company are conducted through TRSs and therefore are subject to federal and various state and local income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740, Income Taxes ("ASC 740"), provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. In situations involving uncertain tax positions related to income tax matters, we do not recognize benefits unless it is more likely than not that they will be sustained. ASC 740 was applied to all open taxable years as of the effective date. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based on factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. The Company will recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in our consolidated statements of operations. |
Earnings Per Share | Earnings Per Share – Basic earnings per share excludes dilution and is computed by dividing net income attributable to the Company's common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. |
Segment Reporting | Segment Reporting – ASC 280, Segment Reporting , is the authoritative guidance for the way public entities report information about operating segments in their annual financial statements. We are a REIT focused on the business of acquiring, investing in, financing and managing primarily mortgage-related assets, and financial assets, and currently operate in only one reportable segment. |
Summary of Recent Accounting Pronouncements | Summary of Recent Accounting Pronouncements Revenue Recognition (Topic 606) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). This guidance creates a new, principle-based revenue recognition framework that will affect nearly every revenue-generating entity. ASU 2014-09 also creates a new topic in the Codification, Topic 606 (“ASC 606”). In addition to superseding and replacing nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance, ASC 606 does the following: (1) establishes a new control-based revenue recognition model; (2) changes the basis for deciding when revenue is recognized over time or at a point in time; (3) provides new and more detailed guidance on specific aspects of revenue recognition; and (4) expands and improves disclosures about revenue. In August 2015, the FASB issued ASU 2015-14 that defers the effective date of ASU 2014-09 for public business entities for annual reporting periods beginning after December 15, 2017, including interim periods therein. Early application is permitted for public business entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. ASU 606 applies to all contracts with customers with exceptions for financial instruments and other contractual rights or obligations that are within the scope of other ASC Topics. Exclusions from the scope of ASC 606 include investment securities available for sale (subject to ASC 320, Investments - Debt and Equity Securities or ASC 325, Investments - Other ); residential mortgage loans, distressed residential mortgage loans, multi-family loans, and mezzanine loan and preferred equity investments (subject to either ASC 310, Receivables or ASC 825, Financial Instruments ); derivative assets and derivative liabilities (subject to ASC 815, Derivatives and Hedging ); and investment in unconsolidated entities (subject to either ASC 323, Investments - Equity Method and Joint Ventures or ASC 825, Financial Instruments ). The Company evaluated the applicability of this ASU with respect to its investment portfolio, considering the scope exceptions listed above, and has determined that the adoption of this ASU will not have a material impact on the Company's financial condition or results of operations as the majority of the Company's revenue is generated by financial instruments and other contractual rights and obligations that are not within the scope of ASC 606. Financial Instruments —Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption as of the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. The Company is currently assessing the impact of this guidance as the ASU will have an effect on the Company's estimation of credit losses on distressed residential mortgage loans, residential mortgage loans held in securitization trusts, and mezzanine loans and preferred equity investments that are accounted for as loans. Statement of Cash Flows (Topic 230) In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18") . These amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company will adopt the ASU effective January 1, 2017 and will include restricted cash of $56.0 million and $20.8 million as of December 31, 2016 and 2015 , respectively, with cash and cash equivalents as shown on the statement of cash flows. Intangibles - Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). The amendments simplify annual or interim goodwill impairment tests by eliminating a second stop to compute the implied fair value of goodwill if the fair value of a reporting unit is less than its carrying amount. Instead, should the fair value of a reporting unit be less than its carrying amount, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value (in an amount not to exceed the total amount of goodwill allocated to that reporting unit). The amendments are effective for all entities for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company will adopt the ASU effective January 1, 2017 and apply the guidance to the performance of our annual impairment test of $25.2 million in goodwill for the year ended December 31, 2017. |
Mezzanine, Debt and Equity Investments | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Mezzanine Loan and Preferred Equity Investments and Mortgage Loans Held for Investment | Mezzanine Loan and Preferred Equity Investments - The Company invests in mezzanine loans and preferred equity of entities that have significant real estate assets. The mezzanine loan is secured by a pledge of the borrower’s equity ownership in the property. Unlike a mortgage, this loan does not represent a lien on the property. Therefore, it is always junior and subordinate to any first lien as well as second liens, if applicable, on the property. These loans are senior to any preferred equity or common equity interests. A preferred equity investment is an equity investment in the entity that owns the underlying property. Preferred equity is not secured by the underlying property, but holders have priority relative to common equity holders on cash flow distributions and proceeds from capital events. In addition, preferred equity holders may be able to enhance their position and protect their equity position with covenants that limit the entity’s activities and grant the holder the exclusive right to control the property after an event of default. Mezzanine loans and preferred equity investments, where the risks and payment characteristics are equivalent to mezzanine loans, are accounted for as loans and are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances, and are included in receivables and other assets in the accompanying consolidated balance sheets. The Company has evaluated its mezzanine loan and preferred equity investments for accounting treatment as loans versus equity investment utilizing the guidance provided by the ADC Arrangements Subsection of ASC 310, Receivables . For mezzanine loan and preferred equity investments where the characteristics, facts and circumstances indicate that loan accounting treatment is appropriate, the Company accretes or amortizes any discounts or premiums and deferred fees and expenses over the life of the related asset utilizing the effective interest method or straight line-method, if the result is not materially different. Management evaluates the collectability of both interest and principal of each of our loans, if circumstances warrant, to determine whether they are impaired. A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the existing contractual terms. When a loan is impaired, the amount of the loss accrual is calculated by comparing the carrying amount of the investment to the estimated fair value of the loan or, as a practical expedient, to the value of the collateral if the loan is collateral dependent. Interest income is accrued and recognized as revenue when earned according to the terms of the loans and when, in the opinion of management, it is collectible. The accrual of interest on loans is discontinued when, in management’s opinion, the interest is not collectible in the normal course of business, but in all cases when payment becomes greater than 90 days delinquent. Loans return to accrual status when principal and interest become current and are anticipated to be fully collectible. Mezzanine loans and preferred equity investments where the risks and payment characteristics are equivalent to an equity investment are accounted for using the equity method of accounting. See “ Investment in Unconsolidated Entities ”. |
Financing arrangements, portfolio investments | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Financing Arrangements, Portfolio Investments and Residential Mortgage Loans | Financing Arrangements, Portfolio Investments – The Company finances the majority of its investment securities available for sale using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a future date at a predetermined price, which represents the original sales price plus interest. The Company accounts for these repurchase agreements as financings and are carried at their contractual amounts, as specified in the respective agreements. Borrowings under repurchase agreements generally bear interest rates of a specified margin over one-month LIBOR. On February 20, 2015, our wholly-owned, captive-insurance subsidiary, Great Lakes Insurance Holdings LLC (“GLIH”), became a member of the Federal Home Loan Bank of Indianapolis (“FHLBI”). On January 12, 2016, the regulator of the Federal Home Loan Bank ("FHLB") system, the Federal Housing Finance Agency, released a final rule that amends regulations governing FHLB membership, including preventing captive insurance companies from being eligible for FHLB membership. Under the terms of the final rule, the Company's captive insurance subsidiary was required to terminate its membership and repay its existing advances within one year following the effective date of the final rule. In addition, the Company's captive insurance subsidiary was prohibited from taking new advances or renewing existing maturing advances during the one year transition period. The final rule became effective on February 19, 2016. During January 2016, the Company repaid all of its outstanding FHLBI advances, which repayment was funded primarily through repurchase agreement financing. On December 15, 2016, FHLBI redeemed our remaining 21,700 shares of stock completing the withdrawal of our membership. |
Financing arrangements, residential mortgage loans | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Financing Arrangements, Portfolio Investments and Residential Mortgage Loans | Financing Arrangements, Residential Mortgage Loans – The Company finances a portion of its residential mortgage loans, including its distressed residential mortgage loans through repurchase agreements that expire within 12 - 15 months. The borrowings under the repurchase agreements bear an interest rate of a specified margin over one-month LIBOR. The repurchase agreements are treated as collateralized financing transactions and carried at the contractual amounts, as specified in the respective agreement. Costs related to the establishment of the repurchase agreement which include underwriting, legal, accounting and other fees are reflected as deferred charges. Such costs are presented as a deduction from the corresponding debt liability on the Company's accompanying consolidated balance sheets in the amount of $1.3 million and $2.3 million as of December 31, 2016 and December 31, 2015 , respectively. These deferred charges are amortized as an adjustment to interest expense using the effective interest method, or straight line-method, if the result is not materially different. |
Securitized debt | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, and Securitized Debt | Securitized Debt –Securitized Debt represents third-party liabilities of Consolidated VIEs and excludes liabilities of the VIEs acquired by the Company that are eliminated on consolidation. The Company has entered into several financing transactions that resulted in the Company consolidating as VIEs the special purpose entities (the “SPEs”) that were created to facilitate the transactions and to which underlying assets in connection with the financing were transferred. The Company engaged in these transactions primarily to obtain permanent or longer term financing on a portion of its multi-family CMBS and acquired distressed residential mortgage loans. Costs related to issuance of securitized debt which include underwriting, rating agency, legal, accounting and other fees are reflected as deferred charges. Such costs are presented as a deduction from the corresponding debt liability on the Company’s accompanying consolidated balance sheets in the amount of $1.4 million and $1.0 million as of December 31, 2016 and December 31, 2015 , respectively. These deferred charges are amortized as an adjustment to interest expense using the effective interest method, or straight line-method, if the result is not materially different. |
Multi-family collateralized debt obligations, at fair value | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, and Securitized Debt | Multi-Family Collateralized Debt Obligations (“Multi-Family CDOs”) – We consolidate the Consolidated K-Series including their debt, referred to as Multi-Family CDOs, in our financial statements. The Multi-Family CDOs permanently finance the multi-family mortgage loans held in the Consolidated K-Series securitizations. For financial reporting purposes, the loans held as collateral are recorded as assets of the Company and the Multi-Family CDOs are recorded as the Company’s debt. We refer to both the Residential CDOs and Multi-Family CDOs as CDOs in this report. |
Residential collateralized debt obligations | |
Accounting Policies, by Policy (Policies) [Line Items] | |
Residential Collateralized Debt Obligations, Multi-Family Collateralized Debt Obligations, and Securitized Debt | Residential Collateralized Debt Obligations (“Residential CDOs”) – We use Residential CDOs to permanently finance our residential mortgage loans held in securitization trusts. For financial reporting purposes, the ARM loans held as collateral are recorded as assets of the Company and the Residential CDOs are recorded as the Company’s debt. The Company completed four securitizations in 2005 and 2006. The first three were accounted for as a permanent financing while the fourth was accounted for as a sale and accordingly, is not included in the Company’s accompanying consolidated financial statements. |
Investment Securities Availab34
Investment Securities Available For Sale (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Investment securities available for sale consisted of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Amortized Costs Unrealized Fair Value Amortized Costs Unrealized Fair Value Gains Losses Gains Losses Agency RMBS (1) : Agency ARMs Freddie Mac $ 39,138 $ 24 $ (528 ) $ 38,634 $ 62,383 $ 41 $ (770 ) $ 61,654 Fannie Mae 69,031 71 (698 ) 68,404 92,605 121 (1,334 ) 91,392 Ginnie Mae 6,011 — (204 ) 5,807 20,172 55 (260 ) 19,967 Total Agency ARMs 114,180 95 (1,430 ) 112,845 175,160 217 (2,364 ) 173,013 Agency Fixed Rate Freddie Mac 26,338 — (644 ) 25,694 31,076 — (719 ) 30,357 Fannie Mae 312,515 — (10,035 ) 302,480 380,684 — (12,149 ) 368,535 Ginnie Mae 457 — (4 ) 453 25,923 9 (111 ) 25,821 Total Agency Fixed Rate 339,310 — (10,683 ) 328,627 437,683 9 (12,979 ) 424,713 Agency IOs (1) Freddie Mac 19,768 559 (3,363 ) 16,964 28,970 680 (4,471 ) 25,179 Fannie Mae 27,597 478 (4,777 ) 23,298 39,603 433 (6,341 ) 33,695 Ginnie Mae 49,788 1,223 (6,382 ) 44,629 63,050 511 (7,045 ) 56,516 Total Agency IOs 97,153 2,260 (14,522 ) 84,891 131,623 1,624 (17,857 ) 115,390 Total Agency RMBS 550,643 2,355 (26,635 ) 526,363 744,466 1,850 (33,200 ) 713,116 Non-Agency RMBS 162,220 1,218 (154 ) 163,284 1,727 51 (211 ) 1,567 U.S. Treasury securities (1) 2,920 — (33 ) 2,887 10,113 — (76 ) 10,037 CMBS (2) 113,955 12,876 (389 ) 126,442 28,692 12,042 — 40,734 Total investment securities available for sale $ 829,738 $ 16,449 $ (27,211 ) $ 818,976 $ 784,998 $ 13,943 $ (33,487 ) $ 765,454 |
Weighted Average Lives of Available-for-sale Securities | The following table sets forth the weighted average lives our investment securities available for sale as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): Weighted Average Life December 31, 2016 December 31, 2015 0 to 5 years $ 606,079 $ 518,594 Over 5 to 10 years 177,765 219,747 10+ years 35,132 27,113 Total $ 818,976 $ 765,454 |
Schedule of Stated Reset Periods for Available-for-sale Securities Held in Securitization Trusts | The following tables set forth the stated interest reset periods of our investment securities available for sale and investment securities available for sale held in securitization trusts at December 31, 2016 and December 31, 2015 at carrying value (dollar amounts in thousands): December 31, 2016 December 31, 2015 Less than 6 months 6 to 24 months More than 24 months Total Less than 6 months 6 to 24 months More than 24 months Total Agency RMBS $ 53,043 $ 27,272 $ 446,048 $ 526,363 $ 92,693 $ 44,700 $ 575,723 $ 713,116 Non-Agency RMBS 50,080 — 113,204 163,284 188 1,379 — 1,567 U.S. Treasury securities — — 2,887 2,887 10,037 — — 10,037 CMBS 82,545 — 43,897 126,442 — — 40,734 40,734 Total investment securities available for sale $ 185,668 $ 27,272 $ 606,036 $ 818,976 $ 102,918 $ 46,079 $ 616,457 $ 765,454 |
Investment Securities Available-for-sale in an Unrealized Loss Position | The following tables present the Company's investment securities available for sale in an unrealized loss position reported through OCI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 Less than 12 Months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 96,357 $ (1,290 ) $ 328,474 $ (10,819 ) $ 424,831 $ (12,109 ) Non-Agency RMBS — — 596 (154 ) 596 (154 ) CMBS 16,523 (389 ) — — 16,523 (389 ) Total investment securities available for sale $ 112,880 $ (1,679 ) $ 329,070 $ (10,973 ) $ 441,950 $ (12,652 ) December 31, 2015 Less than 12 Months Greater than 12 months Total Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Carrying Value Gross Unrealized Losses Agency RMBS $ 71,587 $ (688 ) $ 476,157 $ (14,497 ) $ 547,744 $ (15,185 ) Non-Agency RMBS 771 — 796 (211 ) 1,567 (211 ) CMBS — — — — — — Total investment securities available for sale $ 72,358 $ (688 ) $ 476,953 $ (14,708 ) $ 549,311 $ (15,396 ) |
Residential Mortgage Loans He35
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Residential Mortgage Loans Held in Securitization Trusts (Net) | Residential mortgage loans held in securitization trusts (net) consist of the following at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Unpaid principal balance $ 98,303 $ 122,545 Deferred origination costs – net 623 775 Reserve for loan losses (3,782 ) (3,399 ) Total $ 95,144 $ 119,921 |
Reconciliation of Allowance for Loan Losses | The following table presents the activity in the Company's allowance for loan losses on residential mortgage loans held in securitization trusts for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 3,399 $ 3,631 $ 2,989 Provisions for loan losses 612 1,161 998 Transfer to real estate owned (117 ) — (356 ) Charge-offs (112 ) (1,393 ) — Balance at the end of period $ 3,782 $ 3,399 $ 3,631 |
Reconciliation of Real Estate Owned Held in Residential Securitization Trusts | The following table presents the activity in the Company’s real estate owned held in residential securitization trusts for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 December 31, 2014 Balance at beginning of period $ 411 $ 965 $ 1,108 Write downs (9 ) — (103 ) Transfer from mortgage loans held in securitization trusts 352 — 537 Disposal (604 ) (554 ) (577 ) Balance at the end of period $ 150 $ 411 $ 965 |
Delinquencies in Portfolio of Residential Mortgage Loans Held in Securitization Trusts | The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including real estate owned (REO) through foreclosure, as of December 31, 2016 (dollar amounts in thousands): December 31, 2016 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 1 $ 247 0.25 % 61 - 90 — $ — — 90+ 30 $ 18,416 18.68 % Real estate owned through foreclosure 1 $ 268 0.27 % The table below shows delinquencies in our portfolio of residential mortgage loans held in securitization trusts, including REO through foreclosure, as of December 31, 2015 (dollar amounts in thousands): December 31, 2015 Days Late Number of Delinquent Loans Total Unpaid Principal % of Loan Portfolio 30 - 60 3 $ 825 0.67 % 61 - 90 2 $ 1,763 1.43 % 90+ 26 $ 15,365 12.48 % Real estate owned through foreclosure 3 $ 574 0.47 % |
Schedule of Geographic Concentration Risk Exceeding 5% | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and REO held in residential securitization trusts at December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 New York 33.8 % 35.6 % Massachusetts 19.9 % 20.7 % New Jersey 10.8 % 11.1 % Florida 8.9 % 7.7 % Connecticut 7.4 % 6.5 % |
Distressed Residential Mortga36
Distressed Residential Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Additional Information of Distressed Residential Mortgage Loans Acquired | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the distressed residential mortgage loans acquired during the years ended December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Contractually required principal and interest $ 188,444 $ 327,611 Non-accretable yield (14,512 ) (17,276 ) Expected cash flows to be collected 173,932 310,335 Accretable yield (114,153 ) (158,149 ) Fair value at the date of acquisition $ 59,779 $ 152,186 |
Schedule of Distressed Residential Mortgage Loans Activity | The following table details activity in accretable yield for the distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, for the years ended December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Balance at beginning of period $ 579,009 $ 640,416 Additions 128,386 173,497 Disposals (144,242 ) (195,615 ) Accretion (32,641 ) (39,289 ) Balance at end of period (1) $ 530,512 $ 579,009 (1) Accretable yield is the excess of the distressed residential mortgage loans’ cash flows expected to be collected over the purchase price. The cash flows expected to be collected represents the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions include accretable yield estimates for purchases made during the period and reclassification to accretable yield from nonaccretable yield. Deletions include distressed residential mortgage loan dispositions, which include refinancing, sale and foreclosure of the underlying collateral and resulting removal of the distressed residential mortgage loans from the accretable yield, and reclassifications from accretable to nonaccretable yield. The reclassifications between accretable and nonaccretable yield and the accretion of interest income is based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to update its estimates regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the twelve-month periods ended December 31, 2016 and December 31, 2015 is not necessarily indicative of future results. |
Schedule of Geographic Concentration Risk Exceeding 5% | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and REO held in residential securitization trusts at December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 New York 33.8 % 35.6 % Massachusetts 19.9 % 20.7 % New Jersey 10.8 % 11.1 % Florida 8.9 % 7.7 % Connecticut 7.4 % 6.5 % |
Distressed residential mortgage loans held in securitization trusts (net) | |
Mortgage Loans on Real Estate [Line Items] | |
Schedule of Geographic Concentration Risk Exceeding 5% | The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance in our distressed residential mortgage loans, including distressed residential mortgage loans held in securitization trusts, as of December 31, 2016 and December 31, 2015 , respectively, are as follows: December 31, 2016 December 31, 2015 Florida 12.2 % 12.6 % California 8.8 % 7.7 % North Carolina 7.7 % 8.1 % Georgia 6.0 % 6.1 % New York 5.4 % 5.2 % Maryland 5.2 % 5.4 % |
Consolidated K-Series (Tables)
Consolidated K-Series (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |
Schedule of Geographic Concentration Risk Exceeding 5% | The geographic concentrations of credit risk exceeding 5% of the total loan balances in our residential mortgage loans held in securitization trusts and REO held in residential securitization trusts at December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 New York 33.8 % 35.6 % Massachusetts 19.9 % 20.7 % New Jersey 10.8 % 11.1 % Florida 8.9 % 7.7 % Connecticut 7.4 % 6.5 % |
Multi-family loans held in securitization trusts | |
Variable Interest Entity [Line Items] | |
Schedule of Geographic Concentration Risk Exceeding 5% | The geographic concentrations of credit risk exceeding 5% of the total loan balances related to our CMBS investments included in investment securities available for sale and multi-family loans held in securitization trusts as of December 31, 2016 and December 31, 2015 , respectively, are as follows: December 31, 2016 December 31, 2015 California 13.8 % 13.8 % Texas 12.4 % 12.3 % New York 8.1 % 8.0 % Maryland 5.3 % 5.2 % |
Consolidated K-Series | |
Variable Interest Entity [Line Items] | |
Condensed Balance Sheet | The condensed consolidated balance sheets of the Consolidated K-Series at December 31, 2016 and December 31, 2015 , respectively, are as follows (dollar amounts in thousands): Balance Sheets December 31, 2016 December 31, 2015 Assets Multi-family loans held in securitization trusts $ 6,939,844 $ 7,105,336 Receivables 24,098 24,579 Total Assets $ 6,963,942 $ 7,129,915 Liabilities and Equity Multi-family CDOs $ 6,624,896 $ 6,818,901 Accrued expenses 24,003 24,483 Total Liabilities 6,648,899 6,843,384 Equity 315,043 286,531 Total Liabilities and Equity $ 6,963,942 $ 7,129,915 |
Condensed Income Statement | The condensed consolidated statements of operations of the Consolidated K-Series for the years ended December 31, 2016 , 2015 , and 2014 , respectively, are as follows (dollar amounts in thousands): Years Ended December 31, Statements of Operations 2016 2015 2014 Interest income $ 249,191 $ 257,417 $ 301,877 Interest expense 222,553 232,971 275,916 Net interest income 26,638 24,446 25,961 Unrealized gain on multi-family loans and debt held in securitization trusts, net 3,032 12,368 56,931 Net Income $ 29,670 $ 36,814 $ 82,892 |
Investment in Unconsolidated En
Investment in Unconsolidated Entities - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Entities | The Company's investments in unconsolidated entities accounted for under the equity method consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount Autumnwood Investments LLC — $ 2,092 — $ 2,127 200 RHC Hoover, LLC 63 % 8,886 63 % 8,649 BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 45 % 7,949 — — RiverBanc LLC (1) ("RiverBanc") — — 20 % 597 Kiawah River View Investors LLC (2) ("KRVI") — — 31 % 8,718 Total $ 18,927 $ 20,091 (1) As of May 16, 2016, RiverBanc became a wholly-owned subsidiary of the Company as a result of the Company's acquisition of the remaining ownership interests in RiverBanc held by other unaffiliated entities ( see Note 21 ). (2) As of May 16, 2016, the Company consolidated KRVI in its consolidated financial statements ( see Note 9 ). The Company's investments in unconsolidated entities accounted for at fair value consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment Name Ownership Interest Carrying Amount Ownership Interest Carrying Amount RB Development Holding Company, LLC (1) ("RBDHC") — $ — 63 % $ 1,927 RB Multifamily Investors LLC (1) (2) ("RBMI") — — 70 % 56,891 Morrocroft Neighborhood Stabilization Fund II, LP 11 % 9,732 13 % 8,753 Evergreens JV Holdings, LLC (3) 85 % 3,810 — — Bent Tree JV Holdings, LLC (3) 78 % 9,890 — — Summerchase LR Partners LLC (3) 80 % 4,410 — — Lake Mary Realty Partners, LLC (3) 80 % 7,690 — — The Preserve at Port Royal Venture, LLC (3) 77 % 12,280 — — WR Savannah Holdings, LLC (3) 90 % 12,520 — — Total $ 60,332 $ 67,571 (1) As of May 16, 2016, RBDHC and RBMI became wholly-owned subsidiaries of the Company as a result of the Company's acquisition of the remaining ownership interests in those entities held by other unaffiliated entities ( see Note 21 ). (2) As of December 31, 2015, includes the Company's preferred and common equity interests in this entity. (3) Investments held by RBMI that are consolidated into the Company's financial statements beginning May 16, 2016. The following table presents income (loss) from investments in unconsolidated entities for the years ended December 31, 2016 , 2015 , and 2014 (dollar amounts in thousands): For the Years Ended December 31, Investment Name 2016 2015 2014 Autumnwood Investments LLC $ 260 $ 281 $ 276 200 RHC Hoover, LLC 1,370 394 — BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) 433 — — RiverBanc LLC 125 815 2,644 Kiawah River View Investors LLC 1,250 866 611 RB Development Holding Company, LLC 107 (9 ) 373 RB Multifamily Investors LLC 2,262 5,263 657 Morrocroft Neighborhood Stabilization Fund II, LP 910 254 — Evergreens JV Holdings, LLC 199 — — Bent Tree JV Holdings, LLC 411 — — Summerchase LR Partners LLC 380 — — Lake Mary Realty Partners, LLC 554 — — The Preserve at Port Royal Venture, LLC 834 — — WR Savannah Holdings, LLC 692 — — Summary combined financial information for the Company's investments in unconsolidated entities as of December 31, 2016 and December 31, 2015 and for the years ended December 31, 2016 , 2015 , and 2014 is shown below (dollars amounts in thousands). December 31, 2016 December 31, 2015 Balance Sheets: Real estate, net $ 346,078 $ 111,216 Investments in unconsolidated entities — 31,636 Mezzanine loan and preferred equity investments — 23,629 Other assets 16,042 35,293 Total assets $ 362,120 $ 201,774 Notes payable, net $ 236,388 $ 41,918 Other liabilities 6,686 8,624 Total liabilities 243,074 50,542 Members' equity 119,046 151,232 Total liabilities and members' equity $ 362,120 $ 201,774 For the Years Ended December 31, 2016 2015 2014 Operating Statements: (1) Rental revenues $ 26,397 $ 2,121 $ — Other income 3,131 3,732 12,034 Operating expenses 19,227 9,267 3,097 Income (loss) before debt service, acquisition costs, and depreciation and amortization 10,301 (3,414 ) 8,937 Interest expense (6,149 ) (356 ) — Acquisition costs (1,448 ) (1,660 ) — Depreciation and amortization (15,879 ) (1,711 ) (8 ) Net (loss) income $ (13,175 ) $ (7,141 ) $ 8,929 (1) The Company records income (loss) from investments in unconsolidated entities under either the equity method of accounting or the fair value option. Accordingly, the combined net (loss) income shown above is not indicative of the income recognized by the Company from investments in unconsolidated entities. |
Mezzanine Loan and Preferred 39
Mezzanine Loan and Preferred Equity Investments - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Schedule of Mezzanine Loans and Preferred Equity Investments | Mezzanine loan and preferred equity investments consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment amount $ 101,154 $ 44,529 Deferred loan fees, net (1,004 ) (378 ) Total $ 100,150 $ 44,151 There were no delinquent mezzanine loan or preferred equity investments as of December 31, 2016 and December 31, 2015 . The geographic concentrations of credit risk exceeding 5% of the total mezzanine loan and preferred equity investment amounts as of December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 Texas 43.3 % 31.4 % Virginia 14.9 % 9.4 % South Carolina 9.4 % 10.0 % Kentucky 7.2 % 16.0 % Massachusetts 6.9 % 15.7 % Georgia 6.3 % — Florida 5.1 % — The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS or distressed residential mortgage loans (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Collateralized Recourse Financings (2) Distressed Residential Mortgage Loan Securitizations Principal Amount at December 31, 2016 $ 33,553 $ — $ 132,319 Principal Amount at December 31, 2015 $ 33,781 $ 55,853 $ 33,656 Carrying Value at December 31, 2016 (3) $ 28,332 $ — $ 130,535 Carrying Value at December 31, 2015 (3) $ 27,613 $ 55,629 $ 33,299 Pass-through rate of Notes issued 5.35% One-month LIBOR plus 5.25% 4.00% - 4.85% (1) The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. (2) The Company entered into a CMBS Master Repurchase Agreement with a three -year term for the purpose of financing a portion of its multi-family CMBS portfolio. In connection with the transaction, the Company agreed to guarantee the due and punctual payment of its wholly-owned subsidiary's obligations under the CMBS Master Repurchase Agreement. In October 2016, the Company repaid the $55.9 million of outstanding notes. (3) Classified as securitized debt in the liability section of the Company’s accompanying consolidated balance sheets. |
Use of Special Purpose Entiti40
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |
Summary of Assets and Liabilities of Consolidated VIEs | The following table presents the carrying value and estimated fair value of the Company’s financial instruments at December 31, 2016 and 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 83,554 $ 83,554 $ 61,959 $ 61,959 Investment securities available for sale (1) Level 1, 2 or 3 818,976 818,976 765,454 765,454 Residential mortgage loans held in securitization trusts (net) Level 3 95,144 88,718 119,921 109,120 Distressed residential mortgage loans (net) (2) Level 3 503,094 504,915 558,989 564,310 Multi-family loans held in securitization trusts, at fair value Level 3 6,939,844 6,939,844 7,105,336 7,105,336 Derivative assets Level 1 or 2 150,296 150,296 228,775 228,775 Mortgage loans held for sale (net) (3) Level 3 7,847 7,959 5,471 5,557 Mortgage loans held for investment (3) Level 3 19,529 19,641 2,706 2,846 Mezzanine loan and preferred equity investments (4) Level 3 100,150 101,408 44,151 44,540 Investments in unconsolidated entities (5) Level 3 79,259 79,390 87,662 87,558 Financial Liabilities: Financing arrangements, portfolio investments Level 2 $ 773,142 $ 773,142 $ 577,413 $ 577,413 Financing arrangements, distressed residential mortgage loans Level 2 192,419 192,419 212,155 212,155 Residential collateralized debt obligations Level 3 91,663 85,568 116,710 105,606 Multi-family collateralized debt obligations, at fair value Level 3 6,624,896 6,624,896 6,818,901 6,818,901 Securitized debt Level 3 158,867 163,884 116,541 123,776 Derivative liabilities Level 1 or 2 498 498 1,500 1,500 Payable for securities purchased Level 1 148,015 148,015 227,969 227,969 Subordinated debentures Level 3 45,000 43,132 45,000 42,731 (1) Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015 , respectively. (2) Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $195.3 million and $114.2 million at December 31, 2016 and December 31, 2015 , respectively and distressed residential mortgage loans with a carrying value amounting to approximately $307.7 million and $444.8 million at December 31, 2016 and December 31, 2015 , respectively. (3) Included in receivables and other assets in the accompanying consolidated balance sheets. (4) Includes mezzanine loan and preferred equity investments accounted for as loans (see Note 8 ). (5) Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $60.3 million and $67.6 million at December 31, 2016 and December 31, 2015, respectively. |
Schedule of Securitized Debt Collateralized by Multi-family CMBS or Distressed Residential Mortgage Loans | Mezzanine loan and preferred equity investments consist of the following as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): December 31, 2016 December 31, 2015 Investment amount $ 101,154 $ 44,529 Deferred loan fees, net (1,004 ) (378 ) Total $ 100,150 $ 44,151 There were no delinquent mezzanine loan or preferred equity investments as of December 31, 2016 and December 31, 2015 . The geographic concentrations of credit risk exceeding 5% of the total mezzanine loan and preferred equity investment amounts as of December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 Texas 43.3 % 31.4 % Virginia 14.9 % 9.4 % South Carolina 9.4 % 10.0 % Kentucky 7.2 % 16.0 % Massachusetts 6.9 % 15.7 % Georgia 6.3 % — Florida 5.1 % — The following table summarizes the Company’s securitized debt collateralized by multi-family CMBS or distressed residential mortgage loans (dollar amounts in thousands): Multi-family CMBS Re-securitization (1) Collateralized Recourse Financings (2) Distressed Residential Mortgage Loan Securitizations Principal Amount at December 31, 2016 $ 33,553 $ — $ 132,319 Principal Amount at December 31, 2015 $ 33,781 $ 55,853 $ 33,656 Carrying Value at December 31, 2016 (3) $ 28,332 $ — $ 130,535 Carrying Value at December 31, 2015 (3) $ 27,613 $ 55,629 $ 33,299 Pass-through rate of Notes issued 5.35% One-month LIBOR plus 5.25% 4.00% - 4.85% (1) The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. (2) The Company entered into a CMBS Master Repurchase Agreement with a three -year term for the purpose of financing a portion of its multi-family CMBS portfolio. In connection with the transaction, the Company agreed to guarantee the due and punctual payment of its wholly-owned subsidiary's obligations under the CMBS Master Repurchase Agreement. In October 2016, the Company repaid the $55.9 million of outstanding notes. (3) Classified as securitized debt in the liability section of the Company’s accompanying consolidated balance sheets. |
Schedule of Maturities of Long-term Debt | The following table presents contractual maturity information about the Financing VIEs’ securitized debt as of December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): Scheduled Maturity (principal amount) December 31, 2016 December 31, 2015 Within 24 months $ — $ 89,509 Over 24 months to 36 months 132,319 — Over 36 months 33,553 33,781 Total 165,872 123,290 Discount (5,589 ) (5,763 ) Debt Issuance Cost (1,416 ) (986 ) Carrying value $ 158,867 $ 116,541 |
Schedule of Classification and Carrying Value of Unconsolidated VIEs | Based on a number of factors, the Company determined that it does not have a controlling financial interest and is not the primary beneficiary of these VIEs. The following table presents the classification and carrying value of unconsolidated VIEs as of December 31, 2016 and 2015 (dollar amounts in thousands): December 31, 2016 Investment securities available for sale, at fair value, held in securitization trusts Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-Family CMBS $ 43,897 $ 74 $ — $ — $ 43,971 Mezzanine/Construction loan on multi-family properties — — 18,881 — 18,881 Preferred equity investment on multi-family properties — — 81,269 18,928 100,197 Equity investments in entities that invest in multi-family properties — — — 22,252 22,252 Total assets $ 43,897 $ 74 $ 100,150 $ 41,180 $ 185,301 December 31, 2015 Investment securities available for sale, at fair value, held in securitization trusts Receivables and other assets Mezzanine loan and preferred equity investments Investment in unconsolidated entities Total Multi-Family CMBS $ 40,734 $ 76 $ — $ — $ 40,810 Mezzanine/Construction loan on multi-family properties — — 8,663 8,718 17,381 Preferred equity investment on multi-family properties — — 35,488 10,776 46,264 Equity investments in entities that invest in multi-family properties — — — 66,242 66,242 Total assets $ 40,734 $ 76 $ 44,151 $ 85,736 $ 170,697 Our maximum loss exposure on the multi-family CMBS investments and mezzanine loan, preferred equity and other equity investments is approximately $185.3 million and $170.7 million at December 31, 2016 and December 31, 2015 , respectively. The Company’s maximum exposure does not exceed the carrying value of its investments. |
Financing VIE | |
Variable Interest Entity [Line Items] | |
Summary of Assets and Liabilities of Consolidated VIEs | The following tables present a summary of the assets and liabilities of these Consolidated VIEs as of December 31, 2016 and December 31, 2015 , respectively. Intercompany balances have been eliminated for purposes of this presentation. Assets and Liabilities of Consolidated VIEs as of December 31, 2016 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS Re- securitization (1) Distressed Residential Mortgage Loan Securitization (2) Residential Mortgage Loan Securitization Multi- family CMBS (3) Other Total Cash and cash equivalents $ — $ — $ — $ — $ 186 $ 186 Investment securities available for sale, at fair value held in securitization trusts 43,897 — — — — 43,897 Residential mortgage loans held in securitization trusts (net) — — 95,144 — — 95,144 Distressed residential mortgage loans held in securitization trusts, (net) — 195,347 — — — 195,347 Multi-family loans held in securitization trusts, at fair value 1,196,835 — — 5,743,009 — 6,939,844 Receivables and other assets 4,420 13,610 912 19,753 17,759 56,454 Total assets $ 1,245,152 $ 208,957 $ 96,056 $ 5,762,762 $ 17,945 $ 7,330,872 Residential collateralized debt obligations $ — $ — $ 91,663 $ — $ — $ 91,663 Multi-family collateralized debt obligations, at fair value 1,137,002 — — 5,487,894 — 6,624,896 Securitized debt 28,332 130,535 — — — 158,867 Accrued expenses and other liabilities 4,400 1,336 20 19,753 1,601 27,110 Total liabilities $ 1,169,734 $ 131,871 $ 91,683 $ 5,507,647 $ 1,601 $ 6,902,536 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 6 ). (2) The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of December 31, 2016 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of this securitization transaction, which have been eliminated in consolidation. (3) Four of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series are not held in a Financing VIE as of December 31, 2016 . In October 2016, the Company repaid $55.9 million of outstanding notes from its November 2013 collateralized recourse financing, which was comprised of securities issued from three separate Freddie Mac-sponsored multi-family K-Series securitizations. In connection with the repayment of the notes, the Company terminated and de-consolidated the Financing VIE that facilitated this financing transaction and securities serving as collateral on the notes were transferred back to the Company. Assets and Liabilities of Consolidated VIEs as of December 31, 2015 (dollar amounts in thousands): Financing VIEs Other VIEs Multi-family CMBS re-securitization (1) Collateralized Recourse Financing (2) Distressed Residential Mortgage Loan Securitization (3) Residential Mortgage Loan Securitization Multi- (2) Total Investment securities available for sale, at fair value held in securitization trusts $ 40,734 $ — $ — $ — $ — $ 40,734 Residential mortgage loans held in securitization trusts (net) — — — 119,921 — 119,921 Distressed residential mortgage loans held in securitization trusts (net) — — 114,214 — — 114,214 Multi-family loans held in securitization trusts, at fair value 1,224,036 4,633,061 — — 1,248,239 7,105,336 Receivables and other assets 4,458 15,057 5,717 1,200 5,456 31,888 Total assets $ 1,269,228 $ 4,648,118 $ 119,931 $ 121,121 $ 1,253,695 $ 7,412,093 Residential collateralized debt obligations $ — $ — $ — $ 116,710 $ — $ 116,710 Multi-family collateralized debt obligations, at fair value 1,168,470 4,464,340 — — 1,186,091 6,818,901 Securitized debt 27,613 55,629 33,299 — — 116,541 Accrued expenses and other liabilities 4,436 14,750 368 13 5,456 25,023 Total liabilities $ 1,200,519 $ 4,534,719 $ 33,667 $ 116,723 $ 1,191,547 $ 7,077,175 (1) The Company classified the multi-family CMBS issued by two K-Series securitizations and held by the Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization ( see Note 6 ). (2) The multi-family CMBS serving as collateral under the November 2013 collateralized recourse financing are comprised of securities issued from three separate Freddie Mac-sponsored multifamily K-Series securitizations. The Financing VIE consolidated these K-Series securitizations, including their assets, liabilities and expenses, in its financial statements as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in such K-Series securitizations ( see Note 6 ). One of the Company's Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series is not held in a Financing VIE as of December 31, 2015 . (3) The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by the first liens on one to four family properties. Balances are related to distressed residential mortgage loan securitizations transactions completed in 2013. The outstanding notes from these transactions were repaid in February 2016, which resulted in the termination and de-consolidation of the Financing VIE that facilitated these financing transactions. |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The tables below summarize the activity of derivative instruments not designated as hedges for the years ended December 31, 2016 and 2015 , respectively (dollar amounts in thousands). Notional Amount For the Year Ended December 31, 2016 December 31, 2015 Additions Settlement, Expiration or Exercise December 31, 2016 TBA securities $ 222,000 $ 4,070,000 $ (4,143,000 ) $ 149,000 U.S. Treasury futures — 201,900 (184,800 ) 17,100 Interest rate swap futures (137,200 ) 868,800 (883,300 ) (151,700 ) Eurodollar futures (2,769,000 ) 6,323,000 (6,129,000 ) (2,575,000 ) Options on U.S. Treasury futures 28,000 111,000 (139,000 ) — Swaptions 159,000 — (5,000 ) 154,000 Interest rate swaps 10,000 5,000 — 15,000 Notional Amount For the Year Ended December 31, 2015 December 31, 2014 Additions Settlement, Expiration or Exercise December 31, 2015 TBA securities $ 273,000 $ 3,801,000 $ (3,852,000 ) $ 222,000 U.S. Treasury futures 2,300 150,200 (152,500 ) — Interest rate swap futures (190,100 ) 1,165,200 (1,112,300 ) (137,200 ) Eurodollar futures (2,961,000 ) 2,925,000 (2,733,000 ) (2,769,000 ) Options on U.S. Treasury futures 21,000 375,000 (368,000 ) 28,000 Swaptions 180,000 9,000 (30,000 ) 159,000 Interest rate swaps 10,000 — — 10,000 |
Schedule of Components of Realized and Unrealized Gains and Losses To Derivative Not Designated as Hedging Instruments | The following table presents the components of realized and unrealized gains and losses related to our derivative instruments that were not designated as hedging instruments included in other income category in our consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 : Years Ended December 31, 2016 2015 2014 Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) Realized Gains (Losses) Unrealized Gains (Losses) TBA $ 3,998 $ 534 $ 5,244 $ (2,253 ) $ 13,708 $ 2,472 Eurodollar futures (1) (3,202 ) 2,417 (2,321 ) (342 ) (2,146 ) 533 Interest rate swaps — (126 ) — (26 ) 259 (232 ) Swaptions — 568 — (658 ) — (1,068 ) U.S. Treasury and Interest rate swap futures and options (2,040 ) (336 ) (9,631 ) 579 (8,831 ) (3,332 ) Total $ (1,244 ) $ 3,057 $ (6,708 ) $ (2,700 ) $ 2,990 $ (1,627 ) (1) At December 31, 2016 , the Eurodollar futures consist of 2,575 contracts with expiration dates ranging between March 2017 and June 2018 . |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of derivative instruments designated as hedging instruments and their location in the Company’s consolidated balance sheets at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): Balance Sheet Location December 31, 2016 December 31, 2015 Interest rate swaps Derivative assets $ 108 $ 304 Interest rate swaps Derivative liabilities 6 $ — |
Schedule of Interest Rate Swaps Designated as Hedging Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the impact of the Company’s interest rate swaps designated as hedging instruments on the Company’s accumulated other comprehensive income (loss) for the years ended December 31, 2016 , 2015 and 2014 (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Accumulated other comprehensive income (loss) for derivative instruments: Balance at beginning of the period $ 304 $ 1,135 $ 2,041 Unrealized (loss) gain on interest rate swaps (202 ) (831 ) (906 ) Balance at end of the period $ 102 $ 304 $ 1,135 |
Schedule of Interest Rate Swaps Designated as Hedging Instruments Included in Interest Expense | The following table details the impact of the Company’s interest rate swaps designated as hedging instruments included in interest expense for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Interest Rate Swaps: Interest expense-investment securities $ 743 $ 1,619 $ 1,848 |
Schedule of Interest Rate Swaps, Including Those in Agency IO Portfolio | The following table presents information about our interest rate swaps in our Agency IO portfolio whereby we receive fixed rate payments in exchange for floating rate payments as of December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Swap Maturities Notional Weighted Average Weighted Average Notional Weighted Average Weighted Average 2026 $ 5,000 1.80 % 1.00 % $ — — — Total $ 5,000 1.80 % 1.00 % $ — — — |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivative Instruments Not Designated as Hedging Instruments, Balance Sheet Location | The following table presents the fair value of derivative instruments that were not designated as hedging instruments and their location in our consolidated balance sheets at December 31, 2016 and December 31, 2015 , respectively (dollar amounts in thousands): Balance Sheet Location December 31, 2016 December 31, 2015 TBA Securities Derivative assets $ 148,139 $ 226,929 Eurodollar futures Derivative assets 1,175 — Options on U.S. Treasury futures Derivative assets — 15 Interest rate swap futures Derivative assets 444 706 Swaptions Derivative assets 431 821 Eurodollar futures Derivative liabilities — 1,242 U.S. Treasury futures Derivative liabilities 107 — Interest rate swaps (1) Derivative liabilities 384 258 (1) Includes interest rate swaps in our Agency IO portfolio. There was no netting of interest rate swaps at December 31, 2016 and December 31, 2015 . |
Financing Arrangements, Portf42
Financing Arrangements, Portfolio Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Financial Instruments Owned and Pledged as Collateral | The following table presents detailed information about the Company’s borrowings under financing arrangements and associated assets pledged as collateral at December 31, 2016 and December 31, 2015 (dollar amounts in thousands): 2016 2015 Assets Pledged as Collateral Outstanding Borrowings Fair Value of Collateral Pledged Amortized Cost Of Collateral Pledged Outstanding Borrowings (1) Fair Value of Collateral Pledged Amortized Cost Of Collateral Pledged Agency ARMs $ 102,088 $ 109,552 $ 110,903 $ 227,609 $ 141,585 $ 143,754 Agency Fixed Rate 289,619 308,411 318,544 261,644 374,691 386,853 Agency IOs/U.S. Treasury Securities 60,862 82,153 93,819 88,160 123,407 139,218 Non-Agency 113,749 150,944 149,969 — — — CMBS (2) 206,824 294,083 216,092 — — — Balance at end of the period $ 773,142 $ 945,143 $ 889,327 $ 577,413 $ 639,683 $ 669,825 |
Outstanding Repurchase Agreements by Contractual Maturity | The following table presents contractual maturity information about the Company’s outstanding financing arrangements, including FHLBI advances, at December 31, 2016 and 2015 (dollar amounts in thousands): Contractual Maturity December 31, 2016 December 31, 2015 Within 30 days $ 729,134 $ 468,402 Over 30 days to 90 days 44,008 85,423 Over 90 days — 23,588 Total $ 773,142 $ 577,413 |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowings | The following table summarizes the key details of the Company’s subordinated debentures as of December 31, 2016 and December 31, 2015 (dollar amounts in thousands): NYM Preferred Trust I NYM Preferred Trust II Principal value of trust preferred securities $ 25,000 $ 20,000 Interest Rate Three month LIBOR plus 3.75%, resetting quarterly Three month LIBOR plus 3.95%, resetting quarterly Scheduled maturity March 30, 2035 October 30, 2035 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Obligations Under Non-cancelable Operating Leases | As of December 31, 2016 , obligations under non-cancelable operating leases are as follows (dollar amounts in thousands): Year Ending December 31, Total 2017 $ 337 2018 348 2019 353 2020 298 2021 217 Thereafter 435 $ 1,988 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015 , respectively, on the Company’s consolidated balance sheets (dollar amounts in thousands): Measured at Fair Value on a Recurring Basis at December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets carried at fair value Investment securities available for sale: Agency RMBS $ — $ 526,363 $ — $ 526,363 $ — $ 713,116 $ — $ 713,116 Non-Agency RMBS — 163,284 — 163,284 — 1,567 — 1,567 U.S. Treasury Securities 2,887 — — 2,887 10,037 — — 10,037 CMBS — 82,545 43,897 126,442 — — 40,734 40,734 Multi-family loans held in securitization trusts — — 6,939,844 6,939,844 — — 7,105,336 7,105,336 Derivative Assets: TBA Securities — 148,139 — 148,139 — 226,929 — 226,929 Options on U.S. Treasury futures — — — — 15 — — 15 Interest rate swap futures 444 — — 444 706 — — 706 Interest rate swaps — 108 — 108 — 304 — 304 Swaptions — 431 — 431 — 821 — 821 Eurodollar Futures 1,175 — — 1,175 — — — — Investments in unconsolidated entities — — 60,332 60,332 — — 67,571 67,571 Total $ 4,506 $ 920,870 $ 7,044,073 $ 7,969,449 $ 10,758 $ 942,737 $ 7,213,641 $ 8,167,136 Liabilities carried at fair value Multi-family collateralized debt obligations $ — $ — $ 6,624,896 $ 6,624,896 $ — $ — $ 6,818,901 $ 6,818,901 Derivative liabilities: US Treasury Futures 107 — — 107 — — — — Interest rate swaps — 391 — 391 — 258 — 258 Eurodollar futures — — — — 1,242 — — 1,242 Total $ 107 $ 391 $ 6,624,896 $ 6,625,394 $ 1,242 $ 258 $ 6,818,901 $ 6,820,401 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table details changes in valuation for the Level 3 assets for the years ended December 31, 2016 , 2015 and 2014 , respectively (amounts in thousands): Level 3 Assets: Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 7,213,641 $ 8,442,604 $ 8,209,702 Total gains (realized/unrealized) Included in earnings (1) (19,460 ) (90,662 ) 384,826 Included in other comprehensive income (loss) 224 (360 ) (5,863 ) Sales (2) — (1,075,529 ) (93,578 ) Transfers in (3) 52,176 — — Transfers out (4) (56,756 ) — — Contributions 3,200 26,461 33,075 Paydowns (141,263 ) (85,979 ) (80,451 ) Distributions (7,689 ) (2,894 ) (1,712 ) Sale of real estate owned — — (3,395 ) Balance at the end of period $ 7,044,073 $ 7,213,641 $ 8,442,604 (1) Amounts included in interest income from multi-family loans held in securitization trusts, unrealized gain on multi-family loans and debt held in securitization trusts, realized gain (loss) on investment securities and related hedges, gain on de-consolidation, and other income. (2) In February 2015, the Company sold a first loss PO security from one of the Company’s Consolidated K-Series securitizations obtaining total proceeds of approximately $44.3 million and realizing a gain of approximately $1.5 million . The sale resulted in a de-consolidation of $1.1 billion in Multi-Family loans held in a securitization trust and $1.0 billion in Multi-Family CDOs. (3) Transfers into Level 3 are investments in unconsolidated entities held by RiverBanc and RBMI for which the Company accounts under the equity method of accounting with a fair value election. These transfers in are a result of the Company’s acquisition of the outstanding membership interests in RiverBanc and RBMI that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements. (s ee Note 21 ). (4) Transfers out of Level 3 are the Company’s previously held membership interests in RBMI and RBDHC that were accounted for under the equity method of accounting with a fair value election. These transfers out are a result of the Company’s acquisition of the outstanding membership interests in RBMI and RBDHC that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements. ( see Note 21 ). |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table details changes in valuation for the Level 3 liabilities for the years ended December 31, 2016 , 2015 and 2014 , respectively (amounts in thousands): Level 3 Liabilities: Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 6,818,901 $ 8,048,053 $ 7,871,020 Total gains (realized/unrealized) Included in earnings (1) (57,687 ) (133,245 ) 260,872 Included in other comprehensive income — — — Purchases/(Sales) (2) — (1,009,942 ) — Paydowns (136,318 ) (85,965 ) (83,839 ) Balance at the end of period $ 6,624,896 $ 6,818,901 $ 8,048,053 (1) Amounts included in interest expense on multi-family collateralized debt obligations, realized gain (loss) on investment securities and related hedges, net and unrealized gain on multi-family loans and debt held in securitization trusts, net. (2) In February 2015, the Company sold a first loss PO security from one of the Company’s Consolidated K-Series securitizations obtaining total proceeds of approximately $44.3 million and realizing a gain of approximately $1.5 million . The sale resulted in a de-consolidation of $1.1 billion in Multi-Family loans held in a securitization trust and $1.0 billion in Multi-Family CDOs. |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | The following table details the changes in unrealized gains (losses) included in earnings for our Level 3 assets and liabilities for the years ended December 31, 2016 , 2015 and 2014 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Change in unrealized gains (losses) – assets $ 10,794 $ (61,957 ) $ 390,371 Change in unrealized (losses) gains – liabilities (7,762 ) 74,325 (333,440 ) Net change in unrealized gains included in earnings for assets and liabilities $ 3,032 $ 12,368 $ 56,931 |
Fair Value Measurements, Nonrecurring | The following table presents assets measured at fair value on a non-recurring basis as of December 31, 2016 and 2015 , respectively, on the Company's consolidated balance sheets (dollar amounts in thousands): Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Residential Mortgage loans held in securitization trusts – impaired loans (net) $ — $ — $ 9,050 $ 9,050 $ — $ — $ 8,976 $ 8,976 Real estate owned held in residential securitization trusts — — 150 150 — — 411 411 |
Fair Value, Losses for Assets Measured on Nonrecurring Basis | The following table presents gains (losses) incurred for assets measured at fair value on a non-recurring basis for the years ended December 31, 2016 , 2015 and 2014 , respectively, on the Company’s consolidated statements of operations (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Residential mortgage loans held in securitization trusts – impaired loans (net) $ (482 ) $ (1,261 ) $ (998 ) Real estate owned held in residential securitization trusts (130 ) 100 (103 ) |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying value and estimated fair value of the Company’s financial instruments at December 31, 2016 and 2015 , respectively (dollar amounts in thousands): December 31, 2016 December 31, 2015 Fair Value Hierarchy Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Cash and cash equivalents Level 1 $ 83,554 $ 83,554 $ 61,959 $ 61,959 Investment securities available for sale (1) Level 1, 2 or 3 818,976 818,976 765,454 765,454 Residential mortgage loans held in securitization trusts (net) Level 3 95,144 88,718 119,921 109,120 Distressed residential mortgage loans (net) (2) Level 3 503,094 504,915 558,989 564,310 Multi-family loans held in securitization trusts, at fair value Level 3 6,939,844 6,939,844 7,105,336 7,105,336 Derivative assets Level 1 or 2 150,296 150,296 228,775 228,775 Mortgage loans held for sale (net) (3) Level 3 7,847 7,959 5,471 5,557 Mortgage loans held for investment (3) Level 3 19,529 19,641 2,706 2,846 Mezzanine loan and preferred equity investments (4) Level 3 100,150 101,408 44,151 44,540 Investments in unconsolidated entities (5) Level 3 79,259 79,390 87,662 87,558 Financial Liabilities: Financing arrangements, portfolio investments Level 2 $ 773,142 $ 773,142 $ 577,413 $ 577,413 Financing arrangements, distressed residential mortgage loans Level 2 192,419 192,419 212,155 212,155 Residential collateralized debt obligations Level 3 91,663 85,568 116,710 105,606 Multi-family collateralized debt obligations, at fair value Level 3 6,624,896 6,624,896 6,818,901 6,818,901 Securitized debt Level 3 158,867 163,884 116,541 123,776 Derivative liabilities Level 1 or 2 498 498 1,500 1,500 Payable for securities purchased Level 1 148,015 148,015 227,969 227,969 Subordinated debentures Level 3 45,000 43,132 45,000 42,731 (1) Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015 , respectively. (2) Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $195.3 million and $114.2 million at December 31, 2016 and December 31, 2015 , respectively and distressed residential mortgage loans with a carrying value amounting to approximately $307.7 million and $444.8 million at December 31, 2016 and December 31, 2015 , respectively. (3) Included in receivables and other assets in the accompanying consolidated balance sheets. (4) Includes mezzanine loan and preferred equity investments accounted for as loans (see Note 8 ). (5) Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $60.3 million and $67.6 million at December 31, 2016 and December 31, 2015, respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Class of Stock [Line Items] | |
Schedule of Common Shares Issued | The table below presents information with respect to shares of the Company’s common stock issued through underwritten public offerings during the three years ended December 31, 2016 (amounts in thousands): Share Issue Date Shares Issued Net Proceeds (1) November 26, 2014 14,410 $ 110,784 April 7, 2014 14,950 $ 109,916 January 10, 2014 11,500 $ 75,846 (1) Proceeds are net of underwriting costs and offering expenses paid by the Company. |
Preferred Stock | |
Class of Stock [Line Items] | |
Schedule of Dividends Payable | The following table presents the relevant dates with respect to such quarterly cash dividends on the Series B Preferred Stock commencing January 1, 2014 through December 31, 2016 and Series C Preferred Stock from its respective time of original issuance through December 31, 2016 : Series B Preferred Stock Series C Preferred Stock Declaration Date Record Date Payment Date Cash Declaration Date Record Date Payment Date Cash Dividend Per Share December 15, 2016 January 1, 2017 January 15, 2017 $ 0.484375 December 15, 2016 January 1, 2017 January 15, 2017 $ 0.4921875 September 15, 2016 October 1, 2016 October 15, 2016 0.484375 September 15, 2016 October 1, 2016 October 15, 2016 0.4921875 June 16, 2016 July 1, 2016 July 15, 2016 0.484375 June 16, 2016 July 1, 2016 July 15, 2016 0.4921875 March 18, 2016 April 1, 2016 April 15, 2016 0.484375 March 18, 2016 April 1, 2016 April 15, 2016 0.4921875 December 16, 2015 January 1, 2016 January 15, 2016 0.484375 December 16, 2015 January 1, 2016 January 15, 2016 0.4921875 September 18, 2015 October 1, 2015 October 15, 2015 0.484375 September 18, 2015 October 1, 2015 October 15, 2015 0.4921875 June 18, 2015 July 1, 2015 July 15, 2015 0.484375 June 18, 2015 July 1, 2015 July 15, 2015 0.4539100 (1) March 18, 2015 April 1, 2015 April 15, 2015 0.484375 — — — — December 12, 2014 January 1, 2015 January 15, 2015 0.484375 — — — — September 18, 2014 October 1, 2014 October 15, 2014 0.484375 — — — — June 18, 2014 July 1, 2014 July 15, 2014 0.484375 — — — — March 13, 2014 April 1, 2014 April 15, 2014 0.484375 — — — — (1) Cash dividend for the partial quarterly period that began on April 22, 2015 and ended on July 14, 2015. |
Common Stock | |
Class of Stock [Line Items] | |
Schedule of Dividends Payable | The following table presents cash dividends declared by the Company on its common stock with respect to each of the quarterly periods commencing January 1, 2014 and ended December 31, 2016 : Period Declaration Date Record Date Payment Date Cash Dividend Per Share Fourth Quarter 2016 December 15, 2016 December 27, 2016 January 26, 2017 $ 0.24 Third Quarter 2016 September 15, 2016 September 26, 2016 October 28, 2016 0.24 Second Quarter 2016 June 16, 2016 June 27, 2016 July 25, 2016 0.24 First Quarter 2016 March 18, 2016 March 28, 2016 April 25, 2016 0.24 Fourth Quarter 2015 December 16, 2015 December 28, 2015 January 25, 2016 0.24 Third Quarter 2015 September 18, 2015 September 28, 2015 October 26, 2015 0.24 Second Quarter 2015 June 18, 2015 June 29, 2015 July 27, 2015 0.27 First Quarter 2015 March 18, 2015 March 30, 2015 April 27, 2015 0.27 Fourth Quarter 2014 December 12, 2014 December 22, 2014 January 26, 2015 0.27 Third Quarter 2014 September 18, 2014 September 29, 2014 October 27, 2014 0.27 Second Quarter 2014 June 18, 2014 June 30, 2014 July 25, 2014 0.27 First Quarter 2014 March 13, 2014 March 24, 2014 April 25, 2014 0.27 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and dilutive net income per share for the periods indicated (amounts in thousands, except per share amounts): For the Years Ended December 31, 2016 2015 2014 Numerator : Net income attributable to Company's common stockholders – Basic $ 54,651 $ 67,023 $ 130,379 Net income attributable to Company's common stockholders– Dilutive $ 54,651 $ 67,023 $ 130,379 Denominator: Weighted average basic and dilutive shares outstanding 109,594 108,399 87,867 EPS: Basic EPS $ 0.50 $ 0.62 $ 1.48 Dilutive EPS $ 0.50 $ 0.62 $ 1.48 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity | A summary of the activity of the Company's non-vested restricted stock under the 2010 Plan for the years ended December 31, 2016 , 2015 and 2014 , respectively, is presented below: 2016 2015 2014 Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Number of Non-vested Restricted Shares Weighted Average Per Share Grant Date Fair Value (1) Non-vested shares at January 1 280,457 $ 7.63 162,171 $ 7.26 94,873 $ 7.01 Granted 160,453 5.11 185,650 7.79 104,517 7.39 Vested (121,852 ) 7.54 (67,364 ) 7.18 (37,219 ) 6.97 Non-vested shares as of December 31 319,058 $ 6.40 280,457 $ 7.63 162,171 $ 7.26 Weighted-average restricted stock granted during the period 160,453 $ 5.11 185,650 $ 7.79 104,517 $ 7.39 (1) The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Provision | The income tax provision for the years ended December 31, 2016 , 2015 and 2014 is comprised of the following components (dollar amounts in thousands): Years Ended December 31, 2016 2015 2014 Current income tax expense Federal $ 2,771 $ 3,158 $ 4,572 State 187 1,283 2,423 Total current income tax expense $ 2,958 $ 4,441 $ 6,995 Deferred income tax expense (benefit) Federal $ 104 $ 69 $ (458 ) State 33 25 (142 ) Total deferred income tax expense (benefit) $ 137 $ 94 $ (600 ) Total provision $ 3,095 $ 4,535 $ 6,395 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory income tax provision to the effective income tax provision for the years ended December 31, 2016 , 2015 and 2014 , respectively, are as follows (dollar amounts in thousands). December 31, 2016 2015 2014 Provision at statutory rate $ 24,561 35.0 % $ 28,892 35.0 % $ 49,316 35.0 % Non-taxable REIT income (20,672 ) (29.5 ) (25,733 ) (31.2 ) (44,247 ) (31.4 ) State and local tax provision 187 0.3 1,284 1.6 2,420 1.7 Other (502 ) (0.7 ) 24,047 29.1 (1,227 ) (0.9 ) Valuation allowance (479 ) (0.7 ) (23,955 ) (29.0 ) 133 0.1 Total provision $ 3,095 4.4 % $ 4,535 5.5 % $ 6,395 4.5 % |
Schedule of Deferred Tax Assets and Liabilities | The major sources of temporary differences included in the deferred tax assets and their deferred tax effect as of December 31, 2016 and 2015 are as follows (dollar amounts in thousands): December 31, 2016 December 31, 2015 Deferred tax assets Net operating loss carryforward $ 2,287 $ 2,083 Net capital loss carryforward 1,123 2,029 Other 3,059 3,043 Total deferred tax assets (1) $ 6,469 $ 7,155 Deferred tax liabilities Deferred tax liabilities $ 303 $ 192 Total deferred tax liabilities (2) $ 303 $ 192 Valuation allowance (5,978 ) (6,457 ) Total net deferred tax asset $ 188 $ 506 (1) Included in receivables and other assets in the accompanying consolidated balance sheets. (2) Included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Consideration Transferred | The estimated Acquisition Date fair value of the consideration transferred totaled $53.5 million, which consisted of the following (dollar amounts in thousands): Cash (1) $ 29,073 Contingent consideration 3,800 Fair value of previously held membership interests 20,608 Total consideration transferred $ 53,481 (1) Includes $16.3 million paid to Donlon Family LLC and reflects a post-closing working capital adjustment of $20 thousand delivered to the sellers of RiverBanc on July 15, 2016. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed by the Company at the Acquisition Date (dollar amounts in thousands). The membership interest purchase agreement for the acquisition of RiverBanc included a post-closing working capital adjustment that was calculated at $20 thousand and settled with the sellers of RiverBanc on July 15, 2016. Additionally, the excess severance holdback amount described above was settled with the sellers of RiverBanc on July 15, 2016. The Company engaged a third party for valuations of certain intangible assets. Cash $ 4,325 Investment in unconsolidated entities 52,176 Mezzanine loan and preferred equity investments 23,638 Real estate under development (1) 14,922 Receivables and other assets 911 Intangible assets (1) 3,490 Total identifiable assets acquired $ 99,462 Construction loan payable (2) $ 8,499 Accrued expenses and other liabilities 2,864 Total liabilities assumed $ 11,363 Preferred equity (3) $ 56,697 Net identifiable assets acquired $ 31,402 Goodwill (4) $ 25,222 Gain on bargain purchase (5) (65 ) Non-controlling interest (6) (3,078 ) Net assets acquired $ 53,481 (1) Included in receivables and other assets on the consolidated balance sheets. (2) Construction loan payable to the Company is eliminated on the consolidated balance sheets. (3) Includes $40.4 million of preferred equity owned by the Company that is eliminated on the consolidated balance sheets. Remaining $16.3 million of preferred equity owned by third parties was redeemed on June 10, 2016 and June 24, 2016. (4) Goodwill recognized in the acquisition of RiverBanc. (5) Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC. (6) Represents third-party ownership of KRVI membership interests ( see Note 9 ). The Company consolidates its investment in KRVI. The third-party ownership in KRVI is represented in the consolidated financial statements and the pro forma net income attributable to the Company's common stockholders as non-controlling interests. The fair value of the non-controlling interests in KRVI is estimated to be $3.1 million . The fair value of the non-controlling interests in KRVI, a private company, was estimated using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying real estate. |
Pro Forma Information | The following represents the pro forma consolidated revenue and net income attributable to the Company's common stockholders as if the Acquirees had been included in the consolidated results of the Company for the years ended December 31, 2016 and 2015 , respectively (dollar amounts in thousands): Years Ended December 31, 2016 2015 Revenue $ 356,138 $ 390,576 Net income attributable to Company's common stockholders $ 51,782 $ 72,707 Basic pro forma income per share $ 0.47 $ 0.67 Diluted pro forma income per share $ 0.47 $ 0.67 |
Quarterly Financial Data (una51
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following table is a comparative breakdown of our unaudited quarterly results for the immediately preceding eight quarters (amounts in thousands, except per share data): Three Months Ended Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016 Interest income $ 81,626 $ 79,766 $ 79,525 $ 78,389 Interest expense 63,984 63,102 64,007 63,575 Net interest income $ 17,642 $ 16,664 $ 15,518 $ 14,814 Other Income (loss): Recovery (provision) for loan losses $ 645 $ 42 $ (26 ) $ 177 Realized gain (loss) on investment securities and related hedges, net 1,266 1,761 2,306 (8,978 ) Realized gain on distressed residential mortgage loans 5,548 26 6,416 2,875 Unrealized (loss) gain on investment securities and related hedges, net (2,490 ) (667 ) 1,563 8,664 Unrealized gain on multi-family loans and debt held in securitization trusts, net 818 784 738 692 Other income 3,073 8,125 5,635 2,245 Total other income $ 8,860 $ 10,071 $ 16,632 $ 5,675 General, administrative and other expenses 9,360 9,936 8,705 7,220 Income from operations before income taxes $ 17,142 $ 16,799 $ 23,445 $ 13,269 Income tax expense 191 2,366 163 375 Net income $ 16,951 $ 14,433 $ 23,282 $ 12,894 Net loss (income) attributable to non-controlling interest — 2 (14 ) 3 Net income attributable to Company $ 16,951 $ 14,435 $ 23,268 $ 12,897 Preferred stock dividends (3,225 ) (3,225 ) (3,225 ) (3,225 ) Net income attributable to Company's common stockholders $ 13,726 $ 11,210 $ 20,043 $ 9,672 Per share basic income $ 0.13 $ 0.10 $ 0.18 $ 0.09 Per share diluted income $ 0.13 $ 0.10 $ 0.18 $ 0.09 Dividends declared per common share $ 0.24 $ 0.24 $ 0.24 $ 0.24 Weighted average shares outstanding-basic 109,402 109,489 109,569 109,911 Weighted average shares outstanding-diluted 109,402 109,489 109,569 109,911 Three Months Ended Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 Interest income $ 88,985 $ 84,400 $ 82,587 $ 80,866 Interest expense 67,384 64,097 64,295 64,875 Net interest income $ 21,601 $ 20,303 $ 18,292 $ 15,991 Other Income: (Provision) recovery for loan losses $ (436 ) $ (112 ) $ (1,117 ) $ 302 Realized gain (loss) on investment securities and related hedges, net 1,124 (1,291 ) (2,895 ) (1,555 ) Gain on de-consolidation of multi-family loans held in securitization trust and multi-family collateralized debt obligations 1,483 — — — Realized gain (loss) on distressed residential mortgage loans 676 3,614 27,224 (263 ) Unrealized (loss) gain on investment securities and related hedges, net (5,728 ) 4,716 (2,631 ) 1,002 Unrealized gain (loss) on multi-family loans and debt held in securitization trusts, net 13,628 5,418 (2,170 ) (4,508 ) Other income 2,286 2,300 1,807 2,967 Total other income (loss) $ 13,033 $ 14,645 $ 20,218 $ (2,055 ) General, administrative and other expenses $ 10,846 $ 9,139 $ 9,830 $ 9,665 Income from operations before income taxes $ 23,788 $ 25,809 $ 28,680 $ 4,271 Income tax expense 245 1,178 3,048 64 Net income attributable to Company $ 23,543 $ 24,631 $ 25,632 $ 4,207 Preferred stock dividends (1,453 ) (3,087 ) (3,225 ) (3,225 ) Net income attributable to Company's common stockholders $ 22,090 $ 21,544 $ 22,407 $ 982 Per share basic income $ 0.21 $ 0.20 $ 0.20 $ 0.01 Per share diluted income $ 0.21 $ 0.20 $ 0.20 $ 0.01 Dividends declared per common share $ 0.27 $ 0.27 $ 0.24 $ 0.24 Weighted average shares outstanding-basic 105,488 109,252 109,402 109,402 Weighted average shares outstanding-diluted 105,488 109,252 109,402 109,402 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details) | May 16, 2016 | May 31, 2015 | Dec. 31, 2016USD ($)segmentsecuritization | Dec. 31, 2015USD ($)securitization | Oct. 01, 2016USD ($) | Dec. 31, 2006securitization |
Summary of Significant Accounting Policies [Line Items] | ||||||
Residential mortgage loans, delinquency period | 90 days | |||||
Goodwill | $ 25,222,000 | $ 0 | ||||
Goodwill accumulated impairment | $ 0 | |||||
Restricted cash and cash equivalents | 56,000,000 | 20,800,000 | ||||
Interest receivable | 24,100,000 | 24,600,000 | ||||
Deferred finance costs | 1,400,000 | 1,000,000 | ||||
Employer contributions to employee benefit plan | $ 100,000 | 0 | ||||
Number of operating segments | segment | 1 | |||||
Number of reportable segments | segment | 1 | |||||
Financing arrangements, residential mortgage loans | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Deferred finance costs | $ 1,300,000 | 2,300,000 | ||||
Held in Agency IO Portfolio for Trading Purposes | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Restricted cash and cash equivalents | 35,600,000 | 11,600,000 | ||||
Collateral for hedging instruments | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Restricted cash and cash equivalents | $ 6,100,000 | $ 6,300,000 | ||||
Consolidated K-Series | K-Series | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Number of securitizations | securitization | 5 | 5 | 4 | |||
Minimum | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Finite-lived intangible asset, useful life | 1 year | 1 year | ||||
Repurchase agreements, expiration period | 12 months | |||||
Maximum | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Finite-lived intangible asset, useful life | 10 years | 10 years | ||||
Repurchase agreements, expiration period | 15 months | |||||
Receivables And Other Assets | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Inventory, real estate, construction in process | $ 17,500,000 | $ 0 | ||||
Equity Method Investments | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Investment in unconsolidated entities | 18,927,000 | 20,091,000 | ||||
Equity Method Investments | Receivables And Other Assets | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Investment in unconsolidated entities | 60,300,000 | 67,600,000 | ||||
Performance Shares | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Award vesting period | 3 years | |||||
RiverBanc, RBMI, and RBDHC | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Equity method investment, cumulative percentage ownership after all transactions | 100.00% | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-18 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Restricted cash and cash equivalents | $ 56,000,000 | $ 20,800,000 |
Investment Securities Availab53
Investment Securities Available For Sale - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of investment securities | $ 208,200,000 | $ 99,200,000 | $ 93,600,000 |
Net gains from sales of investment securities | $ (2,300,000) | $ 2,100,000 | 39,100,000 |
Contractual maturities (up to) | 30 years | ||
Available for sale securities portfolio, weighted average life | 4 years 106 days | 4 years 354 days | |
Other-than-temporary impairment loss | $ 0 | $ 0 | $ 0 |
Investment Securities Availab54
Investment Securities Available For Sale - Available-For-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | $ 829,738 | $ 784,998 | ||
Unrealized Gains | 16,449 | 13,943 | ||
Unrealized Losses | (27,211) | (33,487) | ||
Investment securities available for sale | [1] | 818,976 | 765,454 | |
Proceeds from sales of investment securities | 208,200 | 99,200 | $ 93,600 | |
Net gains from sales of investment securities | (2,300) | 2,100 | $ 39,100 | |
CMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [2] | 113,955 | 28,692 | |
Unrealized Gains | [2] | 12,876 | 12,042 | |
Unrealized Losses | [2] | (389) | 0 | |
Investment securities available for sale | [2] | 126,442 | 40,734 | |
Agency ARMs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 114,180 | 175,160 | |
Unrealized Gains | [3] | 95 | 217 | |
Unrealized Losses | [3] | (1,430) | (2,364) | |
Investment securities available for sale | [3] | 112,845 | 173,013 | |
Agency Fixed Rate | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 339,310 | 437,683 | |
Unrealized Gains | [3] | 0 | 9 | |
Unrealized Losses | [3] | (10,683) | (12,979) | |
Investment securities available for sale | [3] | 328,627 | 424,713 | |
Agency IOs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 97,153 | 131,623 | |
Unrealized Gains | [3] | 2,260 | 1,624 | |
Unrealized Losses | [3] | (14,522) | (17,857) | |
Investment securities available for sale | [3] | 84,891 | 115,390 | |
Agency RMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 550,643 | 744,466 | |
Unrealized Gains | [3] | 2,355 | 1,850 | |
Unrealized Losses | [3] | (26,635) | (33,200) | |
Investment securities available for sale | [3] | 526,363 | 713,116 | |
Non-Agency RMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | 162,220 | 1,727 | ||
Unrealized Gains | 1,218 | 51 | ||
Unrealized Losses | (154) | (211) | ||
Investment securities available for sale | 163,284 | 1,567 | ||
U.S. Treasury securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 2,920 | 10,113 | |
Unrealized Gains | [3] | 0 | 0 | |
Unrealized Losses | [3] | (33) | (76) | |
Investment securities available for sale | [3] | 2,887 | 10,037 | |
Freddie Mac | Agency ARMs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 39,138 | 62,383 | |
Unrealized Gains | [3] | 24 | 41 | |
Unrealized Losses | [3] | (528) | (770) | |
Investment securities available for sale | [3] | 38,634 | 61,654 | |
Freddie Mac | Agency Fixed Rate | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 26,338 | 31,076 | |
Unrealized Gains | [3] | 0 | 0 | |
Unrealized Losses | [3] | (644) | (719) | |
Investment securities available for sale | [3] | 25,694 | 30,357 | |
Freddie Mac | Agency IOs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 19,768 | 28,970 | |
Unrealized Gains | [3] | 559 | 680 | |
Unrealized Losses | [3] | (3,363) | (4,471) | |
Investment securities available for sale | [3] | 16,964 | 25,179 | |
Fannie Mae | Agency ARMs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 69,031 | 92,605 | |
Unrealized Gains | [3] | 71 | 121 | |
Unrealized Losses | [3] | (698) | (1,334) | |
Investment securities available for sale | [3] | 68,404 | 91,392 | |
Fannie Mae | Agency Fixed Rate | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 312,515 | 380,684 | |
Unrealized Gains | [3] | 0 | 0 | |
Unrealized Losses | [3] | (10,035) | (12,149) | |
Investment securities available for sale | [3] | 302,480 | 368,535 | |
Fannie Mae | Agency IOs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 27,597 | 39,603 | |
Unrealized Gains | [3] | 478 | 433 | |
Unrealized Losses | [3] | (4,777) | (6,341) | |
Investment securities available for sale | [3] | 23,298 | 33,695 | |
Ginnie Mae | Agency ARMs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 6,011 | 20,172 | |
Unrealized Gains | [3] | 0 | 55 | |
Unrealized Losses | [3] | (204) | (260) | |
Investment securities available for sale | [3] | 5,807 | 19,967 | |
Ginnie Mae | Agency Fixed Rate | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 457 | 25,923 | |
Unrealized Gains | [3] | 0 | 9 | |
Unrealized Losses | [3] | (4) | (111) | |
Investment securities available for sale | [3] | 453 | 25,821 | |
Ginnie Mae | Agency IOs | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Costs | [3] | 49,788 | 63,050 | |
Unrealized Gains | [3] | 1,223 | 511 | |
Unrealized Losses | [3] | (6,382) | (7,045) | |
Investment securities available for sale | [3] | 44,629 | 56,516 | |
Available-for-sale Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment securities held in securitization | 43,897 | 40,734 | ||
Available-for-sale Securities | CMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment securities held in securitization | $ 43,900 | $ 40,700 | ||
[1] | Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. | |||
[2] | Included in CMBS is $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. | |||
[3] | Included in investment securities available for sale are Agency IOs, Agency RMBS and U.S. Treasury securities managed by Midway that are measured at fair value through earnings. |
Investment Securities Availab55
Investment Securities Available For Sale - Weighted Average Life (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
0 to 5 years | $ 606,079 | $ 518,594 | |
Over 5 to 10 years | 177,765 | 219,747 | |
10 years | 35,132 | 27,113 | |
Total | [1] | $ 818,976 | $ 765,454 |
[1] | Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. |
Investment Securities Availab56
Investment Securities Available For Sale - Portfolio Reset Periods (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | [1] | $ 818,976 | $ 765,454 |
Less than 6 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 185,668 | 102,918 | |
6 to 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 27,272 | 46,079 | |
More than 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 606,036 | 616,457 | |
Agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | [2] | 526,363 | 713,116 |
Agency RMBS | Less than 6 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 53,043 | 92,693 | |
Agency RMBS | 6 to 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 27,272 | 44,700 | |
Agency RMBS | More than 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 446,048 | 575,723 | |
Non-Agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 163,284 | 1,567 | |
Non-Agency RMBS | Less than 6 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 50,080 | 188 | |
Non-Agency RMBS | 6 to 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 0 | 1,379 | |
Non-Agency RMBS | More than 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 113,204 | 0 | |
U.S. Treasury securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | [2] | 2,887 | 10,037 |
U.S. Treasury securities | Less than 6 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 0 | 10,037 | |
U.S. Treasury securities | 6 to 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 0 | 0 | |
U.S. Treasury securities | More than 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 2,887 | 0 | |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | [3] | 126,442 | 40,734 |
CMBS | Less than 6 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 82,545 | 0 | |
CMBS | 6 to 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 0 | 0 | |
CMBS | More than 24 months | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | 43,897 | 40,734 | |
Collateralized Loan Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying value, investment securities available for sale | $ 126,442 | $ 40,734 | |
[1] | Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. | ||
[2] | Included in investment securities available for sale are Agency IOs, Agency RMBS and U.S. Treasury securities managed by Midway that are measured at fair value through earnings. | ||
[3] | Included in CMBS is $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. |
Investment Securities Availab57
Investment Securities Available For Sale - Unrealized Losses in OCI (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment loss | $ 0 | $ 0 | $ 0 |
Carrying Value Less Than 12 Months | 112,880,000 | 72,358,000 | |
Gross Unrealized Losses Less Than 12 Months | (1,679,000) | (688,000) | |
Carrying Value Greater Than 12 Months | 329,070,000 | 476,953,000 | |
Gross Unrealized Losses Greater Than 12 Months | (10,973,000) | (14,708,000) | |
Carrying Value Total | 441,950,000 | 549,311,000 | |
Gross Unrealized Losses Total | (12,652,000) | (15,396,000) | |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying Value Less Than 12 Months | 16,523,000 | 0 | |
Gross Unrealized Losses Less Than 12 Months | (389,000) | 0 | |
Carrying Value Greater Than 12 Months | 0 | 0 | |
Gross Unrealized Losses Greater Than 12 Months | 0 | 0 | |
Carrying Value Total | 16,523,000 | 0 | |
Gross Unrealized Losses Total | (389,000) | 0 | |
Non-Agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying Value Less Than 12 Months | 0 | 771,000 | |
Gross Unrealized Losses Less Than 12 Months | 0 | 0 | |
Carrying Value Greater Than 12 Months | 596,000 | 796,000 | |
Gross Unrealized Losses Greater Than 12 Months | (154,000) | (211,000) | |
Carrying Value Total | 596,000 | 1,567,000 | |
Gross Unrealized Losses Total | (154,000) | (211,000) | |
Agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Carrying Value Less Than 12 Months | 96,357,000 | 71,587,000 | |
Gross Unrealized Losses Less Than 12 Months | (1,290,000) | (688,000) | |
Carrying Value Greater Than 12 Months | 328,474,000 | 476,157,000 | |
Gross Unrealized Losses Greater Than 12 Months | (10,819,000) | (14,497,000) | |
Carrying Value Total | 424,831,000 | 547,744,000 | |
Gross Unrealized Losses Total | $ (12,109,000) | $ (15,185,000) |
Residential Mortgage Loans He58
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
Allowance for loan losses | $ 3,782 | $ 3,399 | $ 3,631 | $ 2,989 |
Allowance for loan losses, basis points | 3.85% | 2.77% | ||
CDOs outstanding | $ 4,400 | $ 4,400 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 101,045 | |||
Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Number of delinquent loans | loan | 31 | 31 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 18,700 | $ 18,000 | ||
Payment Deferral | Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 11,200 | $ 11,900 | ||
Delinquent loans under modified payment plan (as a percent) | 60.00% | 67.00% |
Residential Mortgage Loans He59
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Mortgage Loans Held in Securitization Trusts (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Abstract] | ||
Unpaid principal balance | $ 98,303 | $ 122,545 |
Deferred origination costs – net | 623 | 775 |
Reserve for loan losses | (3,782) | (3,399) |
Total | $ 95,144 | $ 119,921 |
Residential Mortgage Loans He60
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | $ 3,399 | $ 3,631 | $ 2,989 |
Provisions for loan losses | 612 | 1,161 | 998 |
Transfer to real estate owned | (117) | 0 | (356) |
Charge-offs | (112) | (1,393) | 0 |
Balance at the end of period | $ 3,782 | $ 3,399 | $ 3,631 |
Residential Mortgage Loans He61
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance at beginning of period | $ 411 | $ 965 | $ 1,108 |
Write downs | (9) | 0 | (103) |
Transfer from mortgage loans held in securitization trusts | 352 | 0 | 537 |
Disposal | (604) | (554) | (577) |
Balance at the end of period | $ 150 | $ 411 | $ 965 |
Residential Mortgage Loans He62
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Loans in Delinquency (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans, Real estate owned through foreclosure | loan | 1 | 3 |
Total Unpaid Principal, Real estate owned through foreclosure | $ | $ 268 | $ 574 |
% of Loan Portfolio, Real estate owned through foreclosure | 0.27% | 0.47% |
30 - 60 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 1 | 3 |
Total Unpaid Principal | $ | $ 247 | $ 825 |
% of Loan Portfolio | 0.25% | 0.67% |
61 - 90 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 0 | 2 |
Total Unpaid Principal | $ | $ 0 | $ 1,763 |
% of Loan Portfolio | 0.00% | 1.43% |
90 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Delinquent Loans | loan | 30 | 26 |
Total Unpaid Principal | $ | $ 18,416 | $ 15,365 |
% of Loan Portfolio | 18.68% | 12.48% |
Residential Mortgage Loans He63
Residential Mortgage Loans Held in Securitization Trusts (Net) and Real Estate Owned - Geographic Concentrations of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Massachusetts | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 6.90% | 15.70% |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 5.10% | 0.00% |
Geographic Concentration Risk | Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 33.80% | 35.60% |
Geographic Concentration Risk | Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Massachusetts | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 19.90% | 20.70% |
Geographic Concentration Risk | Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | New Jersey | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 10.80% | 11.10% |
Geographic Concentration Risk | Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 8.90% | 7.70% |
Geographic Concentration Risk | Residential Mortgage Loans Held in Securitization Trusts and Real Estate Owned Held in Residential Securitization | Connecticut | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 7.40% | 6.50% |
Distressed Residential Mortga64
Distressed Residential Mortgage Loans - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Distressed residential mortgage loans, net, held in securitization trusts | $ 195,347 | $ 114,214 |
Distressed residential mortgage loans held in securitization trusts (net) | ||
Mortgage Loans on Real Estate [Line Items] | ||
Distressed residential mortgage loans, net, held in securitization trusts | 195,300 | 114,200 |
Distressed residential mortgage loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Distressed residential mortgage loans, net, held in securitization trusts | 503,100 | 559,000 |
Residential Mortgage | Distressed residential mortgage loans | Deutsche Bank AG, Cayman Islands Branch | ||
Mortgage Loans on Real Estate [Line Items] | ||
Loans pledged as collateral | $ 279,900 | $ 307,000 |
Distressed Residential Mortga65
Distressed Residential Mortgage Loans - Distressed Residential Mortgage Loans (Details) - Distressed residential mortgage loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Contractually required principal and interest | $ 188,444 | $ 327,611 |
Non-accretable yield | (14,512) | (17,276) |
Expected cash flows to be collected | 173,932 | 310,335 |
Accretable yield | (114,153) | (158,149) |
Fair value at the date of acquisition | $ 59,779 | $ 152,186 |
Distressed Residential Mortga66
Distressed Residential Mortgage Loans - Distressed Residential Mortgage Loans Activity (Details) - Distressed residential mortgage loans - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 579,009 | [1] | $ 640,416 | |
Additions | 128,386 | 173,497 | ||
Disposals | (144,242) | (195,615) | ||
Accretion | (32,641) | (39,289) | ||
Balance at end of period | [1] | $ 530,512 | $ 579,009 | |
[1] | Accretable yield is the excess of the distressed residential mortgage loans’ cash flows expected to be collected over the purchase price. The cash flows expected to be collected represents the Company’s estimate of the amount and timing of undiscounted principal and interest cash flows. Additions include accretable yield estimates for purchases made during the period and reclassification to accretable yield from nonaccretable yield. Deletions include distressed residential mortgage loan dispositions, which include refinancing, sale and foreclosure of the underlying collateral and resulting removal of the distressed residential mortgage loans from the accretable yield, and reclassifications from accretable to nonaccretable yield. The reclassifications between accretable and nonaccretable yield and the accretion of interest income is based on various estimates regarding loan performance and the value of the underlying real estate securing the loans. As the Company continues to update its estimates regarding the loans and the underlying collateral, the accretable yield may change. Therefore, the amount of accretable income recorded in the twelve-month periods ended December 31, 2016 and December 31, 2015 is not necessarily indicative of future results. |
Distressed Residential Mortga67
Distressed Residential Mortgage Loans - Geographic Concentrations of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 5.10% | 0.00% |
Georgia | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 6.30% | 0.00% |
Distressed residential mortgage loans held in securitization trusts (net) | Geographic Concentration Risk | Florida | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 12.20% | 12.60% |
Distressed residential mortgage loans held in securitization trusts (net) | Geographic Concentration Risk | California | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 8.80% | 7.70% |
Distressed residential mortgage loans held in securitization trusts (net) | Geographic Concentration Risk | North Carolina | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 7.70% | 8.10% |
Distressed residential mortgage loans held in securitization trusts (net) | Geographic Concentration Risk | Georgia | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 6.00% | 6.10% |
Distressed residential mortgage loans held in securitization trusts (net) | Geographic Concentration Risk | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 5.40% | 5.20% |
Distressed residential mortgage loans held in securitization trusts (net) | Geographic Concentration Risk | Maryland | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 5.20% | 5.40% |
Consolidated K-Series - Narrati
Consolidated K-Series - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Feb. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity [Line Items] | |||||
Mortgage loans on real estate, unpaid principal balance | $ 7,565,459 | $ 7,792,422 | $ 9,107,248 | $ 8,543,904 | |
Multi-family loans held in securitization trusts | |||||
Variable Interest Entity [Line Items] | |||||
Mortgage loans on real estate, unpaid principal balance | 6,700,000 | 6,800,000 | |||
Multi-family collateralized debt obligations, at fair value | |||||
Variable Interest Entity [Line Items] | |||||
Mortgage loans on real estate, unpaid principal balance | $ 6,700,000 | $ 6,800,000 | |||
Weighted average interest rate (as a percent) | 3.97% | 3.98% | |||
Consolidated K-Series | |||||
Variable Interest Entity [Line Items] | |||||
K-series net carrying value | $ 314,900 | $ 286,400 | |||
PO Security | |||||
Variable Interest Entity [Line Items] | |||||
Proceeds from sale of investments | $ 44,300 | ||||
Gain on sale of investments | 1,500 | ||||
Multi-Family Collateralized Mortgage Backed Securities | |||||
Variable Interest Entity [Line Items] | |||||
Deconsolidation of assets | 1,100,000 | ||||
Multi-family collateralized debt obligations, at fair value | |||||
Variable Interest Entity [Line Items] | |||||
Deconsolidation of assets | $ 1,000,000 |
Consolidated K-Series - Condens
Consolidated K-Series - Condensed Balance Sheet of Consolidated K-Series (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Multi-family loans held in securitization trusts, at fair value | $ 6,939,844 | $ 7,105,336 |
Total Assets | 8,951,631 | 9,056,242 |
Liabilities and Equity | ||
Total liabilities | 8,100,469 | 8,175,716 |
Equity | 848,075 | 880,526 |
Total Liabilities and Stockholders' Equity | 8,951,631 | 9,056,242 |
Consolidated K-Series | ||
Assets | ||
Multi-family loans held in securitization trusts, at fair value | 6,939,844 | 7,105,336 |
Receivables | 24,098 | 24,579 |
Total Assets | 6,963,942 | 7,129,915 |
Liabilities and Equity | ||
Multi-family CDOs | 6,624,896 | 6,818,901 |
Accrued expenses | 24,003 | 24,483 |
Total liabilities | 6,648,899 | 6,843,384 |
Equity | 315,043 | 286,531 |
Total Liabilities and Stockholders' Equity | $ 6,963,942 | $ 7,129,915 |
Consolidated K-Series - Conde70
Consolidated K-Series - Condensed Statement of Operations of Consolidated K-Series (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $ 78,389 | $ 79,525 | $ 79,766 | $ 81,626 | $ 80,866 | $ 82,587 | $ 84,400 | $ 88,985 | $ 319,306 | $ 336,838 | $ 378,847 |
Interest expense | 254,668 | 260,651 | 301,010 | ||||||||
NET INTEREST INCOME | 14,814 | 15,518 | 16,664 | 17,642 | 15,991 | 18,292 | 20,303 | 21,601 | 64,638 | 76,187 | 77,837 |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | $ 692 | $ 738 | $ 784 | $ 818 | $ 1,002 | $ (2,631) | $ 4,716 | $ (5,728) | 3,032 | 12,368 | 56,931 |
NET INCOME | 67,560 | 78,013 | 136,191 | ||||||||
Consolidated K-Series | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | 249,191 | 257,417 | 301,877 | ||||||||
Interest expense | 222,553 | 232,971 | 275,916 | ||||||||
NET INTEREST INCOME | 26,638 | 24,446 | 25,961 | ||||||||
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 3,032 | 12,368 | 56,931 | ||||||||
NET INCOME | $ 29,670 | $ 36,814 | $ 82,892 |
Consolidated K-Series - Geograp
Consolidated K-Series - Geographic Concentrations of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 43.30% | 31.40% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | California | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 13.80% | 13.80% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Texas | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 12.40% | 12.30% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | New York | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 8.10% | 8.00% |
Geographic Concentration Risk | Multi-family loans held in securitization trusts | Maryland | ||
Concentration Risk [Line Items] | ||
Geographic concentrations | 5.30% | 5.20% |
Investment in Unconsolidated 72
Investment in Unconsolidated Entities - (Details) - Equity Method Investments - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment | $ 18,927 | $ 20,091 | ||
Equity method investment, fair value | $ 60,332 | $ 67,571 | ||
Autumnwood Investments LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | 0.00% | 0.00% | ||
Equity method investment | $ 2,092 | $ 2,127 | ||
Changes in fair value, gain (loss) | $ 260 | $ 281 | $ 276 | |
200 RHC Hoover, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | 63.00% | 63.00% | ||
Equity method investment | $ 8,886 | $ 8,649 | ||
Changes in fair value, gain (loss) | $ 1,370 | $ 394 | 0 | |
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | 45.00% | 0.00% | ||
Equity method investment | $ 7,949 | $ 0 | ||
Changes in fair value, gain (loss) | $ 433 | $ 0 | 0 | |
RiverBanc LLC (RiverBanc) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [1] | 0.00% | 20.00% | |
Equity method investment | [1] | $ 0 | $ 597 | |
Changes in fair value, gain (loss) | $ 125 | $ 815 | 2,644 | |
Kiawah River View Investors LLC (KRVI) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [2] | 0.00% | 31.00% | |
Equity method investment | [2] | $ 0 | $ 8,718 | |
Changes in fair value, gain (loss) | $ 1,250 | $ 866 | 611 | |
RB Development Holding Company, LLC (RBDHC) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [3] | 0.00% | 63.00% | |
Equity method investment, fair value | [3] | $ 0 | $ 1,927 | |
Changes in fair value, gain (loss) | $ 107 | $ (9) | 373 | |
RB Multifamily Investors LLC (RBMI) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [3],[4] | 0.00% | 70.00% | |
Equity method investment, fair value | [3],[4] | $ 0 | $ 56,891 | |
Changes in fair value, gain (loss) | $ 2,262 | $ 5,263 | 657 | |
Morrocroft Neighborhood Stabilization Fund II, LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | 11.00% | 13.00% | ||
Equity method investment, fair value | $ 9,732 | $ 8,753 | ||
Changes in fair value, gain (loss) | $ 910 | $ 254 | 0 | |
Evergreens JV Holdings, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [5] | 85.00% | 0.00% | |
Equity method investment, fair value | [5] | $ 3,810 | $ 0 | |
Changes in fair value, gain (loss) | $ 199 | $ 0 | 0 | |
Bent Tree JV Holdings, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [5] | 78.00% | 0.00% | |
Equity method investment, fair value | [5] | $ 9,890 | $ 0 | |
Changes in fair value, gain (loss) | $ 411 | $ 0 | 0 | |
Summerchase LR Partners LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [5] | 80.00% | 0.00% | |
Equity method investment, fair value | [5] | $ 4,410 | $ 0 | |
Changes in fair value, gain (loss) | $ 380 | $ 0 | 0 | |
Lake Mary Realty Partners, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [5] | 80.00% | 0.00% | |
Equity method investment, fair value | [5] | $ 7,690 | $ 0 | |
Changes in fair value, gain (loss) | $ 554 | $ 0 | 0 | |
The Preserve at Port Royal Venture, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [5] | 77.00% | 0.00% | |
Equity method investment, fair value | [5] | $ 12,280 | $ 0 | |
Changes in fair value, gain (loss) | $ 834 | $ 0 | 0 | |
WR Savannah Holdings, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership interest | [5] | 90.00% | 0.00% | |
Equity method investment, fair value | [5] | $ 12,520 | $ 0 | |
Changes in fair value, gain (loss) | $ 692 | $ 0 | $ 0 | |
[1] | The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization (see Note 6). | |||
[2] | As of May 16, 2016, the Company consolidated KRVI in its consolidated financial statements (see Note 9). | |||
[3] | As of May 16, 2016, RBDHC and RBMI became wholly-owned subsidiaries of the Company as a result of the Company's acquisition of the remaining ownership interests in those entities held by other unaffiliated entities (see Note 21). | |||
[4] | As of May 16, 2016, RiverBanc became a wholly-owned subsidiary of the Company as a result of the Company's acquisition of the remaining ownership interests in RiverBanc held by other unaffiliated entities (see Note 21). | |||
[5] | Investments held by RBMI that are consolidated into the Company's financial statements beginning May 16, 2016. |
Investment in Unconsolidated 73
Investment in Unconsolidated Entities - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Unconsolidated Entities Balance Sheets: | ||
Real estate, net | $ 346,078 | $ 111,216 |
Investments in unconsolidated entities | 0 | 31,636 |
Mezzanine loan and preferred equity investments | 0 | 23,629 |
Other assets | 16,042 | 35,293 |
Total assets | 362,120 | 201,774 |
Notes payable, net | 236,388 | 41,918 |
Other liabilities | 6,686 | 8,624 |
Total liabilities | 243,074 | 50,542 |
Members' equity | 119,046 | 151,232 |
Total liabilities and members' equity | $ 362,120 | $ 201,774 |
Investment in Unconsolidated 74
Investment in Unconsolidated Entities - Operating Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Unconsolidated Entities Operating Statements: | ||||
Rental revenues | [1] | $ 26,397 | $ 2,121 | $ 0 |
Other income | [1] | 3,131 | 3,732 | 12,034 |
Operating expenses | [1] | 19,227 | 9,267 | 3,097 |
Income (loss) before debt service, acquisition costs, and depreciation and amortization | [1] | 10,301 | (3,414) | 8,937 |
Interest expense | [1] | (6,149) | (356) | 0 |
Acquisition costs | [1] | (1,448) | (1,660) | 0 |
Depreciation and amortization | [1] | (15,879) | (1,711) | (8) |
Net (loss) income | [1] | $ (13,175) | $ (7,141) | $ 8,929 |
[1] | The Company records income (loss) from investments in unconsolidated entities under either the equity method of accounting or the fair value option. Accordingly, the combined net (loss) income shown above is not indicative of the income recognized by the Company from investments in unconsolidated entities. |
Mezzanine Loan and Preferred 75
Mezzanine Loan and Preferred Equity Investments - (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Variable Interest Entity [Line Items] | ||
Total | $ 100,150 | $ 44,151 |
Mezzanine loan and preferred equity investments | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 101,154 | 44,529 |
Deferred loan fees, net | (1,004) | (378) |
Total | $ 100,150 | $ 44,151 |
Number of delinquent loans | loan | 0 | 0 |
Texas | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 43.30% | 31.40% |
Virginia | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 14.90% | 9.40% |
South Carolina | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 9.40% | 10.00% |
Kentucky | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 7.20% | 16.00% |
Massachusetts | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 6.90% | 15.70% |
Georgia | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 6.30% | 0.00% |
Florida | ||
Variable Interest Entity [Line Items] | ||
Concentration risk, percentage | 5.10% | 0.00% |
Use of Special Purpose Entiti76
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Narrative (Details) $ in Thousands | May 16, 2016 | Oct. 31, 2016USD ($) | Dec. 31, 2016USD ($)securitization | Dec. 31, 2015USD ($)securitization | Dec. 31, 2014USD ($) | Dec. 31, 2006securitization |
Variable Interest Entity [Line Items] | ||||||
Repayments of secured debt | $ | $ 126,018 | $ 116,136 | $ 75,796 | |||
Unconsolidated VIE, maximum loss exposure | $ | $ 185,300 | $ 170,700 | ||||
Residential Mortgage Loan Securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations completed to date | 4 | |||||
Distressed residential mortgage loans | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations, accounted for as permanent financing | 3 | |||||
K-Series | Consolidated K-Series | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations | 5 | 5 | 4 | |||
K-Series | Non-Financing VIEs, Multi-Family CMBS | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations considered non-financing VIEs | 4 | 1 | ||||
K-Series | Multi-Family Collateralized Mortgage Backed Securities | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations | 2 | |||||
RBDHC | ||||||
Variable Interest Entity [Line Items] | ||||||
Equity method investment, cumulative percentage ownership after all transactions | 100.00% | |||||
RBDHC | Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable interest entity, ownership percentage | 50.00% | |||||
Collateralized Loan Obligation | ||||||
Variable Interest Entity [Line Items] | ||||||
Repayments of secured debt | $ | $ 55,900 | $ 136,314 | $ 85,966 | $ 83,839 |
Use of Special Purpose Entiti77
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Assets and Liabilities of Consolidated VIEs (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2016USD ($)securitization | Dec. 31, 2016USD ($)securitization | Dec. 31, 2015USD ($)securitization | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Cash and cash equivalents | $ 83,554 | $ 61,959 | $ 75,598 | $ 31,798 | ||||
Multi-family loans held in securitization trusts, at fair value | 6,939,844 | 7,105,336 | ||||||
Receivables and other assets | 156,092 | 83,995 | ||||||
Total Assets | 8,951,631 | 9,056,242 | ||||||
Securitized debt | 158,867 | 116,541 | ||||||
Accrued expenses and other liabilities | 65,969 | 59,527 | ||||||
Total liabilities | 8,100,469 | 8,175,716 | ||||||
Repayments of secured debt | 126,018 | 116,136 | 75,796 | |||||
Collateralized Loan Obligation | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Repayments of secured debt | $ 55,900 | 136,314 | 85,966 | 83,839 | ||||
Residential collateralized debt obligations | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 91,663 | 116,710 | ||||||
Repayments of secured debt | 25,152 | 28,952 | $ 12,918 | |||||
Multi-family collateralized debt obligations, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 6,624,896 | 6,818,901 | ||||||
Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | 95,144 | 119,921 | ||||||
Financing VIEs, Multi-family CMBS Re-securitization | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Investment securities available for sale, at fair value held in securitization trusts | 43,897 | [1] | 40,734 | [2] | ||||
Multi-family loans held in securitization trusts, at fair value | [2] | 1,224,036 | ||||||
Receivables and other assets | 4,420 | [1] | 4,458 | [2] | ||||
Total Assets | 1,245,152 | [1] | 1,269,228 | [2] | ||||
Securitized debt | [3],[4] | 28,332 | [1] | 27,613 | [2] | |||
Accrued expenses and other liabilities | 4,400 | [1] | 4,436 | [2] | ||||
Total liabilities | 1,169,734 | [1] | 1,200,519 | [2] | ||||
Financing VIEs, Multi-family CMBS Re-securitization | Multi-family collateralized debt obligations, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 1,137,002 | [1] | $ 1,168,470 | [2] | ||||
Financing VIEs, Multi-family CMBS Re-securitization | K-Series | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Number of securitizations | securitization | 2 | |||||||
Number of consolidated securitizations | securitization | 1 | |||||||
Financing VIEs, Multi-family CMBS Re-securitization | Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | [2] | $ 0 | ||||||
Financing VIEs, Multi-family CMBS Re-securitization | Multi-family loans held in securitization trusts, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Multi-family loans held in securitization trusts, at fair value | [1] | 1,196,835 | ||||||
Financing VIEs, Collateralized Recourse Financing | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Multi-family loans held in securitization trusts, at fair value | [5] | 4,633,061 | ||||||
Receivables and other assets | [5] | 15,057 | ||||||
Total Assets | [5] | 4,648,118 | ||||||
Securitized debt | [3],[6] | 0 | 55,629 | [5] | ||||
Accrued expenses and other liabilities | [5] | 14,750 | ||||||
Total liabilities | [5] | 4,534,719 | ||||||
Financing VIEs, Collateralized Recourse Financing | Multi-family collateralized debt obligations, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | [5] | $ 4,464,340 | ||||||
Financing VIEs, Collateralized Recourse Financing | K-Series | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Number of securitizations | securitization | 3 | |||||||
Financing VIEs, Collateralized Recourse Financing | K-Series | Collateralized Loan Obligation | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Number of securitizations | securitization | 3 | |||||||
Financing VIEs, Collateralized Recourse Financing | Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | [5] | $ 0 | ||||||
Financing VIEs, Residential Mortgage Loan Securitization | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Receivables and other assets | 912 | 1,200 | ||||||
Total Assets | 96,056 | 121,121 | ||||||
Accrued expenses and other liabilities | 20 | 13 | ||||||
Total liabilities | 91,683 | 116,723 | ||||||
Financing VIEs, Residential Mortgage Loan Securitization | Residential collateralized debt obligations | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 91,663 | 116,710 | ||||||
Financing VIEs, Residential Mortgage Loan Securitization | Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | 95,144 | 119,921 | ||||||
Financing VIEs, Distressed Residential Mortgage Loan Securitization | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Receivables and other assets | 13,610 | [7] | 5,717 | [8] | ||||
Total Assets | 208,957 | [7] | 119,931 | [8] | ||||
Securitized debt | [3] | 130,535 | [7] | 33,299 | [8] | |||
Accrued expenses and other liabilities | 1,336 | [7] | 368 | [8] | ||||
Total liabilities | 131,871 | [7] | 33,667 | [8] | ||||
Financing VIEs, Distressed Residential Mortgage Loan Securitization | Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | [8] | 0 | ||||||
Financing VIEs, Distressed Residential Mortgage Loan Securitization | Distressed residential mortgage loans held in securitization trusts, (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | 195,347 | [7] | 114,214 | [8] | ||||
Other VIEs, Multi-family CMBS | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Multi-family loans held in securitization trusts, at fair value | [5] | 1,248,239 | ||||||
Receivables and other assets | 19,753 | [9] | 5,456 | [5] | ||||
Total Assets | 5,762,762 | [9] | 1,253,695 | [5] | ||||
Accrued expenses and other liabilities | 19,753 | [9] | 5,456 | [5] | ||||
Total liabilities | 5,507,647 | [9] | 1,191,547 | [5] | ||||
Other VIEs, Multi-family CMBS | Multi-family collateralized debt obligations, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 5,487,894 | [9] | 1,186,091 | [5] | ||||
Other VIEs, Multi-family CMBS | Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | [5] | 0 | ||||||
Other VIEs, Multi-family CMBS | Multi-family loans held in securitization trusts, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Multi-family loans held in securitization trusts, at fair value | [9] | 5,743,009 | ||||||
Other VIEs | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Cash and cash equivalents | 186 | |||||||
Receivables and other assets | 17,759 | |||||||
Total Assets | 17,945 | |||||||
Accrued expenses and other liabilities | 1,601 | |||||||
Total liabilities | 1,601 | |||||||
Financing And Other VIEs | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Cash and cash equivalents | 186 | |||||||
Investment securities available for sale, at fair value held in securitization trusts | 43,897 | 40,734 | ||||||
Multi-family loans held in securitization trusts, at fair value | 7,105,336 | |||||||
Receivables and other assets | 56,454 | 31,888 | ||||||
Total Assets | 7,330,872 | 7,412,093 | ||||||
Securitized debt | 158,867 | 116,541 | ||||||
Accrued expenses and other liabilities | 27,110 | 25,023 | ||||||
Total liabilities | 6,902,536 | 7,077,175 | ||||||
Financing And Other VIEs | Residential collateralized debt obligations | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 91,663 | 116,710 | ||||||
Financing And Other VIEs | Multi-family collateralized debt obligations, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential and multi-family collateralized debt obligations | 6,624,896 | 6,818,901 | ||||||
Financing And Other VIEs | Residential mortgage loans held in securitization trusts (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | 95,144 | 119,921 | ||||||
Financing And Other VIEs | Distressed residential mortgage loans held in securitization trusts, (net) | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Residential mortgage loans | 195,347 | $ 114,214 | ||||||
Financing And Other VIEs | Multi-family loans held in securitization trusts, at fair value | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Multi-family loans held in securitization trusts, at fair value | $ 6,939,844 | |||||||
Non-Financing VIEs, Multi-Family CMBS | K-Series | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Number of securitizations considered non-financing VIEs | securitization | 4 | 1 | ||||||
Class A Notes | Collateralized Mortgage Obligations | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Transfer of financial assets accounted for as sale, initial fair value of assets obtained as proceeds | $ 177,500 | |||||||
Available-for-sale securities, debt securities, ownership percentage | 5.00% | |||||||
[1] | The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization (see Note 6). | |||||||
[2] | The Company classified the multi-family CMBS issued by two K-Series securitizations and held by the Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization (see Note 6). | |||||||
[3] | Classified as securitized debt in the liability section of the Company’s accompanying consolidated balance sheets. | |||||||
[4] | The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. | |||||||
[5] | The multi-family CMBS serving as collateral under the November 2013 collateralized recourse financing are comprised of securities issued from three separate Freddie Mac-sponsored multifamily K-Series securitizations. The Financing VIE consolidated these K-Series securitizations, including their assets, liabilities and expenses, in its financial statements as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in such K-Series securitizations (see Note 6). One of the Company's Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series is not held in a Financing VIE as of December 31, 2015. | |||||||
[6] | The Company entered into a CMBS Master Repurchase Agreement with a three-year term for the purpose of financing a portion of its multi-family CMBS portfolio. In connection with the transaction, the Company agreed to guarantee the due and punctual payment of its wholly-owned subsidiary's obligations under the CMBS Master Repurchase Agreement. In October 2016, the Company repaid the $55.9 million of outstanding notes. | |||||||
[7] | The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of December 31, 2016 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of this securitization transaction, which have been eliminated in consolidation. | |||||||
[8] | The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by the first liens on one to four family properties. Balances are related to distressed residential mortgage loan securitizations transactions completed in 2013. The outstanding notes from these transactions were repaid in February 2016, which resulted in the termination and de-consolidation of the Financing VIE that facilitated these financing transactions. | |||||||
[9] | Four of the Company’s Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series are not held in a Financing VIE as of December 31, 2016. In October 2016, the Company repaid $55.9 million of outstanding notes from its November 2013 collateralized recourse financing, which was comprised of securities issued from three separate Freddie Mac-sponsored multi-family K-Series securitizations. In connection with the repayment of the notes, the Company terminated and de-consolidated the Financing VIE that facilitated this financing transaction and securities serving as collateral on the notes were transferred back to the Company. |
Use of Special Purpose Entiti78
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Key Details of Financing VIEs (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($)securitization | Dec. 31, 2015USD ($)securitization | Dec. 31, 2006securitization | ||||
Variable Interest Entity [Line Items] | ||||||
Securitized debt, carrying value | $ 158,867 | $ 116,541 | ||||
Multi-family CMBS Re-securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitized debt, principal amount | [1] | 33,553 | 33,781 | |||
Securitized debt, carrying value | [1],[2] | $ 28,332 | [3] | 27,613 | [4] | |
Multi-family CMBS Re-securitization | LIBOR | ||||||
Variable Interest Entity [Line Items] | ||||||
Interest rate (as a percent) | [1] | 5.35% | ||||
Collateralized Recourse Financing | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitized debt, principal amount | [5] | $ 0 | 55,853 | |||
Securitized debt, carrying value | [2],[5] | $ 0 | 55,629 | [6] | ||
Repurchase agreements, expiration period | 3 years | |||||
Collateralized Recourse Financing | LIBOR | ||||||
Variable Interest Entity [Line Items] | ||||||
Basis spread on variable rate (as a percent) | [5] | 5.25% | ||||
Distressed residential mortgage loans | ||||||
Variable Interest Entity [Line Items] | ||||||
Securitized debt, principal amount | $ 132,319 | 33,656 | ||||
Securitized debt, carrying value | [2] | 130,535 | [7] | 33,299 | [8] | |
Distressed residential mortgage loans held in securitization trusts (net) | Distressed residential mortgage loans | ||||||
Variable Interest Entity [Line Items] | ||||||
Residential mortgage loans held in securitization | $ 195,347 | [7] | $ 114,214 | [8] | ||
Minimum | ||||||
Variable Interest Entity [Line Items] | ||||||
Repurchase agreements, expiration period | 12 months | |||||
Minimum | Distressed residential mortgage loans | LIBOR | ||||||
Variable Interest Entity [Line Items] | ||||||
Interest rate (as a percent) | 4.00% | |||||
Maximum | ||||||
Variable Interest Entity [Line Items] | ||||||
Repurchase agreements, expiration period | 15 months | |||||
Maximum | Distressed residential mortgage loans | LIBOR | ||||||
Variable Interest Entity [Line Items] | ||||||
Interest rate (as a percent) | 4.85% | |||||
K-Series | Consolidated K-Series | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations | securitization | 5 | 5 | 4 | |||
K-Series | Multi-family CMBS Re-securitization | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations | securitization | 2 | |||||
K-Series | Collateralized Recourse Financing | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of securitizations | securitization | 3 | |||||
[1] | The Company engaged in the re-securitization transaction primarily for the purpose of obtaining non-recourse financing on a portion of its multi-family CMBS portfolio. As a result of engaging in this transaction, the Company remains economically exposed to the first loss position on the underlying multi-family CMBS transferred to the Consolidated VIE. The holders of the Note issued in this re-securitization have no recourse to the general credit of the Company, but the Company does have the obligation, under certain circumstances, to repurchase assets upon the breach of certain representations and warranties. The Company will receive all remaining cash flow, if any, through its retained ownership. | |||||
[2] | Classified as securitized debt in the liability section of the Company’s accompanying consolidated balance sheets. | |||||
[3] | The Company classified the multi-family CMBS issued by two K-Series securitizations and held by this Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization (see Note 6). | |||||
[4] | The Company classified the multi-family CMBS issued by two K-Series securitizations and held by the Financing VIE as available for sale securities as the purpose is not to trade these securities. The Financing VIE consolidated one K-Series securitization that issued certain of the multi-family CMBS owned by the Company, including its assets, liabilities, income and expenses, in its financial statements, as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in this particular K-Series securitization (see Note 6). | |||||
[5] | The Company entered into a CMBS Master Repurchase Agreement with a three-year term for the purpose of financing a portion of its multi-family CMBS portfolio. In connection with the transaction, the Company agreed to guarantee the due and punctual payment of its wholly-owned subsidiary's obligations under the CMBS Master Repurchase Agreement. In October 2016, the Company repaid the $55.9 million of outstanding notes. | |||||
[6] | The multi-family CMBS serving as collateral under the November 2013 collateralized recourse financing are comprised of securities issued from three separate Freddie Mac-sponsored multifamily K-Series securitizations. The Financing VIE consolidated these K-Series securitizations, including their assets, liabilities and expenses, in its financial statements as based on a number of factors, the Company determined that it was the primary beneficiary and has a controlling financial interest in such K-Series securitizations (see Note 6). One of the Company's Freddie Mac-sponsored multi-family K-Series securitizations included in the Consolidated K-Series is not held in a Financing VIE as of December 31, 2015. | |||||
[7] | The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by first liens on one to four family properties. Balances as of December 31, 2016 are related to a securitization transaction that closed in April 2016 that involved the issuance of $177.5 million of Class A Notes representing the beneficial ownership in a pool of performing and re-performing seasoned mortgage loans. The Company holds 5% of the Class A Notes issued as part of this securitization transaction, which have been eliminated in consolidation. | |||||
[8] | The Company engaged in these transactions for the purpose of financing distressed residential mortgage loans acquired by the Company. The distressed residential mortgage loans serving as collateral for the financings are comprised of performing, re-performing and, to a lesser extent, non-performing, fixed and adjustable-rate, fully-amortizing, interest only and balloon, seasoned mortgage loans secured by the first liens on one to four family properties. Balances are related to distressed residential mortgage loan securitizations transactions completed in 2013. The outstanding notes from these transactions were repaid in February 2016, which resulted in the termination and de-consolidation of the Financing VIE that facilitated these financing transactions. |
Use of Special Purpose Entiti79
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Financing VIEs Securitized Debt by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Carrying value | $ 158,867 | $ 116,541 |
Financing VIE | ||
Variable Interest Entity [Line Items] | ||
Within 24 months | 0 | 89,509 |
Over 24 months to 36 months | 132,319 | 0 |
Over 36 months | 33,553 | 33,781 |
Total | 165,872 | 123,290 |
Discount | (5,589) | (5,763) |
Debt Issuance Costs, Net | (1,416) | (986) |
Carrying value | $ 158,867 | $ 116,541 |
Use of Special Purpose Entiti80
Use of Special Purpose Entities (SPE) and Variable Interest Entities (VIE) - Classification and Carrying Value of Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE, maximum loss exposure | $ 185,300 | $ 170,700 |
Receivables and other assets | 156,092 | 83,995 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 185,301 | 170,697 |
Investment securities available for sale, at fair value, held in securitization trusts | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 43,897 | 40,734 |
Receivables and other Assets | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 74 | 76 |
Mezzanine loan and preferred equity investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 100,150 | 44,151 |
Investment in unconsolidated entities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 41,180 | 85,736 |
Other VIEs, Multi-family CMBS | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 43,971 | 40,810 |
Other VIEs, Multi-family CMBS | Investment securities available for sale, at fair value, held in securitization trusts | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 43,897 | 40,734 |
Other VIEs, Multi-family CMBS | Receivables and other Assets | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 74 | 76 |
Other VIEs, Multi-family CMBS | Mezzanine loan and preferred equity investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Other VIEs, Multi-family CMBS | Investment in unconsolidated entities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Mezzanine/Construction Loan on Multi-family Properties | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 18,881 | 17,381 |
Mezzanine/Construction Loan on Multi-family Properties | Investment securities available for sale, at fair value, held in securitization trusts | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Mezzanine/Construction Loan on Multi-family Properties | Receivables and other Assets | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Mezzanine/Construction Loan on Multi-family Properties | Mezzanine loan and preferred equity investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 18,881 | 8,663 |
Mezzanine/Construction Loan on Multi-family Properties | Investment in unconsolidated entities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 8,718 |
Preferred Equity Investment on Multi-family Properties | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 100,197 | 46,264 |
Preferred Equity Investment on Multi-family Properties | Investment securities available for sale, at fair value, held in securitization trusts | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Preferred Equity Investment on Multi-family Properties | Receivables and other Assets | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Preferred Equity Investment on Multi-family Properties | Mezzanine loan and preferred equity investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 81,269 | 35,488 |
Preferred Equity Investment on Multi-family Properties | Investment in unconsolidated entities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 18,928 | 10,776 |
Equity Investment in Entities that Invest in Multi-family Properties | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 22,252 | 66,242 |
Equity Investment in Entities that Invest in Multi-family Properties | Investment securities available for sale, at fair value, held in securitization trusts | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Equity Investment in Entities that Invest in Multi-family Properties | Receivables and other Assets | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Equity Investment in Entities that Invest in Multi-family Properties | Mezzanine loan and preferred equity investments | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | 0 | 0 |
Equity Investment in Entities that Invest in Multi-family Properties | Investment in unconsolidated entities | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment amount | $ 22,252 | $ 66,242 |
Derivative Instruments and He81
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative liabilities | $ 498,000 | $ 1,500,000 | |
Restricted cash and cash equivalents | 56,000,000 | 20,800,000 | |
Payments to acquire other investments | 103,000 | 61,000 | $ 254,000 |
Not Designated as Hedging Instrument | TBA | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative liabilities | 148,000,000 | 228,000,000 | |
Proceeds from sale of investments | 114,400,000 | 55,100,000 | |
Payments to acquire other investments | 262,400,000 | 283,100,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative in liability position | 29,100 | 300,000 | |
Derivative liability netted against asset position | $ 133,500 | $ 300,000 | |
Estimated time to transfer unrealized gains on interest rate swap from AOCI to income | 12 months | ||
Unrealized losses on interest rate swaps to be reclassified from AOCI to income | $ 49,200 |
Derivative Instruments and He82
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
TBA Securities | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - assets | $ 148,139 | $ 226,929 | |
Eurodollar futures | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - assets | 1,175 | 0 | |
Derivatives not designated as hedging instruments - liabilities | 0 | 1,242 | |
Options on U.S. Treasury futures | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - assets | 0 | 15 | |
Interest rate swap futures | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - assets | 444 | 706 | |
Swaptions | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - assets | 431 | 821 | |
U.S. Treasury futures | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - liabilities | 107 | 0 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivatives not designated as hedging instruments - liabilities | [1] | $ 384 | $ 258 |
[1] | Includes interest rate swaps in our Agency IO portfolio. There was no netting of interest rate swaps at December 31, 2016 and December 31, 2015. |
Derivative Instruments and He83
Derivative Instruments and Hedging Activities - Derivative Instruments Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
TBA Securities | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | $ 222,000 | $ 273,000 |
Additions | 4,070,000 | 3,801,000 |
Settlement, Expiration or Exercise | (4,143,000) | (3,852,000) |
Ending Balance | 149,000 | 222,000 |
U.S. Treasury futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | 0 | 2,300 |
Additions | 201,900 | 150,200 |
Settlement, Expiration or Exercise | (184,800) | (152,500) |
Ending Balance | 17,100 | 0 |
Interest rate swap futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | (137,200) | (190,100) |
Additions | 868,800 | 1,165,200 |
Settlement, Expiration or Exercise | (883,300) | (1,112,300) |
Ending Balance | (151,700) | (137,200) |
Eurodollar futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | (2,769,000) | (2,961,000) |
Additions | 6,323,000 | 2,925,000 |
Settlement, Expiration or Exercise | (6,129,000) | (2,733,000) |
Ending Balance | (2,575,000) | (2,769,000) |
Options on U.S. Treasury futures | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | 28,000 | 21,000 |
Additions | 111,000 | 375,000 |
Settlement, Expiration or Exercise | (139,000) | (368,000) |
Ending Balance | 0 | 28,000 |
Swaptions | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | 159,000 | 180,000 |
Additions | 0 | 9,000 |
Settlement, Expiration or Exercise | (5,000) | (30,000) |
Ending Balance | 154,000 | 159,000 |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Roll Forward] | ||
Beginning Balance | 10,000 | 10,000 |
Additions | 5,000 | 0 |
Settlement, Expiration or Exercise | 0 | 0 |
Ending Balance | $ 15,000 | $ 10,000 |
Derivative Instruments and He84
Derivative Instruments and Hedging Activities - Components of Realized and Unrealized Gains and Losses (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Unrealized Gains (Losses) | $ 8,664 | $ 1,563 | $ (667) | $ (2,490) | $ (263) | $ 27,224 | $ 3,614 | $ 676 | $ 7,070 | $ (2,641) | $ (7,667) |
Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Realized Gains (Losses) | (1,244) | (6,708) | 2,990 | ||||||||
Unrealized Gains (Losses) | 3,057 | (2,700) | (1,627) | ||||||||
TBA Securities | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Realized Gains (Losses) | 3,998 | 5,244 | 13,708 | ||||||||
Unrealized Gains (Losses) | $ 534 | (2,253) | 2,472 | ||||||||
Eurodollar futures | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Number of derivatives held | 2,575 | 2,575 | |||||||||
Eurodollar futures | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Realized Gains (Losses) | $ (3,202) | (2,321) | (2,146) | ||||||||
Unrealized Gains (Losses) | 2,417 | (342) | 533 | ||||||||
Interest rate swaps | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Realized Gains (Losses) | 0 | 0 | 259 | ||||||||
Unrealized Gains (Losses) | (126) | (26) | (232) | ||||||||
Swaptions | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Realized Gains (Losses) | 0 | 0 | 0 | ||||||||
Unrealized Gains (Losses) | 568 | (658) | (1,068) | ||||||||
Options on U.S. Treasury futures | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Realized Gains (Losses) | (2,040) | (9,631) | (8,831) | ||||||||
Unrealized Gains (Losses) | $ (336) | $ 579 | $ (3,332) |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments Designated as Hedging Instruments (Details) - Designated as Hedging Instrument - Interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps, derivative assets | $ 108 | $ 304 |
Interest rate swaps, derivative liabilities | $ 6 | $ 0 |
Derivative Instruments and He86
Derivative Instruments and Hedging Activities - Derivative Instruments Included in the Company's Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated other comprehensive income (loss) for derivative instruments: | |||
Balance at beginning of the period | $ 880,526 | ||
Balance at end of the period | 848,075 | $ 880,526 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Accumulated other comprehensive income (loss) for derivative instruments: | |||
Balance at beginning of the period | 304 | 1,135 | $ 2,041 |
Unrealized (loss) gain on interest rate swaps | (202) | (831) | (906) |
Balance at end of the period | $ 102 | $ 304 | $ 1,135 |
Derivative Instruments and He87
Derivative Instruments and Hedging Activities - Interest Rate Swaps and Interest Rate Caps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Designated as Hedging Instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Interest expense-investment securities | $ 743 | $ 1,619 | $ 1,848 |
Derivative Instruments and He88
Derivative Instruments and Hedging Activities - Interest Rate Swaps (Details) - Cash Flow Hedging - Designated as Hedging Instrument - Interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional Amount | $ 225,000 | $ 225,000 |
Weighted Average Fixed Pay Interest Rate | 0.90% | 0.90% |
Weighted Average Variable Interest Rate | 0.75% | 0.40% |
Derivative Maturity, 2017 | ||
Derivative [Line Items] | ||
Notional Amount | $ 215,000 | $ 215,000 |
Weighted Average Fixed Pay Interest Rate | 0.83% | 0.83% |
Weighted Average Variable Interest Rate | 0.74% | 0.39% |
Derivative Maturity, 2019 | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000 | $ 10,000 |
Weighted Average Fixed Pay Interest Rate | 2.25% | 2.25% |
Weighted Average Variable Interest Rate | 0.97% | 0.59% |
Interest-Only-Strip | ||
Derivative [Line Items] | ||
Notional Amount | $ 5,000 | $ 0 |
Weighted Average Fixed Pay Interest Rate | 1.80% | 0.00% |
Weighted Average Variable Interest Rate | 1.00% | 0.00% |
Interest-Only-Strip | Derivative Maturity, 2026 | ||
Derivative [Line Items] | ||
Notional Amount | $ 5,000 | $ 0 |
Weighted Average Fixed Pay Interest Rate | 1.80% | 0.00% |
Weighted Average Variable Interest Rate | 1.00% | 0.00% |
Financing Arrangements, Portf89
Financing Arrangements, Portfolio Investments - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)counterparty | Dec. 31, 2015USD ($)counterparty | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Repurchase agreement, outstanding balance | $ 577,400 | |||
Repurchase agreement, average days to maturity | 12 days | 27 days | ||
Accrued interest payable | $ 1,100 | $ 300 | ||
Advance rate (as a percent) | 84.60% | |||
Average haircut (as a percent) | 15.40% | |||
Repurchase agreement, number of counterparties | counterparty | 8 | 6 | ||
Cash and cash equivalents | $ 83,554 | $ 61,959 | $ 75,598 | $ 31,798 |
Unencumbered investment securities | $ 85,100 | |||
Liquidation proceeds (as a percent) | 26.40% | |||
Agency RMBS | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average haircut (as a percent) | 5.00% | 5.00% | ||
Actual exposure of debt to equity | 5.10% | |||
Interest-Only-Strip | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average haircut (as a percent) | 25.00% | |||
Residential Mortgage Backed Securities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unencumbered investment securities | $ 29,100 | |||
Non-Agency RMBS | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average haircut (as a percent) | 25.00% | |||
Unencumbered investment securities | $ 12,300 | |||
CMBS | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average haircut (as a percent) | 27.00% | |||
Unencumbered investment securities | $ 43,600 | |||
Held in Agency IO Portfolio for Trading Purposes | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unencumbered investment securities | 35,600 | |||
Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Repurchase agreement, outstanding balance | $ 773,100 | |||
Weighted average interest rate (as a percent) | 1.92% | 0.71% | ||
Stockholders' Equity, Total | Lender Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Repurchase agreement, number of counterparties | counterparty | 0 | |||
FHLBI | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding secured advances from FHLBI | $ 121,000 | |||
Consolidated K-Series | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
K-series net carrying value | $ 314,900 | $ 286,400 | ||
Consolidated K-Series | CMBS | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
K-series net carrying value | $ 254,600 |
Financing Arrangements, Portf90
Financing Arrangements, Portfolio Investments - Assets Pledged as Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Borrowings | $ 773,142 | $ 577,413 |
Fair Value of Collateral Pledged | 945,143 | 639,683 |
Amortized Cost Of Collateral Pledged | 889,327 | 669,825 |
Agency ARMs | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Borrowings | 102,088 | 227,609 |
Fair Value of Collateral Pledged | 109,552 | 141,585 |
Amortized Cost Of Collateral Pledged | 110,903 | 143,754 |
Agency Fixed Rate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Borrowings | 289,619 | 261,644 |
Fair Value of Collateral Pledged | 308,411 | 374,691 |
Amortized Cost Of Collateral Pledged | 318,544 | 386,853 |
Agency IOs/U.S. Treasury Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Borrowings | 60,862 | 88,160 |
Fair Value of Collateral Pledged | 82,153 | 123,407 |
Amortized Cost Of Collateral Pledged | 93,819 | 139,218 |
Non-Agency RMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Borrowings | 113,749 | 0 |
Fair Value of Collateral Pledged | 150,944 | 0 |
Amortized Cost Of Collateral Pledged | 149,969 | 0 |
CMBS | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding Borrowings | 206,824 | 0 |
Fair Value of Collateral Pledged | 294,083 | 0 |
Amortized Cost Of Collateral Pledged | $ 216,092 | $ 0 |
Financing Arrangements, Portf91
Financing Arrangements, Portfolio Investments - Outstanding Repurchase Agreement Borrowings by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding repurchase agreement by contractual maturity | $ 773,142 | $ 577,413 |
Within 30 days | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding repurchase agreement by contractual maturity | 729,134 | 468,402 |
Over 30 days to 90 days | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding repurchase agreement by contractual maturity | 44,008 | 85,423 |
Over 90 days | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Outstanding repurchase agreement by contractual maturity | $ 0 | $ 23,588 |
Financing Arrangements, Resid92
Financing Arrangements, Residential Mortgage Loans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Nov. 25, 2015 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase agreement, outstanding balance | $ 577,400,000 | ||
Pool of Distressed Residential Mortgage Loans | Deutsche Bank AG, Cayman Islands Branch | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase agreement, principal | $ 200,000,000 | 250,000,000 | |
Repurchase agreement, uncommitted principal amount | 50,000,000 | ||
Repurchase agreement, outstanding balance | $ 193,800,000 | $ 214,500,000 | |
Repurchase agreement, interest rate (as a percent) | 3.26% | 2.92% | |
Pool of Distressed Residential Mortgage Loans | LIBOR | Deutsche Bank AG, Cayman Islands Branch | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.50% | 2.50% | |
Residential Mortgage | Deutsche Bank AG, Cayman Islands Branch | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase agreement, principal | $ 100,000,000 | ||
Repurchase agreement, outstanding balance | $ 0 | $ 0 | |
Residential Mortgage | LIBOR | Deutsche Bank AG, Cayman Islands Branch | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Basis spread on variable rate (as a percent) | 4.00% |
Residential Collateralized De93
Residential Collateralized Debt Obligations - Narrative (Details) $ in Millions | Dec. 31, 2016USD ($)securitization | Dec. 31, 2015USD ($)securitization |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Number of residential CDO securitizations | securitization | 3 | 3 |
Net investment in residential securitization trusts | $ 4.4 | $ 4.4 |
Residential collateralized debt obligations | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateralized debt obligations | $ 91.7 | $ 116.7 |
Weighted average interest rate (as a percent) | 1.37% | 0.80% |
ARM Loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged as collateral | $ 98.3 | $ 122.5 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
NYM Preferred Trust I | ||
Subordinated Borrowing [Line Items] | ||
Principal value of trust preferred securities | $ 25,000,000 | $ 25,000,000 |
Interest Rate | Three month LIBOR plus 3.75%, resetting quarterly | Three month LIBOR plus 3.75%, resetting quarterly |
Scheduled maturity | March 30, 2035 | March 30, 2035 |
NYM Preferred Trust II | ||
Subordinated Borrowing [Line Items] | ||
Principal value of trust preferred securities | $ 20,000,000 | $ 20,000,000 |
Interest Rate | Three month LIBOR plus 3.95%, resetting quarterly | Three month LIBOR plus 3.95%, resetting quarterly |
Scheduled maturity | October 30, 2035 | October 30, 2035 |
Three-Month LIBOR | NYM Preferred Trust I | ||
Subordinated Borrowing [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.75% | 3.75% |
Three-Month LIBOR | NYM Preferred Trust II | ||
Subordinated Borrowing [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.95% | 3.95% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Commitments [Line Items] | |||
Security deposit | $ 0.2 | ||
GP 275 Owner LLC | |||
Other Commitments [Line Items] | |||
Rent expense | $ 0.3 | $ 0.2 | $ 0.2 |
Commitments and Contingencies96
Commitments and Contingencies - Obligations Under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 337 |
2,018 | 348 |
2,019 | 353 |
2,020 | 298 |
2,021 | 217 |
Thereafter | 435 |
Total future minimum payments due | $ 1,988 |
Fair Value of Financial Instr97
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Distressed residential mortgage loans, net, held in securitization trusts | $ 195,347 | $ 114,214 |
CMBS | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value inputs, discount rate | 4.50% | |
CMBS | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value inputs, discount rate | 10.50% | |
Available-for-sale Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities held in securitization | $ 43,897 | 40,734 |
Distressed residential mortgage loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Distressed residential mortgage loans, net, held in securitization trusts | 195,300 | 114,200 |
Distressed residential mortgage loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Distressed residential mortgage loans, net, held in securitization trusts | 503,100 | 559,000 |
Residential mortgage loans | 307,700 | 444,800 |
Equity Method Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity method investment, fair value | $ 60,332 | $ 67,571 |
Fair Value of Financial Instr98
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets carried at fair value | |||
Investment securities available for sale | [1] | $ 818,976 | $ 765,454 |
Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investments in unconsolidated entities | 60,332 | 67,571 | |
Total | 7,969,449 | 8,167,136 | |
Liabilities carried at fair value | |||
Total | 6,625,394 | 6,820,401 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investments in unconsolidated entities | 0 | 0 | |
Total | 4,506 | 10,758 | |
Liabilities carried at fair value | |||
Total | 107 | 1,242 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investments in unconsolidated entities | 0 | 0 | |
Total | 920,870 | 942,737 | |
Liabilities carried at fair value | |||
Total | 391 | 258 | |
Level 3 | |||
Assets carried at fair value | |||
Investments in unconsolidated entities | [2] | 79,390 | 87,558 |
Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investments in unconsolidated entities | 60,332 | 67,571 | |
Total | 7,044,073 | 7,213,641 | |
Liabilities carried at fair value | |||
Total | 6,624,896 | 6,818,901 | |
Agency RMBS | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 526,363 | 713,116 | |
Agency RMBS | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
Agency RMBS | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 526,363 | 713,116 | |
Agency RMBS | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
Non-Agency RMBS | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 163,284 | 1,567 | |
Non-Agency RMBS | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
Non-Agency RMBS | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 163,284 | 1,567 | |
Non-Agency RMBS | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
U.S. Treasury securities | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 2,887 | 10,037 | |
U.S. Treasury securities | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 2,887 | 10,037 | |
U.S. Treasury securities | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
U.S. Treasury securities | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
CMBS | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 126,442 | 40,734 | |
CMBS | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 0 | 0 | |
CMBS | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 82,545 | 0 | |
CMBS | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Investment securities available for sale | 43,897 | 40,734 | |
Multi-family loans held in securitization trusts | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Multi-family loans held in securitization trusts | 6,939,844 | 7,105,336 | |
Multi-family loans held in securitization trusts | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Multi-family loans held in securitization trusts | 0 | 0 | |
Multi-family loans held in securitization trusts | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Multi-family loans held in securitization trusts | 0 | 0 | |
Multi-family loans held in securitization trusts | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Multi-family loans held in securitization trusts | 6,939,844 | 7,105,336 | |
Multi-family collateralized debt obligations, at fair value | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Multi-family collateralized debt obligations | 6,624,896 | 6,818,901 | |
Multi-family collateralized debt obligations, at fair value | Level 1 | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Multi-family collateralized debt obligations | 0 | 0 | |
Multi-family collateralized debt obligations, at fair value | Level 2 | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Multi-family collateralized debt obligations | 0 | 0 | |
Multi-family collateralized debt obligations, at fair value | Level 3 | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Multi-family collateralized debt obligations | 6,624,896 | 6,818,901 | |
TBA Securities | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 148,139 | 226,929 | |
TBA Securities | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
TBA Securities | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 148,139 | 226,929 | |
TBA Securities | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Options on U.S. Treasury futures | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 15 | |
Options on U.S. Treasury futures | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 15 | |
Options on U.S. Treasury futures | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Options on U.S. Treasury futures | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
U.S. Treasury futures | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Derivative liabilities | 107 | 0 | |
U.S. Treasury futures | Level 1 | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Derivative liabilities | 107 | 0 | |
U.S. Treasury futures | Level 2 | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 0 | |
U.S. Treasury futures | Level 3 | Fair Value, Measurements, Recurring | |||
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 0 | |
Interest rate swap futures | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 444 | 706 | |
Interest rate swap futures | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 444 | 706 | |
Interest rate swap futures | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Interest rate swap futures | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Interest rate swaps | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 108 | 304 | |
Liabilities carried at fair value | |||
Derivative liabilities | 391 | 258 | |
Interest rate swaps | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 0 | |
Interest rate swaps | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 108 | 304 | |
Liabilities carried at fair value | |||
Derivative liabilities | 391 | 258 | |
Interest rate swaps | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 0 | |
Swaptions | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 431 | 821 | |
Swaptions | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Swaptions | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 431 | 821 | |
Swaptions | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Eurodollar futures | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 1,175 | 0 | |
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 1,242 | |
Eurodollar futures | Level 1 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 1,175 | 0 | |
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 1,242 | |
Eurodollar futures | Level 2 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Liabilities carried at fair value | |||
Derivative liabilities | 0 | 0 | |
Eurodollar futures | Level 3 | Fair Value, Measurements, Recurring | |||
Assets carried at fair value | |||
Derivative assets | 0 | 0 | |
Liabilities carried at fair value | |||
Derivative liabilities | $ 0 | $ 0 | |
[1] | Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. | ||
[2] | Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $60.3 million and $67.6 million at December 31, 2016 and December 31, 2015, respectively. |
Fair Value of Financial Instr99
Fair Value of Financial Instruments - Valuation for Level 3 Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | $ 7,213,641 | $ 8,442,604 | $ 8,209,702 | ||
Total gains (realized/unrealized) | |||||
Included in earnings | [1] | (19,460) | (90,662) | 384,826 | |
Included in other comprehensive income (loss) | 224 | (360) | (5,863) | ||
Sales | [2] | 0 | (1,075,529) | (93,578) | |
Transfers in | [3] | 52,176 | 0 | 0 | |
Transfers out | [4] | (56,756) | 0 | 0 | |
Contributions | 3,200 | 26,461 | 33,075 | ||
Paydowns | (141,263) | (85,979) | (80,451) | ||
Distributions | (7,689) | (2,894) | (1,712) | ||
Sale of real estate owned | 0 | 0 | (3,395) | ||
Balance at the end of period | $ 7,044,073 | $ 7,213,641 | $ 8,442,604 | ||
PO Security | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Proceeds from sale of investments | $ 44,300 | ||||
Gain on sale of investments | 1,500 | ||||
Multi-family collaterized mortgage backed securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Deconsolidation of assets | 1,100,000 | ||||
Multi-family collateralized debt obligations, at fair value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Deconsolidation of assets | $ 1,000,000 | ||||
[1] | Amounts included in interest income from multi-family loans held in securitization trusts, unrealized gain on multi-family loans and debt held in securitization trusts, realized gain (loss) on investment securities and related hedges, gain on de-consolidation, and other income. | ||||
[2] | In February 2015, the Company sold a first loss PO security from one of the Company’s Consolidated K-Series securitizations obtaining total proceeds of approximately $44.3 million and realizing a gain of approximately $1.5 million. The sale resulted in a de-consolidation of $1.1 billion in Multi-Family loans held in a securitization trust and $1.0 billion in Multi-Family CDOs. | ||||
[3] | Transfers into Level 3 are investments in unconsolidated entities held by RiverBanc and RBMI for which the Company accounts under the equity method of accounting with a fair value election. These transfers in are a result of the Company’s acquisition of the outstanding membership interests in RiverBanc and RBMI that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements. (see Note 21). | ||||
[4] | Transfers out of Level 3 are the Company’s previously held membership interests in RBMI and RBDHC that were accounted for under the equity method of accounting with a fair value election. These transfers out are a result of the Company’s acquisition of the outstanding membership interests in RBMI and RBDHC that were not previously owned by the Company on May 16, 2016, which resulted in consolidation of these entities into the Company's financial statements. (see Note 21). |
Fair Value of Financial Inst100
Fair Value of Financial Instruments - Valuation for Level 3 Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | $ 6,818,901 | $ 8,048,053 | $ 7,871,020 | ||
Total gains (realized/unrealized) | |||||
Included in earnings | [1] | (57,687) | (133,245) | 260,872 | |
Purchases/(Sales) | [2] | 0 | (1,009,942) | 0 | |
Paydowns | (136,318) | (85,965) | (83,839) | ||
Balance at the end of period | $ 6,624,896 | $ 6,818,901 | $ 8,048,053 | ||
PO Security | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Proceeds from sale of investments | $ 44,300 | ||||
Gain on sale of investments | 1,500 | ||||
Multi-family collaterized mortgage backed securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Deconsolidation of assets | 1,100,000 | ||||
Multi-family collateralized debt obligations, at fair value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Deconsolidation of assets | $ 1,000,000 | ||||
[1] | Amounts included in interest expense on multi-family collateralized debt obligations, realized gain (loss) on investment securities and related hedges, net and unrealized gain on multi-family loans and debt held in securitization trusts, net. | ||||
[2] | Included in receivables and other assets in the accompanying consolidated balance sheets. |
Fair Value of Financial Inst101
Fair Value of Financial Instruments - Changes in Unrealized Gains (Losses) Included in Earnings for Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Net change in unrealized gains included in earnings for assets and liabilities | $ 692 | $ 738 | $ 784 | $ 818 | $ 1,002 | $ (2,631) | $ 4,716 | $ (5,728) | $ 3,032 | $ 12,368 | $ 56,931 |
Level 3 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Change in unrealized gains (losses) – assets | 10,794 | (61,957) | 390,371 | ||||||||
Change in unrealized (losses) gains – liabilities | (7,762) | 74,325 | (333,440) | ||||||||
Net change in unrealized gains included in earnings for assets and liabilities | $ 3,032 | $ 12,368 | $ 56,931 |
Fair Value of Financial Inst102
Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Residential mortgage loans held in securitization trusts – impaired loans (net) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential Mortgage loans held in securitization trusts – impaired loans (net) | $ 9,050 | $ 8,976 |
Residential mortgage loans held in securitization trusts – impaired loans (net) | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential Mortgage loans held in securitization trusts – impaired loans (net) | 0 | 0 |
Residential mortgage loans held in securitization trusts – impaired loans (net) | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential Mortgage loans held in securitization trusts – impaired loans (net) | 0 | 0 |
Residential mortgage loans held in securitization trusts – impaired loans (net) | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential Mortgage loans held in securitization trusts – impaired loans (net) | 9,050 | 8,976 |
Real estate owned held in residential securitization trusts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | 150 | 411 |
Real estate owned held in residential securitization trusts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | 0 | 0 |
Real estate owned held in residential securitization trusts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | 0 | 0 |
Real estate owned held in residential securitization trusts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned held in residential securitization trusts | $ 150 | $ 411 |
Fair Value of Financial Inst103
Fair Value of Financial Instruments - Losses Incurred for Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Residential mortgage loans held in securitization trusts – impaired loans (net) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Gain (loss) for assets measured at fair value on a non-recurring basis | $ (482) | $ (1,261) | $ (998) |
Real estate owned held in residential securitization trusts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Gain (loss) for assets measured at fair value on a non-recurring basis | $ (130) | $ 100 | $ (103) |
Fair Value of Financial Inst104
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of the Company's Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Assets: | |||||
Cash and cash equivalents | $ 83,554 | $ 61,959 | $ 75,598 | $ 31,798 | |
Investment securities available for sale | [1] | 818,976 | 765,454 | ||
Derivative assets | 150,296 | 228,775 | |||
Mezzanine loan and preferred equity investments | 156,092 | 83,995 | |||
Financial Liabilities: | |||||
Outstanding Borrowings | 773,142 | 577,413 | |||
Derivative liabilities | 498 | 1,500 | |||
Subordinated debentures | 45,000 | 45,000 | |||
Distressed residential mortgage loans, net, held in securitization trusts | 195,347 | 114,214 | |||
Financing arrangements, portfolio investments | |||||
Financial Liabilities: | |||||
Outstanding Borrowings | 773,142 | 577,413 | |||
Residential collateralized debt obligations | |||||
Financial Liabilities: | |||||
Collateralized debt obligations | 91,663 | 116,710 | |||
Multi-family collateralized debt obligations, at fair value | |||||
Financial Liabilities: | |||||
Collateralized debt obligations | 6,624,896 | 6,818,901 | |||
Distressed residential mortgage loans held in securitization trusts (net) | |||||
Financial Liabilities: | |||||
Distressed residential mortgage loans, net, held in securitization trusts | 195,300 | 114,200 | |||
Distressed residential mortgage loans | |||||
Financial Assets: | |||||
Residential mortgage loans held in securitization | 307,700 | 444,800 | |||
Financial Liabilities: | |||||
Distressed residential mortgage loans, net, held in securitization trusts | 503,100 | 559,000 | |||
Level 1 or 2 | |||||
Financial Assets: | |||||
Derivative assets | 150,296 | 228,775 | |||
Financial Liabilities: | |||||
Derivative liabilities | 498 | 1,500 | |||
Level 1 | |||||
Financial Assets: | |||||
Cash and cash equivalents | 83,554 | 61,959 | |||
Cash and cash equivalents, estimated fair value | 83,554 | 61,959 | |||
Financial Liabilities: | |||||
Payables for securities purchased | 148,015 | 227,969 | |||
Payables for securities purchased, fair value | 148,015 | 227,969 | |||
Level 2 | Financing arrangements, portfolio investments | |||||
Financial Liabilities: | |||||
Outstanding Borrowings | 773,142 | 577,413 | |||
Level 2 | Distressed residential mortgage loans | |||||
Financial Liabilities: | |||||
Outstanding Borrowings | 192,419 | 212,155 | |||
Level 3 | |||||
Financial Assets: | |||||
Mortgage loans held for sale (net) | [2] | 7,847 | 5,471 | ||
Mortgage loans held for sale, estimated fair value | [2] | 7,959 | 5,557 | ||
Mortgage loans held for investment | [2] | 19,529 | 2,706 | ||
Mortgage loans held for investment, estimated fair value | [2] | 19,641 | 2,846 | ||
Mezzanine loan and preferred equity investments | [3] | 100,150 | 44,151 | ||
Mezzanine loan and preferred equity investments, estimated fair value | [3] | 101,408 | 44,540 | ||
Investment in unconsolidated entities | [4] | 79,259 | 87,662 | ||
Investments in unconsolidated entities, estimated fair value | [4] | 79,390 | 87,558 | ||
Financial Liabilities: | |||||
Collateralized debt obligations | 158,867 | 116,541 | |||
Collateralized debt obligations, fair value | 163,884 | 123,776 | |||
Subordinated debentures | 45,000 | 45,000 | |||
Subordinated debentures, fair value | 43,132 | 42,731 | |||
Level 3 | Residential collateralized debt obligations | |||||
Financial Liabilities: | |||||
Collateralized debt obligations | 91,663 | 116,710 | |||
Collateralized debt obligations, fair value | 85,568 | 105,606 | |||
Level 3 | Multi-family collateralized debt obligations, at fair value | |||||
Financial Liabilities: | |||||
Collateralized debt obligations | 6,624,896 | 6,818,901 | |||
Collateralized debt obligations, fair value | 6,624,896 | 6,818,901 | |||
Level 3 | Residential mortgage loans held in securitization trusts | |||||
Financial Assets: | |||||
Residential mortgage loans held in securitization | 95,144 | 119,921 | |||
Residential mortgage loans held in securitization, estimated fair value | 88,718 | 109,120 | |||
Level 3 | Distressed residential mortgage loans | |||||
Financial Assets: | |||||
Residential mortgage loans held in securitization | [5] | 503,094 | 558,989 | ||
Residential mortgage loans held in securitization, estimated fair value | [5] | 504,915 | 564,310 | ||
Level 3 | Multi-family loans held in securitization trusts, at fair value | |||||
Financial Assets: | |||||
Residential mortgage loans held in securitization | 6,939,844 | 7,105,336 | |||
Residential mortgage loans held in securitization, estimated fair value | 6,939,844 | 7,105,336 | |||
Equity Method Investments | |||||
Financial Assets: | |||||
Investment in unconsolidated entities | 18,927 | 20,091 | |||
Investments in unconsolidated entities, estimated fair value | 60,332 | 67,571 | |||
Fair Value, Measurements, Recurring | |||||
Financial Assets: | |||||
Investments in unconsolidated entities, estimated fair value | 60,332 | 67,571 | |||
Fair Value, Measurements, Recurring | Level 1 | |||||
Financial Assets: | |||||
Investments in unconsolidated entities, estimated fair value | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 2 | |||||
Financial Assets: | |||||
Investments in unconsolidated entities, estimated fair value | 0 | 0 | |||
Fair Value, Measurements, Recurring | Level 3 | |||||
Financial Assets: | |||||
Investments in unconsolidated entities, estimated fair value | 60,332 | 67,571 | |||
U.S. Treasury securities | |||||
Financial Assets: | |||||
Investment securities available for sale | [6] | $ 2,887 | $ 10,037 | ||
[1] | Includes $43.9 million and $40.7 million of investment securities for sale held in securitization trusts as of December 31, 2016 and December 31, 2015, respectively. | ||||
[2] | Included in receivables and other assets in the accompanying consolidated balance sheets. | ||||
[3] | Includes mezzanine loan and preferred equity investments accounted for as loans (see Note 8). | ||||
[4] | Includes investments in unconsolidated entities accounted for under the fair value option with a carrying value of $60.3 million and $67.6 million at December 31, 2016 and December 31, 2015, respectively. | ||||
[5] | Includes distressed residential mortgage loans held in securitization trusts with a carrying value amounting to approximately $195.3 million and $114.2 million at December 31, 2016 and December 31, 2015, respectively and distressed residential mortgage loans with a carrying value amounting to approximately $307.7 million and $444.8 million at December 31, 2016 and December 31, 2015, respectively. | ||||
[6] | Included in investment securities available for sale are Agency IOs, Agency RMBS and U.S. Treasury securities managed by Midway that are measured at fair value through earnings. |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Apr. 22, 2015USD ($)$ / sharesshares | Nov. 26, 2014USD ($) | Apr. 07, 2014USD ($) | Jan. 10, 2014USD ($) | Jun. 04, 2013USD ($)$ / sharesshares | Dec. 31, 2016USD ($)directorquarter$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Mar. 20, 2015USD ($)$ / sharesshares | Jun. 11, 2012USD ($) | |
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 200,000,000 | 200,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares issued (in shares) | shares | 6,600,000 | 6,600,000 | |||||||||
Preferred stock, shares outstanding (in shares) | shares | 6,600,000 | 6,600,000 | |||||||||
Preferred stock issuance, net | $ | $ 0 | $ 86,862,000 | $ 0 | ||||||||
Common stock dividend per share (in dollars per share) | $ 0.96 | $ 1.02 | $ 1.08 | ||||||||
Common stock, par value (in dollars per share) | 0.01 | 0.01 | |||||||||
Net proceeds | $ | [1] | $ 110,784,000 | $ 109,916,000 | $ 75,846,000 | |||||||
Ordinary Income | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock dividend per share (in dollars per share) | 0.435112 | 0.399764 | 0.61 | ||||||||
Capital Gain Distribution | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock dividend per share (in dollars per share) | 0.065284 | 0.35 | |||||||||
Return of Capital | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock dividend per share (in dollars per share) | $ 0.524624 | $ 0.554952 | $ 0.12 | ||||||||
Equity Distribution Agreements | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued (in shares) | shares | 1,905,206 | 2,789,439 | |||||||||
Common stock subscriptions (up to) | $ | $ 75,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||||||||
Share price (in dollars per share) | $ 6.87 | $ 7.91 | |||||||||
Net proceeds | $ | $ 12,800,000 | $ 21,600,000 | |||||||||
Common stock reserved for future issuance | $ | $ 39,800,000 | ||||||||||
2012 Equity Distribution Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued (in shares) | shares | 1,326,676 | 2,153,989 | |||||||||
Common stock subscriptions (up to) | $ | $ 25,000,000 | ||||||||||
Share price (in dollars per share) | $ 7.89 | $ 7.63 | |||||||||
Net proceeds | $ | $ 10,300,000 | $ 16,100,000 | |||||||||
Series B and C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Minimum number of quarters without dividends that result in voting rights | quarter | 6 | ||||||||||
Number of additional directors elected | director | 2 | ||||||||||
Preferred stock, percentage of stockholders required for term changes | 66.67% | ||||||||||
Series B Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 6,000,000 | 6,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares issued (in shares) | shares | 3,000,000 | 3,000,000 | |||||||||
Preferred stock, shares outstanding (in shares) | shares | 3,000,000 | 3,000,000 | |||||||||
Stock issued (in shares) | shares | 3,000,000 | ||||||||||
Preferred stock, Series B cumulative redeemable, dividend rate (as a percent) | 7.75% | 7.75% | 7.75% | ||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||||
Preferred stock issuance, net | $ | $ 72,400,000 | ||||||||||
Preferred stock, redemption price per share | $ 25 | ||||||||||
Preferred stock, redemption term | 120 days | ||||||||||
Series C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 4,140,000 | 4,140,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares issued (in shares) | shares | 3,600,000 | 3,600,000 | 3,600,000 | ||||||||
Preferred stock, shares outstanding (in shares) | shares | 3,600,000 | 3,600,000 | |||||||||
Preferred stock, Series B cumulative redeemable, dividend rate (as a percent) | 7.875% | 7.875% | 7.875% | ||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||||
Preferred stock issuance, net | $ | $ 86,900,000 | ||||||||||
Preferred stock, redemption price per share | $ 25 | ||||||||||
Preferred stock, redemption term | 120 days | ||||||||||
[1] | Proceeds are net of underwriting costs and offering expenses paid by the Company. |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Declared - Preferred Stock (Details) - $ / shares | Jan. 15, 2017 | Oct. 15, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | Jan. 15, 2016 | Oct. 15, 2015 | Jul. 15, 2015 | [1] | Apr. 15, 2015 | Jan. 15, 2015 | Oct. 15, 2014 | Jul. 15, 2014 | Apr. 15, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jul. 14, 2015 | [1] | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Dividends Payable [Line Items] | |||||||||||||||||||||||||||
Declaration Date | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | Dec. 16, 2015 | Sep. 18, 2015 | Jun. 18, 2015 | Mar. 18, 2015 | Dec. 12, 2014 | Sep. 18, 2014 | Jun. 18, 2014 | Mar. 13, 2014 | |||||||||||||||
Record Date | Dec. 27, 2016 | Sep. 26, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 28, 2015 | Sep. 28, 2015 | Jun. 29, 2015 | Mar. 30, 2015 | Dec. 22, 2014 | Sep. 29, 2014 | Jun. 30, 2014 | Mar. 24, 2014 | |||||||||||||||
Payment Date | Jan. 26, 2017 | Oct. 28, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | Jan. 25, 2016 | Oct. 26, 2015 | Jul. 27, 2015 | Apr. 27, 2015 | Jan. 26, 2015 | Oct. 27, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | |||||||||||||||
Series B Preferred Stock | |||||||||||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||||||||||
Declaration Date | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | Dec. 16, 2015 | Sep. 18, 2015 | Jun. 18, 2015 | Mar. 18, 2015 | Dec. 12, 2014 | Sep. 18, 2014 | Jun. 18, 2014 | Mar. 13, 2014 | |||||||||||||||
Record Date | Jan. 1, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | Jan. 1, 2016 | Oct. 1, 2015 | Jul. 1, 2015 | Apr. 1, 2015 | Jan. 1, 2015 | Oct. 1, 2014 | Jul. 1, 2014 | Apr. 1, 2014 | |||||||||||||||
Payment Date | Jan. 15, 2017 | Oct. 15, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | Jan. 15, 2016 | Oct. 15, 2015 | Jul. 15, 2015 | Apr. 15, 2015 | Jan. 15, 2015 | Oct. 15, 2014 | Jul. 15, 2014 | Apr. 15, 2014 | |||||||||||||||
Cash Dividend Per Share | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | $ 0.484375 | ||||||||||||||||
Series C Preferred Stock | |||||||||||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||||||||||
Declaration Date | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | Dec. 16, 2015 | Sep. 18, 2015 | Jun. 18, 2015 | ||||||||||||||||||||
Record Date | Jan. 1, 2017 | Oct. 1, 2016 | Jul. 1, 2016 | Apr. 1, 2016 | Jan. 1, 2016 | Oct. 1, 2015 | Jul. 1, 2015 | ||||||||||||||||||||
Payment Date | Jan. 15, 2017 | Oct. 15, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | Jan. 15, 2016 | Oct. 15, 2015 | Jul. 15, 2015 | ||||||||||||||||||||
Cash Dividend Per Share | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.45391000 | |||||||||||||||||||||
Subsequent Event | Series B Preferred Stock | |||||||||||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||||||||||
Cash Dividend Per Share | $ 0.484375 | ||||||||||||||||||||||||||
Subsequent Event | Series C Preferred Stock | |||||||||||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||||||||||
Cash Dividend Per Share | $ 0.4921875 | ||||||||||||||||||||||||||
[1] | The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. |
Stockholders' Equity - Cash 107
Stockholders' Equity - Cash Dividends Declared - Common Stock (Details) - $ / shares | Jan. 26, 2017 | Oct. 28, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | Jan. 25, 2016 | Oct. 26, 2015 | Jul. 27, 2015 | Apr. 27, 2015 | Jan. 26, 2015 | Oct. 27, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Dividends Payable [Line Items] | ||||||||||||||||||||||||
Declaration Date | Dec. 15, 2016 | Sep. 15, 2016 | Jun. 16, 2016 | Mar. 18, 2016 | Dec. 16, 2015 | Sep. 18, 2015 | Jun. 18, 2015 | Mar. 18, 2015 | Dec. 12, 2014 | Sep. 18, 2014 | Jun. 18, 2014 | Mar. 13, 2014 | ||||||||||||
Record Date | Dec. 27, 2016 | Sep. 26, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 28, 2015 | Sep. 28, 2015 | Jun. 29, 2015 | Mar. 30, 2015 | Dec. 22, 2014 | Sep. 29, 2014 | Jun. 30, 2014 | Mar. 24, 2014 | ||||||||||||
Payment Date | Jan. 26, 2017 | Oct. 28, 2016 | Jul. 25, 2016 | Apr. 25, 2016 | Jan. 25, 2016 | Oct. 26, 2015 | Jul. 27, 2015 | Apr. 27, 2015 | Jan. 26, 2015 | Oct. 27, 2014 | Jul. 25, 2014 | Apr. 25, 2014 | ||||||||||||
Cash Dividend Per Share | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | |||||||||||||
Subsequent Event | ||||||||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||||||||
Cash Dividend Per Share | $ 0.24 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Issuance (Details) - USD ($) shares in Thousands, $ in Thousands | Nov. 26, 2014 | Apr. 07, 2014 | Jan. 10, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Shares Issued | 14,410 | 14,950 | 11,500 | |
Net Proceeds | [1] | $ 110,784 | $ 109,916 | $ 75,846 |
[1] | Proceeds are net of underwriting costs and offering expenses paid by the Company. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Dilutive instruments (in shares) | 0 | 0 | 0 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income attributable to Company's common stockholders – Basic | $ 9,672 | $ 20,043 | $ 11,210 | $ 13,726 | $ 982 | $ 22,407 | $ 21,544 | $ 22,090 | $ 54,651 | $ 67,023 | $ 130,379 |
Net income attributable to Company's common stockholders– Dilutive | $ 54,651 | $ 67,023 | $ 130,379 | ||||||||
Denominator: | |||||||||||
Weighted average basic and dilutive shares outstanding (in shares) | 109,594 | 108,399 | 87,867 | ||||||||
EPS: | |||||||||||
Basic EPS (in dollars per share) | $ 0.09 | $ 0.18 | $ 0.10 | $ 0.13 | $ 0.01 | $ 0.20 | $ 0.20 | $ 0.21 | $ 0.50 | $ 0.62 | $ 1.48 |
Dilutive EPS (in dollars per share) | $ 0.09 | $ 0.18 | $ 0.10 | $ 0.13 | $ 0.01 | $ 0.20 | $ 0.20 | $ 0.21 | $ 0.50 | $ 0.62 | $ 1.48 |
Stock Incentive Plan - Narrativ
Stock Incentive Plan - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
May 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 1 | $ 0.9 | $ 0.4 | ||
2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum shares issuable (in shares) | 1,190,000 | ||||
Common shares reserved for issuance (in shares) | 326,663 | 551,609 | |||
Share Based Compensation Arrangement By Share Based Payment Award, Maximum Number of Shares That May Be Granted To Any Participant In A Calendar Year | 250,000 | ||||
Director | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued (in shares) | 207,014 | 146,935 | |||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding, unvested restricted stock (in shares) | 319,058 | 280,457 | 162,171 | 94,873 | |
Performance shares, grants in period (in shares) | 160,453 | 185,650 | 104,517 | ||
Restricted Stock | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding, unvested restricted stock (in shares) | 319,058 | 280,457 | |||
Forfeitures (in shares) | 0 | 0 | 0 | ||
Unrecognized compensation expense | $ 1.2 | $ 1.3 | |||
Weighted average period to recognize the unrecognized compensation expense | 1 year 289 days | ||||
Fair value of shares vested | $ 0.6 | $ 0.5 | $ 0.3 | ||
Requisite service period | 3 years | ||||
Employee Stock Option | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued (in shares) | 562,280 | 401,827 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Performance Shares | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 0.1 | ||||
Unrecognized compensation expense | $ 0.2 | ||||
Performance Shares | PSA Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum shares issuable (in shares) | 94,043 | ||||
Share Based Compensation Arrangement by Share Based Payment Award, Number Of Performance Shares Award Earned That Would Result in Cash Payout | 94,043 | ||||
Performance Shares | Board of Directors Chairman | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares, grants in period (in shares) | 89,629 | ||||
Performance shares, grants in period | $ 0.4 | ||||
Performance shares, vested shares as a percentage of target number of awards granted, lower range (as a percent) | 0.00% | ||||
Performance shares, vested shares as a percentage of target number of awards granted, upper range (as a percent) | 200.00% | ||||
Award vesting period | 3 years | ||||
Award vesting threshold (as a percent) | 0.33 | ||||
Fair value assumptions, expected term | 3 years | ||||
Fair value assumptions, expected term for expected volatility rate | 3 years | ||||
Fair value assumptions, expected term for risk-free interest rate | 3 years | ||||
Fair value assumptions, expected term for expected dividend rate | 3 years | ||||
If TSR Is Less Than 33% | Performance Shares | Board of Directors Chairman | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 0.00% | ||||
If TSR Is Greater Than Or Equal To 33% | Performance Shares | Board of Directors Chairman | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 100.00% | ||||
If TSR Is Greater Than Or Equal To 33% And TSR Is In Top Quartile Of Identified Peer Group | Performance Shares | Board of Directors Chairman | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 200.00% | ||||
If TSR Is Greater Than Or Equal To 33% And TSR Is In Bottom Quartile Of Identified Peer Group | Performance Shares | Board of Directors Chairman | 2010 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights (as a percent) | 50.00% | ||||
Maximum | Performance Shares | PSA Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum shares issuable (in shares) | 94,043 |
Stock Incentive Plan - Non-vest
Stock Incentive Plan - Non-vested Restricted Stock Options (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Number of Non-vested Restricted Shares | |||||
Non-vested shares, beginning balance (in shares) | 280,457 | 162,171 | 94,873 | ||
Granted (in shares) | 160,453 | 185,650 | 104,517 | ||
Vested (in shares) | (121,852) | (67,364) | (37,219) | ||
Non-vested shares, ending balance (in shares) | 319,058 | 280,457 | 162,171 | ||
Weighted Average Per Share Grant Date Fair Value | |||||
Non-vested shares, beginning balance (in dollars per share) | $ 7.63 | $ 7.26 | [1] | $ 7.01 | [1] |
Granted (in dollars per share) | 5.11 | 7.79 | 7.39 | [1] | |
Vested (in dollars per share) | 7.54 | 7.18 | 6.97 | [1] | |
Non-vested shares, ending balance (in dollars per share) | $ 6.40 | $ 7.63 | $ 7.26 | [1] | |
[1] | The grant date fair value of restricted stock awards is based on the closing market price of the Company’s common stock at the grant date. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Net (loss) income attributable to Company | $ 12,897 | $ 23,268 | $ 14,435 | $ 16,951 | $ 4,207 | $ 25,632 | $ 24,631 | $ 23,543 | $ 67,551 | $ 78,013 | $ 136,191 |
Taxable REIT Subsidiaries | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Net (loss) income attributable to Company | (5,000) | ||||||||||
Capital losses | $ 2,500 | ||||||||||
Earliest Tax Year | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Open tax year | 2,013 | ||||||||||
Latest Tax Year | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Open tax year | 2,016 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax expense | |||||||||||
Federal | $ 2,771 | $ 3,158 | $ 4,572 | ||||||||
State | 187 | 1,283 | 2,423 | ||||||||
Total current income tax expense | 2,958 | 4,441 | 6,995 | ||||||||
Deferred income tax expense (benefit) | |||||||||||
Federal | 104 | 69 | (458) | ||||||||
State | 33 | 25 | (142) | ||||||||
Total deferred income tax expense (benefit) | 137 | 94 | (600) | ||||||||
Total provision | $ 375 | $ 163 | $ 2,366 | $ 191 | $ 64 | $ 3,048 | $ 1,178 | $ 245 | $ 3,095 | $ 4,535 | $ 6,395 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Provision at statutory rate | $ 24,561 | $ 28,892 | $ 49,316 | ||||||||
Provision at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | ||||||||
Non-taxable REIT income | $ (20,672) | $ (25,733) | $ (44,247) | ||||||||
Non-taxable REIT income (as a percent) | (29.50%) | (31.20%) | (31.40%) | ||||||||
State and local tax provision | $ 187 | $ 1,284 | $ 2,420 | ||||||||
State and local tax provision (as a percent) | 0.30% | 1.60% | 1.70% | ||||||||
Other | $ (502) | $ 24,047 | $ (1,227) | ||||||||
Other (as a percent) | (0.70%) | 29.10% | (0.90%) | ||||||||
Valuation allowance | $ (479) | $ (23,955) | $ 133 | ||||||||
Valuation allowance (as a percent) | (0.70%) | (29.00%) | 0.10% | ||||||||
Total provision | $ 375 | $ 163 | $ 2,366 | $ 191 | $ 64 | $ 3,048 | $ 1,178 | $ 245 | $ 3,095 | $ 4,535 | $ 6,395 |
Total provision (as a percent) | 4.40% | 5.50% | 4.50% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets | |||
Net operating loss carryforward | $ 2,287 | $ 2,083 | |
Net capital loss carryforward | 1,123 | 2,029 | |
Other | 3,059 | 3,043 | |
Total deferred tax assets | [1] | 6,469 | 7,155 |
Deferred tax liabilities | |||
Deferred tax liabilities | [2] | 303 | 192 |
Valuation allowance | (5,978) | (6,457) | |
Total net deferred tax asset | $ 188 | $ 506 | |
[1] | Included in receivables and other assets in the accompanying consolidated balance sheets. | ||
[2] | Included in accrued expenses and other liabilities in the accompanying consolidated balance sheets. |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | May 16, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 01, 2016 | May 17, 2016 | May 15, 2016 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||
Equity Interest in acquiree, percentage | 80.00% | ||||||||
Capital | $ 371,500,000 | ||||||||
Payments to beneficial owner to acquire business | $ 16,300,000 | ||||||||
Goodwill purchase accounting adjustments | $ 20,000 | ||||||||
Gain on remeasurement of existing membership interest in businesses acquired | $ 5,052,000 | $ 0 | $ 0 | ||||||
Gain on bargain purchase on businesses acquired | 65,000 | $ 0 | $ 0 | ||||||
Goodwill accumulated impairment | $ 0 | ||||||||
RiverBanc, RBMI, and RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity method investment, cumulative percentage ownership after all transactions | 100.00% | ||||||||
Cash consideration paid for acquisition | [1] | $ 29,073,000 | |||||||
Contingent Consideration | 3,800,000 | ||||||||
Fair value of previously held membership interests | 20,608,000 | ||||||||
Total consideration transferred | 53,481,000 | ||||||||
Gain on remeasurement of existing membership interest in businesses acquired | 5,000,000 | ||||||||
RiverBanc | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage by noncontrolling owners prior to acquisition | 59.40% | ||||||||
RiverBanc | RiverBanc, RBMI, and RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity Interest in acquiree, percentage | 20.00% | ||||||||
RBMI | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage by noncontrolling owners prior to acquisition | 5.47% | ||||||||
RBMI | RiverBanc, RBMI, and RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity Interest in acquiree, percentage | 67.19% | ||||||||
RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage by noncontrolling owners prior to acquisition | 6.25% | ||||||||
RBDHC | RiverBanc, RBMI, and RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity Interest in acquiree, percentage | 62.50% | ||||||||
RBMI, RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Gain on bargain purchase on businesses acquired | [2] | $ 65,000 | |||||||
Other Income | RiverBanc, RBMI, and RBDHC | |||||||||
Business Acquisition [Line Items] | |||||||||
Gain on remeasurement of existing membership interest in businesses acquired | $ 5,000,000 | ||||||||
[1] | Included in receivables and other assets in the accompanying consolidated balance sheets. | ||||||||
[2] | Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC. |
Business Combinations Contingen
Business Combinations Contingent Consideration (Details) - RiverBanc, RBMI, and RBDHC $ in Millions | May 16, 2016USD ($) |
Cash Holdback | |
Business Acquisition, Contingent Consideration [Line Items] | |
Contingent consideration | $ 3 |
Reimbursement to previous beneficial owner for purchase of company shares | $ 3 |
Contingent consideration term | 90 days |
Severance Holdback | |
Business Acquisition, Contingent Consideration [Line Items] | |
Contingent consideration | $ 0.8 |
Business Combinations Schedule
Business Combinations Schedule Of Recognized Identified Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands | May 16, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||
Cash | $ 4,325 | ||||
Investment in unconsolidated entities | 52,176 | ||||
Mezzanine loan and preferred equity investments | 23,638 | ||||
Real estate under development | [1] | 14,922 | |||
Receivables and other assets | 911 | ||||
Intangible assets | [1] | 3,490 | |||
Total identifiable assets acquired | 99,462 | ||||
Preferred debt | [2] | 56,697 | |||
Construction loan payable | [3] | 8,499 | |||
Accrued expenses and other liabilities | 2,864 | ||||
Total liabilities assumed | 11,363 | ||||
Net identifiable assets acquired | 31,402 | ||||
Goodwill | $ 25,222 | $ 0 | |||
Gain on bargain purchase on businesses acquired | (65) | $ 0 | $ 0 | ||
Noncontrolling Interest, Increase from Business Combination | $ (3,078) | ||||
Net assets acquired | 53,481 | ||||
Intercompany transaction eliminated | 40,400 | ||||
Payables to third parties | 16,300 | ||||
Measurement period adjustment, intangible assets | 400 | ||||
Goodwill purchase accounting adjustments | 20 | ||||
RiverBanc, RBMI, and RBDHC | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling Interest, Increase from Business Combination | [4] | (3,078) | |||
Fair value of previously held membership interests | 20,608 | ||||
KRVI | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling Interest, Increase from Business Combination | (3,100) | ||||
RiverBanc | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 3,500 | ||||
Goodwill | [5] | 25,222 | |||
RBMI, RBDHC | |||||
Business Acquisition [Line Items] | |||||
Gain on bargain purchase on businesses acquired | [6] | $ (65) | |||
Minimum | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 1 year | 1 year | |||
Maximum | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 10 years | 10 years | |||
[1] | Included in receivables and other assets on the consolidated balance sheets. | ||||
[2] | Includes $40.4 million of preferred equity owned by the Company that is eliminated on the consolidated balance sheets. Remaining $16.3 million of preferred equity owned by third parties was redeemed on June 10, 2016 and June 24, 2016. | ||||
[3] | Construction loan payable to the Company is eliminated on the consolidated balance sheets. | ||||
[4] | Represents third-party ownership of KRVI membership interests (see Note 9). The Company consolidates its investment in KRVI. The third-party ownership in KRVI is represented in the consolidated financial statements and the pro forma net income attributable to the Company's common stockholders as non-controlling interests. The fair value of the non-controlling interests in KRVI is estimated to be $3.1 million. The fair value of the non-controlling interests in KRVI, a private company, was estimated using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying real estate. | ||||
[5] | Goodwill recognized in the acquisition of RiverBanc. | ||||
[6] | Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC. |
Business Combinations Proforma
Business Combinations Proforma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | May 16, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||||
Revenue | $ 356,138 | $ 390,576 | ||||
Net income attributable to Company's common stockholders | $ 51,782 | $ 72,707 | ||||
Basic pro forma income per share (in dollars per share) | $ 0.47 | $ 0.67 | ||||
Diluted pro forma income per share (in dollars per share) | $ 0.47 | $ 0.67 | ||||
Revenue of acquiree since acquisition date | $ 5,300 | |||||
Gain on remeasurement of existing membership interest in businesses acquired | $ 5,052 | $ 0 | $ 0 | |||
Gain on bargain purchase on businesses acquired | $ 65 | $ 0 | $ 0 | |||
Income tax expense on gains resulting from business combinations | $ 2,100 | |||||
RiverBanc, RBMI, and RBDHC | ||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||
Gain on remeasurement of existing membership interest in businesses acquired | 5,000 | |||||
RBMI, RBDHC | ||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||
Gain on bargain purchase on businesses acquired | [1] | $ 65 | ||||
[1] | Gain on bargain purchase recognized in the acquisitions of RBMI and RBDHC. |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 17, 2016 | May 16, 2016 | |
Related Party Transaction [Line Items] | |||||
Equity Interest in acquiree, percentage | 80.00% | ||||
Management Agreement With River Banc LLC | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership interest | 20.00% | 20.00% | |||
Revenue, related parties | $ 0.1 | $ 0.8 | $ 2.6 | ||
Expenses, related parties | $ 1.8 | 8.1 | $ 14.8 | ||
Management fees payable, related parties | $ 1.7 |
Quarterly Financial Data (un122
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 78,389 | $ 79,525 | $ 79,766 | $ 81,626 | $ 80,866 | $ 82,587 | $ 84,400 | $ 88,985 | $ 319,306 | $ 336,838 | $ 378,847 |
Interest expense | 63,575 | 64,007 | 63,102 | 63,984 | 64,875 | 64,295 | 64,097 | 67,384 | 17,764 | 13,737 | 5,569 |
NET INTEREST INCOME | 14,814 | 15,518 | 16,664 | 17,642 | 15,991 | 18,292 | 20,303 | 21,601 | 64,638 | 76,187 | 77,837 |
Other Income (loss): | |||||||||||
Recovery (provision) for loan losses | 177 | (26) | 42 | 645 | 302 | (1,117) | (112) | (436) | 838 | (1,363) | (1,939) |
Realized gain (loss) on investment securities and related hedges, net | (8,978) | 2,306 | 1,761 | 1,266 | (1,555) | (2,895) | (1,291) | 1,124 | (3,645) | (4,617) | 42,091 |
Realized gain on distressed residential mortgage loans | 2,875 | 6,416 | 26 | 5,548 | 0 | 0 | 0 | 1,483 | |||
Unrealized gain (loss) on investment securities and related hedges, net | 8,664 | 1,563 | (667) | (2,490) | (263) | 27,224 | 3,614 | 676 | 7,070 | (2,641) | (7,667) |
Unrealized gain on multi-family loans and debt held in securitization trusts, net | 692 | 738 | 784 | 818 | 1,002 | (2,631) | 4,716 | (5,728) | 3,032 | 12,368 | 56,931 |
Unrealized gain (loss) on multi-family loans and debt held in securitization trusts, net | (4,508) | (2,170) | 5,418 | 13,628 | 0 | 0 | (3,397) | ||||
Other income | 2,245 | 5,635 | 8,125 | 3,073 | 2,967 | 1,807 | 2,300 | 2,286 | |||
Total other income | 5,675 | 16,632 | 10,071 | 8,860 | (2,055) | 20,218 | 14,645 | 13,033 | 41,238 | 45,841 | 105,208 |
General, administrative and other expenses | 7,220 | 8,705 | 9,936 | 9,360 | 9,665 | 9,830 | 9,139 | 10,846 | 15,246 | 9,928 | 9,500 |
Income from operations before income taxes | 13,269 | 23,445 | 16,799 | 17,142 | 4,271 | 28,680 | 25,809 | 23,788 | |||
Income tax expense | 375 | 163 | 2,366 | 191 | 64 | 3,048 | 1,178 | 245 | 3,095 | 4,535 | 6,395 |
Net income | 12,894 | 23,282 | 14,433 | 16,951 | 67,560 | 78,013 | 136,191 | ||||
Net income attributable to non-controlling interest | 3 | (14) | 2 | 0 | (9) | ||||||
NET INCOME ATTRIBUTABLE TO COMPANY | 12,897 | 23,268 | 14,435 | 16,951 | 4,207 | 25,632 | 24,631 | 23,543 | 67,551 | 78,013 | 136,191 |
Preferred stock dividends | (3,225) | (3,225) | (3,225) | (3,225) | (3,225) | (3,225) | (3,087) | (1,453) | (12,900) | (10,990) | (5,812) |
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ 9,672 | $ 20,043 | $ 11,210 | $ 13,726 | $ 982 | $ 22,407 | $ 21,544 | $ 22,090 | $ 54,651 | $ 67,023 | $ 130,379 |
Basic EPS (in dollars per share) | $ 0.09 | $ 0.18 | $ 0.10 | $ 0.13 | $ 0.01 | $ 0.20 | $ 0.20 | $ 0.21 | $ 0.50 | $ 0.62 | $ 1.48 |
Dilutive EPS (in dollars per share) | 0.09 | 0.18 | 0.10 | 0.13 | 0.01 | 0.20 | 0.20 | 0.21 | $ 0.50 | $ 0.62 | $ 1.48 |
Dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.27 | $ 0.27 | |||
Weighted average shares outstanding-basic (in shares) | 109,911 | 109,569 | 109,489 | 109,402 | 109,402 | 109,402 | 109,252 | 105,488 | 109,594 | 108,399 | 87,867 |
Weighted average shares outstanding-diluted (in shares) | 109,911 | 109,569 | 109,489 | 109,402 | 109,402 | 109,402 | 109,252 | 105,488 | 109,594 | 108,399 | 87,867 |
Subsequent Events (Details)
Subsequent Events (Details) - Convertible Debt - Subsequent Event | Jan. 23, 2017USD ($) |
Subsequent Event [Line Items] | |
Convertible debt | $ 138,000,000 |
Interest rate (as a percent) | 6.25% |
Long-term debt, over-allotment | $ 18,000,000 |
Proceeds from convertible debt | $ 127,300,000 |
Debt instrument, redemption price, percentage | 96.00% |
Debt instrument, conversion ratio | 7.01 |
Schedule IV - Mortgage Loans124
Schedule IV - Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||
Carrying Value | $ 7,565,459 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 101,045 | ||
Reconciliation of Balance Sheet Reported Amounts of Mortgage Loans on Real Estate | |||
Beginning balance | 7,792,422 | $ 9,107,248 | $ 8,543,904 |
Additions during period: | |||
Purchases | 82,167 | 156,952 | 405,427 |
Accretion of purchase discount | 32,688 | 39,537 | 18,704 |
Change in realized and unrealized gains (losses) | 10,794 | 0 | 390,370 |
Deductions during period: | |||
Repayments of principal | (175,216) | (130,651) | (100,689) |
Collection of interest | (32,928) | (36,344) | (18,478) |
Transfer to REO | (8,892) | (2,829) | (2,380) |
Cost of mortgages sold | (96,344) | (1,241,266) | (75,610) |
Provision for loan loss | 847 | (1,363) | (1,881) |
Change in realized and unrealized gains (losses) | 0 | (59,262) | 0 |
Amortization of premium | (40,079) | (41,083) | (52,119) |
Balance at end of period | $ 7,565,459 | $ 7,792,422 | $ 9,107,248 |
First mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 47 | ||
Carrying Value | $ 9,607 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 1,760 | ||
First mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 2.63% | ||
First mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 15.00% | ||
Second mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 259 | ||
Carrying Value | $ 17,769 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||
Second mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 5.88% | ||
Second mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 9.00% | ||
Multifamily | First mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 376 | ||
Carrying Value | $ 6,939,844 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||
Multifamily | First mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 3.04% | ||
Multifamily | First mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 6.18% | ||
Original loan amount $0 - $99,999 | Distressed residential mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 2,999 | ||
Carrying Value | $ 142,652 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 21,783 | ||
Original loan amount $0 - $99,999 | Distressed residential mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 1.01% | ||
Original loan amount $0 - $99,999 | Distressed residential mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 14.99% | ||
Original loan amount $0 - $99,999 | Residential mortgage loans held in securitization trusts | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 11 | ||
Carrying Value | $ 662 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | ||
Original loan amount $0 - $99,999 | Residential mortgage loans held in securitization trusts | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 3.13% | ||
Original loan amount $0 - $99,999 | Residential mortgage loans held in securitization trusts | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 3.63% | ||
Original loan amount $100,000 - $199,999 | Distressed residential mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 1,484 | ||
Carrying Value | $ 160,433 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 24,407 | ||
Original loan amount $100,000 - $199,999 | Distressed residential mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 1.75% | ||
Original loan amount $100,000 - $199,999 | Distressed residential mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 12.85% | ||
Original loan amount $100,000 - $199,999 | Residential mortgage loans held in securitization trusts | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 65 | ||
Carrying Value | $ 7,646 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 525 | ||
Original loan amount $100,000 - $199,999 | Residential mortgage loans held in securitization trusts | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 2.75% | ||
Original loan amount $100,000 - $199,999 | Residential mortgage loans held in securitization trusts | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 4.25% | ||
Original loan amount $200,000 - $299,999 | Distressed residential mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 457 | ||
Carrying Value | $ 84,261 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 13,810 | ||
Original loan amount $200,000 - $299,999 | Distressed residential mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 0.00% | ||
Original loan amount $200,000 - $299,999 | Distressed residential mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 12.04% | ||
Original loan amount $200,000 - $299,999 | Residential mortgage loans held in securitization trusts | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 76 | ||
Carrying Value | $ 14,739 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 2,211 | ||
Original loan amount $200,000 - $299,999 | Residential mortgage loans held in securitization trusts | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 2.88% | ||
Original loan amount $200,000 - $299,999 | Residential mortgage loans held in securitization trusts | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 5.25% | ||
Original loan amount over $299,999 | Distressed residential mortgage loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 335 | ||
Carrying Value | $ 115,748 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 20,868 | ||
Original loan amount over $299,999 | Distressed residential mortgage loans | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 0.75% | ||
Original loan amount over $299,999 | Distressed residential mortgage loans | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 10.46% | ||
Original loan amount $300,000 - $399,999 | Residential mortgage loans held in securitization trusts | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 44 | ||
Carrying Value | $ 11,821 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 1,079 | ||
Original loan amount $300,000 - $399,999 | Residential mortgage loans held in securitization trusts | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 1.75% | ||
Original loan amount $300,000 - $399,999 | Residential mortgage loans held in securitization trusts | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 4.13% | ||
Original loan amount $400,000 - $499,999 | Residential mortgage loans held in securitization trusts | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 28 | ||
Carrying Value | $ 9,785 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 1,261 | ||
Original loan amount $400,000 - $499,999 | Residential mortgage loans held in securitization trusts | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 2.38% | ||
Original loan amount $400,000 - $499,999 | Residential mortgage loans held in securitization trusts | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 3.75% | ||
Original loan amount over $499,999 | Residential mortgage loans held in securitization trusts | |||
Mortgage Loans on Real Estate [Line Items] | |||
Number of Loans | loan | 63 | ||
Carrying Value | $ 50,492 | ||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 13,341 | ||
Original loan amount over $499,999 | Residential mortgage loans held in securitization trusts | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 1.63% | ||
Original loan amount over $499,999 | Residential mortgage loans held in securitization trusts | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest Rate | 3.88% |