Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 07, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'RESOURCE CAPITAL CORP. | ' |
Entity Central Index Key | '0001332551 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 127,745,144 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $144,463 | [1] | $85,278 | [1] |
Restricted cash | 59,195 | [1] | 94,112 | [1] |
Investment securities, trading | 12,099 | [1] | 24,843 | [1] |
Investment securities available-for-sale, pledged as collateral, at fair value | 173,994 | [1] | 195,200 | [1] |
Investment securities available-for-sale, at fair value | 46,690 | [1] | 36,390 | [1] |
Linked transactions, net at fair value | 29,978 | [1] | 6,835 | [1] |
Loans held for sale | 332,351 | [1] | 48,894 | [1] |
Investment in real estate | 55,144 | [1] | 75,386 | [1] |
Loans, pledged as collateral and net of allowances of $12.9 million and $17.7 million | 1,305,739 | [1] | 1,793,780 | [1] |
Loans receivable–related party | 8,067 | [1] | 8,324 | [1] |
Investments in unconsolidated entities | 72,955 | [1] | 45,413 | [1] |
Interest receivable | 8,078 | [1] | 7,763 | [1] |
Deferred tax asset | 3,268 | [1] | 2,766 | [1] |
Principal paydown receivable | 7 | [1] | 25,570 | [1] |
Intangible assets | 11,728 | [1] | 13,192 | [1] |
Prepaid expenses | 4,961 | [1] | 10,396 | [1] |
Other assets | 4,347 | [1] | 4,109 | [1] |
Total assets | 2,273,064 | [1] | 2,478,251 | [1] |
LIABILITIES | ' | ' | ||
Borrowings | 1,422,430 | [2] | 1,785,600 | [2] |
Distribution payable | 26,796 | [2] | 21,655 | [2] |
Accrued interest expense | 2,708 | [2] | 2,918 | [2] |
Derivatives, at fair value | 12,208 | [2] | 14,687 | [2] |
Accrued tax liability | 4,989 | [2] | 13,641 | [2] |
Deferred tax liability | 7,690 | [2] | 8,376 | [2] |
Accounts payable and other liabilities | 12,829 | [2] | 18,029 | [2] |
Total liabilities | 1,489,650 | [2] | 1,864,906 | [2] |
STOCKHOLDERS’ EQUITY | ' | ' | ||
Common stock, par value $0.001: 500,000,000 shares authorized; 127,237,134 and 105,118,093 shares issued and outstanding (including 3,046,343 and 3,308,343 unvested restricted shares) | 127 | 105 | ||
Additional paid-in capital | 1,028,826 | 836,053 | ||
Accumulated other comprehensive loss | -17,383 | -27,078 | ||
Distributions in excess of earnings | -228,160 | -195,737 | ||
Total stockholders’ equity | 783,414 | 613,345 | ||
TOTAL LIABILITIES AND EQUITY | 2,273,064 | 2,478,251 | ||
Redeemable Preferred Stock Series A [Member] | ' | ' | ||
STOCKHOLDERS’ EQUITY | ' | ' | ||
Preferred stock, par value $0.001 | 1 | 1 | ||
Redeemable Preferred Stock Series B [Member] | ' | ' | ||
STOCKHOLDERS’ EQUITY | ' | ' | ||
Preferred stock, par value $0.001 | $3 | $1 | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 | |||
[2] | September 30, 2013 December 31, 2012Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,166,209 $1,614,882 Accrued interest expense2,184 2,666 Derivatives, at fair value11,766 14,078 Accounts payable and other liabilities646 698 Total liabilities of consolidated VIEs$1,180,805 $1,632,324 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Allowance for Loan Loss | $12,865,000 | $17,691,000 |
STOCKHOLDERS’ EQUITY | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 127,237,134 | 105,118,093 |
Common stock, shares outstanding (in shares) | 127,237,134 | 105,118,093 |
Common stock, shares issued, non-vested restricted shares (in shares) | 3,046,343 | 3,308,343 |
Assets of consolidated Variable Interest Entities (VIEs) included in the total assets above: | ' | ' |
Restricted cash | 53,752,000 | 90,108,000 |
Investments securities available-for-sale, pledged as collateral, at fair value | 110,993,000 | 135,566,000 |
Loans held for sale | 332,351,000 | 14,894,000 |
Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million | 981,513,000 | 1,678,719,000 |
Interest receivable | 5,506,000 | 5,986,000 |
Prepaid expenses | 254,000 | 328,000 |
Principal paydown receivable | 7,000 | 25,570,000 |
Other assets | 35,000 | 333,000 |
Total assets of consolidated VIEs | 1,484,411,000 | 1,951,504,000 |
Liabilities of consolidated VIEs included in the total liabilities above: | ' | ' |
Borrowings | 1,166,209,000 | 1,614,882,000 |
Accrued interest expense | 2,184,000 | 2,666,000 |
Derivatives, at fair value | 11,766,000 | 14,078,000 |
Accounts payable and other liabilities | 646,000 | 698,000 |
Total liabilities of consolidated VIEs | 1,180,805,000 | 1,632,324,000 |
Variable interest entity, loans, pledged as collateral, allowance | $7,300,000 | $15,200,000 |
Redeemable Preferred Stock Series A [Member] | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ' |
Preferred stock, shares issued (in shares) | 680,952 | 676,373 |
Preferred stock, shares outstanding (in shares) | 680,952 | 676,373 |
Redeemable Preferred Stock Series B [Member] | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ' |
Preferred stock, shares issued (in shares) | 3,229,317 | 1,126,898 |
Preferred stock, shares outstanding (in shares) | 3,229,317 | 1,126,898 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Loans | $24,374 | $24,130 | $78,370 | $70,757 |
Securities | 3,411 | 3,564 | 10,949 | 10,520 |
Interest income − other | 649 | 2,218 | 3,150 | 8,204 |
Total interest income | 28,434 | 29,912 | 92,469 | 89,481 |
Interest expense | 11,762 | 8,208 | 34,061 | 25,460 |
Net interest income | 16,672 | 21,704 | 58,408 | 64,021 |
Rental income | 4,649 | 2,689 | 15,875 | 6,642 |
Dividend income | 223 | 17 | 256 | 51 |
Equity in net losses of unconsolidated subsidiaries | -505 | -779 | -858 | -1,469 |
Fee income | 1,245 | 1,777 | 4,182 | 5,528 |
Net realized and unrealized gain on sales of investment securities available-for-sale and loans | 570 | 346 | 3,355 | 2,148 |
Net realized and unrealized (loss) gain on investment securities, trading | -229 | 9,782 | -864 | 13,350 |
Unrealized gain (loss) and net interest income on linked transactions, net | 1,161 | 133 | -4,343 | 386 |
Total revenues | 23,786 | 35,669 | 76,011 | 90,657 |
OPERATING EXPENSES | ' | ' | ' | ' |
Management fees − related party | 5,113 | 5,521 | 11,006 | 13,512 |
Equity compensation − related party | 2,120 | 1,404 | 7,866 | 3,412 |
Professional services | 1,396 | 845 | 3,745 | 2,562 |
Insurance | 214 | 161 | 588 | 478 |
Rental operating expense | 3,523 | 1,827 | 11,084 | 4,456 |
General and administrative | 1,288 | 844 | 4,428 | 3,377 |
Depreciation and amortization | 904 | 1,249 | 3,041 | 3,974 |
Income tax expense | 722 | 3,979 | 4,221 | 6,978 |
Net impairment losses recognized in earnings | 255 | 9 | 811 | 180 |
Provision for loan losses | 741 | 1,370 | 541 | 7,801 |
Total operating expenses | 16,276 | 17,209 | 47,331 | 46,730 |
Operating income | 7,510 | 18,460 | 28,680 | 43,927 |
OTHER REVENUE (EXPENSE) | ' | ' | ' | ' |
Gain on the extinguishment of debt | 0 | 0 | 0 | 5,464 |
Gain on sale of real estate | 16,607 | 0 | 16,607 | 0 |
Total other revenue | 16,607 | 0 | 16,607 | 5,464 |
NET INCOME | 24,117 | 18,460 | 45,287 | 49,391 |
Net income allocated to preferred shares | -1,996 | -308 | -5,107 | -333 |
NET INCOME ALLOCABLE TO COMMON SHARES | $22,121 | $18,152 | $40,180 | $49,058 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $0.18 | $0.20 | $0.34 | $0.58 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $0.18 | $0.20 | $0.34 | $0.57 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 126,072,682 | 89,965,680 | 117,973,978 | 85,365,343 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $24,117 | $18,460 | $45,287 | $49,391 |
Other comprehensive income: | ' | ' | ' | ' |
Reclassification adjustment for (gains) losses included in net income | 396 | 89 | -4,728 | 1,023 |
Unrealized gains (losses) on available-for-sale securities, net | 1,723 | 6,820 | 11,644 | 15,216 |
Reclassification adjustments associated with unrealized losses (gains) from interest rate hedges included in net income | 129 | 58 | 322 | 170 |
Unrealized gains (losses) on derivatives, net | 498 | -2,625 | 2,480 | -2,985 |
Foreign currency translation | -23 | 0 | -23 | 0 |
Total other comprehensive income | 2,723 | 4,342 | 9,695 | 13,424 |
Comprehensive income allocable to common shares | $26,840 | $22,802 | $54,982 | $62,815 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock | Common Stock | Common Stock | Preferred Stock | Preferred Stock | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Distributions in Excess of Earnings | Total Stockholders' Equity | Total Stockholders' Equity | Total Stockholders' Equity |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | Preferred Shares - Series A | Preferred Shares - Series B | USD ($) | Common Stock | Preferred Stock | USD ($) | USD ($) | USD ($) | USD ($) | Common Stock | Preferred Stock | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||
Balance, beginning at Dec. 31, 2012 | ' | ' | $105 | ' | $1 | $1 | $836,053 | ' | ' | ($27,078) | $0 | ($195,737) | $613,345 | ' | ' |
Balance, beginning (in shares) at Dec. 31, 2012 | 105,118,093 | ' | 105,118,093 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment and stock purchase plan (in shares) | ' | ' | 3,079,261 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment and stock purchase plan | ' | ' | 3 | ' | ' | ' | 19,089 | ' | ' | ' | ' | ' | 19,092 | ' | ' |
Proceeds from issuance of stock (in shares) | ' | ' | ' | 18,687,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of stock | ' | ' | ' | 19 | 0 | 2 | ' | 118,259 | 52,229 | ' | ' | ' | ' | 118,278 | 52,231 |
Offering costs | ' | ' | ' | ' | ' | ' | -5,322 | ' | ' | ' | ' | ' | -5,322 | ' | ' |
Stock based compensation (in shares) | ' | ' | 361,062 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation | ' | ' | 0 | ' | ' | ' | 652 | ' | ' | ' | ' | ' | 652 | ' | ' |
Amortization of stock based compensation | ' | ' | ' | ' | ' | ' | 7,866 | ' | ' | ' | ' | ' | 7,866 | ' | ' |
Forfeitures (in shares) | ' | ' | -8,782 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Net Income | 45,287 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,287 | ' | 45,287 | ' | ' |
Preferred dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,107 | ' | -5,107 | ' | ' |
Securities available-for-sale, fair value adjustment, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,916 | ' | ' | 6,916 | ' | ' |
Designated derivatives, fair value adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,802 | ' | ' | 2,802 | ' | ' |
Cumulative translation adjustment | -23 | ' | ' | ' | ' | ' | ' | ' | ' | -23 | ' | ' | ' | ' | ' |
Distributions on common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -40,180 | -32,423 | -72,603 | ' | ' |
Balance, ending at Sep. 30, 2013 | ' | ' | $127 | ' | $1 | $3 | $1,028,826 | ' | ' | ($17,383) | $0 | ($228,160) | $783,414 | ' | ' |
Balance, ending (in shares) at Sep. 30, 2013 | 127,237,134 | ' | 127,237,134 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net income | $45,287,000 | $49,391,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Provision for loan losses | 541,000 | 7,801,000 | |
Depreciation of investments in real estate and other | 1,638,000 | 1,264,000 | |
Amortization of intangible assets | 1,463,000 | 2,709,000 | |
Amortization of term facilities | 876,000 | 710,000 | |
Accretion of net discounts on loans held for investment | -8,306,000 | -10,738,000 | |
Accretion of net discounts on securities available-for-sale | -1,925,000 | -2,444,000 | |
Amortization of discount on notes of CDOs | 3,937,000 | 1,037,000 | |
Amortization of debt issuance costs on notes of CDOs | 2,868,000 | 3,330,000 | |
Amortization of stock-based compensation | 7,866,000 | 3,412,000 | |
Amortization of terminated derivative instruments | 322,000 | 169,000 | |
Distribution accrued to preferred stockholders | -5,107,000 | 0 | |
Accretion of interest-only available-for-sales securities | -714,000 | -463,000 | |
Non-cash incentive compensation to the Manager | 484,000 | 814,000 | |
Deferred income tax (benefits) | 502,000 | -1,315,000 | |
Purchase of securities, trading | -11,044,000 | -8,348,000 | |
Principal payments on securities, trading | 4,211,000 | 981,000 | |
Proceeds from sales of securities, trading | 18,713,000 | 33,579,000 | |
Net realized and unrealized loss (gain) on investment securities, trading | 864,000 | -13,350,000 | |
Net realized gain on sales of investment securities available-for-sale and loans | -3,355,000 | -2,148,000 | |
Gain on early extinguishment of debt | 0 | -5,464,000 | |
Gain on sale of real estate | -16,607,000 | 0 | |
Net impairment losses recognized in earnings | 802,000 | 180,000 | |
Linked transactions fair value adjustments | 5,224,000 | 0 | |
Equity in net losses of unconsolidated subsidiaries | 858,000 | 1,469,000 | |
Minority interest equity | 2,200,000 | 1,979,000 | |
Changes in operating assets and liabilities | 17,434,000 | -9,504,000 | |
Net cash provided by operating activities | 66,832,000 | 53,072,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Decrease in restricted cash | 30,079,000 | 85,413,000 | |
Purchase of securities available-for-sale | -120,599,000 | -70,654,000 | |
Principal payments on securities available-for-sale | 33,010,000 | 36,365,000 | |
Proceeds from sale of securities available-for-sale | 7,025,000 | 6,719,000 | |
Investment in unconsolidated entity | -25,508,000 | -725,000 | |
Equity contribution to VIE | 0 | -710,000 | |
Improvement of real estate held-for-sale | -404,000 | -138,000 | |
Proceeds from sale of real estate held-for-sale | 37,001,000 | 2,886,000 | |
Purchase of loans | -555,051,000 | -479,172,000 | |
Principal payments received on loans | 487,606,000 | 356,866,000 | |
Proceeds from sale of loans | 314,112,000 | 139,708,000 | |
Distributions from investments in real estate | 522,000 | 1,152,000 | |
Improvements in investments in real estate | -365,000 | -852,000 | |
Purchase of furniture and fixtures | -128,000 | 0 | |
Principal payments received on loans – related parties | 499,000 | 459,000 | |
Net cash provided by investing activities | 209,999,000 | 79,296,000 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net proceeds from issuances of common stock (net of offering costs of $4,228 and $2,165) | 114,018,000 | 55,502,000 | |
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $19) | 19,092,000 | 50,424,000 | |
Proceeds from borrowings: | ' | ' | |
Repurchase agreements | 143,203,000 | 33,820,000 | |
Payments on borrowings: | ' | ' | |
Collateralized debt obligations | -450,437,000 | -156,989,000 | |
Mortgage payable | -13,600,000 | 0 | |
Retirement of debt | 0 | -4,850,000 | |
Payment of debt issuance costs | -1,740,000 | -586,000 | |
Payment of equity to third party sub-note holders | -6,952,000 | -2,160,000 | |
Distributions paid on preferred stock | -4,389,000 | -93,000 | |
Distributions paid on common stock | -68,010,000 | -54,231,000 | |
Net cash (used in) financing activities | -217,646,000 | -62,752,000 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 59,185,000 | 69,616,000 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 85,278,000 | [1] | 43,116,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 144,463,000 | [1] | 112,732,000 |
SUPPLEMENTAL DISCLOSURE: | ' | ' | |
Interest expense paid in cash | 28,391,000 | 24,209,000 | |
Redeemable Preferred Stock Series A [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares | 112,000 | 16,411,000 | |
Redeemable Preferred Stock Series B [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares | $51,057,000 | $0 | |
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $0 | $19 |
Common Stock | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 4,228 | 2,165 |
Redeemable Preferred Stock Series A [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 3 | 781 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ' |
Redeemable Preferred Stock Series B [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | $1,091 | $0 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ' |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
ORGANIZATION AND BASIS OF PRESENTATION | ' | |
ORGANIZATION AND BASIS OF PRESENTATION | ||
Resource Capital Corp. and subsidiaries’ (collectively the ‘‘Company’’) principal business activity is to purchase and manage a diversified portfolio of commercial real estate-related assets and commercial finance assets. The Company’s investment activities are managed by Resource Capital Manager, Inc. (‘‘Manager’’) pursuant to a management agreement (the ‘‘Management Agreement’’). The Manager is a wholly-owned indirect subsidiary of Resource America, Inc. (“Resource America”) (NASDAQ: REXI). In September 2013, it was determined that the Company is a variable interest entity ("VIE") and that Resource America is the primary beneficiary of the Company. Therefore, the Company's financial statements will be consolidated into Resource America's financial statements. The following subsidiaries are consolidated in the Company’s financial statements: | ||
• | RCC Real Estate, Inc. (“RCC Real Estate”) holds real estate investments, including commercial real estate loans, commercial real estate-related securities and investments in real estate. RCC Real Estate owns 100% of the equity of the following VIEs: | |
▪ | Resource Real Estate Funding CDO 2006-1 (“RREF CDO 2006-1”), a Cayman Islands limited liability company and qualified real estate investment trust (“REIT”) subsidiary (“QRS”). RREF CDO 2006-1 was established to complete a collateralized debt obligation (“CDO”) issuance secured by a portfolio of commercial real estate loans and commercial mortgage-backed securities (“CMBS”). | |
▪ | Resource Real Estate Funding CDO 2007-1 (“RREF CDO 2007-1”), a Cayman Islands limited liability company and QRS. RREF CDO 2007-1 was established to complete a CDO issuance secured by a portfolio of commercial real estate loans, CMBS and property available-for-sale. | |
• | RCC Commercial, Inc. (“RCC Commercial”) holds bank loan investments. RCC Commercial owns 100% of the equity of the following VIE: | |
▪ | Apidos CDO III, Ltd. (“Apidos CDO III”), a Cayman Islands limited liability company and taxable REIT subsidiary (“TRS”). Apidos CDO III was established to complete a CDO issuance secured by a portfolio of bank loans and asset-backed securities (“ABS”). | |
• | RCC Commercial II, Inc. (“Commercial II”) holds bank loan investments. Commercial II owns 100% and 68.3%, respectively, of the equity of the following VIEs: | |
▪ | Apidos Cinco CDO, Ltd. (“Apidos Cinco CDO”), a Cayman Islands limited liability company and TRS. Apidos Cinco CDO was established to complete a CDO issuance secured by a portfolio of bank loans, ABS and corporate bonds. | |
▪ | Whitney CLO I, Ltd. ("Whitney CLO I"), a Cayman Islands limited liability company and TRS. Whitney CLO I is a collateralized loan obligation ("CLO") issuance secured by a portfolio of bank loans and corporate bonds. The Company is the primary beneficiary of Whitney CLO I and therefore consolidates 100% of this VIE in its financial statements. In September 2013, the Company liquidated Whitney CLO I, and as a result substantially all of the assets were sold. Total proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO were used to pay down the remaining balance on the outstanding notes of $103.7 million. | |
• | RCC Commercial III, Inc. (“Commercial III”) holds bank loan investments and commercial real estate-related securities. Commercial III owns 90% of the equity of the following VIE: | |
▪ | Apidos CDO I, Ltd. (“Apidos CDO I”), a Cayman Islands limited liability company and TRS. Apidos CDO I was established to complete a CDO issuance secured by a portfolio of bank loans and ABS. | |
• | Resource TRS, Inc. (“Resource TRS”), a TRS directly owned by the Company, holds the Company’s equity investment in a leasing company and holds all of its investment securities, trading. Resource TRS owns 100% of the following : | |
• | Resource TRS, LLC, a Delaware limited liability company, established to invest in structured finance securities through an investment manager, including securities issued by CDOs, ABS and CMBS. | |
• | Resource TRS II, Inc. (“Resource TRS II”), a TRS directly owned by the Company, holds the Company’s management rights in bank loan CLOs not originated by the Company. Resource TRS II owns 100% of the equity of the following VIE: | |
▪ | Resource Capital Asset Management (“RCAM”), a domestic limited liability company, is entitled to collect senior, subordinated, and incentive fees related to four CLO issuers to which it provides management services through CVC Credit Partners, LLC, formerly Apidos Capital Management, a subsidiary of CVC Capital Partners SICAV-FIS, S.A., a private equity firm (“CVC”). Resource America, Inc. owns a 33% interest in CVC Credit Partners, LLC ("CVC Credit Partners"). Whitney CLO I, one of the RCAM CLOs, is consolidated in the Company's financial statements as a result of a purchase of its preferred equity which gave the Company a controlling interest. | |
• | Resource TRS III, Inc. (“Resource TRS III”), a TRS directly owned by the Company, holds the Company’s interests in a bank loan CDO originated by the Company. Resource TRS III owns 33% of the equity of the following VIE: | |
• | Apidos CLO VIII, Ltd (“Apidos CLO VIII”), a Cayman Islands limited liability company and TRS. Apidos CLO VIII was established to complete a CLO issuance secured by a portfolio of bank loans and corporate bonds. The Company is the primary beneficiary of Apidos CLO VIII and therefore consolidates 100% of this VIE in its financial statements. | |
• | Resource TRS IV, Inc. (“Resource TRS IV”), a TRS directly owned by the Company, holds the Company's equity investment in hotel condominium units acquired in conjunction with a loan foreclosure. | |
• | Resource TRS V, Inc. (“Resource TRS V”), a TRS directly owned by the Company, holds the Company's equity investment in a held for sale condominium complex. | |
• | RSO EquityCo, LLC owns 10% of the equity of Apidos CDO I and 10% of the equity of Apidos CLO VIII. | |
• | Long Term Care Conversion, Inc. ("LTCC"), a TRS directly owned by the Company, is a Delaware corporation which owns 100% of the following entity: | |
• | Long Term Care Conversion, Funding ("LTCC Funding"), a New York limited liability company, owns a 30% equity interest in Life Care Funding, LLC ("LCF") and provides funding through a financing facility to fund the acquisition of life settlement contracts. | |
• | LCF, a New York limited liability company, is a joint venture between LTCC and Life Care Funding Group Partners and was established for the purpose of originating and acquiring life settlement contracts. | |
• | RCC Residential, Inc., a TRS directly owned by the Company is a Delaware corporation established to acquire a residential mortgage origination platform. | |
The consolidated financial statements and the information and tables contained in the notes to the consolidated financial statements are unaudited. However, in the opinion of management, these interim financial statements include all adjustments necessary to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the nine months ended September 30, 2013 may not necessarily be indicative of the results of operations for the full year ending December 31, 2013. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation | ||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company. | ||
All inter-company transactions and balances have been eliminated. | ||
Investment Securities | ||
The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. | ||
The Company’s investment securities, trading are reported at fair value (see Note 19). To determine fair value, the Company uses an independent third-party valuation firm utilizing appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference which could result in an updated valuation from the third party or a revised dealer quote. Any changes in fair value are recorded in the Company’s results of operations as net realized and unrealized gain on investment securities, trading. | ||
The Company’s investment securities available-for-sale are reported at fair value (see Note 19). To determine fair value, the Company uses an independent third-party valuation firm utilizing market color as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference which could result in an updated valuation from the third party or a revised dealer quote. Based on the market color available for each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. | ||
On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. In addition, the Company’s intent to sell as well as the likelihood that the Company will be required to sell the security before the recovery of the amortized cost basis is considered. Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the statement of operations. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. | ||
Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. | ||
Investment Interest Income Recognition | ||
Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. | ||
Allowance for Loan Loss | ||
The Company maintains an allowance for loan loss. Loans held for investment are first individually evaluated for impairment so specific reserves can be applied. Loans for which a specific reserve is not applicable are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. These evaluations are performed at least quarterly. | ||
The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and / or guarantees made by the borrowers. | ||
When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. | ||
An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received. | ||
Investments in Real Estate | ||
Investments in real estate are carried net of accumulated depreciation. Costs directly related to the acquisition are expensed as incurred. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. | ||
Acquisitions of real estate assets and any related intangible assets are recorded initially at fair value under Financial Accounting Standards Board ("FASB") ASC Topic 805, “Business Combinations.” The Company allocates the purchase price of its investments in real estate to land, building, site improvements, the value of in-place leases and the value of above or below market leases. The value allocated to above or below market leases is amortized over the remaining lease term as an adjustment to rental income. The Company amortizes the value allocated to in-place leases over the weighted average remaining lease term to depreciation and amortization expense. The Company depreciates real property using the straight-line method over the estimated useful lives of the assets as follows: | ||
Category | Term | |
Building | 25 – 40 years | |
Site improvements | Lesser of the remaining life of building or useful lives | |
Long-Lived and Intangible Assets | ||
Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. | ||
There were no impairment charges recorded on the Company’s investment in real estate or intangible assets during the three and nine months ended September 30, 2013 and 2012. | ||
Recent Accounting Standards | ||
In July 2013, the FASB issued guidance which permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes. This guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
In June 2013, the FASB issued guidance which clarifies the characteristics of an investment company, provides comprehensive guidance for assessing whether an entity is an investment company and requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The guidance also requires additional disclosure. This guidance is effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the effect of adoption, but does not expect adoption will have a material impact on its consolidated financial statements. | ||
In February 2013 the FASB issued guidance which amends required information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendment in this guidance was effective for reporting periods beginning after December 15, 2012. The Company provided the enhanced footnote disclosure as required by this amendment in its consolidated financial statements (see Note 16). | ||
In January 2013, the FASB issued guidance which clarifies the scope of accounting for certain derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments in this guidance were effective for interim and annual reporting periods beginning on or after January 1, 2013 and must be applied retrospectively for all comparative periods presented. The Company provided the enhanced footnote disclosure as required by this amendment in its consolidated financial statements (see Note 21). | ||
Reclassifications | ||
Certain reclassifications have been made to the 2012 consolidated financial statements to conform to the 2013 presentation. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | ' | |||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | ||||||||||||||||||||||||||||||||||||||||
The Company has evaluated its securities, loans, investments in unconsolidated entities, liabilities to subsidiary trusts issuing preferred securities (consisting of unsecured junior subordinated notes) and its CDOs in order to determine if they qualify as VIEs. The Company monitors these investments and, to the extent it has determined that it owns a material investment in the current controlling class of securities of a particular entity, analyzes the entity for potential consolidation. The Company will continually analyze investments and liabilities, including when there is a reconsideration event, to determine whether such investments or liabilities are VIEs and whether any such VIE should be consolidated. This analysis requires considerable judgment in determining the primary beneficiary of a VIE and could result in the consolidation of an entity that would otherwise not have been consolidated or the non-consolidation of an entity that would have otherwise been consolidated. | ||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs (the Company is the primary beneficiary) | ||||||||||||||||||||||||||||||||||||||||
Based on management’s analysis, the Company is the primary beneficiary of seven VIEs at September 30, 2013: Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1 and Whitney CLO I. In performing the primary beneficiary analysis for six of these VIEs (other than Whitney CLO I, which is discussed below), it was determined that the persons that have the power to direct the activities that are most significant to each of these VIEs and the Company who has the right to receive benefits and the obligation to absorb losses that could potentially be significant to these VIEs, are a related party group. It was then determined that the Company was the party within that group that is more closely associated to each such VIE because of its preferred equity (and in some cases debt) interest in them. | ||||||||||||||||||||||||||||||||||||||||
These CDO and CLO entities were formed on behalf of the Company (except for Whitney CLO I, referred to below) to invest in real estate-related securities, CMBS, property available-for-sale, bank loans, corporate bonds and asset-backed securities, or ABS, and were financed by the issuance of debt securities. The manager manages these entities on behalf of the Company. By financing these assets with long-term borrowings through the issuance of CDO and CLO bonds, the Company seeks to generate attractive risk-adjusted equity returns and to match the term of its assets and liabilities. The primary beneficiary determination for each of these VIEs was made at each VIE’s inception. | ||||||||||||||||||||||||||||||||||||||||
Whitney CLO I, the seventh consolidated VIE, is one in which the Company acquired the rights to manage the assets held by the entity as collateral for its CLOs in February 2011. For a discussion on the primary beneficiary analysis for Whitney CLO I, see “— Unconsolidated VIEs – Resource Capital Asset Management,” below. For a discussion of the Company’s CDOs and CLOs, see Note 1, and for a discussion of the debt issued through the CDOs and CLOs, see Note 12. | ||||||||||||||||||||||||||||||||||||||||
For CLOs in which the Company does not own 100% of the subordinated notes, the Company imputes an interest rate using expected cash flows over the life of the CLO and records the third party's share of the cash flows as interest expense on the consolidated statement of income. | ||||||||||||||||||||||||||||||||||||||||
The Company has exposure to CDO and CLO losses to the extent of its subordinated debt and preferred equity interests in them. The Company is entitled to receive payments of principal and interest on the debt securities it holds and, to the extent revenues exceed debt service requirements and other expenses of the CDO or CLO, distributions with respect to its preferred equity interests. As a result of consolidation, debt and equity interests the Company holds in these CDOs and CLOs have been eliminated, and the Company’s consolidated balance sheet reflects both the assets held and debt issued by the CDOs and CLOs to third parties and any accrued expense to third parties. The Company's operating results and cash flows include the gross amounts related to CDO and CLO assets and liabilities as opposed to the Company's net economic interests in the CDO and CLO entities. Assets and liabilities related to the CDOs and CLOs are disclosed, in the aggregate, on the Company's consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
The creditors of the Company’s seven consolidated VIEs have no recourse to the general credit of the Company. However, in its capacity as manager, the Company has voluntarily supported two credits in one of its commercial real estate CDOs as the credits went through a restructuring in order to maximize their future cash flows. For the three and nine months ended September 30, 2012, the Company provided financial support of $0 and $199,000, respectively. For the three and nine months ended September 30, 2013, the Company provided no financial support. The Company has provided no financial support to any of its other VIEs nor does it have any requirement to do so, although it may choose to do so in the future to maximize future cash flows on such investments by the Company. There are no explicit arrangements or implicit variable interests that obligate the Company to provide financial support to any of its consolidated VIEs, although the Company may choose to do so in the future. | ||||||||||||||||||||||||||||||||||||||||
The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | Total | |||||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Restricted cash (1) | $ | 10,253 | $ | 2,943 | $ | 18,368 | $ | 16,152 | $ | 5,586 | $ | 20 | $ | 430 | $ | 53,752 | ||||||||||||||||||||||||
Investment securities | 8,097 | 6,217 | 16,622 | 1,975 | — | 11,658 | 66,424 | 110,993 | ||||||||||||||||||||||||||||||||
available-for-sale, pledged as | ||||||||||||||||||||||||||||||||||||||||
collateral, at fair value | ||||||||||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 100,268 | 148,660 | 308,128 | 7,874 | 635 | 158,659 | 257,289 | 981,513 | ||||||||||||||||||||||||||||||||
Loans held for sale | — | 183 | 3,688 | 325,675 | 2,805 | — | — | 332,351 | ||||||||||||||||||||||||||||||||
Interest receivable | (148 | ) | 597 | 1,094 | 752 | (18 | ) | 1,388 | 1,841 | 5,506 | ||||||||||||||||||||||||||||||
Prepaid assets | 14 | 14 | 26 | 7 | 23 | 99 | 71 | 254 | ||||||||||||||||||||||||||||||||
Principal receivable | — | — | 7 | — | — | — | — | 7 | ||||||||||||||||||||||||||||||||
Other assets | — | — | 35 | — | — | — | — | 35 | ||||||||||||||||||||||||||||||||
Total assets (2) | $ | 118,484 | $ | 158,614 | $ | 347,968 | $ | 352,435 | $ | 9,031 | $ | 171,824 | $ | 326,055 | $ | 1,484,411 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 101,827 | $ | 145,875 | $ | 320,997 | $ | 321,360 | $ | 2,424 | $ | 95,151 | $ | 178,575 | $ | 1,166,209 | ||||||||||||||||||||||||
Accrued interest expense | 263 | 63 | 325 | 1,386 | — | 41 | 106 | 2,184 | ||||||||||||||||||||||||||||||||
Derivatives, at fair value | — | — | — | — | — | 1,379 | 10,387 | 11,766 | ||||||||||||||||||||||||||||||||
Accounts payable and | 154 | 18 | 23 | 384 | 43 | 22 | 2 | 646 | ||||||||||||||||||||||||||||||||
other liabilities | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 102,244 | $ | 145,956 | $ | 321,345 | $ | 323,130 | $ | 2,467 | $ | 96,593 | $ | 189,070 | $ | 1,180,805 | ||||||||||||||||||||||||
(1) Includes $16.7 million available for reinvestment in certain of the CDOs. | ||||||||||||||||||||||||||||||||||||||||
(2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. | ||||||||||||||||||||||||||||||||||||||||
Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) | ||||||||||||||||||||||||||||||||||||||||
Based on management’s analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company’s consolidated financial statements as of September 30, 2013. The Company’s maximum exposure to risk for each of these unconsolidated VIEs is set forth in the “Maximum Risk Exposure” column in the table below. | ||||||||||||||||||||||||||||||||||||||||
LEAF Commercial Capital, Inc. | ||||||||||||||||||||||||||||||||||||||||
On November 16, 2011, the Company, together with LEAF Financial, a subsidiary of Resource America, and Leaf Commercial Capital, Inc. (“LCC”), subsidiaries of Resource America, entered into a stock purchase agreement and related agreements (collectively the “SPA”) with Eos Partners, L.P., a private investment firm, and its affiliates (“Eos”). In exchange for its prior interests in its lease related investments, the Company received 31,341 shares of Series A Preferred Stock (the “Series A Preferred Stock”), 4,872 shares of newly issued 8% Series B Redeemable Preferred Stock (the “Series B Preferred Stock”) and 2,364 shares of newly issued Series D Redeemable Preferred Stock (the “Series D Preferred Stock”), collectively representing, on a fully-diluted basis assuming conversion, a 26.7% interest in LCC. Several approaches were used, including discounted expected cash flows, market approach and comparable sales transactions to estimate the fair value of its investment in LCC as a result of the transaction. These approaches required assumptions and estimates of many critical factors, including revenue and market growth, operating cash flows, market multiples, and discount rates, which were based on the current economic environment and credit market conditions. On January 18, 2013, the Company entered into another stock purchase agreement with LCC to purchase 3,682 shares of newly issued Series A-1 Preferred Stock (the "Series A-1 Preferred Stock") for $3.7 million. During the second quarter of 2013, the Company entered into another stock purchase agreement with LCC to purchase 3,323 shares of newly issued Series E Preferred Stock (the "Series E Preferred Stock") for $3.3 million. The Series E Preferred Stock has priority over all other classes of preferred stock. The Company's fully-diluted interest in LCC assuming conversion is 27.5%. The Company’s investment in LCC was held at $40.8 million and $33.1 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||
The Company determined that it is not the primary beneficiary of LCC because it does not participate in any management or portfolio decisions, holds only two of six board positions, and only controls 27.5% of the voting rights in the entity. Furthermore, Eos holds consent rights with respect to significant LCC actions, including incurrence of indebtedness, consummation of a sale of the entity, liquidation or initiating a public offering. | ||||||||||||||||||||||||||||||||||||||||
In connection with this transaction, the Company and Resource America have undertaken a contingent obligation with respect to the value of the equity on the balance sheet of LEAF Receivables Funding 3 ("LRF 3"), a wholly-owned subsidiary of LCC which owns equipment, equipment leases and notes. LRF 3 was included in the assets contributed to LCC by the Company. As part of the SPA, the Company and Resource America agreed that, to the extent the value of the equity on the balance sheet of LRF 3 is less than approximately $18.7 million (the value of the equity of LRF 3 on the date it was contributed to LCC by the Company), as of the final testing date, which must be within 90 days following December 31, 2013, they will be jointly and severally obligated to contribute cash to LCC to make up the deficit. The Company does not believe it is probable that it will be required to fund LCC, in accordance with the SPA, based on estimated operating results of LRF 3, and has therefore recorded no liability as of September 30, 2013. | ||||||||||||||||||||||||||||||||||||||||
Unsecured Junior Subordinated Debentures | ||||||||||||||||||||||||||||||||||||||||
The Company has a 100% interest in the common shares of Resource Capital Trust I (“RCT I”) and RCC Trust II (“RCT II”), valued at $1.5 million in the aggregate (or 3% of each trust). RCT I and RCT II were formed for the purposes of providing debt financing to the Company, as described below. The Company completed a qualitative analysis to determine whether or not it is the primary beneficiary of each of the trusts and determined that it was not the primary beneficiary of either trust because it does not have the power to direct the activities most significant to the trusts, which include the collection of principal and interest and protection of collateral through servicing rights. Accordingly, neither trust is consolidated into the Company’s consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||
The Company records its investments in RCT I and RCT II’s common shares as investments in unconsolidated trusts using the cost method and records dividend income when declared by RCT I and RCT II. The trusts each hold subordinated debentures for which the Company is the obligor in the amount of $25.8 million for RCT I and $25.8 million for RCT II. The debentures were funded by the issuance of trust preferred securities of RCT I and RCT II. The Company will continuously reassess whether it should be deemed to be the primary beneficiary of the trusts. | ||||||||||||||||||||||||||||||||||||||||
Resource Capital Asset Management CLOs | ||||||||||||||||||||||||||||||||||||||||
In February 2011, the Company purchased a company that managed $1.9 billion of bank loan assets through five CLOs. As a result, the Company is entitled to collect senior, subordinated and incentive management fees from these CLOs. The purchase price of $22.5 million resulted in an intangible asset that was allocated to each of the five CLOs and is being amortized over the expected life of each CLO. The unamortized balance of the intangible asset was $11.7 million and $13.1 million at September 30, 2013 and December 31, 2012, respectively. The Company recognized fee income of $1.2 million and $4.2 million for the three and nine months ended September 30, 2013, respectively, and $1.8 million and $5.5 million for the three and nine months ended September 30, 2012, respectively. With respect to four of these CLOs, the Company determined that it does not hold a controlling interest and, therefore, is not the primary beneficiary. One of the CLOs was liquidated in January 2013. With respect to the fifth CLO, Whitney CLO I, in October 2012, the Company purchased 66.6% of its preferred equity, which was determined to be a reconsideration event. Based upon that purchase, the Company determined that it does have an obligation to absorb losses and/or the right to receive benefits that could potentially be significant to Whitney CLO I and that a related party has the power to direct the activities that are most significant to the VIE. As a result, together with the related party, the Company has both the power to direct and the right to receive benefits and the obligation to absorb losses. It was then determined that, between the Company and the related party, the Company was the party within that group that is more closely associated with Whitney CLO I because of its preferred equity interest in Whitney CLO I. The Company, therefore, consolidated Whitney CLO I. In May 2013, the Company purchased additional equity in this CLO which increased its equity ownership to 68.3% of the outstanding preferred equity of Whitney CLO I. In September 2013, the Company liquidated Whitney CLO I, and as a result substantially all of the assets were sold. Total proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO were used to pay down the remaining balance on the outstanding notes of $103.7 million. | ||||||||||||||||||||||||||||||||||||||||
Real Estate Joint Ventures | ||||||||||||||||||||||||||||||||||||||||
On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (a VIE that holds interests in a real estate joint venture) from Resource America. This joint venture, which is structured as a credit facility with Värde Investment Partners, LP acting as lender, finances the acquisition of distressed properties and mortgage loans and has the objective of repositioning both the directly-owned properties and the properties underlying the mortgage loans to enhance their value. The Company acquired the membership interests for $2.1 million. The joint venture agreement requires the Company to contribute 3% to 5% (depending on the terms of the agreement pursuant to which the particular asset is being acquired) of the total funding required for each asset acquisition as needed up to a specified amount. The Company provided funding of $20,000 and $157,000 for the three and nine months ended September 30, 2013 and $145,000 and $465,000 for the three and nine months ended September 30, 2012, respectively, for these investments. Resource Real Estate Management, LLC (“RREM”), an affiliate of Resource America, acts as asset manager of the venture and receives a monthly asset management fee. For the three and nine months ended September 30, 2013, the Company recorded losses of $521,000 and $735,000, respectively. For the three and nine months ended September 30, 2012, the Company recorded income of $346,000 and $931,000, respectively. Using the equity method of accounting, the income/losses were recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. The Company’s investment in RRE VIP Borrower, LLC at September 30, 2013 and December 31, 2012 was $(330,000) and $2.3 million, respectively. | ||||||||||||||||||||||||||||||||||||||||
On June 19, 2012, the Company entered into a second joint venture with Värde Investment Partners, LP acting as lender, to purchase two condominium developments. The Company purchased a 7.5% equity interest in the venture. The Company may be subject to a capital call based on its pro rata share of equity interest in the venture up to the earlier of the end of the investment period, ending in May 2015, or the date the aggregate of all capital contributions exceeds $500.0 million. RREM was appointed as the asset manager of the venture to perform lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM is also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. The Company’s investment in the joint venture at September 30, 2013 and December 31, 2012 was $575,000 and $526,000, respectively. Using the equity method of accounting, the Company recognized equity in earnings related to this investment of $6,000 and $49,000 for the three and nine months ended September 30, 2013, respectively. The Company recorded a loss of $100,000 for both the three and nine months ended September 30, 2012. | ||||||||||||||||||||||||||||||||||||||||
The Company has determined that it does not have the power to direct the activities that most significantly impact the economic performance of each of these ventures, which include asset underwriting and acquisition, lease review and approval, and loan asset servicing, and, therefore, the Company is not the primary beneficiary of either. | ||||||||||||||||||||||||||||||||||||||||
CVC Global Credit Opportunities Fund | ||||||||||||||||||||||||||||||||||||||||
In May, June, and July 2013, the Company invested a total of $15.0 million in CVC Global Credit Opportunities Fund, a fund which seeks to generate returns targeting corporate credit through a master-feeder fund structure. Because CVC Global Credit Opportunities Fund is not a VIE and the Company owns only 34.4%, the Company will not consolidate it. The Company records its investment in the fund using the equity method. For the three and nine months ended September 30, 2013, the Company recognized $433,000 and $526,000 of income in equity in losses of unconsolidated entities on the consolidated income statement. The investment balance of $15.5 million at September 30, 2013 is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||
Life Care Funding | ||||||||||||||||||||||||||||||||||||||||
In January 2013, Long Term Care Conversion, Inc. (LTCC), a wholly-owned subsidiary of RCC invested $2.0 million into Life Care Funding, LLC (LCF) for the purpose of originating and acquiring life settlement contracts. Although the Investment Committee and Board are controlled by the joint venture partner, the joint venture partner must obtain LTCC's approval to make any investments and the joint venture partner must obtain LTCC approval for all material business operations. As a result, the Company determined that there was joint control and will not consolidate LCF. Using the equity method, the Company recognized a loss of $107,000 and $349,000 during the three and nine months ended September 30, 2013, respectively, as equity in net losses of unconsolidated subsidiaries. The Company's investment in LCF of $1.7 million at September 30, 2013 is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet. | ||||||||||||||||||||||||||||||||||||||||
Harvest CLO VII Limited | ||||||||||||||||||||||||||||||||||||||||
In September 2013, the Company invested $5.3 million in the subordinated notes of a European CLO, which represented 9.52% of the subordinated notes. The CLO is managed by an independent third party and therefore the Company does not have control and is not deemed to be the primary beneficiary. Therefore, the CLO is not consolidated onto the Company's consolidated financial statements. The Company records its investment in the CLO by imputing an interest rate using expected cash flows over the expected life of the CLO and records the income as equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. | ||||||||||||||||||||||||||||||||||||||||
The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Unconsolidated Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
LEAF | Unsecured | Resource | RRE VIP | Värde | Life | CVC | Harvest CLO VII | Total | Maximum | |||||||||||||||||||||||||||||||
Commercial | Junior | Capital | Borrower, | Investment | Care | Global | Exposure | |||||||||||||||||||||||||||||||||
Capital, Inc. | Subordinated | Asset | LLC | Partners, | Funding | Opps | to Loss (1) | |||||||||||||||||||||||||||||||||
Debentures | Management | LP | Fund | |||||||||||||||||||||||||||||||||||||
CLOs | ||||||||||||||||||||||||||||||||||||||||
Investment in | $ | 40,820 | $ | 1,548 | $ | — | $ | (330 | ) | $ | 575 | $ | 1,651 | $ | 15,526 | $ | 4,999 | $ | 64,789 | $ | 64,789 | |||||||||||||||||||
unconsolidated | ||||||||||||||||||||||||||||||||||||||||
entities | ||||||||||||||||||||||||||||||||||||||||
Intangible | — | — | 11,687 | — | — | — | — | — | 11,687 | $ | 11,687 | |||||||||||||||||||||||||||||
assets | ||||||||||||||||||||||||||||||||||||||||
Total assets | 40,820 | 1,548 | 11,687 | (330 | ) | 575 | 1,651 | 15,526 | 4,999 | 76,476 | ||||||||||||||||||||||||||||||
Borrowings | — | 50,956 | — | — | — | — | — | — | 50,956 | N/A | ||||||||||||||||||||||||||||||
Total | — | 50,956 | — | — | — | — | — | — | 50,956 | N/A | ||||||||||||||||||||||||||||||
liabilities | ||||||||||||||||||||||||||||||||||||||||
Net asset | $ | 40,820 | $ | (49,408 | ) | $ | 11,687 | $ | (330 | ) | $ | 575 | $ | 1,651 | $ | 15,526 | $ | 4,999 | $ | 25,520 | N/A | |||||||||||||||||||
(liability) | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company's maximum exposure to loss at September 30, 2013 does not exceed the carrying amount of its investment, subject to the LRF3's contingent obligation as described above. | |||||||||||||||||||||||||||||||||||||||
Other than the contingent obligation arrangement described above in connection with LCC and the commitments to fund its real estate joint ventures, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Supplemental disclosure of cash flow information (in thousands): | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Non-cash investing activities include the following: | ||||||||
Acquisition of real estate investments | $ | — | $ | (21,661 | ) | |||
Conversion of loans to investment in real estate | $ | — | $ | 21,661 | ||||
Non-cash financing activities include the following: | ||||||||
Distributions on common stock declared but not paid | $ | 25,447 | $ | 19,897 | ||||
Distribution on preferred stock declared but not paid | $ | 2,023 | $ | 308 | ||||
Income taxes paid in cash | $ | 8,997 | $ | 19,771 | ||||
Issuance of restricted stock | $ | 242 | $ | 480 | ||||
Subscription receivable | $ | 257 | $ | 24,213 | ||||
INVESTMENT_SECURITIES_TRADING
INVESTMENT SECURITIES, TRADING | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
INVESTMENT SECURITIES, TRADING | ' | |||||||||||||||
INVESTMENT SECURITIES, TRADING | ||||||||||||||||
The following table summarizes the Company's structured notes and residential mortgage-backed securities (“RMBS”) which are classified as investment securities, trading and carried at fair value (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||
Cost | Gains | Losses | ||||||||||||||
September 30, 2013: | ||||||||||||||||
Structured notes | $ | 8,554 | $ | 4,026 | $ | (1,000 | ) | $ | 11,580 | |||||||
RMBS | 1,934 | — | (1,415 | ) | 519 | |||||||||||
Total | $ | 10,488 | $ | 4,026 | $ | (2,415 | ) | $ | 12,099 | |||||||
December 31, 2012: | ||||||||||||||||
Structured notes | $ | 9,413 | $ | 10,894 | $ | (1,028 | ) | $ | 19,279 | |||||||
RMBS | 6,047 | 858 | (1,341 | ) | 5,564 | |||||||||||
Total | $ | 15,460 | $ | 11,752 | $ | (2,369 | ) | $ | 24,843 | |||||||
The Company purchased four securities and sold six securities during the nine months ended September 30, 2013, for a net gain of $6.9 million. The Company held 11 and 13 investment securities, trading as of September 30, 2013 and December 31, 2012, respectively. |
INVESTMENT_SECURITIES_AVAILABL
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | ||||||||||||||||||||||||
The Company pledges a portion of its CMBS as collateral against its borrowings under repurchase agreements and derivatives. If the Company finances the purchase of securities with repurchase agreements with the same counterparty from whom the securities are purchased and both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed not to meet sale accounting criteria and the Company will account for the purchase of such securities and the repurchase agreement on a net basis and record a forward purchase commitment to purchase securities (each, a “Linked Transaction”) at fair value on the Company's consolidated balance sheet in the line item Linked Transactions, at fair value. Changes in the fair value of the assets and liabilities underlying the Linked Transactions and associated interest income and expense are reported as unrealized gain (loss) and net interest income on linked transactions, net on the Company's consolidated statement of income. CMBS that are accounted for as components of Linked Transactions are not reflected in the tables set forth in this note, as they are accounted for as derivatives. (see Notes 2 and 20). | ||||||||||||||||||||||||
The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS | $ | 194,268 | $ | 7,297 | $ | (13,792 | ) | $ | 187,773 | |||||||||||||||
ABS | 26,317 | 1,776 | (495 | ) | 27,598 | |||||||||||||||||||
Corporate bonds | 5,375 | 29 | (91 | ) | 5,313 | |||||||||||||||||||
Other asset-backed | — | — | — | — | ||||||||||||||||||||
Total | $ | 225,960 | $ | 9,102 | $ | (14,378 | ) | $ | 220,684 | |||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS | $ | 182,828 | $ | 4,626 | $ | (16,639 | ) | $ | 170,815 | |||||||||||||||
ABS | 25,885 | 1,700 | (1,115 | ) | 26,470 | |||||||||||||||||||
Corporate Bonds | 34,361 | 111 | (190 | ) | 34,282 | |||||||||||||||||||
Other asset-backed | — | 23 | — | 23 | ||||||||||||||||||||
Total | $ | 243,074 | $ | 6,460 | $ | (17,944 | ) | $ | 231,590 | |||||||||||||||
-1 | As of September 30, 2013 and December 31, 2012, $174.0 million and $195.2 million, respectively, of securities were pledged as collateral security under related financings. | |||||||||||||||||||||||
The following table summarizes the estimated maturities of the Company’s CMBS, ABS, and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): | ||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized | Weighted | |||||||||||||||||||||
Cost | Average | |||||||||||||||||||||||
Coupon | ||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
Less than one year | $ | 42,561 | (1) | $ | 45,731 | 4.97% | ||||||||||||||||||
Greater than one year and less than five years | 136,672 | 138,629 | 4.67% | |||||||||||||||||||||
Greater than five years and less than ten years | 37,088 | 36,905 | 2.71% | |||||||||||||||||||||
Greater than ten years | 4,363 | 4,695 | 4.03% | |||||||||||||||||||||
Total | $ | 220,684 | $ | 225,960 | 4.39% | |||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
Less than one year | $ | 42,618 | (1) | $ | 46,522 | 4.09% | ||||||||||||||||||
Greater than one year and less than five years | 122,509 | 131,076 | 4.55% | |||||||||||||||||||||
Greater than five years and less than ten years | 61,780 | 60,801 | 3.31% | |||||||||||||||||||||
Greater than ten years | 4,683 | 4,675 | 4.03% | |||||||||||||||||||||
Total | $ | 231,590 | $ | 243,074 | 4.12% | |||||||||||||||||||
(1) The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. | ||||||||||||||||||||||||
The contractual maturities of the CMBS investment securities available-for-sale range from October 2013 to April 2025. The contractual maturities of the ABS investment securities available-for-sale range from November 2015 to August 2022. The contractual maturities of the corporate bond investment securities available-for-sale range from December 2015 to April 2021. | ||||||||||||||||||||||||
The following table shows the fair value and gross unrealized losses, aggregated by investment category and length of time, of those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands): | ||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS | $ | 62,839 | $ | (8,333 | ) | $ | 12,124 | $ | (5,459 | ) | $ | 74,963 | $ | (13,792 | ) | |||||||||
ABS | 201 | (2 | ) | 6,589 | (493 | ) | 6,790 | (495 | ) | |||||||||||||||
Corporate bonds | 2,976 | (91 | ) | — | — | 2,976 | (91 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 66,016 | $ | (8,426 | ) | $ | 18,713 | $ | (5,952 | ) | $ | 84,729 | $ | (14,378 | ) | |||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS | $ | 25,803 | $ | (442 | ) | $ | 38,734 | $ | (16,197 | ) | $ | 64,537 | $ | (16,639 | ) | |||||||||
ABS | — | — | 5,961 | (1,115 | ) | 5,961 | (1,115 | ) | ||||||||||||||||
Corporate bonds | 19,445 | (190 | ) | — | — | 19,445 | (190 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 45,248 | $ | (632 | ) | $ | 44,695 | $ | (17,312 | ) | $ | 89,943 | $ | (17,944 | ) | |||||||||
The Company held nine and 19 CMBS investment securities available-for-sale that have been in a loss position for more than 12 months as of September 30, 2013 and December 31, 2012, respectively. The Company held nine ABS investment securities available-for-sale that have been in a loss position for more than 12 months as of September 30, 2013 and December 31, 2012, respectively. The Company had no corporate bonds that have been in a loss position for more than 12 months as of September 30, 2013 and December 31, 2012. The unrealized losses in the above table are considered to be temporary impairments due to market factors and are not reflective of credit deterioration. | ||||||||||||||||||||||||
The determination of other-than-temporary impairment is a subjective process, and different judgments and assumptions could affect the timing of loss realization. The Company reviews its portfolios and makes other-than-temporary impairment determinations at least quarterly. The Company considers the following factors when determining if there is an other-than-temporary impairment on a security: | ||||||||||||||||||||||||
• | the length of time the market value has been less than amortized cost; | |||||||||||||||||||||||
• | the severity of the impairment; | |||||||||||||||||||||||
• | the expected loss of the security as generated by a third-party valuation model; | |||||||||||||||||||||||
• | original and current credit ratings from the rating agencies; | |||||||||||||||||||||||
• | underlying credit fundamentals of the collateral backing the securities; | |||||||||||||||||||||||
• | whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis; and | |||||||||||||||||||||||
• | third-party support for default, for recovery, prepayment speed and reinvestment price assumptions. | |||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the Company held $187.8 million and $170.8 million, respectively, (net of net unrealized losses of $6.5 million and $12.0 million, respectively), of CMBS recorded at fair value. To determine fair value, the Company uses a third party valuation firm. (see Note 2). | ||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the Company held $27.6 million and $26.5 million, respectively, (net of net unrealized gains of $1.3 million and $585,000, respectively), of ABS recorded at fair value (see Note 2). To determine their fair value, the Company uses dealer quotes. | ||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the Company held $5.3 million and $34.3 million, respectively, (net of net unrealized losses of $62,000 and losses of $78,000, respectively), of corporate bonds recorded at fair value (see Note 2). To determine their fair value, the Company uses dealer quotes. | ||||||||||||||||||||||||
The Company’s securities classified as available-for-sale have increased in fair value on a net basis as of September 30, 2013 as compared to December 31, 2012, primarily due to improving marks and new purchases in 2013. The Company performs an on-going review of third-party reports and updated financial data on the underlying properties in order to analyze current and projected security performance. Rating agency downgrades are considered with respect to the Company’s income approach when determining other-than-temporary impairment and, when inputs are subjected to testing for economic changes within possible ranges, the resulting projected cash flows reflect a full recovery of principal and interest indicating no impairment. During the three and nine months ended September 30, 2013, the Company recognized other-than-temporary impairment losses of $255,000 and $276,000, respectively, on positions that supported the Company's CMBS investment. During the three and nine months ended September 30, 2012, the Company recognized other-than-temporary impairment losses of $9,000 and $42,000, respectively, on positions that supported the Company's CMBS investment. | ||||||||||||||||||||||||
During the three and nine months ended September 30, 2013, there were no ABS sales. During the three and nine months ended September 30, 2012, the Company sold two and five ABS positions with a total par of $1.4 million and $4.3 million, respectively, and recognized gains of $89,000 and $111,000, respectively. | ||||||||||||||||||||||||
During the three and nine months ended September 30, 2013, the Company sold 17 and 32 corporate bond positions with a total par value of $30.0 million and $33.0 million, respectively, and recognized a net loss of $441,000 and $432,000, respectively. During the nine months ended September 30, 2013 the Company had two corporate bond positions redeemed with a total par value of $3.5 million, and recognized a loss of $11,000. During the nine months ended September 30, 2012, the Company had one corporate bond position redeemed with a total par value of $182,000, and recognized a gain of $39,000. | ||||||||||||||||||||||||
Changes in interest rates may also have an effect on the rate of mortgage principal prepayments and, as a result, prepayments on CMBS in the Company’s investment portfolio. At September 30, 2013 and December 31, 2012, the aggregate discount due to interest rate changes exceeded the aggregate premium on the Company’s CMBS by approximately $4.8 million and $8.0 million, respectively. At September 30, 2013 and December 31, 2012, the aggregate discount on the Company’s ABS portfolio was $2.6 million and $3.1 million, respectively. There were no premiums on the Company’s ABS investment portfolio at September 30, 2013 and December 31, 2012. At September 30, 2013 the aggregate discount on the Company’s corporate bond portfolio was $154,000. At December 31, 2012, the aggregate premium on the Company’s corporate bond portfolio was $608,000. |
INVESTMENTS_IN_REAL_ESTATE
INVESTMENTS IN REAL ESTATE | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Real Estate [Abstract] | ' | |||||||||||
INVESTMENTS IN REAL ESTATE | ' | |||||||||||
INVESTMENTS IN REAL ESTATE | ||||||||||||
The table below summarizes the Company’s investments in real estate (in thousands): | ||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||
Book Value | Number of | Book Value | Number of | |||||||||
Properties | Properties | |||||||||||
Multi-family property | $ | 22,102 | 1 | $ | 42,179 | 2 | ||||||
Office property | 10,244 | 1 | 10,149 | 1 | ||||||||
Hotel property | 25,718 | 1 | 25,608 | 1 | ||||||||
Subtotal | 58,064 | 77,936 | ||||||||||
Less: Accumulated depreciation | (2,920 | ) | (2,550 | ) | ||||||||
Investments in real estate | $ | 55,144 | $ | 75,386 | ||||||||
During the three and nine months ended September 30, 2013, the Company made no acquisitions. On September 30, 2013, the Company sold one of its multi-family properties. The gain from the sale of this property is recorded on the income statement in gain on sale of real estate. During the year ended December 31, 2012, the Company foreclosed on one self-originated loan and converted the loan to equity with a fair value of $25.5 million at acquisition. The loan was collateralized by a 179 unit hotel property in Coconut Grove, Florida. The property had an occupancy rate of 75% at acquisition. | ||||||||||||
The following table is a summary of the aggregate estimated fair value of the assets and liabilities acquired on the respective date of acquisition during the year ended December 31, 2012 (in thousands). There were no such acquisitions during the nine months ended September 30, 2013. | ||||||||||||
Description | 31-Dec-12 | |||||||||||
Assets acquired: | ||||||||||||
Investments in real estate | $ | 25,500 | ||||||||||
Other assets | (89 | ) | ||||||||||
Total assets acquired | 25,411 | |||||||||||
Liabilities assumed: | ||||||||||||
Accounts payable and other liabilities | 3,750 | |||||||||||
Total liabilities assumed | 3,750 | |||||||||||
Estimated fair value of net assets acquired | $ | 21,661 | ||||||||||
LOANS_HELD_FOR_INVESTMENT
LOANS HELD FOR INVESTMENT | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | ' | ||||||||||||||||
LOANS HELD FOR INVESTMENT | ' | ||||||||||||||||
LOANS HELD FOR INVESTMENT | |||||||||||||||||
The following is a summary of the Company’s loans (in thousands): | |||||||||||||||||
Loan Description | Principal | Unamortized | Carrying | ||||||||||||||
(Discount) | Value (2) | ||||||||||||||||
Premium (1) | |||||||||||||||||
September 30, 2013: | |||||||||||||||||
Bank loans (3) | $ | 914,676 | $ | (5,648 | ) | $ | 909,028 | ||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | 671,118 | (3,003 | ) | 668,115 | |||||||||||||
B notes | 16,328 | (90 | ) | 16,238 | |||||||||||||
Mezzanine loans | 57,667 | (93 | ) | 57,574 | |||||||||||||
Total commercial real estate loans | 745,113 | (3,186 | ) | 741,927 | |||||||||||||
Subtotal loans before allowances | 1,659,789 | (8,834 | ) | 1,650,955 | |||||||||||||
Allowance for loan loss | (12,865 | ) | — | (12,865 | ) | ||||||||||||
Total | $ | 1,646,924 | $ | (8,834 | ) | $ | 1,638,090 | ||||||||||
December 31, 2012: | |||||||||||||||||
Bank loans (3) | $ | 1,218,563 | $ | (25,249 | ) | $ | 1,193,314 | ||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans (4) | 569,829 | (1,891 | ) | 567,938 | |||||||||||||
B notes | 16,441 | (114 | ) | 16,327 | |||||||||||||
Mezzanine loans | 82,992 | (206 | ) | 82,786 | |||||||||||||
Total commercial real estate loans | 669,262 | (2,211 | ) | 667,051 | |||||||||||||
Subtotal loans before allowances | 1,887,825 | (27,460 | ) | 1,860,365 | |||||||||||||
Allowance for loan loss | (17,691 | ) | — | (17,691 | ) | ||||||||||||
Total | $ | 1,870,134 | $ | (27,460 | ) | $ | 1,842,674 | ||||||||||
-1 | Amounts include deferred amendment fees of $288,000 and $450,000 and deferred upfront fees of $260,000 and $334,000 being amortized over the life of the bank loans as of September 30, 2013 and December 31, 2012, respectively. Amounts include loan origination fees of $2.9 million and $1.9 million and loan extension fees of $189,000 and $214,000 being amortized over the life of the commercial real estate loans as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-3 | Amounts include $332.4 million and $14.9 million of bank loans held for sale at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-4 | Amount includes $34.0 million from two whole loans which are classified as loans held for sale at December 31, 2012. | ||||||||||||||||
At September 30, 2013 and December 31, 2012, approximately 39.2% and 47.7%, respectively, of the Company’s commercial real estate loan portfolio was concentrated in commercial real estate loans located in California; approximately 7.1% and 7.9%, respectively, in Arizona; and approximately 14.8% and 11.1%, respectively, in Texas. At September 30, 2013 and December 31, 2012, approximately 15.2% and 13.2%, of the Company’s bank loan portfolio was concentrated in the collective industry grouping of healthcare, education and childcare. | |||||||||||||||||
At September 30, 2013, the Company’s bank loan portfolio consisted of $906.1 million (net of allowance of $3.0 million) of floating rate loans, which bear interest ranging between the three month London Interbank Offered Rate (“LIBOR”) plus 1.5% and three month LIBOR plus 10.0% with maturity dates ranging from December 2013 to April 2021. | |||||||||||||||||
At December 31, 2012, the Company’s bank loan portfolio consisted of $1.2 billion (net of allowance of $9.7 million) of floating rate loans, which bear interest ranging between the three month LIBOR plus 1.5% and three month LIBOR plus 8.8% with maturity dates ranging from August 2013 to January 2021. | |||||||||||||||||
The following is a summary of the weighted average life of the Company’s bank loans, at amortized cost (in thousands): | |||||||||||||||||
September 30, 2013 (1) | December 31, 2012 | ||||||||||||||||
Less than one year | $ | 29,008 | $ | 10,028 | |||||||||||||
Greater than one year and less than five years | 574,042 | 821,568 | |||||||||||||||
Five years or greater | 305,978 | 361,718 | |||||||||||||||
$ | 909,028 | $ | 1,193,314 | ||||||||||||||
-1 | Bank loans include $4.6 million with maturity dates less than one year, $157.4 million with maturity dates greater than one year and less than five years and $170.3 million with maturity dates five years or greater that are held for sale as of September 30, 2013. | ||||||||||||||||
The following is a summary of the Company’s commercial real estate loans held for investment (dollars in thousands): | |||||||||||||||||
Description | Quantity | Amortized Cost | Contracted | Maturity | |||||||||||||
Interest Rates | Dates (3) | ||||||||||||||||
September 30, 2013: | |||||||||||||||||
Whole loans, floating rate (1) | 47 | $ | 668,115 | LIBOR plus 2.50% to | December 2013 to | ||||||||||||
LIBOR plus 8.0% | Aug-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,238 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (6) | 4 | 57,574 | 0.50% to 20.00% | December 2014 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 52 | $ | 741,927 | ||||||||||||||
December 31, 2012: | |||||||||||||||||
Whole loans, floating rate (1) (4) (5) | 37 | $ | 567,938 | LIBOR plus 2.50% to | June 2013 to | ||||||||||||
LIBOR plus 5.50% | Feb-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,327 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 2 | 15,845 | LIBOR plus 2.50% to | August 2013 to | |||||||||||||
LIBOR plus 7.45% | Dec-13 | ||||||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 66,941 | 0.50% to 20.00% | September 2014 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 43 | $ | 667,051 | ||||||||||||||
-1 | Whole loans had $6.6 million and $8.9 million in unfunded loan commitments as of September 30, 2013 and December 31, 2012, respectively. These commitments are funded as the borrowers request additional funding and have satisfied the requirements to obtain this additional funding. | ||||||||||||||||
-2 | The total does not include an allowance for loan loss of $9.9 million and $8.0 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-3 | Maturity dates do not include possible extension options that may be available to the borrowers. | ||||||||||||||||
-4 | Floating rate whole loans include a $2.0 million portion of a whole loan that has a fixed rate of 15.0% as of December 31, 2012. | ||||||||||||||||
-5 | Amount includes $34.0 million from two whole loans that were classified as loans held for sale at December 31, 2012. | ||||||||||||||||
-6 | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity. | ||||||||||||||||
The following is a summary of the weighted average life of the Company’s commercial real estate loans, at amortized cost (in thousands): | |||||||||||||||||
Description | 2013 | 2014 | 2015 and Thereafter | Total | |||||||||||||
September 30, 2013: | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,238 | $ | 16,238 | |||||||||
Mezzanine loans | — | 11,398 | 46,176 | 57,574 | |||||||||||||
Whole loans | 4,067 | — | 664,048 | 668,115 | |||||||||||||
Total (1) | $ | 4,067 | $ | 11,398 | $ | 726,462 | $ | 741,927 | |||||||||
December 31, 2012: | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,327 | $ | 16,327 | |||||||||
Mezzanine loans | 5,328 | 20,694 | 56,764 | 82,786 | |||||||||||||
Whole loans | 71,799 | — | 496,139 | 567,938 | |||||||||||||
Total (1) | $ | 77,127 | $ | 20,694 | $ | 569,230 | $ | 667,051 | |||||||||
-1 | Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers. | ||||||||||||||||
The following is a summary of the allocation of the allowance for loan loss with respect to the Company’s commercial real estate and bank loans (in thousands, except percentages) by asset class: | |||||||||||||||||
Description | Allowance for | Percentage of | |||||||||||||||
Loan Loss | Total Allowance | ||||||||||||||||
September 30, 2013: | |||||||||||||||||
B notes | $ | 166 | 1.29% | ||||||||||||||
Mezzanine loans | 531 | 4.12% | |||||||||||||||
Whole loans | 9,214 | 71.63% | |||||||||||||||
Bank loans | 2,954 | 22.96% | |||||||||||||||
Total | $ | 12,865 | |||||||||||||||
December 31, 2012: | |||||||||||||||||
B notes | $ | 206 | 1.16% | ||||||||||||||
Mezzanine loans | 860 | 4.86% | |||||||||||||||
Whole loans | 6,920 | 39.12% | |||||||||||||||
Bank loans | 9,705 | 54.86% | |||||||||||||||
Total | $ | 17,691 | |||||||||||||||
As of September 30, 2013, the Company had recorded an allowance for loan losses of $12.9 million consisting of a $3.0 million allowance on the Company’s bank loan portfolio and a $9.9 million allowance on the Company’s commercial real estate portfolio as a result of the provisions taken on three bank loans and one commercial real estate loan as well as the maintenance of a general reserve with respect to these portfolios. The bank loan allowance decreased $6.8 million from $9.7 million as of December 31, 2012 to $3.0 million as of September 30, 2013 as a result of improved credit conditions . The whole loan allowance increased $2.3 million from $6.9 million as of December 31, 2012 to $9.2 million as of September 30, 2013 as a result of specific provisions taken on one commercial real estate loan. | |||||||||||||||||
As of December 31, 2012, the Company had recorded an allowance for loan losses of $17.7 million consisting of a $9.7 million allowance on the Company’s bank loan portfolio and a $8.0 million allowance on the Company’s commercial real estate portfolio as a result of the impairment of one bank loan and four commercial real estate loans as well as the maintenance of a general reserve with respect to these portfolios. |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 9 Months Ended |
Sep. 30, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | ' |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | |
In May 2013, the Company entered into a limited partnership agreement with CVC Global Credit Opportunities Fund, L.P. ("the Partnership"), a Delaware limited partnership which generally invests in assets through a master-feeder fund structure ("the Master Fund"). The Company invested $15.0 million as of September 30, 2013. The General Partner of the Partnership and the Master Fund is CVC Global Credit Opportunities Fund GP, LLC, a Delaware limited liability company. The investment manager of the partnership and the Master Fund is CVC Credit Partners, LLC. CVC Capital Partners SICAV-FIS, S.A., a Luxembourg company, together with its affiliates, and Resource America, own a majority and a significant minority, respectively, of the investment manager. The fund will pay the investment manager a quarterly management fee in advance calculated at the rate of 1.5% annually based on the balance of each limited partner's capital account. The Company's management fee was waived upon entering the agreement given that the Company is a related party of CVC Credit Partners, LLC. For the three and nine months ended September 30, 2013, the Company recorded earnings of $433,000 and $526,000, respectively, which were recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. The investment balance of $15.5 million at September 30, 2013 is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet using the equity method. | |
In January 2013, LTCC, a wholly-owned subsidiary of RCC, invested $2.0 million into LCF for the purpose of originating and acquiring life settlement contracts. Although the Investment Committee and Board are controlled by the joint venture partner, the joint venture partner must obtain LTCC's unanimous approval to make any investments and the joint venture partner must obtain LTCC approval for all material business operations. As a result, the Company determined that there was joint control and, therefore, neither Company nor its joint venture partner will consolidate LCF. Using the equity method, the Company recognized a loss of $107,000 and $349,000 during the three and nine months ended September 30, 2013, as equity in net losses of unconsolidated subsidiaries. The Company's investment of LCF was $1.7 million at September 30, 2013 is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet using the equity method. | |
On June 19, 2012, the Company entered into a joint venture with Värde Investment Partners, LP acting as lender, to purchase two condominium developments. The Company purchased a 7.5% equity interest in the venture. RREM, was appointed as the asset manager of the venture to perform lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable (see Note 3). RREM is also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM receives an annual asset management fee equal to 1.0% of outstanding contributions. The Company incurred fees payable to RREM of $7,000 and $33,000, respectively, during the three and nine months ended September 30, 2013. There were no such fees for the three and nine months ended months ended September 30, 2012. For the three and nine months ended September 30, 2013, the Company recorded earnings of $6,000 and $49,000, which were recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. The Company recorded a loss of $100,000 for both the three and nine months ended September 30, 2012. The investment balance of $575,000 and $526,000 at September 30, 2013 and December 31, 2012, respectively, is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet using the equity method. | |
On November 16, 2011, the Company, together with LEAF Financial and LCC, entered into a SPA with Eos Partners, L.P. In exchange for its prior interest in LCC, the Company received 31,341 shares of Series A Preferred Stock, 4,872 shares of newly issued 8% Series B Redeemable Preferred Stock and 2,364 shares of newly issued Series D Redeemable Preferred Stock, collectively representing, on a fully-diluted basis assuming conversion, a 26.7% interest in LCC. The Company’s investment in LCC was valued at $36.3 million based on a third-party valuation. Several approaches were used, including discounted expected cash flows, market approach and comparable sales transactions to estimate the fair value of its investment in LCC as a result of the transaction. These approaches required assumptions and estimates of many critical factors, including revenue and market growth, operating cash flows, market multiples, and discount rates, which were based on the current economic environment and credit market conditions. The Company recorded a loss of $2.2 million in conjunction with the transaction. On January 18, 2013, the Company entered into another stock purchase agreement with LCC to purchase 3,682 shares of newly issued Series A-1 Preferred Stock for $3.7 million. During the second quarter of 2013, the Company entered into another stock purchase agreement with LCC to purchase 3,323 shares of newly issued Series E Preferred Stock for $3.3 million. The Series E Preferred Stock has priority over all other classes of preferred stock. The Company accrued $207,000 on the Series E Preferred Stock shares to date. The Company's fully-diluted basis assuming conversion is 27.5%. The Company’s interest in the investment is accounted for under the equity method. For the three and nine months ended September 30, 2013, the Company recorded losses of $346,000 and $378,000, respectively, which was recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statements of income. For the three and nine months ended September 30, 2012, the Company recorded a loss of $1.0 million and $2.3 million, respectively, which was recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statements of income. The Company’s investment in LCC was carried at $40.8 million and $33.1 million as of September 30, 2013 and December 31, 2012, respectively. | |
In accordance with the SPA, the Company and Resource America have undertaken a contingent obligation with respect to the value of the equity on the balance sheet of LRF 3, a wholly-owned subsidiary of LCC which owns equipment, equipment leases and notes. To the extent that the value of the equity on the balance sheet of LRF 3 is less than approximately $18.7 million (the value of the equity of LRF 3 on the date it was contributed to LCC by the Company), as of the final testing date within 90 days of December 31, 2013, the Company and Resource America have agreed to be jointly and severally obligated to contribute cash to LCC to make up the deficit. The LRF 3 equity as of September 30, 2013 was in excess of this commitment and, therefore, the Company was not required to record a liability with respect to this obligation. | |
On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that holds the Company's interests in a real estate joint venture) from Resource America at book value. This joint venture, which is structured as a credit facility with Värde Investment Partners, LP acting as lender, finances the acquisition of distressed properties and mortgage loans and has the objective of repositioning both the directly-owned properties and the properties underlying the mortgage loans to enhance their value (see Note 3). The Company acquired the membership interests for $2.1 million. The agreement requires the Company to contribute 3% to 5% (depending on the asset agreement) of the total funding required for each asset acquisition on a monthly basis. RREM, an affiliate of Resource America, acts as asset manager of the venture and receives a monthly asset management fee equal to 1% of the combined investment calculated as of the last calendar day of the month. For the three and nine months ended September 30, 2013, the Company paid RREM management fees of $6,500 and $23,000, respectively. For the three and nine months ended September 30, 2012, the Company paid RREM management fees of $11,000 and $35,000, respectively. For the three and nine months ended September 30, 2013, the Company recorded losses of $521,000 and $735,000, respectively, which was recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. For the three and nine months ended September 30, 2012, the Company recorded earnings of $346,000 and $931,000, respectively, which was recorded in equity net losses of unconsolidated subsidiaries on the consolidated statement of income. The investment balance of $(330,000) and $2.3 million at September 30, 2013 and December 31, 2012, respectively, is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet using the equity method. | |
The Company has a 100% interest valued at $1.5 million in the common shares (3% of the total equity) in two trusts, RCT I and RCT II and determined it was not the primary beneficiary of either trust. The Company records its investments in RCT I and RCT II’s common shares of $774,000 each as investments in unconsolidated trusts using the cost method and records dividend income upon declaration by RCT I and RCT II. For the three and nine months ended September 30, 2013 the Company recognized $604,000 and $1.8 million, respectively, of interest expense with respect to the subordinated debentures it issued to RCT I and RCT II which included $48,000 and $143,000, respectively, of amortization of deferred debt issuance costs. For the three and nine months ended September 30, 2012, the Company recognized $626,000 and $1.9 million, respectively, of interest expense with respect to the subordinated debentures it issued to RCT I and RCT II which included $46,000 and $136,000, respectively, of amortization of deferred debt issuance costs. The Company will continuously reassess whether it should be deemed to be the primary beneficiary of the trusts. |
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
FINANCING RECEIVABLES | ' | |||||||||||||||||||||||||||
FINANCING RECEIVABLES | ||||||||||||||||||||||||||||
The following tables show the allowance for loan losses and recorded investments in loans for the years indicated (in thousands): | ||||||||||||||||||||||||||||
Commercial Real Estate Loans | Bank Loans | Loans Receivable-Related Party | Total | |||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2013 | $ | 7,986 | $ | 9,705 | $ | — | $ | 17,691 | ||||||||||||||||||||
Provision (benefit) for loan loss | 2,017 | (1,476 | ) | — | 541 | |||||||||||||||||||||||
Loans charged-off | (92 | ) | (5,275 | ) | — | (5,367 | ) | |||||||||||||||||||||
Allowance for losses at September 30, 2013 | $ | 9,911 | $ | 2,954 | $ | — | $ | 12,865 | ||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,067 | $ | 1,882 | $ | — | $ | 5,949 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 5,844 | $ | 1,072 | $ | — | $ | 6,916 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 191,100 | $ | 3,553 | $ | 8,067 | $ | 202,720 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 550,827 | $ | 905,475 | $ | — | $ | 1,456,302 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2012 | $ | 24,221 | $ | 3,297 | $ | — | $ | 27,518 | ||||||||||||||||||||
Provision for loan loss | 5,225 | 11,593 | — | 16,818 | ||||||||||||||||||||||||
Loans charged-off | (21,460 | ) | (5,185 | ) | — | (26,645 | ) | |||||||||||||||||||||
Allowance for losses at December 31, 2012 | $ | 7,986 | $ | 9,705 | $ | — | $ | 17,691 | ||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,142 | $ | 3,236 | $ | — | $ | 5,378 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 5,844 | $ | 6,469 | $ | — | $ | 12,313 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 177,055 | $ | 4,689 | $ | 8,324 | $ | 190,068 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 489,996 | $ | 1,187,874 | $ | — | $ | 1,677,870 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 751 | $ | — | $ | 751 | ||||||||||||||||||||
Credit quality indicators | ||||||||||||||||||||||||||||
Bank Loans | ||||||||||||||||||||||||||||
The Company uses a risk grading matrix to assign grades to bank loans. Loans are graded at inception and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1-5 with 1 representing the Company’s highest rating and 5 representing its lowest rating. The Company also designates loans that are sold after the period end as held for sale at the lower of their fair market value or cost, net of any allowances and costs associated with the loan sales. The Company considers metrics such as performance of the underlying company, liquidity, collectability of interest, enterprise valuation, default probability, ratings from rating agencies, and industry dynamics in grading its bank loans. | ||||||||||||||||||||||||||||
Credit risk profiles of bank loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
Bank loans | $ | 514,277 | $ | 39,123 | $ | 16,206 | $ | 3,518 | $ | 3,553 | $ | 332,351 | $ | 909,028 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Bank loans | $ | 1,095,148 | $ | 33,677 | $ | 27,837 | $ | 16,318 | $ | 5,440 | $ | 14,894 | $ | 1,193,314 | ||||||||||||||
All of the Company’s bank loans are performing with the exception of three loans with an amortized cost of $3.6 million as of September 30, 2013, none of which defaulted during the three months ended September 30, 2013. As of December 31, 2012, all of the Company's bank loans were performing with the exception of five loans with an amortized cost of $5.4 million, one of which defaulted as of December 31, 2012, three of which defaulted as of March 31, 2012 (including a loan acquired with deteriorated credit quality as a result of the acquisition of Whitney CLO I), and one of which defaulted on December 31, 2011. | ||||||||||||||||||||||||||||
Commercial Real Estate Loans | ||||||||||||||||||||||||||||
The Company uses a risk grading matrix to assign grades to commercial real estate loans. Loans are graded at inception and updates to assigned grades are made continually as new information is received. Loans are graded on a scale of 1-4 with 1 representing the Company’s highest rating and 4 representing its lowest rating. The Company also designates loans that are sold after the period end at the lower of their fair market value or cost, net of any allowances and costs associated with the loan sales. In addition to the underlying performance of the loan collateral, the Company considers metrics such as the strength of underlying sponsorship, payment history, collectability of interest, structural credit enhancements, market trends and loan terms in grading its commercial real estate loans. | ||||||||||||||||||||||||||||
Credit risk profiles of commercial real estate loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Held for Sale | Total | |||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | $ | 591,105 | $ | 44,943 | $ | 32,067 | $ | — | $ | — | $ | 668,115 | ||||||||||||||||
B notes | 16,238 | — | — | — | — | 16,238 | ||||||||||||||||||||||
Mezzanine loans | 57,574 | — | — | — | — | 57,574 | ||||||||||||||||||||||
$ | 664,917 | $ | 44,943 | $ | 32,067 | $ | — | $ | — | $ | 741,927 | |||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Whole loans | $ | 427,456 | $ | — | $ | 106,482 | $ | — | $ | 34,000 | $ | 567,938 | ||||||||||||||||
B notes | 16,327 | — | — | — | — | 16,327 | ||||||||||||||||||||||
Mezzanine loans | 38,296 | — | 44,490 | — | — | 82,786 | ||||||||||||||||||||||
$ | 482,079 | $ | — | $ | 150,972 | $ | — | $ | 34,000 | $ | 667,051 | |||||||||||||||||
All of the Company’s commercial real estate loans were performing as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
Loan Portfolios Aging Analysis | ||||||||||||||||||||||||||||
The following table shows the loan portfolio aging analysis as of the dates indicated at cost basis (in thousands): | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Total Loans > 90 Days and Accruing | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 668,115 | $ | 668,115 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,238 | 16,238 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 57,574 | 57,574 | — | |||||||||||||||||||||
Bank loans | — | — | 3,553 | 3,553 | 905,475 | 909,028 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 8,067 | 8,067 | — | |||||||||||||||||||||
Total loans | $ | — | $ | — | $ | 3,553 | $ | 3,553 | $ | 1,655,469 | $ | 1,659,022 | $ | — | ||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 567,938 | $ | 567,938 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,327 | 16,327 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 82,786 | 82,786 | — | |||||||||||||||||||||
Bank loans | 1,549 | — | 3,891 | 5,440 | 1,187,874 | 1,193,314 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 8,324 | 8,324 | — | |||||||||||||||||||||
Total loans | $ | 1,549 | $ | — | $ | 3,891 | $ | 5,440 | $ | 1,863,249 | $ | 1,868,689 | $ | — | ||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
The following tables show impaired loans in the categories indicated (in thousands): | ||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,961 | $ | 127,961 | $ | — | $ | 121,371 | $ | 6,951 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 1,300 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 5,924 | $ | 5,924 | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 25,067 | $ | 25,067 | $ | (4,067 | ) | $ | 24,562 | $ | 1,824 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 3,553 | $ | 3,553 | $ | (1,882 | ) | $ | — | $ | — | |||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 153,028 | $ | 153,028 | $ | (4,067 | ) | $ | 145,933 | $ | 8,775 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 1,300 | |||||||||||||||||||||||
Bank loans | 3,553 | 3,553 | (1,882 | ) | — | — | ||||||||||||||||||||||
Loans receivable - related party | 5,924 | 5,924 | — | — | — | |||||||||||||||||||||||
$ | 200,577 | $ | 200,577 | $ | (5,949 | ) | $ | 184,005 | $ | 10,075 | ||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 115,841 | $ | 115,841 | $ | — | $ | 114,682 | $ | 3,436 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 367 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 6,754 | $ | 6,754 | $ | — | $ | — | $ | 851 | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 23,142 | $ | 23,142 | $ | (2,142 | ) | $ | 22,576 | $ | 801 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 5,440 | $ | 5,440 | $ | (3,236 | ) | $ | — | $ | — | |||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 138,983 | $ | 138,983 | $ | (2,142 | ) | $ | 137,258 | $ | 4,237 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 367 | |||||||||||||||||||||||
Bank loans | 5,440 | 5,440 | (3,236 | ) | — | — | ||||||||||||||||||||||
Loans receivable - related party | 6,754 | 6,754 | — | — | 851 | |||||||||||||||||||||||
$ | 189,249 | $ | 189,249 | $ | (5,378 | ) | $ | 175,330 | $ | 5,455 | ||||||||||||||||||
Troubled- Debt Restructurings | ||||||||||||||||||||||||||||
The following tables show troubled-debt restructurings in the Company's loan portfolio (in thousands): | ||||||||||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013: | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
Three Months Ended September 30, 2012: | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 42,550 | $ | 42,550 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 3 | $ | 80,622 | $ | 80,622 | |||||||||||||||||||||||
Nine Months Ended September 30, 2013: | ||||||||||||||||||||||||||||
Whole loans | 4 | $ | 104,702 | $ | 109,044 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 5 | $ | 111,294 | $ | 115,636 | |||||||||||||||||||||||
Nine Months Ended September 30, 2012: | ||||||||||||||||||||||||||||
Whole loans | 5 | $ | 168,708 | $ | 151,422 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 7,797 | 7,797 | |||||||||||||||||||||||||
Total loans | 7 | $ | 214,577 | $ | 197,291 | |||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, there were no troubled-debt restructurings that subsequently defaulted. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
INTANGIBLE ASSETS | ' | |||||||||||
INTANGIBLE ASSETS | ||||||||||||
Intangible assets represent identifiable intangible assets acquired as a result of the Company’s acquisition of RCAM in February 2011, its conversion of loans to investments in real estate in June 2011, and the acquisition of real estate in August 2011. The Company amortizes identified intangible assets to expense over their estimated lives or period of benefit using the straight-line method. The Company evaluates intangible assets for impairment as events and circumstances change. In October 2012, the Company purchased 66.6% of preferred equity and began consolidating Whitney CLO I, one of the RCAM CLOs (see Note 3). As a result of this transaction and the consolidation of Whitney CLO I, the Company wrote-off the unamortized balance of $2.6 million, the intangible asset associated with this CLO, which was recorded in gain/(loss) on consolidation in the consolidated statement of income during the year ended December 31, 2012. In May 2013, the Company purchased additional equity, increasing its ownership percentage to 68.3%. Due to an event whereby a second CLO liquidated in early 2013, the Company accelerated the amortization of the remaining balance of its intangible asset and recorded a $657,000 charge to depreciation and amortization on the consolidated statement of income during the year ended December 31, 2012. The Company expects to record amortization expense on intangible assets of approximately $1.9 million for the year ended December 31, 2013, and $1.8 million for the years ended December 31, 2014, 2015, 2016 and 2017. The weighted average amortization period was 8.0 years and 8.7 years at September 30, 2013 and December 31, 2012, respectively and the accumulated amortization was $12.0 million and $10.5 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
The following table summarizes intangible assets at September 30, 2013 and December 31, 2012 (in thousands). | ||||||||||||
Beginning Balance | Accumulated Amortization | Net Asset | ||||||||||
September 30, 2013: | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (9,526 | ) | $ | 11,687 | |||||
Investments in real estate: | ||||||||||||
In-place leases | 2,461 | (2,421 | ) | 40 | ||||||||
Above (below) market leases | 29 | (28 | ) | 1 | ||||||||
2,490 | (2,449 | ) | 41 | |||||||||
Total intangible assets | $ | 23,703 | $ | (11,975 | ) | $ | 11,728 | |||||
December 31, 2012: | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (8,108 | ) | $ | 13,105 | |||||
Investments in real estate: | ||||||||||||
In-place leases | 2,461 | (2,379 | ) | 82 | ||||||||
Above (below) market leases | 29 | (24 | ) | 5 | ||||||||
2,490 | (2,403 | ) | 87 | |||||||||
Total intangible assets | $ | 23,703 | $ | (10,511 | ) | $ | 13,192 | |||||
For the three and nine months ended September 30, 2013, the Company recognized $1.2 million and $4.2 million, respectively of fee income related to the investment in RCAM. For the three and nine months ended September 30, 2012, the Company recognized $1.8 million and $5.4 million, respectively of fee income related to the investment in RCAM. |
BORROWINGS
BORROWINGS | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
BORROWINGS | ' | |||||||||||
BORROWINGS | ||||||||||||
The Company historically has financed the acquisition of its investments, including investment securities, loans and lease receivables, through the use of secured and unsecured borrowings in the form of CDOs, securitized notes, repurchase agreements, secured term facilities, warehouse facilities and trust preferred securities issuances. Certain information with respect to the Company’s borrowings at September 30, 2013 and December 31, 2012 is summarized in the following table (in thousands, except percentages): | ||||||||||||
Outstanding | Weighted | Weighted | Value of | |||||||||
Borrowings | Average | Average | Collateral | |||||||||
Borrowing | Remaining | |||||||||||
Rate | Maturity | |||||||||||
September 30, 2013: | ||||||||||||
RREF CDO 2006-1 Senior Notes (1) | $ | 95,151 | 1.86% | 32.9 years | $ | 170,255 | ||||||
RREF CDO 2007-1 Senior Notes (2) | 178,575 | 0.85% | 33.0 years | 325,551 | ||||||||
Apidos CDO I Senior Notes (3) | 101,827 | 1.53% | 3.8 years | 117,827 | ||||||||
Apidos CDO III Senior Notes (4) | 145,875 | 0.86% | 6.7 years | 157,009 | ||||||||
Apidos Cinco CDO Senior Notes (5) | 320,997 | 0.77% | 6.6 years | 339,154 | ||||||||
Apidos CLO VIII Senior Notes (6) | 302,916 | 2.09% | 17 days | 351,434 | ||||||||
Apidos CLO VIII Securitized Borrowings (10) | 18,444 | 14.13% | 17 days | — | ||||||||
Whitney CLO I Senior Notes(9) | — | —% | n/a | 8,573 | ||||||||
Whitney CLO I Securitized Borrowings (9) | 2,424 | 5.78% | n/a | — | ||||||||
Unsecured Junior Subordinated Debentures (7) | 50,956 | 4.22% | 22.9 years | — | ||||||||
Repurchase Agreements (8) | 205,265 | 2.29% | 18 days | 284,290 | ||||||||
Total | $ | 1,422,430 | 1.73% | 9.6 years | $ | 1,754,093 | ||||||
December 31, 2012: | ||||||||||||
RREF CDO 2006-1 Senior Notes (1) | $ | 145,664 | 1.42% | 33.6 years | $ | 295,759 | ||||||
RREF CDO 2007-1 Senior Notes (2) | 225,983 | 0.81% | 33.8 years | 292,980 | ||||||||
Apidos CDO I Senior Notes (3) | 202,969 | 1.07% | 4.6 years | 217,745 | ||||||||
Apidos CDO III Senior Notes (4) | 221,304 | 0.80% | 7.5 years | 232,655 | ||||||||
Apidos Cinco CDO Senior Notes (5) | 320,550 | 0.82% | 7.4 years | 344,105 | ||||||||
Apidos CLO VIII Senior Notes (6) | 300,951 | 2.16% | 8.8 years | 351,014 | ||||||||
Apidos CLO VIII Securitized Borrowings (10) | 20,047 | 15.27% | 8.8 years | — | ||||||||
Whitney CLO I Senior Notes(9) | 171,555 | 1.82% | 4.2 years | 191,704 | ||||||||
Whitney CLO I Securitized Borrowings (9) | 5,860 | 9.50% | 4.2 years | — | ||||||||
Unsecured Junior Subordinated Debentures (7) | 50,814 | 4.26% | 23.7 years | — | ||||||||
Repurchase Agreements (8) | 106,303 | 2.28% | 18 days | 145,234 | ||||||||
Mortgage Payable | 13,600 | 4.17% | 5.6 years | 18,100 | ||||||||
Total | $ | 1,785,600 | 1.62% | 12.5 years | $ | 2,089,296 | ||||||
-1 | Amount represents principal outstanding of $95.4 million and $146.4 million less unamortized issuance costs of $268,000 and $728,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2006. | |||||||||||
-2 | Amount represents principal outstanding of $179.4 million and $227.4 million less unamortized issuance costs of $786,000 and $1.4 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in June 2007. | |||||||||||
-3 | Amount represents principal outstanding of $101.8 million and $203.2 million less unamortized issuance costs of $0 and $274,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2005. | |||||||||||
-4 | Amount represents principal outstanding of $146.1 million and $222.0 million less unamortized issuance costs of $205,000 and $659,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in May 2006. | |||||||||||
-5 | Amount represents principal outstanding of $322.0 million and $322.0 million less unamortized issuance costs of $1.0 million and $1.5 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in May 2007. | |||||||||||
-6 | Amount represents principal outstanding of $317.6 million and $317.6 million, less unamortized issuance costs of $4.1 million and $4.7 million, and less unamortized discounts of $10.6 million and $11.9 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in October 2011. Apidos CLO VIII was called and the notes were paid in full in October 2013. | |||||||||||
-7 | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||||||||||
-8 | Amount represents principal outstanding of $52.7 million and $47.5 million less unamortized deferred debt costs of $47,000 and $23,000 plus accrued interest costs of $25,000 and $27,000 related to CMBS repurchase facilities as of September 30, 2013 and December 31, 2012, respectively, and principal outstanding of $153.8 million and $59.1 million less unamortized deferred debt costs of $1.3 million and $348,000 plus accrued interest costs of $161,000 and $79,000 related to CRE repurchase facilities as of September 30, 2013 and December 31, 2012. Amount does not reflect CMBS repurchase agreement borrowings that are components of Linked Transactions. At September 30, 2013 and December 31, 2012, the Company had repurchase agreements of $63.7 million and $20.4 million and accrued interest costs of $41,000 and $10,000, respectively, that were linked to CMBS purchases and accounted for as Linked Transactions, and, as such, the linked repurchase agreements are not included in the above table. (See Note 20). | |||||||||||
-9 | Amount represents principal outstanding of $174.1 million less unamortized discounts of $2.5 million as of December 31, 2012. In September 2013, the Company called and liquidated Whitney CLO I. As a result, substantially all of the remaining assets were sold and the balance on the outstanding notes totaling $103.7 million was paid down. | |||||||||||
-10 | The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Senior Notes, respectively. | |||||||||||
Collateralized Debt Obligations | ||||||||||||
Resource Real Estate Funding CDO 2007-1 | ||||||||||||
In June 2007, the Company closed RREF CDO 2007-1, a $500.0 million CDO transaction that provided financing for commercial real estate loans and commercial mortgage-backed securities. The investments held by RREF CDO 2007-1 collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. RREF CDO 2007-1 issued a total of $265.6 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the class H senior notes (rated BBB+:Fitch), class K senior notes (rated BBB-:Fitch), class L senior notes (rated BB:Fitch) and class M senior notes (rated B: Fitch) for $68.0 million. In addition, Resource Real Estate Funding 2007-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $41.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2007-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2007-1. The reinvestment period for RREF 2007-1 ended in June 2012 which results in the sequential pay down of notes as underlying collateral matures and pays down. As of September 30, 2013, $62.6 million of Class A-1 notes have been paid down and $50.0 million of the class A-1R notes have been paid down. | ||||||||||||
At closing, the senior notes issued to investors by RREF CDO 2007-1 consisted of the following classes: (i) $180.0 million of class A-1 notes bearing interest at one-month LIBOR plus 0.28%; (ii) $50.0 million of unissued class A-1R notes, which allowed the CDO to fund future funding obligations under the existing whole loan participations that had future funding commitments; the undrawn balance of the class A-1R notes accrued a commitment fee at a rate per annum equal to 0.18%, the drawn balance bore interest at one-month LIBOR plus 0.32%; (iii) $57.5 million of class A-2 notes bearing interest at one-month LIBOR plus 0.46%; (iv) $22.5 million of class B notes bearing interest at one-month LIBOR plus 0.80%; (v) $7.0 million of class C notes bearing interest at a fixed rate of 6.423%; (vi) $26.8 million of class D notes bearing interest at one-month LIBOR plus 0.95%; (vii) $11.9 million of class E notes bearing interest at one-month LIBOR plus 1.15%; (viii) $11.9 million of class F notes bearing interest at one-month LIBOR plus 1.30%; (ix) $11.3 million of class G notes bearing interest at one-month LIBOR plus 1.55%; (x) $11.3 million of class H notes bearing interest at one-month LIBOR plus 2.30%; (xi) $11.3 million of class J notes bearing interest at one-month LIBOR plus 2.95%; (xii) $10.0 million of class K notes bearing interest at one-month LIBOR plus 3.25%; (xiii) $18.8 million of class L notes bearing interest at a fixed rate of 7.50% and (xiv) $28.8 million of class M notes bearing interest at a fixed rate of 8.50%. All of the notes issued mature in September 2046, although the Company has the right to call the notes anytime after July 2017 until maturity. The weighted average interest rate on all notes issued to outside investors and net of repurchased notes was 0.85% and 0.81% at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
During the three and nine months ended September 30, 2012 the Company repurchased $50.0 million of the Class A-1R notes in RREF CDO 2007-1 at a weighted average price of 90.00% to par which, after fees paid to an investment bank to finance the transaction and related expenses, resulting in a $3.6 million gain reported as a gain on the extinguishment of debt in the consolidated statements of income. During the three and nine months ended September 30, 2013, the Company did not repurchase any notes. | ||||||||||||
As a result of the Company’s ownership of senior notes, both the notes repurchased subsequent to closing and those retained at the CDO’s closing eliminate in consolidation. | ||||||||||||
Resource Real Estate Funding CDO 2006-1 | ||||||||||||
In August 2006, the Company closed RREF CDO 2006-1, a $345.0 million CDO transaction that provided financing for commercial real estate loans. The investments held by RREF CDO 2006-1 collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. RREF CDO 2006-1 issued a total of $308.7 million of senior notes at par to investors of which RCC Real Estate purchased 100% of the class J senior notes (rated BB: Fitch) and class K senior notes (rated B:Fitch) for $43.1 million. In addition, Resource Real Estate Funding 2006-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $36.3 million equity interest representing 100% of the outstanding preference shares. The senior notes purchased by RCC Real Estate are subordinated in right of payment to all other senior notes issued by RREF CDO 2006-1 but are senior in right of payment to the preference shares. The equity interest is subordinated in right of payment to all other securities issued by RREF CDO 2006-1. The reinvestment period for RREF 2006-1 ended in September 2011 which results in the sequential pay down of notes as underlying collateral matures and pays down. As of September 30, 2013, $108.1 million, respectively, of Class A-1 notes have been paid down. | ||||||||||||
At closing, the senior notes issued to investors by RREF CDO 2006-1 consisted of the following classes: (i) $129.4 million of class A-1 notes bearing interest at one-month LIBOR plus 0.32%; (ii) $17.4 million of class A-2 notes bearing interest at one-month LIBOR plus 0.35%; (iii) $5.0 million of class A-2 notes bearing interest at a fixed rate of 5.842%; (iv) $6.9 million of class B notes bearing interest at one-month LIBOR plus 0.40%; (v) $20.7 million of class C notes bearing interest at one-month LIBOR plus 0.62%; (vi) $15.5 million of class D notes bearing interest at one-month LIBOR plus 0.80%; (vii) $20.7 million of class E notes bearing interest at one-month LIBOR plus 1.30%; (viii) $19.8 million of class F notes bearing interest at one-month LIBOR plus 1.60%; (ix) $17.3 million of class G notes bearing interest at one-month LIBOR plus 1.90%; (x) $12.9 million of class H notes bearing interest at one-month LIBOR plus 3.75%, (xi) $14.7 million of class J notes bearing interest at a fixed rate of 6.00% and (xii) $28.4 million of class K notes bearing interest at a fixed rate of 6.00%. All of the notes issued mature in August 2046, although the Company has the right to call the notes anytime after August 2016 until maturity. The weighted average interest rate on all notes issued to outside investors and net of repurchased notes was 1.86% and 1.42% at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
During the nine months ended September 30, 2012, the Company repurchased $4.3 million of the Class A-1 notes and $4.0 million of the Class C notes in RREF CDO 2006-1 at a weighted average price of 81.63% to par which resulted in a $1.5 million gain reported as a gain on the extinguishment of debt in the consolidated statements of income. During the three and nine months ended September 30, 2013, the Company did not repurchase any notes. | ||||||||||||
As a result of the Company’s ownership of senior notes, both the notes repurchased subsequent to closing and those retained at the CDO’s closing eliminate in consolidation. | ||||||||||||
Whitney CLO I | ||||||||||||
In February 2011, the Company acquired the rights to manage the assets held by Whitney CLO I. In October 2012, the Company purchased a $20.9 million preferred equity interest at a discount of 42.5% which represents 66.6% of the outstanding preference shares in Whitney CLO I. In May 2013 the Company purchased an additional $550,000 equity interest in Whitney CLO I and as of September 30, 2013 holds 68.3% of the outstanding preference shares. Based upon those purchases, the Company determined that it had a controlling interest and consolidated Whitney CLO I. The preferred equity interest is subordinated in right of payment to all other securities issued by Whitney CLO I. In September 2013, the Company liquidated Whitney CLO I, and as a result substantially all of the assets were sold. Total proceeds from the sale of these assets, plus proceeds from previous sales and paydowns in the CLO were used to pay down the remaining balance on the outstanding notes of $103.7 million. | ||||||||||||
The balance of senior notes issued to investors when the Company acquired a controlling interest in October 2012 were as follows: (i) $48.8 million of class A-1L notes bearing interest at LIBOR plus 0.32%; (ii) $26.5 million of class A-1LA notes bearing interest at LIBOR plus 0.29%; (iii) $36.5 million of class A-1LB notes bearing interest at LIBOR plus 0.45%; (iv) $19.8 million of class A-2F notes bearing interest at LIBOR plus 5.19%; (v) $15.0 million of class A-2L notes bearing interest at LIBOR plus 0.57%; (vi) $25.0 million of class A-3L notes bearing interest at LIBOR plus 1.05%; (vii) $23.5 million of class B-1LA notes bearing interest at LIBOR plus 2.1%; (viii) $14.4 million of class B-1LB notes bearing interest at LIBOR plus 1.0%. All of the notes issued mature on March 1, 2017. The Company has the right to call the notes anytime after March 1, 2009 until maturity in March 2017. The weighted average interest rate on all notes was 0.00% and 1.82% at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
Apidos CLO VIII | ||||||||||||
In October 2011, the Company closed Apidos CLO VIII, a $350.0 million CLO transaction that provides financing for bank loans. The investments held by Apidos CLO VIII collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. Apidos CLO VIII issued a total of $317.6 million of senior notes at a discount of 4.4% to investors and RCC Commercial purchased a $15.0 million interest representing 43.0% of the outstanding subordinated debt. The remaining 57.0% of subordinated debt is owned by unrelated third parties. The subordinated debt interest is subordinated in right of payment to all other securities issued by Apidos CLO VIII. | ||||||||||||
The senior notes issued to investors by Apidos CLO VIII consist of the following classes: (i) $231.2 million of class A-1 notes bearing interest at LIBOR plus 1.50%; (ii) $35.0 million of class A-2 notes bearing interest at LIBOR plus 2.00%; (iii) $17.3 million of class B-1 notes bearing interest at LIBOR plus 2.50%; (iv) $6.8 million of class B-2 notes bearing interest at LIBOR plus 2.50%; (v) $14.1 million of class C notes bearing interest at LIBOR plus 3.10% and (vi) $13.2 million of class D notes bearing interest at LIBOR plus 4.50%. All of the notes issued mature on October 17, 2021, although the Company has the right to call the notes anytime from October 17, 2013 until maturity. The weighted average interest rate on all notes was 2.09% and 2.16% at September 30, 2013 and December 31, 2012, respectively. In October 2013, Apidos CLO VIII was called and liquidated. Proceeds from the liquidation were used to pay the notes down in full. | ||||||||||||
Apidos Cinco CDO | ||||||||||||
In May 2007, the Company closed Apidos Cinco CDO, a $350.0 million CDO transaction that provides financing for bank loans. The investments held by Apidos Cinco CDO collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. Apidos Cinco CDO issued a total of $322.0 million of senior notes at par to investors and RCC Commercial purchased a $28.0 million equity interest representing 100% of the outstanding preference shares. The reinvestment period for Apidos Cinco CDO will end in May 2014. The equity interest is subordinated in right of payment to all other securities issued by Apidos Cinco CDO. | ||||||||||||
The senior notes issued to investors by Apidos Cinco CDO consist of the following classes: (i) $37.5 million of class A-1 notes bearing interest at LIBOR plus 0.24%; (ii) $200.0 million of class A-2a notes bearing interest at LIBOR plus 0.23%; (iii) $22.5 million of class A-2b notes bearing interest at LIBOR plus 0.32%; (iv) $19.0 million of class A-3 notes bearing interest at LIBOR plus 0.42%; (v) $18.0 million of class B notes bearing interest at LIBOR plus 0.80%; (vi) $14.0 million of class C notes bearing interest at LIBOR plus 2.25% and (vii) $11.0 million of class D notes bearing interest at LIBOR plus 4.25%. All of the notes issued mature on May 14, 2020, although the Company has the right to call the notes anytime after May 14, 2011 until maturity. The weighted average interest rate on all notes was 0.77% and 0.82% at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
Apidos CDO III | ||||||||||||
In May 2006, the Company closed Apidos CDO III, a $285.5 million CDO transaction that provides financing for bank loans. The investments held by Apidos CDO III collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. Apidos CDO III issued a total of $262.5 million of senior notes at par to investors and RCC Commercial purchased a $23.0 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos CDO III. | ||||||||||||
At closing, the senior notes issued to investors by Apidos CDO III consisted of the following classes: (i) $212.0 million of class A-1 notes bearing interest at 3-month LIBOR plus 0.26%; (ii) $19.0 million of class A-2 notes bearing interest at 3-month LIBOR plus 0.45%; (iii) $15.0 million of class B notes bearing interest at 3-month LIBOR plus 0.75%; (iv) $10.5 million of class C notes bearing interest at 3-month LIBOR plus 1.75%; and (v) $6.0 million of class D notes bearing interest at 3-month LIBOR plus 4.25%. All of the notes issued mature on September 12, 2020, although the Company has the right to call the notes anytime after September 12, 2011 until maturity. The weighted average interest rate on all notes was 0.86% and 0.80% at September 30, 2013 and December 31, 2012, respectively. The reinvestment period for Apidos CDO III ended in June 2012 which results in the sequential pay down of notes as underlying collateral matures and pays down. As of September 30, 2013, $116.4 million of Class A-1 notes have been paid down. | ||||||||||||
Apidos CDO I | ||||||||||||
In August 2005, the Company closed Apidos CDO I, a $350.0 million CDO transaction that provides financing for bank loans. The investments held by Apidos CDO I collateralize the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. Apidos CDO I issued a total of $321.5 million of senior notes at par to investors and RCC Commercial purchased a $28.5 million equity interest representing 100% of the outstanding preference shares. The equity interest is subordinated in right of payment to all other securities issued by Apidos CDO I. | ||||||||||||
At closing, the senior notes issued to investors by Apidos CDO I consisted of the following classes: (i) $259.5 million of class A-1 notes bearing interest at 3-month LIBOR plus 0.26%; (ii) $15.0 million of class A-2 notes bearing interest at 3-month LIBOR plus 0.42%; (iii) $20.5 million of class B notes bearing interest at 3-month LIBOR plus 0.75%; (iv) $13.0 million of class C notes bearing interest at 3-month LIBOR plus 1.85%; and (v) $8.0 million of class D notes bearing interest at a fixed rate of 9.25%. All of the notes issued mature on July 27, 2017, although the Company has the right to call the notes anytime after July 27, 2010 until maturity. The weighted average interest rate on all notes was 1.52% and 1.07% at September 30, 2013 and December 31, 2012, respectively. The reinvestment period for Apidos CDO I ended in July 2011 which results in the sequential pay down of notes as underlying collateral matures and pays down. As of September 30, 2013, $217.7 million of Class A-1 Notes have been paid down. | ||||||||||||
During the nine months ended September 30, 2012, the Company repurchased $2.0 million of the Class B notes in Apidos CDO I at a weighted average price of 85.11% to par which resulted in a $298,000 gain reported as a gain on the extinguishment of debt in the consolidated statements of income. During the three and nine months ended September 30, 2013, the Company did not repurchase any notes. | ||||||||||||
Unsecured Junior Subordinated Debentures | ||||||||||||
In May 2006 and September 2006, the Company formed RCT I and RCT II, respectively, for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although the Company owns 100% of the common securities of RCT I and RCT II, RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II are included in borrowings and are being amortized into interest expense in the consolidated statements of income using the effective yield method over a ten year period. | ||||||||||||
The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at September 30, 2013 were $285,000 and $306,000, respectively. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2012 were $358,000 and $377,000, respectively. The rates for RCT I and RCT II, at September 30, 2013, were 4.22% and 4.22%, respectively. The rates for RCT I and RCT II, at December 31, 2012, were 4.26% and 4.26%, respectively. | ||||||||||||
The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve on May 25, 2041 and RCT II will dissolve on September 29, 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, mature on September 30, 2036 and October 30, 2036, respectively, and may be called at par by the Company any time after September 30, 2011 and October 30, 2011, respectively. The Company records its investments in RCT I and RCT II’s common securities of $774,000 each as investments in unconsolidated trusts and records dividend income upon declaration by RCT I and RCT II. | ||||||||||||
Repurchase and Credit Facilities | ||||||||||||
CMBS – Term Repurchase Facility | ||||||||||||
In February 2011, the registrant's wholly-owned subsidiaries, RCC Commercial Inc. and RCC Real Estate, Inc. (collectively, the "RCC Subsidiaries"), entered into a master repurchase and securities contract (the “2011 Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”). Under the 2011 Facility, from time to time, the parties may enter into transactions in which the RCC Subsidiaries and Wells Fargo agree to transfer from the RCC Subsidiaries to Wells Fargo all of their right, title and interest to certain commercial mortgage backed securities and other assets (the “Assets”) against the transfer of funds by Wells Fargo to the RCC Subsidiaries, with a simultaneous agreement by Wells Fargo to transfer back to the RCC Subsidiaries such Assets at a date certain or on demand, against the transfer of funds from the RCC Subsidiaries to Wells Fargo. The maximum amount of the Facility is $100.0 million which has a two year term with a one year option to extend, and an interest rate equal to the one-month LIBOR plus 1.00% plus a .25% initial structuring fee and a .25% extension fee upon exercise. On February 1, 2013, the Company exercised the option to extend the 2011 Facility to January 31, 2014 and negotiated another one year option to extend to January 31, 2015. The RCC Subsidiaries may enter into interest rate swaps and cap agreements for securities whose average life exceeds two years to mitigate interest rate risk under the 2011 Facility. | ||||||||||||
The 2011 Facility contains customary events of default, including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, guarantor defaults, and the institution of bankruptcy or insolvency proceedings that remain unstayed. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the RCC Subsidiaries to repay the purchase price for purchased assets. | ||||||||||||
The 2011 Facility also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, Wells Fargo may require the RCC Subsidiaries to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. | ||||||||||||
Under the terms of the 2011 Facility and pursuant to a guarantee agreement dated February 1, 2011 (the “2011 Guaranty”), the Company agreed to unconditionally and irrevocably guarantee to Wells Fargo the prompt and complete payment and performance of (a) all payment obligations owing by the RCC Subsidiaries to Wells Fargo under or in connection with the Facility and any other governing agreements and any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (b) all expenses, including, without limitation, reasonable attorneys' fees and disbursements, that are incurred by Wells Fargo in the enforcement of any of the foregoing or any obligation of the registrant; and (c) any other obligations of the RCC Subsidiaries with respect to Wells Fargo under each of the governing documents. The 2011 Guaranty includes covenants that, among other things, limit the Company's leverage and debt service ratios and require maintenance of certain levels of cash and net worth. RCC Real Estate and RCC Commercial were in compliance with all debt covenants as of September 30, 2013. | ||||||||||||
At September 30, 2013, RCC Real Estate and RCC Commercial had borrowed $51.0 million (net of $47,000 of deferred debt issuance costs), all of which the RCC Subsidiaries had guaranteed. At September 30, 2013, borrowings under the repurchase agreement were secured by highly-rated CMBS with an estimated fair value of $60.1 million and a weighted average interest rate of one-month LIBOR plus 1.22%, or 1.30%. At December 31, 2012, RCC Real Estate had borrowed $42.5 million (net of $23,000 of deferred debt issuance costs), all of which the RCC Subsidiaries had guaranteed. At December 31, 2012, borrowings under the repurchase agreement were secured by highly-rated CMBS with an estimated fair value of $51.4 million and a weighted average interest rate of one-month LIBOR plus 1.30%, or 1.53%. At September 30, 2013, the Company also had repurchase agreements of $9.3 million, with a weighted average interest rate of one-month LIBOR plus 1.42% or 1.60%, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). The borrowings, accounted for as Linked Transactions, under the repurchase agreement were secured by highly-rated CMBS with an estimated fair value of $11.3 million as of September 30, 2013. At December 31, 2012, the Company also had repurchase agreements of $12.2 million, with a weighted average interest rate of one-month LIBOR plus 1.22% or 1.40%, respectively, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). The borrowings, accounted for as Linked Transactions, under the repurchase agreement were secured by highly-rated CMBS with an estimated fair value of $14.6 million as of December 31, 2012, respectively. | ||||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands): | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Wells Fargo Bank, National Association.(2) | $ | 11,195 | 18 | 1.3 | % | |||||||
December 31, 2012: | ||||||||||||
Wells Fargo Bank, National Association.(2) | $ | 10,722 | 18 | 1.53 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
-2 | $9.3 million and $12.2 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012, respectively, (see Note 20). | |||||||||||
CRE – Term Repurchase Facilities | ||||||||||||
On February 27, 2012, RCC Real Estate entered into a master repurchase and securities agreement (the "2012 Facility") with Wells Fargo to finance the origination of commercial real estate loans. The 2012 facility had a maximum amount of $150.0 million and an initial 18 month term with two one year options to extend. The Company paid an origination fee of 37.5 basis points (0.375%). The Company guaranteed RCC Real Estate’s performance of its obligations under the 2012 Facility. On April 2, 2013, RCC Real Estate entered into an amendment which increased the size to $250.0 million and extended the current term of the 2012 Facility to February of 2015 and provides two additional one year extension options at RSO's discretion. RCC Real Estate paid an additional structuring fee of $101,000 and an extension fee of $938,000 in connection with the amendment and will amortize the additional fees over the term of the extension. At September 30, 2013, RCC Real Estate had borrowed $152.5 million (net of $1.3 million of deferred debt issuance costs), all of which the Company had guaranteed. At September 30, 2013, borrowings under the 2012 Facility were secured by 20 commercial real estate loans with an estimated fair value of $220.2 million and a weighted average interest rate of one-month LIBOR plus 2.43%, or 2.61%. At December 31, 2012, RCC Real Estate had borrowed $58.8 million (net of $348,000 of deferred debt issuance costs), all of which the Company had guaranteed. At December 31, 2012, borrowings under the 2012 Facility were secured by eight commercial real estate loans with an estimated fair value of $85.4 million and a weighted average interest rate of one-month LIBOR plus 2.67%, or 2.88%. | ||||||||||||
This 2012 Facility contains customary events of default, including payment defaults, breaches of covenants and/or certain representations and warranties, cross-defaults, guarantor defaults, and the institution of bankruptcy or insolvency proceedings that remain unstayed. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the Company to repay the purchase price for purchased assets. | ||||||||||||
The 2012 Facility also contains margin call provisions relating to a decline in the market value of an security. Under these circumstances, Wells Fargo may require the Company to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. | ||||||||||||
Under the terms of the 2012 Facility and pursuant to a guarantee agreement dated February 27, 2012 (the “2012 Guaranty”), the Company agreed to unconditionally and irrevocably guarantee to Wells Fargo the prompt and complete payment and performance of (a) all payment obligations owing by the Company to Wells Fargo under or in connection with the 2012 Facility and any other governing agreements and any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (b) all expenses, including, without limitation, reasonable attorneys' fees and disbursements, that are incurred by Wells Fargo in the enforcement of any of the foregoing or any obligation of the registrant; and (c) any other obligations of the Company with respect to Wells Fargo under each of the governing documents. The 2012 Guaranty includes covenants that, among other things, limit the registrant's leverage and debt service ratios and require maintenance of certain levels of cash and net worth. RCC Real Estate was in compliance with all debt covenants as of September 30, 2013. | ||||||||||||
The following table shows information about the amount at risk under the facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Wells Fargo | $ | 66,619 | 18 | 2.61 | % | |||||||
31-Dec-12 | ||||||||||||
Wells Fargo | $ | 26,332 | 18 | 2.88 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
On July 19, 2013, RCC Real Estate's wholly-owned subsidiary, RCC Real Estate SPE 5 (or "SPE 5"), entered into a master repurchase and securities agreement (the "DB Facility") with Deutsche Bank AG, Cayman Islands Branch ("DB") to finance the origination of commercial real estate loans. The DB Facility had a maximum amount of $200 million and an initial 12 month term with two one-year extensions at the option of SPE 5 and subject further to the right of SPE 5 to repurchase the assets held in the facility earlier. The Company paid a structuring fee of 0.25% of the maximum facility amount, as well as other reasonable closing costs. The Company guaranteed SPE 5's performance of its obligations under the DB Facility. There were no outstanding borrowings under this facility as of September 30, 2013 or December 31, 2012. | ||||||||||||
The DB Facility contains provisions that provide DB with certain rights if certain credit events have occurred with respect to one or more assets financed on the DB Facility to either repay a portion of the advance on such asset(s) or repay such advance in full (by repurchase of such asset(s)). Depending on the nature of the credit event, such repayment may be required notwithstanding the availability of interest and principal payments from assets financed on the DB Facility, or may only be required to the extent of the availability of such payments. | ||||||||||||
The DB Facility contains events of default (subject to certain materiality thresholds and grace periods) customary for this type of financing arrangement, including but not limited to: payment defaults; bankruptcy or insolvency proceedings; a change of control of SPE 5 or the Company; breaches of covenants and/or certain representations and warranties; performance defaults by the Company; a judgment in an amount greater than $100,000 against SPE 5 or $5.0 million in the aggregate against the Company; or a default involving the failure to pay or acceleration of a monetary obligation in excess of $100,000 of SPE 5 or $5.0 million of the Company. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the DB Facility and the liquidation by DB of assets then subject to the DB Facility. The Company was in compliance with all debt covenants as of September 30, 2013. | ||||||||||||
Short-Term Repurchase Agreements | ||||||||||||
On November 6, 2012, the Company entered into a master repurchase and securities agreement with JP Morgan Securities LLC to finance the origination of CMBS. There is no stated maximum amount of the facility and the repurchase agreement has no stated maturity with monthly resets of interest rates. At September 30, 2013, RCC Real Estate had borrowed $17.8 million, all of which the Company had guaranteed, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). At September 30, 2013, borrowings under the repurchase agreement were secured by four CMBS bonds with an estimated fair value of $26.8 million and a weighted average interest rate of one-month LIBOR plus 0.79%, or 0.98%. At December 31, 2012, RCC Real Estate had borrowed $4.7 million, all of which the Company had guaranteed, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). At December 31, 2012, borrowings under the repurchase agreement were secured by a CMBS bond with an estimated fair value of $7.2 million and a weighted average interest rate of one-month LIBOR plus 0.80%, or 1.01%. | ||||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
JP Morgan Securities, LLC (2) | $ | 9,696 | 30 | 0.98 | % | |||||||
December 31, 2012: | ||||||||||||
JP Morgan Securities, LLC (2) | $ | 2,544 | 11 | 1.01 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
-2 | $17.8 million and $4.7 million linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). | |||||||||||
On February 14, 2012, RCC Real Estate entered into a master repurchase and securities agreement with Wells Fargo Securities, LLC to finance the origination of CMBS. There is no stated maximum amount of the facility and the repurchase agreement has no stated maturity date with monthly resets of interest rates. The Company guaranteed RCC Real Estate’s performance of its obligations under the repurchase agreement. At September 30, 2013, RCC Real Estate had borrowed $1.7 million, all of which the Company had guaranteed. At September 30, 2013, borrowings under the repurchase agreement were secured by one CMBS bond with an estimated fair value of $2.8 million and a weighted average interest rate of one-month LIBOR plus 1.01%,or 1.19%. At December 31, 2012, RCC Real Estate had borrowed $1.9 million, all of which the Company had guaranteed. At December 31, 2012, borrowings under the repurchase agreement were secured by one CMBS bond with an estimated fair value of $3.1 million and a weighted average interest rate of one-month LIBOR plus 1.25% or 1.46%. At September 30, 2013, the Company also had repurchase agreements of $21.5 million, with a weighted average interest rate of one-month LIBOR plus 1.02% or 1.20%, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). At September 30, 2013, borrowings under the repurchase agreement accounted for as Linked Transactions were secured by seven CMBS bonds with an estimated fair value of $31.1 million. At December 31, 2012, the Company also had repurchase agreements of $3.5 million, with a weighted average interest rate of one-month LIBOR plus 1.25% or 1.46%, respectively, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). At December 31, 2012, borrowings under the repurchase agreement accounted for as Linked Transactions were secured by a CMBS bond with an estimated fair value of $5.7 million. | ||||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Wells Fargo Securities, LLC(2) | $ | 10,854 | 30 | 1.19 | % | |||||||
December 31, 2012: | ||||||||||||
Wells Fargo Securities, LLC (2) | $ | 1,956 | 28 | 1.46 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
-2 | $21.5 million and $3.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). | |||||||||||
On March 8, 2005, RCC Real Estate entered into a master repurchase and securities agreement with Deutsche Bank Securities Inc. to finance the origination of CMBS and commercial real estate loans. There is no stated maximum amount of the facility and the repurchase agreement has an initial 12 month term with monthly resets of interest rates. The Company guaranteed RCC Real Estate’s performance of its obligations under the repurchase agreement. At September 30, 2013, RCC Real Estate had borrowed $15.1 million, all of which the Company had guaranteed, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). At September 30, 2013, borrowings under the repurchase agreement were secured by five CMBS bonds with an estimated fair value of $24.3 million and a weighted average interest rate of one-month LIBOR plus 1.27%, or 1.45%. At December 31, 2012, RCC Real Estate had borrowed $3.1 million, all of which the Company had guaranteed, that were linked to CMBS purchases and accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the borrowings table (see Note 20). At December 31, 2012, borrowings under the repurchase agreement were secured by a CMBS bond with an estimated fair value of $5.1 million and a weighted average interest rate of one-month LIBOR plus 1.25%, or 1.46%. | ||||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Deutsche Bank Securities, Inc. | $ | 9,276 | 19 | 1.45 | % | |||||||
31-Dec-12 | ||||||||||||
Deutsche Bank Securities, Inc. | $ | 2,069 | 7 | 1.46 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
Mortgage Payable | ||||||||||||
On August 1, 2011, the Company, through RCC Real Estate, purchased Whispertree Apartments, a 504 unit multi-family property located in Houston, Texas, for $18.1 million. The property was 95% occupied at acquisition. In conjunction with the purchase of the property, the Company entered into a seven year mortgage of $13.6 million with a lender. The mortgage bears interest at a rate of one-month LIBOR plus 3.95%. As of September 30, 2013, there were no outstanding borrowings under this agreement as the property was sold during the three months ended September 30, 2013 and the underlying mortgage was repaid. At December 31, 2012 there was $13.6 million outstanding and the borrowing rate was 4.17%. |
SHARE_ISSUANCE_AND_REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
SHARE ISSUANCE AND REPURCHASE | ' |
SHARE ISSUANCE AND REPURCHASE | |
In April 2013, the Company sold 18,687,500 shares of common stock in an underwritten public common stock follow-on offering, including 2,437,500 shares exercised through the underwriters' over-allotment option, at a price of $6.33 per share. The Company received net proceeds of approximately $114.6 million after payment of underwriting discounts and commissions of approximately $3.6 million and before other offering expenses of approximately $200,000. | |
On March 15, 2013, the Company and Resource Capital Manager entered into an At-the-Market Issuance Sales Agreement with MLV & Co, LLC ("MLV") to sell up to 1,500,000 shares of its 8.25% Series B Cumulative Redeemable Preferred Stock from time to time through an "at the market" equity offering program under which MLV will act as sales agent. During the three months ended September 30, 2013, the Company issued 156,550 shares at a weighted average offering price of $24.06. As of September 30, 2013, 1,229,317 shares have been issued under this agreement at a weighted average offering price of $24.82. This agreement superseded the November 19, 2012 agreement with MLV. | |
Under the November 2012 agreement, MLV had agreed to sell up to 1,000,000 shares the Company's 8.25% Series B Cumulative Redeemable Preferred Stock from time to time. As of June 2013, all shares under this agreement have been issued at a weighted average price of $24.77. | |
On June 28, 2012, the Company and Resource Capital Manager, Inc. entered into an At-the-Market Issuance Sales Agreement with MLV & Co. LLC (“MLV”) to sell up to 1,000,000 shares of its 8.50% Series A Cumulative Redeemable Preferred Stock from time to time through an “at the market” equity offering program under which MLV will act as sales agent. During the during the three months ended September 30, 2013 , the Company issued 4,579 shares at a weighted-average offering price of $25.02. As of September 30, 2013, 415,952 shares have been issued under this agreement at a weighted average offering price of $24.26. | |
Under a dividend reinvestment plan authorized by the board of directors on March 21, 2013, the Company is authorized to issue up to 20,000,000 shares of common stock. Under this plan, the Company issued 153,094 shares during the three months ended September 30, 2013 at a weighted-average net share price of $6.08 and received proceeds of $925,000 (net of costs). The Company had issued a total of 173,589 shares of common stock under this plan since inception. This plan superseded the February 2012 plan. | |
Under the February 2012 dividend reinvestment plan, the Company was authorized to issue up to 15,000,000 shares of common stock. Under this plan, the Company issued 2,899,708 shares in January 2013 and February 2013 at a weighted average share price of $6.20 per share. The Company issued a total of 13,095,754 million shares of common stock under this plan since inception. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||
The following table summarizes restricted common stock transactions: | ||||||||||||||||
Non-Employee Directors | Non-Employees | Total | ||||||||||||||
Unvested shares as of January 1, 2013 | 19,509 | 3,288,834 | 3,308,343 | |||||||||||||
Issued | 38,704 | 211,719 | 250,423 | |||||||||||||
Vested | (19,509 | ) | (484,132 | ) | (503,641 | ) | ||||||||||
Forfeited | — | (8,782 | ) | (8,782 | ) | |||||||||||
Unvested shares as of September 30, 2013 | 38,704 | 3,007,639 | 3,046,343 | |||||||||||||
The Company is required to value any unvested shares of restricted common stock granted to non-employees at the current market price. The estimated fair value of the unvested shares of restricted stock granted during the nine months ended September 30, 2013 and 2012, including the grant date fair value of shares issued to the Company’s six non-employee directors, was $1.6 million and $2.7 million, respectively. | ||||||||||||||||
On February 1, 2013, March 8, 2013, March 12, 2013, and June 6, 2013, the Company issued 3,582, 13,572, 16,065, and 5,485 shares of restricted common stock, respectively, under its Amended and Restated 2007 Omnibus Equity Compensation Plan to the Company’s non-employee directors as part of their annual compensation. These shares vest in full on the first anniversary of the date of grant. | ||||||||||||||||
On March 21, 2013, the Company issued 2,000 shares of restricted common stock under its Amended and Restated 2007 Omnibus Equity Compensation Plan. These restricted shares will vest 33.3% on March 21, 2014. The balance will vest 33.3% annually thereafter through March 21, 2016. | ||||||||||||||||
In connection with a grant of restricted common stock made on August 25, 2011, the Company agreed to issue up to 336,000 additional shares of common stock if certain loan origination performance thresholds are achieved by personnel from the Company’s loan origination team. The performance criteria are measured at the end of three annual measurement periods beginning April 1, 2011. The agreement also provides dividend equivalent rights pursuant to which the dividends that would have been paid on the shares had they been issued on the date of grant will be paid at the end of each annual measurement period if the performance criteria are met. If the performance criteria are not met, the accrued dividends will be forfeited. As a consequence, the Company does not record the dividend equivalent rights until earned. On March 30, 2013, the second annual measurement period ended and 112,000 shares were earned on April 1, 2013. These shares will vest over the subsequent 18 months at the rate of one-sixth per quarter. In addition, at March 30, 2013, $168,000 of accrued dividend equivalent rights were earned. At September 30, 2013, there was an additional $235,200 of dividends payable upon achievement of the performance criteria. If earned, any future performance shares issued will vest over the subsequent 18 months at the rate of one-sixth per quarter. | ||||||||||||||||
On August 7, 2013, the Company issued 97,719 shares of restricted common stock under its Amended and Restated 2007 Omnibus Equity Compensation Plan. These restricted shares will vest 33.3% on August 7, 2014. The balance will vest 33.3% annually thereafter through August 7, 2016. | ||||||||||||||||
The following table summarizes the status of the Company’s unvested stock options as of September 30, 2013: | ||||||||||||||||
Unvested Options | Options | Weighted Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||||
Unvested at January 1, 2013 | 26,667 | $ | 6.4 | |||||||||||||
Granted | — | |||||||||||||||
Vested | (13,333 | ) | 6.4 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Unvested at September 30, 2013 | 13,334 | $ | 6.4 | |||||||||||||
The following table summarizes the status of the Company’s vested stock options as of September 30, 2013: | ||||||||||||||||
Vested Options | Number of Options | Weighted | Weighted | Aggregate | ||||||||||||
Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Contractual | (in thousands) | |||||||||||||||
Term (in years) | ||||||||||||||||
Vested as of January 1, 2013 | 614,999 | $ | 14.8 | |||||||||||||
Vested | 13,333 | $ | 6.4 | |||||||||||||
Exercised | — | |||||||||||||||
Forfeited | (1,000 | ) | $ | 15 | ||||||||||||
Vested at September 30, 2013 | 627,332 | $ | 14.62 | 2 | $ | 67 | ||||||||||
There were no options granted during the three and nine months ended September 30, 2013 and 2012. The outstanding stock options have a weighted average remaining contractual term of two years. | ||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, the components of equity compensation expense were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Options granted to Manager and non-employees | $ | 4 | $ | — | $ | 7 | $ | 1 | ||||||||
Restricted shares granted to Manager and non-employees | 2,052 | 1,376 | 7,704 | 3,327 | ||||||||||||
Restricted shares granted to non-employee directors | 64 | 28 | 155 | 84 | ||||||||||||
Total equity compensation expense | $ | 2,120 | $ | 1,404 | $ | 7,866 | $ | 3,412 | ||||||||
During the three and nine months ended September 30, 2013, the Manager received zero and 110,639 shares as incentive compensation valued at $0 and $653,000, respectively, pursuant to the Management Agreement. During the three and nine months ended September 30, 2012, the Manager received 83,776 and 112,028 shares as incentive compensation valued at $454,000 and $608,000, respectively, pursuant to the Management Agreement. The incentive management fee is paid one quarter in arrears. | ||||||||||||||||
Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for equity awards as of September 30, 2013. All awards are discretionary in nature and subject to approval by the Compensation Committee. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Basic: | ||||||||||||||||
Net income allocable to common shares | $ | 22,121 | $ | 18,152 | $ | 40,180 | $ | 49,058 | ||||||||
Weighted average number of shares outstanding | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 | ||||||||||||
Basic net income per share | $ | 0.18 | $ | 0.2 | $ | 0.34 | $ | 0.58 | ||||||||
Diluted: | ||||||||||||||||
Net income allocable to common shares | $ | 22,121 | $ | 18,152 | $ | 40,180 | $ | 49,058 | ||||||||
Weighted average number of shares outstanding | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 | ||||||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,860,650 | 898,753 | 1,502,836 | 770,451 | ||||||||||||
Adjusted weighted-average number of common shares outstanding | 126,072,682 | 89,965,680 | 117,973,978 | 85,365,343 | ||||||||||||
Diluted net income per share | $ | 0.18 | $ | 0.2 | $ | 0.34 | $ | 0.57 | ||||||||
Potentially dilutive shares relating to 640,666 options for the three and nine months ended September 30, 2013 and 641,666 options for the three and nine months ended September 30, 2012 were not included in the calculation of diluted net income per share because the effect was anti-dilutive. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the nine months ended September 30, 2013 (dollars in thousands): | ||||||||||||||||
Net unrealized (loss) gain on derivatives | Net unrealized (loss) gain on securities, | Foreign Currency Translation | Net unrealized (loss) gain | |||||||||||||
available-for-sale | ||||||||||||||||
January 1, 2013 | $ | (15,595 | ) | $ | (11,483 | ) | $ | — | $ | (27,078 | ) | |||||
Other comprehensive gain/(loss) before reclassifications | 2,480 | 11,644 | (23 | ) | 14,101 | |||||||||||
Amounts reclassified from accumulated other | 322 | (4,728 | ) | — | (4,406 | ) | ||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 2,802 | 6,916 | (23 | ) | 9,695 | |||||||||||
September 30, 2013 | $ | (12,793 | ) | $ | (4,567 | ) | $ | (23 | ) | $ | (17,383 | ) |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
Relationship with Resource America and Certain of its Subsidiaries | |
Relationship with Resource America. On September 19, 2013, the Audit Committee of the Board of Directors of Resource America concluded that Resource America should consolidate the financial statements of the Company, which was previously treated as an unconsolidated variable interest entity. The Audit Committee reached this conclusion after consultations with the Office of the Chief Accountant of the Securities and Exchange Commission (the “Commission”) following comments received from the staff of the Division of Corporation Finance of the Commission and the Audit Committee's discussion with the Company's management and its independent registered public accounting firm. Resource America's Audit Committee noted that consolidation of the Company was not expected to materially affect Resource America's previously reported net income attributable to common shareholders. At September 30, 2013, Resource America owned 2,781,403 shares, or 2.2%, of the Company’s outstanding common stock. In addition, Resource America held 2,166 options to purchase common stock. | |
The Company is managed by the Manager, which is an affiliate of Resource America, pursuant to a Management Agreement that provides for both base and incentive management fees. For the three and nine months ended September 30, 2013, the Manager earned base management fees of approximately $3.0 million and $8.6 million, respectively, and $1.9 million incentive management fees for both the three and nine months ended September 30, 2013. For the three and nine months ended September 30, 2012, the Manager earned base management fees of approximately $2.1 million and $5.9 million, respectively, and incentive management fees of $906,000 and $3.4 million, respectively. The Company also reimburses the Manager and Resource America for expenses, including the expense of employees of Resource America who perform legal, accounting, due diligence and other services that outside professionals or consultants would otherwise perform, and for the wages, salaries and benefits of several Resource America personnel dedicated to the Company’s operations. For the three and nine months ended September 30, 2013, the Company paid the Manager $848,000 and $2.7 million, respectively, as expense reimbursements. For the three and nine months ended September 30, 2012, the Company paid the Manager $918,000 and $2.5 million, respectively, as expense reimbursements. | |
On November 24, 2010, the Company entered into an Investment Management Agreement with Resource Capital Markets, Inc. (“RCM”), a wholly-owned subsidiary of Resource America. The initial agreement provided that: (a) RCM may invest up to $5.0 million of the Company’s funds, with the investable amount being adjusted by portfolio gains/(losses) and collections, and offset by expenses, taxes and realized management fees, and (b) RCM can earn a management fee in any year that the net profits earned exceed a preferred return. On June 17, 2011, the Company entered into a revised Investment Management Agreement with RCM which provided an additional $8.0 million of the Company’s funds and established a management fee of 20% of the amount by which the net profits exceed the preferred return. RCM earned $30,000 in management fees for both the three and nine months ended September 30, 2013. During the three and nine months ended September 30, 2012, RCM earned $2.2 million and $3.7 million in management fees, respectively. The Company has reinvested gains from its activity and holds $12.1 million in fair market value of trading securities as of September 30, 2013, a decrease of $12.7 million from $24.8 million at fair market value as of December 31, 2012. In addition, the Company and RCM have established an escrow account that allocates the net profit or net losses of the portfolio on a yearly basis based on the net asset value of the account. During the three and nine months ended September 30, 2013, RCM earned $0 and $35,000, respectively, as its share of the net profits as defined in the Investment Management Agreement. During the three and nine months ended September 30, 2012, RCM earned $301,000 and $527,000, respectively, as its share of the net profits as defined in the Investment Management Agreement. | |
At September 30, 2013, the Company was indebted to the Manager for $3.6 million, comprised of base management fees of $1.0 million, incentive management fees of $1.9 million and expense reimbursements of $606,000. At December 31, 2012, the Company was indebted to the Manager for $3.8 million, comprised of base management fees of $833,000, incentive management fees of $2.6 million and expense reimbursements of $307,000. At September 30, 2013, the Company was indebted to RCM, under the Company’s Investment Management Agreement for $111,000, comprised of $30,000 of incentive management fees and $81,000 of expense reimbursements. At December 31, 2012, the Company was indebted to RCM under the Company’s Investment Management Agreement for $4.3 million, comprised of $4.3 million of incentive management fees and $48,000 of expense reimbursements. | |
The Company had executed seven CDO transactions as of September 30, 2013 and December 31, 2012, which were structured for the Company by the Manager. Under the Management Agreement, the Manager was not separately compensated by the Company for executing these transactions and is not separately compensated for managing the CDO entities and their assets. | |
Relationship with LEAF Financial. LEAF Financial, a wholly-owned subsidiary of Resource America, originates and manages equipment leases and notes on behalf of the Company. | |
On March 5, 2010, the Company entered into agreements with Lease Equity Appreciation Fund II, L.P. (“LEAF II”) (an equipment leasing partnership sponsored by LEAF Financial and of which a LEAF Financial subsidiary is the general partner), pursuant to which the Company provided and funded an $8.0 million credit facility to LEAF II. The credit facility initially had a one year term at 12% per year, payable quarterly, and was secured by all the assets of LEAF II including its entire ownership interest in LEAF II Receivables Funding. The Company received a 1% origination fee in connection with establishing the facility. The facility originally matured on March 3, 2011 and was extended until September 3, 2011 with a 1% extension fee paid on the outstanding loan balance. On June 3, 2011, the Company entered into an amendment to extend the maturity to February 15, 2012 and decrease the interest rate from 12% to 10% per annum resulting in a troubled-debt restructuring under current accounting guidance. On February 15, 2012, the credit facility was further amended to extend the maturity to February 15, 2013 with a 1% extension fee accrued and added to the amount outstanding. On January 11, 2013, the Company entered into another amendment to extend the maturity to February 15, 2014 with an additional 1% extension fee accrued and added to the amount outstanding. The loan is current and performing with balances outstanding at September 30, 2013 and December 31, 2012 of $5.9 million and $6.8 million, respectively. | |
On November 16, 2011, the Company, together with LEAF Financial and LCC, subsidiaries of Resource America, entered into the SPA with Eos Partners, L.P., a private investment firm, and its affiliates (see Note 9). In exchange for its prior interest in LCC, the Company received 31,341 shares of Series A Preferred Stock, 4,872 shares of newly issued 8% Series B Redeemable Preferred Stock and 2,364 shares of newly issued Series D Redeemable Preferred Stock, collectively representing, on a fully-diluted basis, a 26.7% interest in LCC. On January 18, 2013, the Company entered into another stock purchase agreement with LCC to purchase 3,682 shares of newly issued Series A-1 Preferred Stock for $3.7 million. During the second quarter of 2013, the Company entered into another stock purchase agreement with LCC to purchase 3,323 shares of newly issued Series E Preferred Stock for $3.3 million (see Note 9). The Series E Preferred Stock has priority over all other classes of preferred stock. The Company accrued $207,000 on the Series E Preferred Stock shares to date. The Company's fully-diluted interest in LCC assuming conversion is 27.5%. For the three and nine months ended September 30, 2013, the Company recorded losses of $346,000 and $378,000, respectively, which was recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statements of income. For the three and nine months ended September 30, 2012, the Company recorded a loss of $1.0 million and $2.3 million, respectively, which was recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statements of income. The Company’s investment in LCC was carried at $40.8 million and $33.1 million as of September 30, 2013 and December 31, 2012, respectively. | |
In accordance with the SPA, the Company and Resource America have undertaken a contingent obligation with respect to the value of the equity on the balance sheet of LRF 3, a wholly-owned subsidiary of LCC which owns equipment, equipment leases and notes. To the extent that the value of the equity on the balance sheet of LRF 3 is less than approximately $18.7 million (the value of the equity of LRF 3 on the date it was contributed to LCC by the Company), as of the final testing date within 90 days of December 31, 2013, the Company and Resource America have agreed to be jointly and severally obligated to contribute cash to LCC to make up the deficit. The LRF 3 equity as of September 30, 2013 was in excess of this commitment and, therefore, the Company was not required to record a liability with respect to this obligation. | |
Relationship with CVC Credit Partners. On April 17, 2012, Apidos Capital Management (“ACM”), a former subsidiary of Resource America, was sold to CVC Credit Partners, LLC (CVC Credit Partners), a joint venture entity in which Resource America owns a 33% interest. CVC Credit Partners manages internally and externally originated bank loan assets on the Company’s behalf. On February 24, 2011, a subsidiary of the Company purchased 100% of the ownership interests in Churchill Pacific Asset Management LLC ("CPAM") from Churchill Financial Holdings LLC for $22.5 million. CPAM subsequently changed its name to RCAM. Through RCAM, the Company is entitled to collect senior, subordinated and incentive fees related to five CLO holdings of approximately $1.9 billion in assets managed by RCAM. RCAM is assisted by CVC Credit Partners in managing the five CLOs. CVC Credit Partners is entitled to 10% of all subordinated fees and 50% of the incentive fees received by RCAM. For the three and nine months ended September 30, 2013, CVC Credit Partners earned subordinated fees of $160,000 and $515,000, respectively. For the three and nine months ended September 30, 2012, CVC Credit Partners earned subordinated fees of $197,000 and $604,000, respectively. In October 2012, the Company purchased 66.6% of the preferred equity in one of the RCAM CLOs. In May 2013, the Company purchased additional equity in this CLO, increasing its ownership percentage to 68.3%. In September 2013, this CLO was called and the notes were paid down in full. Another RCAM-managed CLO also elected to redeem its outstanding notes in whole earlier this year in February 2013. | |
In May 2013, the Company entered into a limited partnership agreement with CVC Global Credit Opportunities Fund, L.P., a Delaware limited partnership which generally invests in assets through a master-feeder fund structure ("the Master Fund"). The Company invested $15.0 million as of September 30, 2013. The General Partner of the Partnership and the Master Fund is CVC Global Credit Opportunities Fund GP, LLC, a Delaware limited liability company. The investment manager of the partnership and the Master Fund is CVC Credit Partners, LLC. CVC Capital Partners SICAV-FIS, S.A., a Luxembourg company, together with its affiliates, and Resource America, own a majority and a significant minority, respectively, of the investment manager. The fund will pay the investment manager a quarterly management fee in advance calculated at the rate of 1.5% annually based on the balance of each limited partner's capital account. The Company's management fee was waived upon entering the agreement given that the Company is a related party of CVC Credit Partners. For the three and nine months ended September 30, 2013, the Company recorded earnings of $433,000 and $526,000, respectively, which were recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. The fund's investment balance of $15.5 million is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet using the equity method. | |
Relationship with Resource Real Estate. Resource Real Estate, a subsidiary of Resource America, originates, finances and manages the Company’s commercial real estate loan portfolio, including whole loans, A notes, B notes, mezzanine loans, and investments in real estate. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. At September 30, 2013 and December 31, 2012, the Company was indebted to Resource Real Estate for loan origination costs in connection with the Company's commercial real estate loan portfolio of $0 and $20,000, respectively. | |
On August 9, 2006, the Company, through its subsidiary, RCC Real Estate, originated a loan to Lynnfield Place, a multi-family apartment property, in the amount of $22.4 million. The loan was then purchased by RREF CDO 2006-1. The loan, which matures on May 9, 2018, carries an interest rate of LIBOR plus a spread of 3.50% with a LIBOR floor of 2.50%. On June 14, 2011, RCC Real Estate converted this loan, collateralized by a multi-family building, to equity. The loan was kept outstanding and continues to be used as collateral in RREF CDO 2006-1. Resource Real Estate Management, LLC (“RREM”), an affiliate of Resource America, was appointed as the asset manager as of August 1, 2011. RREM performs lease review and approval, debt service collection, loan workout, foreclosure, disposition and/or entitlements and permitting, as applicable. RREM is also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM is entitled to a monthly asset management fee equal to 4.0% of the gross receipts generated from the property. The Company incurred fees payable to RREM in the amounts of $34,000 and $103,000 during the three and nine months ended September 30, 2013, respectively. The Company incurred fees payable to RREM in the amounts of $34,000 and $101,000 during the three and nine months ended September 30, 2012, respectively. | |
On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that holds the Company's interests in a real estate joint venture) from Resource America at book value for $2.1 million. This joint venture, which is structured as a credit facility with Värde Investment Partners, LP acting as lender, finances the acquisition of distressed properties and mortgage loans and has the objective of repositioning both the directly-owned properties and the properties underlying the mortgage loans to enhance their value. The agreement requires the Company to contribute 3% to 5% (depending on the terms of the agreement pursuant to which the particular asset is being acquired) of the total funding required for each asset acquisition as needed up to a specified amount. RREM acts as asset manager of the venture and receives a monthly asset management fee equal to 1.0% of the combined investment calculated as of the last calendar day of the month. For the three and nine months ended September 30, 2013, the Company paid RREM management fees of $6,500 and $23,000, respectively. For the three and nine months ended September 30, 2012, the Company paid RREM management fees of $11,000 and $35,000, respectively. For the three and nine months ended September 30, 2013, the Company recorded losses of $521,000 and $735,000, respectively. For the three and nine months ended September 30, 2012, the Company recorded earnings of $346,000 and $931,000, respectively, which was recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. The Company's investment balance of $(330,000) and $2.3 million at September 30, 2013 and December 31, 2012, respectively, is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheets using the equity method. | |
On January 15, 2010, the Company loaned $2.0 million to Resource Capital Partners, Inc. (“RCP”), a wholly-owned subsidiary of Resource America, so that it could acquire a 5.0% limited partnership interest in Resource Real Estate Opportunity Fund, L.P. (“RRE Opportunity Fund”). RCP is the general partner of the RRE Opportunity Fund. The loan is secured by RCP’s partnership interest in the RRE Opportunity Fund. The promissory note bears interest at a fixed rate of 8.0% per annum on the unpaid principal balance. In the event of default, interest will accrue and be payable at a rate of 5.0% in excess of the fixed rate. Interest is payable quarterly. Mandatory principal payments must also be made to the extent distributable cash or other proceeds from the partnership represent a return of RCP’s capital. The loan matures on January 14, 2015, and RCP has options to extend the loan for two additional 12-month periods. No principal payments were made during the three and nine months ended September 30, 2013. The loan balance was $1.6 million at both September 30, 2013 and December 31, 2012. | |
On June 21, 2011, the Company entered into a joint venture with an unaffiliated third party to form CR SLH Partners, L.P. (“SLH Partners”) to purchase a defaulted promissory note secured by a mortgage on a multi-family apartment building. The Company purchased a 10% equity interest in the venture and also loaned SLH Partners $7.0 million to finance the project secured by a first mortgage lien on the property. On May 23, 2012, SLH Partners repaid the $7.0 million loan in its entirety. The loan had a maturity date of September 21, 2012 and bore interest at a fixed rate of 10.0% per annum on the unpaid principal balance, payable monthly. The Company received a commitment fee equal to 1.0% of the loan amount at the origination of the loan and received a $70,000 exit fee upon repayment. RREM was appointed as the asset manager of the venture. RREM performs lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM is also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM receives an annual asset management fee equal to 2.0% of the gross receipts generated from the property. The Company held a $1.1 million and $1.2 million preferred equity investment in SLH Partners as of September 30, 2013 and December 31, 2012, respectively. | |
On August 1, 2011, the Company, through RCC Real Estate, entered into an agreement to purchase Whispertree Apartments, a multi-family apartment building, for $18.1 million. RREM was appointed as asset manager. RREM performs lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM is also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM is entitled to a monthly asset management fee equal to the greater of 4.0% of the gross receipts generated from the property or $12,600. The Company incurred fees payable to RREM in the amounts of $54,000 and $151,000 during the three and nine months ended September 30, 2013, respectively. The Company incurred fees payable to RREM in the amounts of $43,000 and $122,000 during the three and nine months ended September 30, 2012, respectively. On September 30, 2013, the property was sold for a gain of $16.6 million, which was recorded in gain on sale of real estate on the income statement. | |
On June 19, 2012, the Company entered into a joint venture with Värde Investment Partners, LP acting as lender, to purchase two condominium developments. The Company purchased a 7.5% equity interest in the venture. RREM was appointed as the asset manager of the venture to perform lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM is also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM receives an annual asset management fee equal to 1% of outstanding contributions. The Company incurred fees payable to RREM of $7,000 and $33,000, respectively, during the three and nine months ended September 30, 2013. There were no such fees for the three and nine months ended months ended September 30, 2012. For the three and nine months ended September 30, 2013, the Company recorded earnings of $6,000 and $49,000, which were recorded in equity in net losses of unconsolidated subsidiaries on the consolidated statement of income. The Company recorded a loss of $100,000 for both the three and nine months ended September 30, 2012. The investment balance of $575,000 and $526,000 at September 30, 2013 and December 31, 2012, respectively, is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheet using the equity method. | |
Relationship with The Bancorp. The Bancorp, Inc. (Nasdaq: TBBK), or TBBK, is a bank holding company that was organized in 2000 with Resource America's participation. Mr. Daniel G. Cohen, or Mr. D. Cohen, is the chairman of the board and Mrs. Betsy Z. Cohen, or Mrs. B. Cohen, is the Chief Executive Officer of TBBK and its subsidiary bank. Mrs. B. Cohen is the wife of Mr. E. Cohen, and Mr. E. Cohen and Mrs. B. Cohen are the parents of Messrs. J. Cohen, the Company's President and chief executive officer, and D. Cohen. Walter Beach, a director of TBBK since 1999, has also served as a director of the Company since March 2005. On July 7, 2011, the Company and RCC Real Estate entered into a $10.0 million revolving credit facility with Bancorp. The note matured on June 30, 2012 and was not renewed. | |
Relationship with Law Firm. Until 1996, Edward E. Cohen, a director who was the Company’s Chairman from its inception until November 2009, was of counsel to Ledgewood, P.C., a law firm. In addition, one of the Company’s executive officers, Jeffrey F. Brotman, was employed by Ledgewood until 2007. Mr. E. Cohen receives certain debt service payments from Ledgewood related to the termination of his affiliation with Ledgewood and its redemption of his interest in the firm. Mr. Brotman also receives certain debt service payments from Ledgewood related to the termination of his affiliation with the firm. For the three and nine months ended September 30, 2013, the Company paid Ledgewood $70,000 and $155,000, respectively, in connection with legal services rendered to the Company as compared to $160,000 and $277,000 for the three and nine months ended September 30, 2012, respectively. |
DISTRIBUTIONS
DISTRIBUTIONS | 9 Months Ended |
Sep. 30, 2013 | |
DISTRIBUTIONS [Abstract] | ' |
DISTRIBUTIONS | ' |
DISTRIBUTIONS | |
In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. | |
On September 20, 2013, the Company declared (i) a quarterly distribution of $0.20 per share of common stock or $25.4 million in the aggregate, which was paid on October 28, 2013, to stockholders of record as of September 30, 2013; (ii) a quarterly distribution of $362,000 or $0.53 per share of its Series A Preferred Stock, which was paid on October 30, 2013 to its preferred share stockholders of record as of October 1, 2013; and (iii) a quarterly distribution of $1.7 million or $0.52 per share of its Series B Preferred Stock, which was paid on October 30, 2013 to its preferred share stockholders of record as of October 1, 2013. | |
On June 14, 2013, the Company declared (i) a quarterly distribution of $0.20 per share of common stock or $25.4 million in the aggregate, which was paid on July 26, 2013, to stockholders of record as of June 28, 2013; (ii) a quarterly distribution on June 18, 2013, totaling $359,000 or $0.53 per share of its Series A Preferred Stock, which was paid on July 30, 2013 to its preferred share stockholders of record as of July 1, 2013; and (iii) a quarterly distribution on June 18, 2013 totaling $1.6 million or $0.52 per share of its Series B Preferred Stock, which was paid on July 30, 2013 to its preferred share stockholders of record as of July 1, 2013. | |
On March 15, 2013, the Company declared (i) a quarterly distribution of $0.20 per share of common stock or $21.6 million in the aggregate, which was paid on April 26, 2013, to stockholders of record as of March 28, 2013; (ii) quarterly distribution on March 18, 2013 totaling $359,000 or $0.53 per share of its Series A Preferred Stock, which was paid on April 30, 2013 to its preferred share stockholders of record as of April 1, 2013; and (iii) quarterly distribution on March 18, 2013, totaling $1.2 million or $0.52 per share of its Series B Preferred share stockholders, which was paid on April 30, 2013 to its preferred share stockholders of record as of April 1, 2013. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||
In analyzing the fair value of its investments accounted for on a fair value basis, the Company follows the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as using third party valuation firms or discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy followed defines three levels of inputs that may be used to measure fair value: | ||||||||||||||||||||
Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||||||
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. | ||||||||||||||||||||
Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. | ||||||||||||||||||||
The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. | ||||||||||||||||||||
Certain assets and liabilities are measured at fair value on a recurring basis. The following is a discussion of these assets and liabilities as well as the valuation techniques applied to each for fair value measurement. | ||||||||||||||||||||
The Company reports its investment securities available-for-sale at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing market color as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference which could result in an updated valuation from the third party or a revised dealer quote. Based on the market color available for each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. | ||||||||||||||||||||
The Company reports its investment securities, trading at fair value, based on an independent third-party valuation. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote. If there is a material difference between the value indicated by the third party and a quote the Company receives, the Company will evaluate the difference. Any changes in fair value are recorded on the Company’s results of operations as net unrealized (loss) gain on investment securities, trading. | ||||||||||||||||||||
The CMBS underlying the Company’s Linked Transactions are valued using the same techniques as those used for the Company’s other CMBS. The value of the underlying CMBS is then netted against the carrying amount (which approximates fair value) of the repurchase agreement borrowing at the valuation date. The fair value of Linked Transactions also includes accrued interest receivable on the CMBS and accrued interest payable on the underlying repurchase agreement borrowings. The Company’s Linked Transactions are classified as Level 2 or Level 3 in the fair value hierarchy. | ||||||||||||||||||||
Derivatives (interest rate swaps and interest rate caps), both assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy. | ||||||||||||||||||||
The following table presents information about the Company’s assets (including derivatives that are presented net) measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 12,099 | $ | 12,099 | ||||||||||||
Investment securities available-for-sale | 4,972 | 85,826 | 129,886 | 220,684 | ||||||||||||||||
CMBS - linked transactions | — | 9,410 | 20,568 | 29,978 | ||||||||||||||||
Total assets at fair value | $ | 4,972 | $ | 95,236 | $ | 162,553 | $ | 262,761 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives (net) | $ | — | $ | 442 | $ | 11,766 | $ | 12,208 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 442 | $ | 11,766 | $ | 12,208 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 24,843 | $ | 24,843 | ||||||||||||
Investment securities available-for-sale | 9,757 | 132,561 | 89,272 | 231,590 | ||||||||||||||||
CMBS - linked transactions | — | 4,802 | 2,033 | 6,835 | ||||||||||||||||
Total assets at fair value | $ | 9,757 | $ | 137,363 | $ | 116,148 | $ | 263,268 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives (net) | $ | — | $ | 610 | $ | 14,077 | $ | 14,687 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 610 | $ | 14,077 | $ | 14,687 | ||||||||||||
The following table presents additional information about assets which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): | ||||||||||||||||||||
Level 3 | ||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 116,148 | ||||||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||
Included in earnings | 8,530 | |||||||||||||||||||
Purchases | 89,514 | |||||||||||||||||||
Sales | (30,196 | ) | ||||||||||||||||||
Paydowns | (20,186 | ) | ||||||||||||||||||
Unrealized gains (losses) – included in accumulated other comprehensive income | (1,257 | ) | ||||||||||||||||||
Transfers from level 2 | — | |||||||||||||||||||
Ending balance, September 30, 2013 | $ | 162,553 | ||||||||||||||||||
The following table presents additional information about liabilities which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): | ||||||||||||||||||||
Level 3 | ||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 14,077 | ||||||||||||||||||
Unrealized gains – included in accumulated other comprehensive income | (2,311 | ) | ||||||||||||||||||
Ending balance, September 30, 2013 | $ | 11,766 | ||||||||||||||||||
The Company had $255,000 and $811,000 of impairment losses included in earnings due to other-than-temporary impairment charges on one and four securities during the three and nine months ended September 30, 2013, respectively. The Company had $9,000 and $180,000 of impairment losses included in earnings due to other-than-temporary impairment charges on two and four securities during the three and nine months ended September 30, 2012, respectively. These losses are included in the consolidated statements of income as net impairment losses recognized in earnings. | ||||||||||||||||||||
Loans held for sale consist of bank loans and commercial real estate loans (“CRE loans”) identified for sale due to credit concerns. Interest on loans held for sale is recognized according to the contractual terms of the loan and included in interest income on loans. The fair value of bank loans held for sale and impaired bank loans is based on what secondary markets are currently offering for these loans. As such, the Company classifies these loans as nonrecurring Level 2. For the Company’s CRE loans where there is no primary market, fair value is measured using discounted cash flow analysis and other valuation techniques and these loans are classified as nonrecurring Level 3. The amount of nonrecurring fair value losses for impaired loans for the three and nine months ended September 30, 2013 was $69,000 and $3.1 million, respectively, as compared to $3.4 million and $5.6 million for the three and nine months ended September 30, 2012, respectively, and is included in the consolidated statements of income as provision for loan losses. | ||||||||||||||||||||
The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 332,351 | $ | — | $ | 332,351 | ||||||||||||
Impaired loans | — | 1,046 | — | 1,046 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 333,397 | $ | — | $ | 333,397 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 14,894 | $ | 34,000 | $ | 48,894 | ||||||||||||
Impaired loans | — | 4,366 | 21,000 | 25,366 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 19,260 | $ | 55,000 | $ | 74,260 | ||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | ||||||||||||||||||||
Fair Value at | Valuation Technique | Significant Unobservable Inputs | Significant | |||||||||||||||||
30-Sep-13 | Unobservable | |||||||||||||||||||
Input Value | ||||||||||||||||||||
Interest rate swap agreements | $ | 12,208 | Discounted cash flow | Weighted average credit spreads | 5.00% | |||||||||||||||
The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, principal paydown receivable, interest receivable, distribution payable and accrued interest expense approximates their carrying value on the consolidated balance sheet. The fair value of the Company’s investment securities-trading is reported in Note 5. The fair value of the Company’s investment securities available-for-sale is reported in Note 6. The fair value of the Company’s derivative instruments and linked transactions is reported in Note 20. | ||||||||||||||||||||
Loans held-for-investment: The fair value of the Company’s Level 2 Loans held-for-investment was primarily measured using a third-party pricing service. The fair value of the Company’s Level 3 Loans held-for-investment was measured by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | ||||||||||||||||||||
Loans receivable-related party are estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | ||||||||||||||||||||
CDO notes are valued using the dealer quotes, typically the dealer who underwrote the CDO in which the notes are held. | ||||||||||||||||||||
Junior subordinated notes are estimated by obtaining quoted prices for similar assets in active markets. | ||||||||||||||||||||
The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (in thousands): | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||||||
Assets of Liabilities | Inputs | (Level 3) | ||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Loans held-for-investment | $ | 1,305,739 | $ | 1,299,103 | $ | — | $ | 568,545 | $ | 730,558 | ||||||||||
Loans receivable-related party | $ | 8,067 | $ | 8,067 | $ | — | $ | — | $ | 8,067 | ||||||||||
CDO notes | $ | 1,166,209 | $ | 1,020,919 | $ | — | $ | 1,020,919 | $ | — | ||||||||||
Junior subordinated notes | $ | 50,956 | $ | 17,450 | $ | — | $ | — | $ | 17,450 | ||||||||||
Repurchase agreement | $ | 205,265 | $ | 205,265 | $ | — | $ | — | $ | 205,265 | ||||||||||
December 31, 2012: | ||||||||||||||||||||
Loans held-for-investment | $ | 1,793,780 | $ | 1,848,617 | $ | — | $ | 1,186,642 | $ | 661,975 | ||||||||||
Loans receivable-related party | $ | 8,324 | $ | 8,324 | $ | — | $ | — | $ | 8,324 | ||||||||||
CDO notes | $ | 1,614,883 | $ | 1,405,124 | $ | — | $ | 1,405,124 | $ | — | ||||||||||
Junior subordinated notes | $ | 50,814 | $ | 17,308 | $ | — | $ | — | $ | 17,308 | ||||||||||
Repurchase agreement | $ | 106,303 | $ | 106,303 | $ | — | $ | — | $ | 106,303 | ||||||||||
INTEREST_RATE_RISK_AND_DERIVAT
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS | ' | |||||||||||||||||||||||
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS | ||||||||||||||||||||||||
A significant market risk to the Company is interest rate risk. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond the Company’s control. Changes in the general level of interest rates can affect net interest income, which is the difference between the interest income earned on interest-earning assets and the interest expense incurred in connection with the interest-bearing liabilities, by affecting the spread between the interest-earning assets and interest-bearing liabilities. Changes in the level of interest rates also can affect the value of the Company’s interest-earning assets and the Company’s ability to realize gains from the sale of these assets. A decline in the value of the Company’s interest-earning assets pledged as collateral for borrowings could result in the counterparties demanding additional collateral pledges or liquidation of some of the existing collateral to reduce borrowing levels. | ||||||||||||||||||||||||
The Company seeks to manage the extent to which net income changes as a function of changes in interest rates by matching adjustable-rate assets with variable-rate borrowings. During periods of changing interest rates, interest rate mismatches could negatively impact the Company’s consolidated financial condition, consolidated results of operations and consolidated cash flows. In addition, the Company mitigates the potential impact on net income of periodic and lifetime coupon adjustment restrictions in its investment portfolio by entering into interest rate hedging agreements such as interest rate caps and interest rate swaps. | ||||||||||||||||||||||||
The Company has made an accounting policy election to use the exception in FASB ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for derivative instruments, consistent with the guidance in FASB ASC 820-10-35-18G. The basis for use of this exception, as provided in FASB ASC 820-10-35-18E is as follows: | ||||||||||||||||||||||||
• | The Company manages credit risk for its derivative positions on a counterparty-by-counterparty basis (that is, on the basis of its net portfolio exposure with each counterparty), consistent with its risk management strategy for such transactions. The Company manages credit risk by considering indicators of risk such as credit ratings, and by negotiating terms in its ISDA master netting arrangements (or similar agreements) and, if applicable, any associated Credit Support Annex (“CSA”) documentation, with each individual counterparty. Credit risk plays a central role in the decision of which counterparties to consider for such relationships and when deciding with whom it will enter into derivative transactions. | |||||||||||||||||||||||
• | Since the effective date of FASB ASC 820, management has monitored and measured credit risk and calculated credit valuation adjustments (“CVAs”) for its derivative transactions on the basis of its relationships at the counterparty portfolio/ISDA master netting arrangement level. Management receives reports from an independent third-party valuation specialist on a monthly basis providing the CVAs at the counterparty portfolio level for purposes of reviewing and managing its credit risk exposures. Since the portfolio exception applies only to the fair value measurement and not to financial statement presentation, the portfolio-level adjustments are then allocated in a reasonable and consistent manner each period to the individual assets or liabilities that make up the group, in accordance with other applicable accounting guidance and the Company’s accounting policy elections. | |||||||||||||||||||||||
• | Derivative transactions are required under FASB ASC 815 to be measured at fair value in the statement of financial position each reporting period. | |||||||||||||||||||||||
Finally, the Company notes that key market participants take into account the existence of arrangements that mitigate credit risk exposure in the event of default (in the Company’s case, ISDA master netting arrangements with the counterparty). | ||||||||||||||||||||||||
At September 30, 2013, the Company had 16 interest rate swap contracts outstanding whereby the Company paid an average fixed rate of 5.01% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $130.8 million at September 30, 2013. The counterparties for the Company’s designated interest rate hedge contracts at such date were Credit Suisse International and Wells Fargo, with which the Company had master netting agreements. | ||||||||||||||||||||||||
At December 31, 2012, the Company had 16 interest rate swap contracts outstanding whereby the Company paid an average fixed rate of 4.94% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $135.2 million at December 31, 2012. The counterparties for the Company’s designated interest rate hedge contracts at such date were Credit Suisse International and Wells Fargo, with which the Company had master netting agreements. | ||||||||||||||||||||||||
The estimated fair value of the Company’s interest rate swaps was ($12.2) million and ($14.7) million as of September 30, 2013 and December 31, 2012, respectively. The Company had aggregate unrealized losses of $12.8 million and $15.6 million on the interest rate swap agreements as of September 30, 2013 and December 31, 2012, respectively, which is recorded in accumulated other comprehensive loss. In connection with the August 2006 close of RREF CDO 2006-1, the Company realized a swap termination loss of $119,000, which is being amortized over the term of RREF CDO 2006-1. The amortization is reflected in interest expense in the Company’s consolidated statements of income. In connection with the June 2007 close of RREF CDO 2007-1, the Company realized a swap termination gain of $2.6 million, which is being amortized over the term of RREF CDO 2007-1. The accretion is reflected in interest expense in the Company’s consolidated statements of income. In connection with the termination of a $53.6 million swap related to RREF CDO 2006-1 during the nine months ended September 30, 2008, the Company realized a swap termination loss of $4.2 million, which is being amortized over the term of a new $45.0 million swap. The amortization is reflected in interest expense in the Company’s consolidated statements of income. In connection with the payoff of a fixed-rate commercial real estate loan during the three months ended September 30, 2008, the Company terminated a $12.7 million swap and realized a $574,000 swap termination loss, which is being amortized over the original term of the terminated swap. The amortization is reflected in interest expense in the Company’s consolidated statements of income. | ||||||||||||||||||||||||
The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheets and on the consolidated statement of income for the years presented: | ||||||||||||||||||||||||
Fair Value of Derivative Instruments as of September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Interest rate swap contracts | $ | 130,785 | Derivatives, at fair value | $ | (12,208 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | $ | 12,793 | ||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional | Statement of Operations Location | Unrealized | ||||||||||||||||||||||
Amount | Loss (1) | |||||||||||||||||||||||
Interest rate swap contracts | $ | 130,785 | Interest expense | $ | 5,118 | |||||||||||||||||||
(1)Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. | ||||||||||||||||||||||||
Linked Transactions | ||||||||||||||||||||||||
The Company's Linked Transactions are evaluated on a combined basis, reported as forward (derivative) instruments and presented as assets on the Company's consolidated balance sheets at fair value. The fair value of Linked Transactions reflect the value of the underlying CMBS, interest receivable, linked repurchase agreement borrowings and accrued interest payable on such instruments. The Company's linked transactions are not designated as hedging instruments and, as a result, the change in the fair value and net interest income from Linked Transactions is reported in other income on the Company's consolidated statement of income. | ||||||||||||||||||||||||
The following tables present certain information about the CMBS and repurchase agreements underlying the Company's Linked Transactions at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments as of | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||
Linked Transactions at fair value | Non-Hedging | Linked Transactions, net at fair value | $ | 29,978 | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||
Linked Transactions at fair value | Non-Hedging | Linked Transactions, net at fair value | $ | 6,835 | ||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Statement of Operations Location | Revenues (1) | ||||||||||||||||||||||
Linked Transactions at fair value, 2013 | Non-Hedging | Unrealized gain/(loss) and net interest | $ | (4,343 | ) | |||||||||||||||||||
income on linked transactions, net | ||||||||||||||||||||||||
Linked Transactions at fair value, 2012 | Non-Hedging | Unrealized gain/(loss) and net interest | $ | 386 | ||||||||||||||||||||
income on linked transactions, net | ||||||||||||||||||||||||
(1)Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. | ||||||||||||||||||||||||
The following table presents certain information about the components of the unrealized net gains and net interest income from Linked Transactions included in the Company's consolidated statements of income for the three and nine months ended September 30, 2013 and 2012, respectively (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Components of Unrealized Net Gains and Net Interest | ||||||||||||||||||||||||
Income (Expense) from Linked Transactions | ||||||||||||||||||||||||
Interest income attributable to CMBS underlying | $ | 801 | $ | 193 | $ | 2,005 | $ | 573 | ||||||||||||||||
linked transactions | ||||||||||||||||||||||||
Interest expense attributable to linked repurchase | (201 | ) | (60 | ) | (524 | ) | (187 | ) | ||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | 561 | — | (5,824 | ) | — | |||||||||||||||||||
Unrealized (loss) gain and net interest income from linked transactions, net | $ | 1,161 | $ | 133 | $ | (4,343 | ) | $ | 386 | |||||||||||||||
The following table summarizes the Company's CMBS Linked Transactions calculated basis of fair value (in thousands): | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost | Gains | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 98,954 | $ | 184 | $ | (5,659 | ) | $ | 93,479 | |||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 27,082 | $ | 190 | $ | (22 | ) | $ | 27,250 | |||||||||||||||
The following table summarizes the estimated maturities of the Company’s CMBS Linked Transactions according to their estimated weighted average life classifications (in thousands, except percentages): | ||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized | Weighted | |||||||||||||||||||||
Cost | Average | |||||||||||||||||||||||
Coupon | ||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
Less than one year | $ | 3,411 | $ | 3,389 | 5.28% | |||||||||||||||||||
Greater than one year and less than five years | 20,483 | 20,716 | 5.21% | |||||||||||||||||||||
Greater than five years and less than ten years | 55,996 | 59,695 | 2.88% | |||||||||||||||||||||
Greater than ten years | 13,589 | 15,154 | 3.34% | |||||||||||||||||||||
Total | $ | 93,479 | $ | 98,954 | 3.53% | |||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
Less than one year | $ | 9,827 | $ | 9,822 | 5.09% | |||||||||||||||||||
Greater than one year and less than five years | 5,444 | 5,446 | 6.11% | |||||||||||||||||||||
Greater than five years and less than ten years | 11,979 | 11,814 | 2.69% | |||||||||||||||||||||
Total | $ | 27,250 | $ | 27,082 | 4.23% | |||||||||||||||||||
The following table shows the fair value, gross unrealized losses and the length of time the CMBS Linked Transactions underlying assets have been in a continuous unrealized loss position during the periods specified (in thousands): | ||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS Linked Transactions | $ | 76,779 | $ | (5,659 | ) | $ | — | $ | — | $ | 76,779 | $ | (5,659 | ) | ||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS Linked Transactions | $ | 20,894 | $ | (22 | ) | $ | — | $ | — | $ | 20,894 | $ | (22 | ) | ||||||||||
The following table summarizes the Company's CMBS linked transactions (in thousands, except percentages): | ||||||||||||||||||||||||
Fair Value at | MTM | Fair Value at | ||||||||||||||||||||||
31-Dec-12 | Net | Upgrades/ | Change | 30-Sep-13 | ||||||||||||||||||||
Purchases | Downgrades | Same Ratings | ||||||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 14,585 | $ | 10,090 | $ | — | $ | 5,204 | $ | 29,879 | ||||||||||||||
Aa1 through Aa3 | — | 8,925 | — | — | 8,925 | |||||||||||||||||||
A1 through A3 | 5,444 | — | — | (5,444 | ) | — | ||||||||||||||||||
Baa1 through Baa3 | — | — | (5,452 | ) | 10,903 | 5,451 | ||||||||||||||||||
Ba1 through Ba3 | — | 8,939 | — | — | 8,939 | |||||||||||||||||||
B1 through B3 | — | 12,235 | — | — | 12,235 | |||||||||||||||||||
Non-Rated | 7,221 | 16,783 | — | 4,046 | 28,050 | |||||||||||||||||||
Total | $ | 27,250 | $ | 56,972 | $ | (5,452 | ) | $ | 14,709 | $ | 93,479 | |||||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 21,806 | $ | — | $ | — | $ | 732 | $ | 22,538 | ||||||||||||||
BBB+ through BBB- | — | 9,942 | — | — | 9,942 | |||||||||||||||||||
B+ through B- | 5,444 | 11,485 | — | 8 | 16,937 | |||||||||||||||||||
Non-Rated | — | 35,544 | — | 8,518 | 44,062 | |||||||||||||||||||
Total | $ | 27,250 | $ | 56,971 | $ | — | $ | 9,258 | $ | 93,479 | ||||||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||
Maturity or Repricing | Balance (1) | Weighted | Balance (1) | Weighted | ||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Interest Rate | Interest Rate | |||||||||||||||||||||||
Within 30 days | $ | 63,760 | 1.25 | % | $ | 20,415 | 1.4 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 63,760 | — | % | $ | 20,415 | 1.4 | % | ||||||||||||||||
(1) Balance includes $41,000 of accrued interest expense as of September 30, 2013. |
OFFSETTING_OF_FINANCIAL_ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Offsetting [Abstract] | ' | ||||||||||||||||||||||||
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | ' | ||||||||||||||||||||||||
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | |||||||||||||||||||||||||
The Company has no offsetting of financial assets. The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||
(iv) | |||||||||||||||||||||||||
Gross Amounts Not Offset in | |||||||||||||||||||||||||
the Consolidated Balance Sheet | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | Financial | Cash | (v) =iii) - (iv) | ||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented in | Instruments (1) | Collateral | Net Amount | ||||||||||||||||||||
Recognized | Consolidated | the Consolidated | Pledged (1) | ||||||||||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 12,208 | $ | — | $ | 12,208 | $ | — | $ | 500 | $ | 11,708 | |||||||||||||
at fair value (2) | |||||||||||||||||||||||||
Repurchase agreements (3) | 205,265 | — | 205,265 | 205,265 | — | — | |||||||||||||||||||
Total | $ | 217,473 | $ | — | $ | 217,473 | $ | 205,265 | $ | 500 | $ | 11,708 | |||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 14,687 | $ | — | $ | 14,687 | $ | — | $ | 500 | $ | 14,187 | |||||||||||||
at fair value (2) | |||||||||||||||||||||||||
Repurchase agreements (3) | 106,303 | — | 106,303 | 106,303 | — | — | |||||||||||||||||||
Total | $ | 120,990 | $ | — | $ | 120,990 | $ | 106,303 | $ | 500 | $ | 14,187 | |||||||||||||
-1 | Amounts disclosed in the Financial Instruments column of the table above represents collateral pledged that is available to be offset against liability balances associated with repurchase agreement and derivative transactions. Amounts disclosed in the Cash Collateral Pledged column of the table above represents amounts pledged as collateral against derivative transactions. | ||||||||||||||||||||||||
-2 | The fair value of securities pledged against the Company's swaps was $8.3 million and $13.1 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
-3 | The fair value of securities pledged against the Company's repurchase agreements was $284.3 million and $145.2 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
In the Company's consolidated balance sheets, all balances associated with the repurchase agreement and derivatives transactions are presented on a gross basis. | |||||||||||||||||||||||||
Certain of the Company's repurchase agreement and derivative transactions are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
The Company has evaluated subsequent events through the filing of this form and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except the following. | |
The Company received $619,000 in proceeds from the issuance of 27,577 shares of preferred stock through the Company’s at-the-market program during October 2013. | |
In October 2013, the Company closed and issued $115.0 million aggregate principal amount of its 6.00% convertible senior notes due 2018, which included an additional $15.0 million aggregate principal amount of the notes to cover over-allotments. The Company received net proceeds of approximately $111.1 million after payment of underwriting discounts and commissions and other offering expenses. | |
Apidos CLO VIII’s non-call period ended on October 17, 2013, at which time substantially all assets were liquidated and all outstanding notes were paid off. | |
On October 31, 2013, the Company, through RCC Residential, Inc., the Company's newly-formed taxable REIT subsidiary, acquired a residential mortgage origination company, Primary Capital Advisors LC, an Atlanta based firm, for $8.4 million; consisting of $7.6 million in cash and $800,000 in shares of the Company's common stock. The shares of common stock were issued in a private transaction exempt from registration under Section 4(2) of the Securities Act of 1933, as amended. Of this $7.6 million cash consideration, $1.8 million was set aside in an escrow account as a contingency for potential purchase price adjustments. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company. | ||
All inter-company transactions and balances have been eliminated. | ||
Investment Securities | ' | |
Investment Securities | ||
The Company classifies its investment portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. | ||
The Company’s investment securities, trading are reported at fair value (see Note 19). To determine fair value, the Company uses an independent third-party valuation firm utilizing appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference which could result in an updated valuation from the third party or a revised dealer quote. Any changes in fair value are recorded in the Company’s results of operations as net realized and unrealized gain on investment securities, trading. | ||
The Company’s investment securities available-for-sale are reported at fair value (see Note 19). To determine fair value, the Company uses an independent third-party valuation firm utilizing market color as well as appropriate prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote or bid, the Company will evaluate the difference which could result in an updated valuation from the third party or a revised dealer quote. Based on the market color available for each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. | ||
On a quarterly basis, the Company evaluates its available-for-sale investments for other-than-temporary impairment. An available-for-sale investment is impaired when its fair value has declined below its amortized cost basis. An impairment is considered other-than-temporary when the amortized cost basis of the investment or some portion thereof will not be recovered. In addition, the Company’s intent to sell as well as the likelihood that the Company will be required to sell the security before the recovery of the amortized cost basis is considered. Where credit quality is believed to be the cause of the other-than-temporary impairment, that component of the impairment is recognized as an impairment loss in the statement of operations. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. | ||
Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. | ||
Investment Interest Income Recognition | ' | |
Investment Interest Income Recognition | ||
Interest income on the Company’s mortgage-backed and other asset-backed securities is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed as of each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. If prepayment estimates are incorrect, the amortization or accretion of premiums and discounts may have to be adjusted, which would have an impact on future income. | ||
Allowance for Loan Loss | ' | |
Allowance for Loan Loss | ||
The Company maintains an allowance for loan loss. Loans held for investment are first individually evaluated for impairment so specific reserves can be applied. Loans for which a specific reserve is not applicable are then evaluated for impairment as a homogeneous pool of loans with substantially similar characteristics so that a general reserve can be established, if needed. These evaluations are performed at least quarterly. | ||
The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. These TDRs may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and / or guarantees made by the borrowers. | ||
When a loan is impaired under either of these two conditions, the allowance for loan losses is increased by the amount of the excess of the amortized cost basis of the loan over its fair value. Fair value may be determined based on the present value of estimated cash flows; on market price, if available; or on the fair value of the collateral less estimated disposition costs. When a loan, or a portion thereof, is considered uncollectible and pursuit of collection is not warranted, the Company will record a charge-off or write-down of the loan against the allowance for loan losses. | ||
An impaired loan may remain on accrual status during the period in which the Company is pursuing repayment of the loan; however, the loan would be placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days delinquent; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the impairment; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received. | ||
Investments in Real Estate | ' | |
Investments in Real Estate | ||
Investments in real estate are carried net of accumulated depreciation. Costs directly related to the acquisition are expensed as incurred. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. | ||
Acquisitions of real estate assets and any related intangible assets are recorded initially at fair value under Financial Accounting Standards Board ("FASB") ASC Topic 805, “Business Combinations.” The Company allocates the purchase price of its investments in real estate to land, building, site improvements, the value of in-place leases and the value of above or below market leases. The value allocated to above or below market leases is amortized over the remaining lease term as an adjustment to rental income. The Company amortizes the value allocated to in-place leases over the weighted average remaining lease term to depreciation and amortization expense. The Company depreciates real property using the straight-line method over the estimated useful lives of the assets as follows: | ||
Category | Term | |
Building | 25 – 40 years | |
Site improvements | Lesser of the remaining life of building or useful lives | |
Long-Lived and Intangible Assets | ' | |
Long-Lived and Intangible Assets | ||
Long-lived assets and certain identifiable intangibles to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. If impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the fair value of the asset. | ||
Recent Accounting Standards | ' | |
Recent Accounting Standards | ||
In July 2013, the FASB issued guidance which permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes. This guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
In June 2013, the FASB issued guidance which clarifies the characteristics of an investment company, provides comprehensive guidance for assessing whether an entity is an investment company and requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The guidance also requires additional disclosure. This guidance is effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the effect of adoption, but does not expect adoption will have a material impact on its consolidated financial statements. | ||
In February 2013 the FASB issued guidance which amends required information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendment in this guidance was effective for reporting periods beginning after December 15, 2012. The Company provided the enhanced footnote disclosure as required by this amendment in its consolidated financial statements (see Note 16). | ||
In January 2013, the FASB issued guidance which clarifies the scope of accounting for certain derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments in this guidance were effective for interim and annual reporting periods beginning on or after January 1, 2013 and must be applied retrospectively for all comparative periods presented. The Company provided the enhanced footnote disclosure as required by this amendment in its consolidated financial statements (see Note 21). | ||
Reclassifications | ' | |
Reclassifications | ||
Certain reclassifications have been made to the 2012 consolidated financial statements to conform to the 2013 presentation. | ||
Distributions | ' | |
In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Property, Plant and Equipment | ' | |
The Company depreciates real property using the straight-line method over the estimated useful lives of the assets as follows: | ||
Category | Term | |
Building | 25 – 40 years | |
Site improvements | Lesser of the remaining life of building or useful lives |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | ' | |||||||||||||||||||||||||||||||||||||||
The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | Total | |||||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Restricted cash (1) | $ | 10,253 | $ | 2,943 | $ | 18,368 | $ | 16,152 | $ | 5,586 | $ | 20 | $ | 430 | $ | 53,752 | ||||||||||||||||||||||||
Investment securities | 8,097 | 6,217 | 16,622 | 1,975 | — | 11,658 | 66,424 | 110,993 | ||||||||||||||||||||||||||||||||
available-for-sale, pledged as | ||||||||||||||||||||||||||||||||||||||||
collateral, at fair value | ||||||||||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 100,268 | 148,660 | 308,128 | 7,874 | 635 | 158,659 | 257,289 | 981,513 | ||||||||||||||||||||||||||||||||
Loans held for sale | — | 183 | 3,688 | 325,675 | 2,805 | — | — | 332,351 | ||||||||||||||||||||||||||||||||
Interest receivable | (148 | ) | 597 | 1,094 | 752 | (18 | ) | 1,388 | 1,841 | 5,506 | ||||||||||||||||||||||||||||||
Prepaid assets | 14 | 14 | 26 | 7 | 23 | 99 | 71 | 254 | ||||||||||||||||||||||||||||||||
Principal receivable | — | — | 7 | — | — | — | — | 7 | ||||||||||||||||||||||||||||||||
Other assets | — | — | 35 | — | — | — | — | 35 | ||||||||||||||||||||||||||||||||
Total assets (2) | $ | 118,484 | $ | 158,614 | $ | 347,968 | $ | 352,435 | $ | 9,031 | $ | 171,824 | $ | 326,055 | $ | 1,484,411 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 101,827 | $ | 145,875 | $ | 320,997 | $ | 321,360 | $ | 2,424 | $ | 95,151 | $ | 178,575 | $ | 1,166,209 | ||||||||||||||||||||||||
Accrued interest expense | 263 | 63 | 325 | 1,386 | — | 41 | 106 | 2,184 | ||||||||||||||||||||||||||||||||
Derivatives, at fair value | — | — | — | — | — | 1,379 | 10,387 | 11,766 | ||||||||||||||||||||||||||||||||
Accounts payable and | 154 | 18 | 23 | 384 | 43 | 22 | 2 | 646 | ||||||||||||||||||||||||||||||||
other liabilities | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 102,244 | $ | 145,956 | $ | 321,345 | $ | 323,130 | $ | 2,467 | $ | 96,593 | $ | 189,070 | $ | 1,180,805 | ||||||||||||||||||||||||
(1) Includes $16.7 million available for reinvestment in certain of the CDOs. | ||||||||||||||||||||||||||||||||||||||||
(2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. | ||||||||||||||||||||||||||||||||||||||||
The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Unconsolidated Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
LEAF | Unsecured | Resource | RRE VIP | Värde | Life | CVC | Harvest CLO VII | Total | Maximum | |||||||||||||||||||||||||||||||
Commercial | Junior | Capital | Borrower, | Investment | Care | Global | Exposure | |||||||||||||||||||||||||||||||||
Capital, Inc. | Subordinated | Asset | LLC | Partners, | Funding | Opps | to Loss (1) | |||||||||||||||||||||||||||||||||
Debentures | Management | LP | Fund | |||||||||||||||||||||||||||||||||||||
CLOs | ||||||||||||||||||||||||||||||||||||||||
Investment in | $ | 40,820 | $ | 1,548 | $ | — | $ | (330 | ) | $ | 575 | $ | 1,651 | $ | 15,526 | $ | 4,999 | $ | 64,789 | $ | 64,789 | |||||||||||||||||||
unconsolidated | ||||||||||||||||||||||||||||||||||||||||
entities | ||||||||||||||||||||||||||||||||||||||||
Intangible | — | — | 11,687 | — | — | — | — | — | 11,687 | $ | 11,687 | |||||||||||||||||||||||||||||
assets | ||||||||||||||||||||||||||||||||||||||||
Total assets | 40,820 | 1,548 | 11,687 | (330 | ) | 575 | 1,651 | 15,526 | 4,999 | 76,476 | ||||||||||||||||||||||||||||||
Borrowings | — | 50,956 | — | — | — | — | — | — | 50,956 | N/A | ||||||||||||||||||||||||||||||
Total | — | 50,956 | — | — | — | — | — | — | 50,956 | N/A | ||||||||||||||||||||||||||||||
liabilities | ||||||||||||||||||||||||||||||||||||||||
Net asset | $ | 40,820 | $ | (49,408 | ) | $ | 11,687 | $ | (330 | ) | $ | 575 | $ | 1,651 | $ | 15,526 | $ | 4,999 | $ | 25,520 | N/A | |||||||||||||||||||
(liability) | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company's maximum exposure to loss at September 30, 2013 does not exceed the carrying amount of its investment, subject to the LRF3's contingent obligation as described above. |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Other Significant Noncash Transactions | ' | |||||||
Supplemental disclosure of cash flow information (in thousands): | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Non-cash investing activities include the following: | ||||||||
Acquisition of real estate investments | $ | — | $ | (21,661 | ) | |||
Conversion of loans to investment in real estate | $ | — | $ | 21,661 | ||||
Non-cash financing activities include the following: | ||||||||
Distributions on common stock declared but not paid | $ | 25,447 | $ | 19,897 | ||||
Distribution on preferred stock declared but not paid | $ | 2,023 | $ | 308 | ||||
Income taxes paid in cash | $ | 8,997 | $ | 19,771 | ||||
Issuance of restricted stock | $ | 242 | $ | 480 | ||||
Subscription receivable | $ | 257 | $ | 24,213 | ||||
INVESTMENT_SECURITIES_TRADING_
INVESTMENT SECURITIES, TRADING (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Investment trading securities at fair value | ' | |||||||||||||||
The following table summarizes the Company's structured notes and residential mortgage-backed securities (“RMBS”) which are classified as investment securities, trading and carried at fair value (in thousands): | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||
Cost | Gains | Losses | ||||||||||||||
September 30, 2013: | ||||||||||||||||
Structured notes | $ | 8,554 | $ | 4,026 | $ | (1,000 | ) | $ | 11,580 | |||||||
RMBS | 1,934 | — | (1,415 | ) | 519 | |||||||||||
Total | $ | 10,488 | $ | 4,026 | $ | (2,415 | ) | $ | 12,099 | |||||||
December 31, 2012: | ||||||||||||||||
Structured notes | $ | 9,413 | $ | 10,894 | $ | (1,028 | ) | $ | 19,279 | |||||||
RMBS | 6,047 | 858 | (1,341 | ) | 5,564 | |||||||||||
Total | $ | 15,460 | $ | 11,752 | $ | (2,369 | ) | $ | 24,843 | |||||||
INVESTMENT_SECURITIES_AVAILABL1
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||||||||||
Available-for-sale securities, fair value | ' | |||||||||||||||||||||||
The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS | $ | 194,268 | $ | 7,297 | $ | (13,792 | ) | $ | 187,773 | |||||||||||||||
ABS | 26,317 | 1,776 | (495 | ) | 27,598 | |||||||||||||||||||
Corporate bonds | 5,375 | 29 | (91 | ) | 5,313 | |||||||||||||||||||
Other asset-backed | — | — | — | — | ||||||||||||||||||||
Total | $ | 225,960 | $ | 9,102 | $ | (14,378 | ) | $ | 220,684 | |||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS | $ | 182,828 | $ | 4,626 | $ | (16,639 | ) | $ | 170,815 | |||||||||||||||
ABS | 25,885 | 1,700 | (1,115 | ) | 26,470 | |||||||||||||||||||
Corporate Bonds | 34,361 | 111 | (190 | ) | 34,282 | |||||||||||||||||||
Other asset-backed | — | 23 | — | 23 | ||||||||||||||||||||
Total | $ | 243,074 | $ | 6,460 | $ | (17,944 | ) | $ | 231,590 | |||||||||||||||
-1 | As of September 30, 2013 and December 31, 2012, $174.0 million and $195.2 million, respectively, of securities were pledged as collateral security under related financings. | |||||||||||||||||||||||
Estimated maturities of available-for-sale securities | ' | |||||||||||||||||||||||
The following table summarizes the estimated maturities of the Company’s CMBS, ABS, and corporate bonds according to their estimated weighted average life classifications (in thousands, except percentages): | ||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized | Weighted | |||||||||||||||||||||
Cost | Average | |||||||||||||||||||||||
Coupon | ||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
Less than one year | $ | 42,561 | (1) | $ | 45,731 | 4.97% | ||||||||||||||||||
Greater than one year and less than five years | 136,672 | 138,629 | 4.67% | |||||||||||||||||||||
Greater than five years and less than ten years | 37,088 | 36,905 | 2.71% | |||||||||||||||||||||
Greater than ten years | 4,363 | 4,695 | 4.03% | |||||||||||||||||||||
Total | $ | 220,684 | $ | 225,960 | 4.39% | |||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
Less than one year | $ | 42,618 | (1) | $ | 46,522 | 4.09% | ||||||||||||||||||
Greater than one year and less than five years | 122,509 | 131,076 | 4.55% | |||||||||||||||||||||
Greater than five years and less than ten years | 61,780 | 60,801 | 3.31% | |||||||||||||||||||||
Greater than ten years | 4,683 | 4,675 | 4.03% | |||||||||||||||||||||
Total | $ | 231,590 | $ | 243,074 | 4.12% | |||||||||||||||||||
(1) The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. | ||||||||||||||||||||||||
Gross unrealized loss and fair value of securities | ' | |||||||||||||||||||||||
The following table shows the fair value and gross unrealized losses, aggregated by investment category and length of time, of those individual investment securities available-for-sale that have been in a continuous unrealized loss position during the periods specified (in thousands): | ||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS | $ | 62,839 | $ | (8,333 | ) | $ | 12,124 | $ | (5,459 | ) | $ | 74,963 | $ | (13,792 | ) | |||||||||
ABS | 201 | (2 | ) | 6,589 | (493 | ) | 6,790 | (495 | ) | |||||||||||||||
Corporate bonds | 2,976 | (91 | ) | — | — | 2,976 | (91 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 66,016 | $ | (8,426 | ) | $ | 18,713 | $ | (5,952 | ) | $ | 84,729 | $ | (14,378 | ) | |||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS | $ | 25,803 | $ | (442 | ) | $ | 38,734 | $ | (16,197 | ) | $ | 64,537 | $ | (16,639 | ) | |||||||||
ABS | — | — | 5,961 | (1,115 | ) | 5,961 | (1,115 | ) | ||||||||||||||||
Corporate bonds | 19,445 | (190 | ) | — | — | 19,445 | (190 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 45,248 | $ | (632 | ) | $ | 44,695 | $ | (17,312 | ) | $ | 89,943 | $ | (17,944 | ) | |||||||||
INVESTMENTS_IN_REAL_ESTATE_Tab
INVESTMENTS IN REAL ESTATE (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Real Estate [Abstract] | ' | |||||||||||
Investments in real estate | ' | |||||||||||
The table below summarizes the Company’s investments in real estate (in thousands): | ||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||
Book Value | Number of | Book Value | Number of | |||||||||
Properties | Properties | |||||||||||
Multi-family property | $ | 22,102 | 1 | $ | 42,179 | 2 | ||||||
Office property | 10,244 | 1 | 10,149 | 1 | ||||||||
Hotel property | 25,718 | 1 | 25,608 | 1 | ||||||||
Subtotal | 58,064 | 77,936 | ||||||||||
Less: Accumulated depreciation | (2,920 | ) | (2,550 | ) | ||||||||
Investments in real estate | $ | 55,144 | $ | 75,386 | ||||||||
Aggregate estimated fair value of assets and liabilities acquired | ' | |||||||||||
The following table is a summary of the aggregate estimated fair value of the assets and liabilities acquired on the respective date of acquisition during the year ended December 31, 2012 (in thousands). There were no such acquisitions during the nine months ended September 30, 2013. | ||||||||||||
Description | 31-Dec-12 | |||||||||||
Assets acquired: | ||||||||||||
Investments in real estate | $ | 25,500 | ||||||||||
Other assets | (89 | ) | ||||||||||
Total assets acquired | 25,411 | |||||||||||
Liabilities assumed: | ||||||||||||
Accounts payable and other liabilities | 3,750 | |||||||||||
Total liabilities assumed | 3,750 | |||||||||||
Estimated fair value of net assets acquired | $ | 21,661 | ||||||||||
LOANS_HELD_FOR_INVESTMENT_Tabl
LOANS HELD FOR INVESTMENT (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | ' | ||||||||||||||||
Summary of loans held for Investments | ' | ||||||||||||||||
The following is a summary of the Company’s loans (in thousands): | |||||||||||||||||
Loan Description | Principal | Unamortized | Carrying | ||||||||||||||
(Discount) | Value (2) | ||||||||||||||||
Premium (1) | |||||||||||||||||
September 30, 2013: | |||||||||||||||||
Bank loans (3) | $ | 914,676 | $ | (5,648 | ) | $ | 909,028 | ||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | 671,118 | (3,003 | ) | 668,115 | |||||||||||||
B notes | 16,328 | (90 | ) | 16,238 | |||||||||||||
Mezzanine loans | 57,667 | (93 | ) | 57,574 | |||||||||||||
Total commercial real estate loans | 745,113 | (3,186 | ) | 741,927 | |||||||||||||
Subtotal loans before allowances | 1,659,789 | (8,834 | ) | 1,650,955 | |||||||||||||
Allowance for loan loss | (12,865 | ) | — | (12,865 | ) | ||||||||||||
Total | $ | 1,646,924 | $ | (8,834 | ) | $ | 1,638,090 | ||||||||||
December 31, 2012: | |||||||||||||||||
Bank loans (3) | $ | 1,218,563 | $ | (25,249 | ) | $ | 1,193,314 | ||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans (4) | 569,829 | (1,891 | ) | 567,938 | |||||||||||||
B notes | 16,441 | (114 | ) | 16,327 | |||||||||||||
Mezzanine loans | 82,992 | (206 | ) | 82,786 | |||||||||||||
Total commercial real estate loans | 669,262 | (2,211 | ) | 667,051 | |||||||||||||
Subtotal loans before allowances | 1,887,825 | (27,460 | ) | 1,860,365 | |||||||||||||
Allowance for loan loss | (17,691 | ) | — | (17,691 | ) | ||||||||||||
Total | $ | 1,870,134 | $ | (27,460 | ) | $ | 1,842,674 | ||||||||||
-1 | Amounts include deferred amendment fees of $288,000 and $450,000 and deferred upfront fees of $260,000 and $334,000 being amortized over the life of the bank loans as of September 30, 2013 and December 31, 2012, respectively. Amounts include loan origination fees of $2.9 million and $1.9 million and loan extension fees of $189,000 and $214,000 being amortized over the life of the commercial real estate loans as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-3 | Amounts include $332.4 million and $14.9 million of bank loans held for sale at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-4 | Amount includes $34.0 million from two whole loans which are classified as loans held for sale at December 31, 2012. | ||||||||||||||||
Summary of the weighted average life of bank loans at amortized cost | ' | ||||||||||||||||
The following is a summary of the weighted average life of the Company’s bank loans, at amortized cost (in thousands): | |||||||||||||||||
September 30, 2013 (1) | December 31, 2012 | ||||||||||||||||
Less than one year | $ | 29,008 | $ | 10,028 | |||||||||||||
Greater than one year and less than five years | 574,042 | 821,568 | |||||||||||||||
Five years or greater | 305,978 | 361,718 | |||||||||||||||
$ | 909,028 | $ | 1,193,314 | ||||||||||||||
Summary of the commercial real estate loans | ' | ||||||||||||||||
The following is a summary of the Company’s commercial real estate loans held for investment (dollars in thousands): | |||||||||||||||||
Description | Quantity | Amortized Cost | Contracted | Maturity | |||||||||||||
Interest Rates | Dates (3) | ||||||||||||||||
September 30, 2013: | |||||||||||||||||
Whole loans, floating rate (1) | 47 | $ | 668,115 | LIBOR plus 2.50% to | December 2013 to | ||||||||||||
LIBOR plus 8.0% | Aug-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,238 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (6) | 4 | 57,574 | 0.50% to 20.00% | December 2014 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 52 | $ | 741,927 | ||||||||||||||
December 31, 2012: | |||||||||||||||||
Whole loans, floating rate (1) (4) (5) | 37 | $ | 567,938 | LIBOR plus 2.50% to | June 2013 to | ||||||||||||
LIBOR plus 5.50% | Feb-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,327 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 2 | 15,845 | LIBOR plus 2.50% to | August 2013 to | |||||||||||||
LIBOR plus 7.45% | Dec-13 | ||||||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 66,941 | 0.50% to 20.00% | September 2014 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 43 | $ | 667,051 | ||||||||||||||
-1 | Whole loans had $6.6 million and $8.9 million in unfunded loan commitments as of September 30, 2013 and December 31, 2012, respectively. These commitments are funded as the borrowers request additional funding and have satisfied the requirements to obtain this additional funding. | ||||||||||||||||
-2 | The total does not include an allowance for loan loss of $9.9 million and $8.0 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
-3 | Maturity dates do not include possible extension options that may be available to the borrowers. | ||||||||||||||||
-4 | Floating rate whole loans include a $2.0 million portion of a whole loan that has a fixed rate of 15.0% as of December 31, 2012. | ||||||||||||||||
-5 | Amount includes $34.0 million from two whole loans that were classified as loans held for sale at December 31, 2012. | ||||||||||||||||
-6 | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity | ||||||||||||||||
Summary of the weighted average life of the commercial real estate loans at amortized cost | ' | ||||||||||||||||
The following is a summary of the weighted average life of the Company’s commercial real estate loans, at amortized cost (in thousands): | |||||||||||||||||
Description | 2013 | 2014 | 2015 and Thereafter | Total | |||||||||||||
September 30, 2013: | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,238 | $ | 16,238 | |||||||||
Mezzanine loans | — | 11,398 | 46,176 | 57,574 | |||||||||||||
Whole loans | 4,067 | — | 664,048 | 668,115 | |||||||||||||
Total (1) | $ | 4,067 | $ | 11,398 | $ | 726,462 | $ | 741,927 | |||||||||
December 31, 2012: | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,327 | $ | 16,327 | |||||||||
Mezzanine loans | 5,328 | 20,694 | 56,764 | 82,786 | |||||||||||||
Whole loans | 71,799 | — | 496,139 | 567,938 | |||||||||||||
Total (1) | $ | 77,127 | $ | 20,694 | $ | 569,230 | $ | 667,051 | |||||||||
-1 | Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers | ||||||||||||||||
Allocation of allowance for loan loss | ' | ||||||||||||||||
The following is a summary of the allocation of the allowance for loan loss with respect to the Company’s commercial real estate and bank loans (in thousands, except percentages) by asset class: | |||||||||||||||||
Description | Allowance for | Percentage of | |||||||||||||||
Loan Loss | Total Allowance | ||||||||||||||||
September 30, 2013: | |||||||||||||||||
B notes | $ | 166 | 1.29% | ||||||||||||||
Mezzanine loans | 531 | 4.12% | |||||||||||||||
Whole loans | 9,214 | 71.63% | |||||||||||||||
Bank loans | 2,954 | 22.96% | |||||||||||||||
Total | $ | 12,865 | |||||||||||||||
December 31, 2012: | |||||||||||||||||
B notes | $ | 206 | 1.16% | ||||||||||||||
Mezzanine loans | 860 | 4.86% | |||||||||||||||
Whole loans | 6,920 | 39.12% | |||||||||||||||
Bank loans | 9,705 | 54.86% | |||||||||||||||
Total | $ | 17,691 | |||||||||||||||
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Allowance for loan losses and recorded investments in loans | ' | |||||||||||||||||||||||||||
The following tables show the allowance for loan losses and recorded investments in loans for the years indicated (in thousands): | ||||||||||||||||||||||||||||
Commercial Real Estate Loans | Bank Loans | Loans Receivable-Related Party | Total | |||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2013 | $ | 7,986 | $ | 9,705 | $ | — | $ | 17,691 | ||||||||||||||||||||
Provision (benefit) for loan loss | 2,017 | (1,476 | ) | — | 541 | |||||||||||||||||||||||
Loans charged-off | (92 | ) | (5,275 | ) | — | (5,367 | ) | |||||||||||||||||||||
Allowance for losses at September 30, 2013 | $ | 9,911 | $ | 2,954 | $ | — | $ | 12,865 | ||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,067 | $ | 1,882 | $ | — | $ | 5,949 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 5,844 | $ | 1,072 | $ | — | $ | 6,916 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 191,100 | $ | 3,553 | $ | 8,067 | $ | 202,720 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 550,827 | $ | 905,475 | $ | — | $ | 1,456,302 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2012 | $ | 24,221 | $ | 3,297 | $ | — | $ | 27,518 | ||||||||||||||||||||
Provision for loan loss | 5,225 | 11,593 | — | 16,818 | ||||||||||||||||||||||||
Loans charged-off | (21,460 | ) | (5,185 | ) | — | (26,645 | ) | |||||||||||||||||||||
Allowance for losses at December 31, 2012 | $ | 7,986 | $ | 9,705 | $ | — | $ | 17,691 | ||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,142 | $ | 3,236 | $ | — | $ | 5,378 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 5,844 | $ | 6,469 | $ | — | $ | 12,313 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 177,055 | $ | 4,689 | $ | 8,324 | $ | 190,068 | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 489,996 | $ | 1,187,874 | $ | — | $ | 1,677,870 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 751 | $ | — | $ | 751 | ||||||||||||||||||||
Credit quality indicators for Bank loans and Commercial real estate loans | ' | |||||||||||||||||||||||||||
Credit risk profiles of bank loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
Bank loans | $ | 514,277 | $ | 39,123 | $ | 16,206 | $ | 3,518 | $ | 3,553 | $ | 332,351 | $ | 909,028 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Bank loans | $ | 1,095,148 | $ | 33,677 | $ | 27,837 | $ | 16,318 | $ | 5,440 | $ | 14,894 | $ | 1,193,314 | ||||||||||||||
Credit risk profiles of commercial real estate loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Held for Sale | Total | |||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | $ | 591,105 | $ | 44,943 | $ | 32,067 | $ | — | $ | — | $ | 668,115 | ||||||||||||||||
B notes | 16,238 | — | — | — | — | 16,238 | ||||||||||||||||||||||
Mezzanine loans | 57,574 | — | — | — | — | 57,574 | ||||||||||||||||||||||
$ | 664,917 | $ | 44,943 | $ | 32,067 | $ | — | $ | — | $ | 741,927 | |||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Whole loans | $ | 427,456 | $ | — | $ | 106,482 | $ | — | $ | 34,000 | $ | 567,938 | ||||||||||||||||
B notes | 16,327 | — | — | — | — | 16,327 | ||||||||||||||||||||||
Mezzanine loans | 38,296 | — | 44,490 | — | — | 82,786 | ||||||||||||||||||||||
$ | 482,079 | $ | — | $ | 150,972 | $ | — | $ | 34,000 | $ | 667,051 | |||||||||||||||||
Loan portfolios aging analysis | ' | |||||||||||||||||||||||||||
The following table shows the loan portfolio aging analysis as of the dates indicated at cost basis (in thousands): | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | Total Loans > 90 Days and Accruing | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 668,115 | $ | 668,115 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,238 | 16,238 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 57,574 | 57,574 | — | |||||||||||||||||||||
Bank loans | — | — | 3,553 | 3,553 | 905,475 | 909,028 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 8,067 | 8,067 | — | |||||||||||||||||||||
Total loans | $ | — | $ | — | $ | 3,553 | $ | 3,553 | $ | 1,655,469 | $ | 1,659,022 | $ | — | ||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 567,938 | $ | 567,938 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,327 | 16,327 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 82,786 | 82,786 | — | |||||||||||||||||||||
Bank loans | 1,549 | — | 3,891 | 5,440 | 1,187,874 | 1,193,314 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 8,324 | 8,324 | — | |||||||||||||||||||||
Total loans | $ | 1,549 | $ | — | $ | 3,891 | $ | 5,440 | $ | 1,863,249 | $ | 1,868,689 | $ | — | ||||||||||||||
Impaired loans | ' | |||||||||||||||||||||||||||
The following tables show impaired loans in the categories indicated (in thousands): | ||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,961 | $ | 127,961 | $ | — | $ | 121,371 | $ | 6,951 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 1,300 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 5,924 | $ | 5,924 | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 25,067 | $ | 25,067 | $ | (4,067 | ) | $ | 24,562 | $ | 1,824 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 3,553 | $ | 3,553 | $ | (1,882 | ) | $ | — | $ | — | |||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 153,028 | $ | 153,028 | $ | (4,067 | ) | $ | 145,933 | $ | 8,775 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 1,300 | |||||||||||||||||||||||
Bank loans | 3,553 | 3,553 | (1,882 | ) | — | — | ||||||||||||||||||||||
Loans receivable - related party | 5,924 | 5,924 | — | — | — | |||||||||||||||||||||||
$ | 200,577 | $ | 200,577 | $ | (5,949 | ) | $ | 184,005 | $ | 10,075 | ||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 115,841 | $ | 115,841 | $ | — | $ | 114,682 | $ | 3,436 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 367 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 6,754 | $ | 6,754 | $ | — | $ | — | $ | 851 | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 23,142 | $ | 23,142 | $ | (2,142 | ) | $ | 22,576 | $ | 801 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 5,440 | $ | 5,440 | $ | (3,236 | ) | $ | — | $ | — | |||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 138,983 | $ | 138,983 | $ | (2,142 | ) | $ | 137,258 | $ | 4,237 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 367 | |||||||||||||||||||||||
Bank loans | 5,440 | 5,440 | (3,236 | ) | — | — | ||||||||||||||||||||||
Loans receivable - related party | 6,754 | 6,754 | — | — | 851 | |||||||||||||||||||||||
$ | 189,249 | $ | 189,249 | $ | (5,378 | ) | $ | 175,330 | $ | 5,455 | ||||||||||||||||||
Troubled debt restructurings on financing receivables | ' | |||||||||||||||||||||||||||
The following tables show troubled-debt restructurings in the Company's loan portfolio (in thousands): | ||||||||||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013: | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
Three Months Ended September 30, 2012: | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 42,550 | $ | 42,550 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 3 | $ | 80,622 | $ | 80,622 | |||||||||||||||||||||||
Nine Months Ended September 30, 2013: | ||||||||||||||||||||||||||||
Whole loans | 4 | $ | 104,702 | $ | 109,044 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 5 | $ | 111,294 | $ | 115,636 | |||||||||||||||||||||||
Nine Months Ended September 30, 2012: | ||||||||||||||||||||||||||||
Whole loans | 5 | $ | 168,708 | $ | 151,422 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 7,797 | 7,797 | |||||||||||||||||||||||||
Total loans | 7 | $ | 214,577 | $ | 197,291 | |||||||||||||||||||||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Summary of intangible assets | ' | |||||||||||
The following table summarizes intangible assets at September 30, 2013 and December 31, 2012 (in thousands). | ||||||||||||
Beginning Balance | Accumulated Amortization | Net Asset | ||||||||||
September 30, 2013: | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (9,526 | ) | $ | 11,687 | |||||
Investments in real estate: | ||||||||||||
In-place leases | 2,461 | (2,421 | ) | 40 | ||||||||
Above (below) market leases | 29 | (28 | ) | 1 | ||||||||
2,490 | (2,449 | ) | 41 | |||||||||
Total intangible assets | $ | 23,703 | $ | (11,975 | ) | $ | 11,728 | |||||
December 31, 2012: | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (8,108 | ) | $ | 13,105 | |||||
Investments in real estate: | ||||||||||||
In-place leases | 2,461 | (2,379 | ) | 82 | ||||||||
Above (below) market leases | 29 | (24 | ) | 5 | ||||||||
2,490 | (2,403 | ) | 87 | |||||||||
Total intangible assets | $ | 23,703 | $ | (10,511 | ) | $ | 13,192 | |||||
BORROWINGS_Tables
BORROWINGS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||
Schedule of Debt | ' | |||||||||||
Certain information with respect to the Company’s borrowings at September 30, 2013 and December 31, 2012 is summarized in the following table (in thousands, except percentages): | ||||||||||||
Outstanding | Weighted | Weighted | Value of | |||||||||
Borrowings | Average | Average | Collateral | |||||||||
Borrowing | Remaining | |||||||||||
Rate | Maturity | |||||||||||
September 30, 2013: | ||||||||||||
RREF CDO 2006-1 Senior Notes (1) | $ | 95,151 | 1.86% | 32.9 years | $ | 170,255 | ||||||
RREF CDO 2007-1 Senior Notes (2) | 178,575 | 0.85% | 33.0 years | 325,551 | ||||||||
Apidos CDO I Senior Notes (3) | 101,827 | 1.53% | 3.8 years | 117,827 | ||||||||
Apidos CDO III Senior Notes (4) | 145,875 | 0.86% | 6.7 years | 157,009 | ||||||||
Apidos Cinco CDO Senior Notes (5) | 320,997 | 0.77% | 6.6 years | 339,154 | ||||||||
Apidos CLO VIII Senior Notes (6) | 302,916 | 2.09% | 17 days | 351,434 | ||||||||
Apidos CLO VIII Securitized Borrowings (10) | 18,444 | 14.13% | 17 days | — | ||||||||
Whitney CLO I Senior Notes(9) | — | —% | n/a | 8,573 | ||||||||
Whitney CLO I Securitized Borrowings (9) | 2,424 | 5.78% | n/a | — | ||||||||
Unsecured Junior Subordinated Debentures (7) | 50,956 | 4.22% | 22.9 years | — | ||||||||
Repurchase Agreements (8) | 205,265 | 2.29% | 18 days | 284,290 | ||||||||
Total | $ | 1,422,430 | 1.73% | 9.6 years | $ | 1,754,093 | ||||||
December 31, 2012: | ||||||||||||
RREF CDO 2006-1 Senior Notes (1) | $ | 145,664 | 1.42% | 33.6 years | $ | 295,759 | ||||||
RREF CDO 2007-1 Senior Notes (2) | 225,983 | 0.81% | 33.8 years | 292,980 | ||||||||
Apidos CDO I Senior Notes (3) | 202,969 | 1.07% | 4.6 years | 217,745 | ||||||||
Apidos CDO III Senior Notes (4) | 221,304 | 0.80% | 7.5 years | 232,655 | ||||||||
Apidos Cinco CDO Senior Notes (5) | 320,550 | 0.82% | 7.4 years | 344,105 | ||||||||
Apidos CLO VIII Senior Notes (6) | 300,951 | 2.16% | 8.8 years | 351,014 | ||||||||
Apidos CLO VIII Securitized Borrowings (10) | 20,047 | 15.27% | 8.8 years | — | ||||||||
Whitney CLO I Senior Notes(9) | 171,555 | 1.82% | 4.2 years | 191,704 | ||||||||
Whitney CLO I Securitized Borrowings (9) | 5,860 | 9.50% | 4.2 years | — | ||||||||
Unsecured Junior Subordinated Debentures (7) | 50,814 | 4.26% | 23.7 years | — | ||||||||
Repurchase Agreements (8) | 106,303 | 2.28% | 18 days | 145,234 | ||||||||
Mortgage Payable | 13,600 | 4.17% | 5.6 years | 18,100 | ||||||||
Total | $ | 1,785,600 | 1.62% | 12.5 years | $ | 2,089,296 | ||||||
-1 | Amount represents principal outstanding of $95.4 million and $146.4 million less unamortized issuance costs of $268,000 and $728,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2006. | |||||||||||
-2 | Amount represents principal outstanding of $179.4 million and $227.4 million less unamortized issuance costs of $786,000 and $1.4 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in June 2007. | |||||||||||
-3 | Amount represents principal outstanding of $101.8 million and $203.2 million less unamortized issuance costs of $0 and $274,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2005. | |||||||||||
-4 | Amount represents principal outstanding of $146.1 million and $222.0 million less unamortized issuance costs of $205,000 and $659,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in May 2006. | |||||||||||
-5 | Amount represents principal outstanding of $322.0 million and $322.0 million less unamortized issuance costs of $1.0 million and $1.5 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in May 2007. | |||||||||||
-6 | Amount represents principal outstanding of $317.6 million and $317.6 million, less unamortized issuance costs of $4.1 million and $4.7 million, and less unamortized discounts of $10.6 million and $11.9 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in October 2011. Apidos CLO VIII was called and the notes were paid in full in October 2013. | |||||||||||
-7 | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||||||||||
-8 | Amount represents principal outstanding of $52.7 million and $47.5 million less unamortized deferred debt costs of $47,000 and $23,000 plus accrued interest costs of $25,000 and $27,000 related to CMBS repurchase facilities as of September 30, 2013 and December 31, 2012, respectively, and principal outstanding of $153.8 million and $59.1 million less unamortized deferred debt costs of $1.3 million and $348,000 plus accrued interest costs of $161,000 and $79,000 related to CRE repurchase facilities as of September 30, 2013 and December 31, 2012. Amount does not reflect CMBS repurchase agreement borrowings that are components of Linked Transactions. At September 30, 2013 and December 31, 2012, the Company had repurchase agreements of $63.7 million and $20.4 million and accrued interest costs of $41,000 and $10,000, respectively, that were linked to CMBS purchases and accounted for as Linked Transactions, and, as such, the linked repurchase agreements are not included in the above table. (See Note 20). | |||||||||||
-9 | Amount represents principal outstanding of $174.1 million less unamortized discounts of $2.5 million as of December 31, 2012. In September 2013, the Company called and liquidated Whitney CLO I. As a result, substantially all of the remaining assets were sold and the balance on the outstanding notes totaling $103.7 million was paid down. | |||||||||||
-10 | The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Senior Notes, respectively | |||||||||||
CMBS - Term Repurchase Facilities [Member] | ' | |||||||||||
Debt Instrument [Line Items] | ' | |||||||||||
Schedule of Amount at Risk under Credit Facility | ' | |||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands): | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Wells Fargo Bank, National Association.(2) | $ | 11,195 | 18 | 1.3 | % | |||||||
December 31, 2012: | ||||||||||||
Wells Fargo Bank, National Association.(2) | $ | 10,722 | 18 | 1.53 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
-2 | $9.3 million and $12.2 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012, respectively, (see Note 20). | |||||||||||
CRE - Term Repurchase Facility [Member] | ' | |||||||||||
Debt Instrument [Line Items] | ' | |||||||||||
Schedule of Amount at Risk under Credit Facility | ' | |||||||||||
The following table shows information about the amount at risk under the facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Wells Fargo | $ | 66,619 | 18 | 2.61 | % | |||||||
31-Dec-12 | ||||||||||||
Wells Fargo | $ | 26,332 | 18 | 2.88 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | |||||||||||
Debt Instrument [Line Items] | ' | |||||||||||
Schedule of Amount at Risk under Credit Facility | ' | |||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Deutsche Bank Securities, Inc. | $ | 9,276 | 19 | 1.45 | % | |||||||
31-Dec-12 | ||||||||||||
Deutsche Bank Securities, Inc. | $ | 2,069 | 7 | 1.46 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ' | |||||||||||
Debt Instrument [Line Items] | ' | |||||||||||
Schedule of Amount at Risk under Credit Facility | ' | |||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
Wells Fargo Securities, LLC(2) | $ | 10,854 | 30 | 1.19 | % | |||||||
December 31, 2012: | ||||||||||||
Wells Fargo Securities, LLC (2) | $ | 1,956 | 28 | 1.46 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
-2 | $21.5 million and $3.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). | |||||||||||
Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ' | |||||||||||
Debt Instrument [Line Items] | ' | |||||||||||
Schedule of Amount at Risk under Credit Facility | ' | |||||||||||
The following table shows information about the amount at risk under this facility (dollars in thousands); | ||||||||||||
Amount at | Weighted | Weighted | ||||||||||
Risk (1) | Average | Average | ||||||||||
Maturity in Days | Interest Rate | |||||||||||
September 30, 2013: | ||||||||||||
JP Morgan Securities, LLC (2) | $ | 9,696 | 30 | 0.98 | % | |||||||
December 31, 2012: | ||||||||||||
JP Morgan Securities, LLC (2) | $ | 2,544 | 11 | 1.01 | % | |||||||
-1 | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||||||||||
-2 | $17.8 million and $4.7 million linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary of restricted common stock transactions | ' | |||||||||||||||
The following table summarizes restricted common stock transactions: | ||||||||||||||||
Non-Employee Directors | Non-Employees | Total | ||||||||||||||
Unvested shares as of January 1, 2013 | 19,509 | 3,288,834 | 3,308,343 | |||||||||||||
Issued | 38,704 | 211,719 | 250,423 | |||||||||||||
Vested | (19,509 | ) | (484,132 | ) | (503,641 | ) | ||||||||||
Forfeited | — | (8,782 | ) | (8,782 | ) | |||||||||||
Unvested shares as of September 30, 2013 | 38,704 | 3,007,639 | 3,046,343 | |||||||||||||
Summary of stock option transactions | ' | |||||||||||||||
The following table summarizes the status of the Company’s vested stock options as of September 30, 2013: | ||||||||||||||||
Vested Options | Number of Options | Weighted | Weighted | Aggregate | ||||||||||||
Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Contractual | (in thousands) | |||||||||||||||
Term (in years) | ||||||||||||||||
Vested as of January 1, 2013 | 614,999 | $ | 14.8 | |||||||||||||
Vested | 13,333 | $ | 6.4 | |||||||||||||
Exercised | — | |||||||||||||||
Forfeited | (1,000 | ) | $ | 15 | ||||||||||||
Vested at September 30, 2013 | 627,332 | $ | 14.62 | 2 | $ | 67 | ||||||||||
The following table summarizes the status of the Company’s unvested stock options as of September 30, 2013: | ||||||||||||||||
Unvested Options | Options | Weighted Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||||
Unvested at January 1, 2013 | 26,667 | $ | 6.4 | |||||||||||||
Granted | — | |||||||||||||||
Vested | (13,333 | ) | 6.4 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Unvested at September 30, 2013 | 13,334 | $ | 6.4 | |||||||||||||
Summary of share based compensation expense | ' | |||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, the components of equity compensation expense were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Options granted to Manager and non-employees | $ | 4 | $ | — | $ | 7 | $ | 1 | ||||||||
Restricted shares granted to Manager and non-employees | 2,052 | 1,376 | 7,704 | 3,327 | ||||||||||||
Restricted shares granted to non-employee directors | 64 | 28 | 155 | 84 | ||||||||||||
Total equity compensation expense | $ | 2,120 | $ | 1,404 | $ | 7,866 | $ | 3,412 | ||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of basic and diluted earnings per share | ' | |||||||||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Basic: | ||||||||||||||||
Net income allocable to common shares | $ | 22,121 | $ | 18,152 | $ | 40,180 | $ | 49,058 | ||||||||
Weighted average number of shares outstanding | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 | ||||||||||||
Basic net income per share | $ | 0.18 | $ | 0.2 | $ | 0.34 | $ | 0.58 | ||||||||
Diluted: | ||||||||||||||||
Net income allocable to common shares | $ | 22,121 | $ | 18,152 | $ | 40,180 | $ | 49,058 | ||||||||
Weighted average number of shares outstanding | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 | ||||||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,860,650 | 898,753 | 1,502,836 | 770,451 | ||||||||||||
Adjusted weighted-average number of common shares outstanding | 126,072,682 | 89,965,680 | 117,973,978 | 85,365,343 | ||||||||||||
Diluted net income per share | $ | 0.18 | $ | 0.2 | $ | 0.34 | $ | 0.57 | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||
Schedule of Changes in Components of Accumulated Other Comprehensive Income | ' | |||||||||||||||
The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive income for the nine months ended September 30, 2013 (dollars in thousands): | ||||||||||||||||
Net unrealized (loss) gain on derivatives | Net unrealized (loss) gain on securities, | Foreign Currency Translation | Net unrealized (loss) gain | |||||||||||||
available-for-sale | ||||||||||||||||
January 1, 2013 | $ | (15,595 | ) | $ | (11,483 | ) | $ | — | $ | (27,078 | ) | |||||
Other comprehensive gain/(loss) before reclassifications | 2,480 | 11,644 | (23 | ) | 14,101 | |||||||||||
Amounts reclassified from accumulated other | 322 | (4,728 | ) | — | (4,406 | ) | ||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 2,802 | 6,916 | (23 | ) | 9,695 | |||||||||||
September 30, 2013 | $ | (12,793 | ) | $ | (4,567 | ) | $ | (23 | ) | $ | (17,383 | ) |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair value assets and liabilities measured on recurring basis | ' | |||||||||||||||||||
The following table presents information about the Company’s assets (including derivatives that are presented net) measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 12,099 | $ | 12,099 | ||||||||||||
Investment securities available-for-sale | 4,972 | 85,826 | 129,886 | 220,684 | ||||||||||||||||
CMBS - linked transactions | — | 9,410 | 20,568 | 29,978 | ||||||||||||||||
Total assets at fair value | $ | 4,972 | $ | 95,236 | $ | 162,553 | $ | 262,761 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives (net) | $ | — | $ | 442 | $ | 11,766 | $ | 12,208 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 442 | $ | 11,766 | $ | 12,208 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 24,843 | $ | 24,843 | ||||||||||||
Investment securities available-for-sale | 9,757 | 132,561 | 89,272 | 231,590 | ||||||||||||||||
CMBS - linked transactions | — | 4,802 | 2,033 | 6,835 | ||||||||||||||||
Total assets at fair value | $ | 9,757 | $ | 137,363 | $ | 116,148 | $ | 263,268 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives (net) | $ | — | $ | 610 | $ | 14,077 | $ | 14,687 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 610 | $ | 14,077 | $ | 14,687 | ||||||||||||
Fair value assets unobservable input reconciliation | ' | |||||||||||||||||||
The following table presents additional information about assets which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): | ||||||||||||||||||||
Level 3 | ||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 116,148 | ||||||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||||||
Included in earnings | 8,530 | |||||||||||||||||||
Purchases | 89,514 | |||||||||||||||||||
Sales | (30,196 | ) | ||||||||||||||||||
Paydowns | (20,186 | ) | ||||||||||||||||||
Unrealized gains (losses) – included in accumulated other comprehensive income | (1,257 | ) | ||||||||||||||||||
Transfers from level 2 | — | |||||||||||||||||||
Ending balance, September 30, 2013 | $ | 162,553 | ||||||||||||||||||
Fair value liabilities unobservable input reconciliation | ' | |||||||||||||||||||
The following table presents additional information about liabilities which are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): | ||||||||||||||||||||
Level 3 | ||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 14,077 | ||||||||||||||||||
Unrealized gains – included in accumulated other comprehensive income | (2,311 | ) | ||||||||||||||||||
Ending balance, September 30, 2013 | $ | 11,766 | ||||||||||||||||||
Fair value assets and liabilities measured on nonrecurring basis | ' | |||||||||||||||||||
The following table summarizes the financial assets and liabilities measured at fair value on a nonrecurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 332,351 | $ | — | $ | 332,351 | ||||||||||||
Impaired loans | — | 1,046 | — | 1,046 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 333,397 | $ | — | $ | 333,397 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Loans held for sale | $ | — | $ | 14,894 | $ | 34,000 | $ | 48,894 | ||||||||||||
Impaired loans | — | 4,366 | 21,000 | 25,366 | ||||||||||||||||
Total assets at fair value | $ | — | $ | 19,260 | $ | 55,000 | $ | 74,260 | ||||||||||||
Significant unobservable inputs used in fair value measurements | ' | |||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | ||||||||||||||||||||
Fair Value at | Valuation Technique | Significant Unobservable Inputs | Significant | |||||||||||||||||
30-Sep-13 | Unobservable | |||||||||||||||||||
Input Value | ||||||||||||||||||||
Interest rate swap agreements | $ | 12,208 | Discounted cash flow | Weighted average credit spreads | 5.00% | |||||||||||||||
Fair value financial instruments not reported at fair value | ' | |||||||||||||||||||
The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (in thousands): | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||||
in Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||||||
Assets of Liabilities | Inputs | (Level 3) | ||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Loans held-for-investment | $ | 1,305,739 | $ | 1,299,103 | $ | — | $ | 568,545 | $ | 730,558 | ||||||||||
Loans receivable-related party | $ | 8,067 | $ | 8,067 | $ | — | $ | — | $ | 8,067 | ||||||||||
CDO notes | $ | 1,166,209 | $ | 1,020,919 | $ | — | $ | 1,020,919 | $ | — | ||||||||||
Junior subordinated notes | $ | 50,956 | $ | 17,450 | $ | — | $ | — | $ | 17,450 | ||||||||||
Repurchase agreement | $ | 205,265 | $ | 205,265 | $ | — | $ | — | $ | 205,265 | ||||||||||
December 31, 2012: | ||||||||||||||||||||
Loans held-for-investment | $ | 1,793,780 | $ | 1,848,617 | $ | — | $ | 1,186,642 | $ | 661,975 | ||||||||||
Loans receivable-related party | $ | 8,324 | $ | 8,324 | $ | — | $ | — | $ | 8,324 | ||||||||||
CDO notes | $ | 1,614,883 | $ | 1,405,124 | $ | — | $ | 1,405,124 | $ | — | ||||||||||
Junior subordinated notes | $ | 50,814 | $ | 17,308 | $ | — | $ | — | $ | 17,308 | ||||||||||
Repurchase agreement | $ | 106,303 | $ | 106,303 | $ | — | $ | — | $ | 106,303 | ||||||||||
INTEREST_RATE_RISK_AND_DERIVAT1
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | |||||||||||||||||||||||
Components of Unrealized Net Gains and Net Income from Linked Transactions | ' | |||||||||||||||||||||||
The following table presents certain information about the components of the unrealized net gains and net interest income from Linked Transactions included in the Company's consolidated statements of income for the three and nine months ended September 30, 2013 and 2012, respectively (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Components of Unrealized Net Gains and Net Interest | ||||||||||||||||||||||||
Income (Expense) from Linked Transactions | ||||||||||||||||||||||||
Interest income attributable to CMBS underlying | $ | 801 | $ | 193 | $ | 2,005 | $ | 573 | ||||||||||||||||
linked transactions | ||||||||||||||||||||||||
Interest expense attributable to linked repurchase | (201 | ) | (60 | ) | (524 | ) | (187 | ) | ||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | 561 | — | (5,824 | ) | — | |||||||||||||||||||
Unrealized (loss) gain and net interest income from linked transactions, net | $ | 1,161 | $ | 133 | $ | (4,343 | ) | $ | 386 | |||||||||||||||
Available-for-sale securities, fair value | ' | |||||||||||||||||||||||
The following table summarizes the Company's investment securities, including those pledged as collateral and classified as available-for-sale, which are carried at fair value (in thousands): | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost (1) | Gains | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS | $ | 194,268 | $ | 7,297 | $ | (13,792 | ) | $ | 187,773 | |||||||||||||||
ABS | 26,317 | 1,776 | (495 | ) | 27,598 | |||||||||||||||||||
Corporate bonds | 5,375 | 29 | (91 | ) | 5,313 | |||||||||||||||||||
Other asset-backed | — | — | — | — | ||||||||||||||||||||
Total | $ | 225,960 | $ | 9,102 | $ | (14,378 | ) | $ | 220,684 | |||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS | $ | 182,828 | $ | 4,626 | $ | (16,639 | ) | $ | 170,815 | |||||||||||||||
ABS | 25,885 | 1,700 | (1,115 | ) | 26,470 | |||||||||||||||||||
Corporate Bonds | 34,361 | 111 | (190 | ) | 34,282 | |||||||||||||||||||
Other asset-backed | — | 23 | — | 23 | ||||||||||||||||||||
Total | $ | 243,074 | $ | 6,460 | $ | (17,944 | ) | $ | 231,590 | |||||||||||||||
-1 | As of September 30, 2013 and December 31, 2012, $174.0 million and $195.2 million, respectively, of securities were pledged as collateral security under related financings. | |||||||||||||||||||||||
Interest Rate Swap | ' | |||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | |||||||||||||||||||||||
Fair Value of Derivative Instruments | ' | |||||||||||||||||||||||
The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheets and on the consolidated statement of income for the years presented: | ||||||||||||||||||||||||
Fair Value of Derivative Instruments as of September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Interest rate swap contracts | $ | 130,785 | Derivatives, at fair value | $ | (12,208 | ) | ||||||||||||||||||
Accumulated other comprehensive loss | $ | 12,793 | ||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income | ' | |||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional | Statement of Operations Location | Unrealized | ||||||||||||||||||||||
Amount | Loss (1) | |||||||||||||||||||||||
Interest rate swap contracts | $ | 130,785 | Interest expense | $ | 5,118 | |||||||||||||||||||
(1)Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. | ||||||||||||||||||||||||
L | ||||||||||||||||||||||||
Linked Transactions | ' | |||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | |||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income | ' | |||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Statement of Operations Location | Revenues (1) | ||||||||||||||||||||||
Linked Transactions at fair value, 2013 | Non-Hedging | Unrealized gain/(loss) and net interest | $ | (4,343 | ) | |||||||||||||||||||
income on linked transactions, net | ||||||||||||||||||||||||
Linked Transactions at fair value, 2012 | Non-Hedging | Unrealized gain/(loss) and net interest | $ | 386 | ||||||||||||||||||||
income on linked transactions, net | ||||||||||||||||||||||||
(1)Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. | ||||||||||||||||||||||||
Schedule of Linked Transactions | ' | |||||||||||||||||||||||
The following tables present certain information about the CMBS and repurchase agreements underlying the Company's Linked Transactions at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments as of | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||
Linked Transactions at fair value | Non-Hedging | Linked Transactions, net at fair value | $ | 29,978 | ||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||
Linked Transactions at fair value | Non-Hedging | Linked Transactions, net at fair value | $ | 6,835 | ||||||||||||||||||||
Available-for-sale securities, fair value | ' | |||||||||||||||||||||||
The following table summarizes the estimated maturities of the Company’s CMBS Linked Transactions according to their estimated weighted average life classifications (in thousands, except percentages): | ||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized | Weighted | |||||||||||||||||||||
Cost | Average | |||||||||||||||||||||||
Coupon | ||||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
Less than one year | $ | 3,411 | $ | 3,389 | 5.28% | |||||||||||||||||||
Greater than one year and less than five years | 20,483 | 20,716 | 5.21% | |||||||||||||||||||||
Greater than five years and less than ten years | 55,996 | 59,695 | 2.88% | |||||||||||||||||||||
Greater than ten years | 13,589 | 15,154 | 3.34% | |||||||||||||||||||||
Total | $ | 93,479 | $ | 98,954 | 3.53% | |||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
Less than one year | $ | 9,827 | $ | 9,822 | 5.09% | |||||||||||||||||||
Greater than one year and less than five years | 5,444 | 5,446 | 6.11% | |||||||||||||||||||||
Greater than five years and less than ten years | 11,979 | 11,814 | 2.69% | |||||||||||||||||||||
Total | $ | 27,250 | $ | 27,082 | 4.23% | |||||||||||||||||||
The following table summarizes the Company's CMBS Linked Transactions calculated basis of fair value (in thousands): | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost | Gains | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 98,954 | $ | 184 | $ | (5,659 | ) | $ | 93,479 | |||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS linked transactions | $ | 27,082 | $ | 190 | $ | (22 | ) | $ | 27,250 | |||||||||||||||
Available-for-sale Securities in a Continuous Loss Position | ' | |||||||||||||||||||||||
The following table shows the fair value, gross unrealized losses and the length of time the CMBS Linked Transactions underlying assets have been in a continuous unrealized loss position during the periods specified (in thousands): | ||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||||||
CMBS Linked Transactions | $ | 76,779 | $ | (5,659 | ) | $ | — | $ | — | $ | 76,779 | $ | (5,659 | ) | ||||||||||
December 31, 2012: | ||||||||||||||||||||||||
CMBS Linked Transactions | $ | 20,894 | $ | (22 | ) | $ | — | $ | — | $ | 20,894 | $ | (22 | ) | ||||||||||
CMBS Linked Transactions by Ratings Category | ' | |||||||||||||||||||||||
The following table summarizes the Company's CMBS linked transactions (in thousands, except percentages): | ||||||||||||||||||||||||
Fair Value at | MTM | Fair Value at | ||||||||||||||||||||||
31-Dec-12 | Net | Upgrades/ | Change | 30-Sep-13 | ||||||||||||||||||||
Purchases | Downgrades | Same Ratings | ||||||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 14,585 | $ | 10,090 | $ | — | $ | 5,204 | $ | 29,879 | ||||||||||||||
Aa1 through Aa3 | — | 8,925 | — | — | 8,925 | |||||||||||||||||||
A1 through A3 | 5,444 | — | — | (5,444 | ) | — | ||||||||||||||||||
Baa1 through Baa3 | — | — | (5,452 | ) | 10,903 | 5,451 | ||||||||||||||||||
Ba1 through Ba3 | — | 8,939 | — | — | 8,939 | |||||||||||||||||||
B1 through B3 | — | 12,235 | — | — | 12,235 | |||||||||||||||||||
Non-Rated | 7,221 | 16,783 | — | 4,046 | 28,050 | |||||||||||||||||||
Total | $ | 27,250 | $ | 56,972 | $ | (5,452 | ) | $ | 14,709 | $ | 93,479 | |||||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 21,806 | $ | — | $ | — | $ | 732 | $ | 22,538 | ||||||||||||||
BBB+ through BBB- | — | 9,942 | — | — | 9,942 | |||||||||||||||||||
B+ through B- | 5,444 | 11,485 | — | 8 | 16,937 | |||||||||||||||||||
Non-Rated | — | 35,544 | — | 8,518 | 44,062 | |||||||||||||||||||
Total | $ | 27,250 | $ | 56,971 | $ | — | $ | 9,258 | $ | 93,479 | ||||||||||||||
CMBS Linked Repurchase Agreements | ' | |||||||||||||||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | |||||||||||||||||||||||
Maturity or Repricing | Balance (1) | Weighted | Balance (1) | Weighted | ||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Interest Rate | Interest Rate | |||||||||||||||||||||||
Within 30 days | $ | 63,760 | 1.25 | % | $ | 20,415 | 1.4 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 63,760 | — | % | $ | 20,415 | 1.4 | % | ||||||||||||||||
OFFSETTING_OF_FINANCIAL_ASSETS1
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Offsetting [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Offsetting of Financial Liabilities and Derivative Liabilities | ' | ||||||||||||||||||||||||
The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||
(iv) | |||||||||||||||||||||||||
Gross Amounts Not Offset in | |||||||||||||||||||||||||
the Consolidated Balance Sheet | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | Financial | Cash | (v) =iii) - (iv) | ||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Presented in | Instruments (1) | Collateral | Net Amount | ||||||||||||||||||||
Recognized | Consolidated | the Consolidated | Pledged (1) | ||||||||||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 12,208 | $ | — | $ | 12,208 | $ | — | $ | 500 | $ | 11,708 | |||||||||||||
at fair value (2) | |||||||||||||||||||||||||
Repurchase agreements (3) | 205,265 | — | 205,265 | 205,265 | — | — | |||||||||||||||||||
Total | $ | 217,473 | $ | — | $ | 217,473 | $ | 205,265 | $ | 500 | $ | 11,708 | |||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 14,687 | $ | — | $ | 14,687 | $ | — | $ | 500 | $ | 14,187 | |||||||||||||
at fair value (2) | |||||||||||||||||||||||||
Repurchase agreements (3) | 106,303 | — | 106,303 | 106,303 | — | — | |||||||||||||||||||
Total | $ | 120,990 | $ | — | $ | 120,990 | $ | 106,303 | $ | 500 | $ | 14,187 | |||||||||||||
-1 | Amounts disclosed in the Financial Instruments column of the table above represents collateral pledged that is available to be offset against liability balances associated with repurchase agreement and derivative transactions. Amounts disclosed in the Cash Collateral Pledged column of the table above represents amounts pledged as collateral against derivative transactions. | ||||||||||||||||||||||||
-2 | The fair value of securities pledged against the Company's swaps was $8.3 million and $13.1 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
-3 | The fair value of securities pledged against the Company's repurchase agreements was $284.3 million and $145.2 million at September 30, 2013 and December 31, 2012, respectively. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Resource Real Estate Funding CDO 2007-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Apidos CDO III Ltd. [Member] | Apidos Cinco CDO Ltd [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Apidos CDO I Ltd. [Member] | Apidos CDO I Ltd. [Member] | Resource TRS, LLC [Member] | Resource Capital Asset Management [Member] | CVC Credit Partners, LLC [Member] | Apidos CLO VIII Ltd. [Member] | Apidos CLO VIII Ltd. [Member] | Long Term Care Conversion Funding [Member] | Life Care Funding, LLC [Member] | Whitney CLO I Senior Notes [Member] |
RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Commercial [Member] | RCC Commercial II [Member] | RCC Commercial III [Member] | RSO EquityCo, LLC [Member] | Resource TRS, Inc [Member] | Resource TRS II [Member] | Resource America [Member] | Resource TRS III [Member] | RSO EquityCo, LLC [Member] | Long Term Care Conversion, Inc [Member] | Long Term Care Conversion Funding [Member] | ||||
Entity | ||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interests in variable interest entities (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% | 68.30% | 66.60% | 90.00% | 10.00% | 100.00% | 100.00% | 33.00% | 33.00% | 10.00% | 100.00% | 30.00% | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $103.70 |
Number of CDO issuers | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Impairment charges | $0 | $0 | $0 | $0 |
Building [Member] | Minimum [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Useful life | ' | ' | '25 years | ' |
Building [Member] | Maximum [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Useful life | ' | ' | '40 years | ' |
Site Improvements [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Useful life | ' | ' | 'Lesser of the remaining life of building or useful lives | ' |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Nov. 16, 2011 | Feb. 28, 2011 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2012 | Sep. 30, 2013 | Nov. 16, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 18, 2013 | Nov. 16, 2011 | Nov. 16, 2011 | Sep. 30, 2013 | Nov. 16, 2011 | Jan. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Feb. 28, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 01, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 19, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
credit | Preferred Shares - Series B | Investment in RCAM [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Varde Investment Partners, LP [Member] | VIE, Primary Beneficiary [Member] | VIE, Primary Beneficiary [Member] | VIE, Primary Beneficiary [Member] | VIE, Primary Beneficiary [Member] | VIE, Primary Beneficiary [Member] | VIE, Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Resource America [Member] | Resource America [Member] | Whitney CLO I Senior Notes [Member] | ||||||||
Entity | Entity | Entity | Investment in RCAM [Member] | Whitney CLO I, Ltd. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | Interest in RCT I and RCT II [Member] | Interest in RCT I [Member] | Interest in RCT II [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | Life Care Funding, LLC [Member] | Life Care Funding, LLC [Member] | Harvard CLO VII Limited [Member] | Harvard CLO VII Limited [Member] | CVC Credit Partners, LLC [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||
Position | Preferred Shares - Series A | Preferred Shares - Series A | Preferred Shares - Series B | Preferred Shares - Series B | Series D Preferred Stock [Member] | Series A-1 Preferred Stock [Member] | Series E Preferred Stock [Member] | Entity | Entity | Minimum [Member] | Maximum [Member] | Property | CVC Credit Partners, LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of consolidated VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of VIEs for which persons of power are considered a related party group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of credits supported in VIEs | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Financial support provided to VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $199,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000 | $145,000 | $157,000 | $465,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares received in equity method transaction (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,341 | 4,872 | ' | 2,364 | 3,682 | 3,323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity contribution to VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | |||
Ownership percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34.40% | ' | |||
Preferred stock, coupon authorized (in hundredths) | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.70% | 27.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.52% | ' | ' | ' | |||
Investments in unconsolidated entities | 72,955,000 | [1] | ' | 72,955,000 | [1] | ' | 45,413,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,800,000 | 33,100,000 | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -330,000 | ' | -330,000 | ' | 2,300,000 | ' | ' | ' | 575,000 | ' | 575,000 | 526,000 | 15,500,000 | ' | 15,500,000 | 1,700,000 | 1,700,000 | ' | ' | ' | ' | ' |
VIE, purchase of subordinated notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' | ' | |||
Variable interest entity, number of board positions held by the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Variable interest entity, total number of board positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Value of equity of variable interest entity, threshold for obligation to contribute cash to VIE (less than approximately $18.7 million) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Measurement date of value of equity in VIE, number of days after next fiscal year end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of total value of trusts owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Borrowings | 1,422,430,000 | [2] | ' | 1,422,430,000 | [2] | ' | 1,785,600,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | 25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank loan assets under management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of CLOs held by purchased entity | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Collateralized Loan Obligations Liquidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500,000 | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Intangible assets | 11,728,000 | [1] | ' | 11,728,000 | [1] | ' | 13,192,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,700,000 | ' | 11,700,000 | ' | 13,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee income | 1,245,000 | 1,777,000 | 4,182,000 | 5,528,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,245,000 | 1,777,000 | 4,182,000 | 5,528,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred equity acquired | ' | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interests in variable interest entities (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 66.60% | 68.30% | ' | ' | ' | ' | ' | ' | 68.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | ' | |||
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,700,000 | |||
Required contribution to joint venture, as a percentage of the total funding required for each asset acquisition on a monthly basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings (losses) from unconsolidated subsidiaries | -505,000 | -779,000 | -858,000 | -1,469,000 | ' | ' | ' | ' | ' | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -521,000 | 346,000 | -735,000 | 931,000 | ' | ' | ' | ' | 6,000 | -100,000 | 49,000 | ' | 433,000 | ' | 526,000 | -107,000 | -349,000 | ' | ' | ' | ' | ' | |||
Number of condominium developments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Threshold for determination of capital call, aggregate capital contributions (exceeds $500 million) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | September 30, 2013 December 31, 2012Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,166,209 $1,614,882 Accrued interest expense2,184 2,666 Derivatives, at fair value11,766 14,078 Accounts payable and other liabilities646 698 Total liabilities of consolidated VIEs$1,180,805 $1,632,324 |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
ASSETS | ' | ' | |
Restricted cash | $53,752,000 | $90,108,000 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 110,993,000 | 135,566,000 | |
Loans, pledged as collateral | 981,513,000 | 1,678,719,000 | |
Loans held for sale | 332,351,000 | 14,894,000 | |
Interest receivable | 5,506,000 | 5,986,000 | |
Prepaid assets | 254,000 | 328,000 | |
Principal receivable | 7,000 | 25,570,000 | |
Other assets | 35,000 | 333,000 | |
Total assets of consolidated VIEs | 1,484,411,000 | 1,951,504,000 | |
LIABILITIES | ' | ' | |
Borrowings | 1,166,209,000 | 1,614,882,000 | |
Accrued interest expense | 2,184,000 | 2,666,000 | |
Derivatives, at fair value | 11,766,000 | 14,078,000 | |
Accounts payable and other liabilities | 646,000 | 698,000 | |
Total liabilities of consolidated VIEs | 1,180,805,000 | 1,632,324,000 | |
VIE, Primary Beneficiary [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 53,752,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 110,993,000 | ' | |
Loans, pledged as collateral | 981,513,000 | ' | |
Loans held for sale | 332,351,000 | ' | |
Interest receivable | 5,506,000 | ' | |
Prepaid assets | 254,000 | ' | |
Principal receivable | 7,000 | ' | |
Other assets | 35,000 | ' | |
Total assets of consolidated VIEs | 1,484,411,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 1,166,209,000 | ' | |
Accrued interest expense | 2,184,000 | ' | |
Derivatives, at fair value | 11,766,000 | ' | |
Accounts payable and other liabilities | 646,000 | ' | |
Total liabilities of consolidated VIEs | 1,180,805,000 | ' | |
Restricted cash available for reinvestment in certain of the CDOs | 16,700,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos CDO I Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 10,253,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 8,097,000 | ' | |
Loans, pledged as collateral | 100,268,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | -148,000 | ' | |
Prepaid assets | 14,000 | ' | |
Principal receivable | 0 | ' | |
Other assets | 0 | ' | |
Total assets of consolidated VIEs | 118,484,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 101,827,000 | ' | |
Accrued interest expense | 263,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 154,000 | ' | |
Total liabilities of consolidated VIEs | 102,244,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos CDO III Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 2,943,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 6,217,000 | ' | |
Loans, pledged as collateral | 148,660,000 | ' | |
Loans held for sale | 183,000 | ' | |
Interest receivable | 597,000 | ' | |
Prepaid assets | 14,000 | ' | |
Principal receivable | 0 | ' | |
Other assets | 0 | ' | |
Total assets of consolidated VIEs | 158,614,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 145,875,000 | ' | |
Accrued interest expense | 63,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 18,000 | ' | |
Total liabilities of consolidated VIEs | 145,956,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 18,368,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 16,622,000 | ' | |
Loans, pledged as collateral | 308,128,000 | ' | |
Loans held for sale | 3,688,000 | ' | |
Interest receivable | 1,094,000 | ' | |
Prepaid assets | 26,000 | ' | |
Principal receivable | 7,000 | ' | |
Other assets | 35,000 | ' | |
Total assets of consolidated VIEs | 347,968,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 320,997,000 | ' | |
Accrued interest expense | 325,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 23,000 | ' | |
Total liabilities of consolidated VIEs | 321,345,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos CLO VIII Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 16,152,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 1,975,000 | ' | |
Loans, pledged as collateral | 7,874,000 | ' | |
Loans held for sale | 325,675,000 | ' | |
Interest receivable | 752,000 | ' | |
Prepaid assets | 7,000 | ' | |
Principal receivable | 0 | ' | |
Other assets | 0 | ' | |
Total assets of consolidated VIEs | 352,435,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 321,360,000 | ' | |
Accrued interest expense | 1,386,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 384,000 | ' | |
Total liabilities of consolidated VIEs | 323,130,000 | ' | |
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 5,586,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | ' | |
Loans, pledged as collateral | 635,000 | ' | |
Loans held for sale | 2,805,000 | ' | |
Interest receivable | -18,000 | ' | |
Prepaid assets | 23,000 | ' | |
Principal receivable | 0 | ' | |
Other assets | 0 | ' | |
Total assets of consolidated VIEs | 9,031,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 2,424,000 | ' | |
Accrued interest expense | 0 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 43,000 | ' | |
Total liabilities of consolidated VIEs | 2,467,000 | ' | |
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 20,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 11,658,000 | ' | |
Loans, pledged as collateral | 158,659,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 1,388,000 | ' | |
Prepaid assets | 99,000 | ' | |
Principal receivable | 0 | ' | |
Other assets | 0 | ' | |
Total assets of consolidated VIEs | 171,824,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 95,151,000 | ' | |
Accrued interest expense | 41,000 | ' | |
Derivatives, at fair value | 1,379,000 | ' | |
Accounts payable and other liabilities | 22,000 | ' | |
Total liabilities of consolidated VIEs | 96,593,000 | ' | |
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 430,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 66,424,000 | ' | |
Loans, pledged as collateral | 257,289,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 1,841,000 | ' | |
Prepaid assets | 71,000 | ' | |
Principal receivable | 0 | ' | |
Other assets | 0 | ' | |
Total assets of consolidated VIEs | 326,055,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 178,575,000 | ' | |
Accrued interest expense | 106,000 | ' | |
Derivatives, at fair value | 10,387,000 | ' | |
Accounts payable and other liabilities | 2,000 | ' | |
Total liabilities of consolidated VIEs | $189,070,000 | ' | |
[1] | Includes $16.7 million available for reinvestment in certain of the CDOs. | ||
[2] | Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. |
VARIABLE_INTEREST_ENTITIES_Sch1
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | $64,789 |
Intangible assets | 11,687 |
Total assets | 76,476 |
Borrowings | 50,956 |
Total liabilities | 50,956 |
Net asset (liability) | 25,520 |
Investments in Unconsolidated Entities [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Maximum Exposure to Loss | 64,789 |
Intangible Assets [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Maximum Exposure to Loss | 11,687 |
LEAF Commercial Capital, Inc. [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 40,820 |
Intangible assets | 0 |
Total assets | 40,820 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 40,820 |
Unsecured Junior Subordinated Debentures [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 1,548 |
Intangible assets | 0 |
Total assets | 1,548 |
Borrowings | 50,956 |
Total liabilities | 50,956 |
Net asset (liability) | -49,408 |
Resource Capital Asset Management [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 0 |
Intangible assets | 11,687 |
Total assets | 11,687 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 11,687 |
RRE VIP Borrower, LLC [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | -330 |
Intangible assets | 0 |
Total assets | -330 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | -330 |
Varde Investment Partners, LP [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 575 |
Intangible assets | 0 |
Total assets | 575 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 575 |
Life Care Funding, LLC [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 1,651 |
Intangible assets | 0 |
Total assets | 1,651 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 1,651 |
CVC Global Credit Opportunities Fund, LP [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 15,526 |
Intangible assets | 0 |
Total assets | 15,526 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 15,526 |
Harvard CLO VII Limited [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 4,999 |
Intangible assets | 0 |
Total assets | 4,999 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $4,999 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Non-cash investing activities include the following: | ' | ' |
Acquisition of real estate investments | $0 | ($21,661) |
Conversion of loans to investment in real estate | 0 | 21,661 |
Non-cash financing activities include the following: | ' | ' |
Income taxes paid in cash | 8,997 | 19,771 |
Issuance of restricted stock | 242 | 480 |
Subscription receivable | 257 | 24,213 |
Common Stock | ' | ' |
Non-cash financing activities include the following: | ' | ' |
Distributions on common and preferred stock declared but not paid | 25,447 | 19,897 |
Preferred Stock | ' | ' |
Non-cash financing activities include the following: | ' | ' |
Distributions on common and preferred stock declared but not paid | $2,023 | $308 |
INVESTMENT_SECURITIES_TRADING_1
INVESTMENT SECURITIES, TRADING (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Security | Security | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Securities purchased | 4 | ' |
Securities sold | 6 | ' |
Net realized gain (loss) | $6.90 | ' |
Number of trading securities held | 11 | 13 |
INVESTMENT_SECURITIES_TRADING_2
INVESTMENT SECURITIES, TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) (USD $) | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Amortized Cost | $10,488 | $15,460 | ' | ||
Unrealized Gains | 4,026 | 11,752 | ' | ||
Unrealized Losses | -2,415 | -2,369 | ' | ||
Fair Value | 12,099 | [1] | 24,843 | 24,843 | [1] |
Structured Notes [Member] | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Amortized Cost | 8,554 | 9,413 | ' | ||
Unrealized Gains | 4,026 | 10,894 | ' | ||
Unrealized Losses | -1,000 | -1,028 | ' | ||
Fair Value | 11,580 | 19,279 | ' | ||
RMBS [Member] | ' | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ||
Amortized Cost | 1,934 | 6,047 | ' | ||
Unrealized Gains | 0 | 858 | ' | ||
Unrealized Losses | -1,415 | -1,341 | ' | ||
Fair Value | $519 | $5,564 | ' | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
INVESTMENT_SECURITIES_AVAILABL2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Security | Security | Security | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Investment securities available-for-sale, pledged as collateral, at fair value | $173,994,000 | [1] | ' | $173,994,000 | [1] | ' | $195,200,000 | [1] |
CMBS, at fair value | 220,684,000 | ' | 220,684,000 | ' | 231,590,000 | |||
Net impairment losses recognized in earnings | ' | ' | 802,000 | 180,000 | ' | |||
CMBS | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Number of floating rate investment securities in a loss position for more than 12 months | 9 | ' | 9 | ' | 19 | |||
CMBS, at fair value | 187,800,000 | ' | 187,800,000 | ' | 170,800,000 | |||
Net unrealized gain (loss) | -6,500,000 | ' | -6,500,000 | ' | -12,000,000 | |||
Net impairment losses recognized in earnings | 255,000 | 9,000 | 276,000 | 42,000 | ' | |||
Excess of aggregate discount over aggregate premium | 4,800,000 | ' | 4,800,000 | ' | 8,000,000 | |||
ABS | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Number of floating rate investment securities in a loss position for more than 12 months | 9 | ' | 9 | ' | 9 | |||
Net unrealized gain (loss) | 1,300,000 | ' | 1,300,000 | ' | 585,000 | |||
Fair value of fixed rate positions | 27,600,000 | ' | 27,600,000 | ' | 26,500,000 | |||
Number of securities sold | 0 | 2 | 0 | 5 | ' | |||
Par value of securities sold | 0 | 1,400,000 | 0 | 4,300,000 | ' | |||
Recognized gain (loss) on sale | 0 | 89,000 | 0 | 111,000 | ' | |||
Excess of aggregate discount over aggregate premium | 2,600,000 | ' | 2,600,000 | ' | 3,100,000 | |||
Corporate bonds | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Number of floating rate investment securities in a loss position for more than 12 months | 0 | ' | 0 | ' | 0 | |||
Net unrealized gain (loss) | -62,000 | ' | -62,000 | ' | -78,000 | |||
Fair value of fixed rate positions | 5,300,000 | ' | 5,300,000 | ' | 34,300,000 | |||
Number of securities sold | 17 | ' | 32 | ' | ' | |||
Par value of securities sold | 30,000,000 | ' | 33,000,000 | ' | ' | |||
Recognized gain (loss) on sale | -441,000 | ' | -432,000 | ' | ' | |||
Number of securities redeemed | ' | ' | 2 | 1 | ' | |||
Par value of securities redeemed | ' | ' | 3,500,000 | 182,000 | ' | |||
Recognized losses on redemptions | ' | ' | -11,000 | ' | ' | |||
Recognized gains on redemptions | ' | ' | ' | 39,000 | ' | |||
Investment Owned, Unrecognized Unrealized Depreciation | 154,000 | ' | 154,000 | ' | ' | |||
Investment Owned, Unrecognized Unrealized Appreciation | ' | ' | ' | ' | $608,000 | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
INVESTMENT_SECURITIES_AVAILABL3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | $225,960 | [1] | $243,074 | [1] |
Unrealized Gains | 9,102 | 6,460 | ||
Unrealized Losses | -14,378 | -17,944 | ||
Fair Value | 220,684 | 231,590 | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 173,994 | [2] | 195,200 | [2] |
CMBS | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 194,268 | [1] | 182,828 | [1] |
Unrealized Gains | 7,297 | 4,626 | ||
Unrealized Losses | -13,792 | -16,639 | ||
Fair Value | 187,773 | 170,815 | ||
ABS | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 26,317 | [1] | 25,885 | [1] |
Unrealized Gains | 1,776 | 1,700 | ||
Unrealized Losses | -495 | -1,115 | ||
Fair Value | 27,598 | 26,470 | ||
Corporate bonds | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 5,375 | [1] | 34,361 | [1] |
Unrealized Gains | 29 | 111 | ||
Unrealized Losses | -91 | -190 | ||
Fair Value | 5,313 | 34,282 | ||
Other asset-backed | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 0 | [1] | 0 | [1] |
Unrealized Gains | 0 | 23 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | $0 | $23 | ||
[1] | As of September 30, 2013 and December 31, 2012, $174.0 million and $195.2 million, respectively, of securities were pledged as collateral security under related financings. | |||
[2] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
INVESTMENT_SECURITIES_AVAILABL4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value | ' | ' | ||
Less than one year | $42,561 | [1] | $42,618 | [1] |
Greater than one year and less than five years | 136,672 | 122,509 | ||
Greater than five years and less than ten years | 37,088 | 61,780 | ||
Greater than ten years | 4,363 | 4,683 | ||
Fair Value | 220,684 | 231,590 | ||
Amortized Cost | ' | ' | ||
Less than one year | 45,731 | 46,522 | ||
Greater than one year and less than five years | 138,629 | 131,076 | ||
Greater than five years and less than ten years | 36,905 | 60,801 | ||
Greater than ten years | 4,695 | 4,675 | ||
Amortized Cost | $225,960 | $243,074 | ||
Weighted Average Coupon | ' | ' | ||
Less than one year | 4.97% | 4.09% | ||
Greater than one year and less than five years | 4.67% | 4.55% | ||
Greater than five years and less than ten years | 2.71% | 3.31% | ||
Greater than ten years | 4.03% | 4.03% | ||
Weighted Average Coupon | 4.39% | 4.12% | ||
[1] | The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. |
INVESTMENT_SECURITIES_AVAILABL5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Fair value, less than 12 months, CMBS | $66,016 | $45,248 |
Fair value, more than 12 months | 18,713 | 44,695 |
Fair value, total | 84,729 | 89,943 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' |
Gross unrealized losses, less than 12 months | -8,426 | -632 |
Gross unrealized losses, more than 12 months | -5,952 | -17,312 |
Gross unrealized losses, total | -14,378 | -17,944 |
CMBS linked transactions | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Fair value, less than 12 months, CMBS | 62,839 | 25,803 |
Fair value, more than 12 months | 12,124 | 38,734 |
Fair value, total | 74,963 | 64,537 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' |
Gross unrealized losses, less than 12 months | -8,333 | -442 |
Gross unrealized losses, more than 12 months | -5,459 | -16,197 |
Gross unrealized losses, total | -13,792 | -16,639 |
ABS | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Fair value, less than 12 months, CMBS | 201 | 0 |
Fair value, more than 12 months | 6,589 | 5,961 |
Fair value, total | 6,790 | 5,961 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' |
Gross unrealized losses, less than 12 months | -2 | 0 |
Gross unrealized losses, more than 12 months | -493 | -1,115 |
Gross unrealized losses, total | -495 | -1,115 |
Corporate bonds | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' |
Fair value, less than 12 months, CMBS | 2,976 | 19,445 |
Fair value, more than 12 months | 0 | 0 |
Fair value, total | 2,976 | 19,445 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' |
Gross unrealized losses, less than 12 months | -91 | -190 |
Gross unrealized losses, more than 12 months | 0 | 0 |
Gross unrealized losses, total | ($91) | ($190) |
INVESTMENTS_IN_REAL_ESTATE_Det
INVESTMENTS IN REAL ESTATE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Loan | Property | Loan | |
Property | |||
Real Estate Line Items [Line Items] | ' | ' | ' |
Number of Property Acquisitions | 0 | 0 | ' |
Number of loans foreclosed | ' | ' | 1 |
Number of real estate investments held for sale | 1 | ' | ' |
Foreclosed Coconut Grove Florida Property [Member] | ' | ' | ' |
Real Estate Line Items [Line Items] | ' | ' | ' |
Real estate acquired through foreclosure | ' | ' | 25.5 |
Number of units in real estate property | ' | ' | 179 |
Percentage occupied on acquisition (in hundredths) | ' | ' | 75.00% |
INVESTMENTS_IN_REAL_ESTATE_Inv
INVESTMENTS IN REAL ESTATE (Investments in Real Estate) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Book Value | $58,064 | $77,936 |
Less: Accumulated depreciation | -2,920 | -2,550 |
Investments in real estate | 55,144 | 75,386 |
Multi-family property | ' | ' |
Book Value | 22,102 | 42,179 |
Number of Properties | 1 | 2 |
Office property | ' | ' |
Book Value | 10,244 | 10,149 |
Number of Properties | 1 | 1 |
Hotel property | ' | ' |
Book Value | $25,718 | $25,608 |
Number of Properties | 1 | 1 |
INVESTMENTS_IN_REAL_ESTATE_Sum
INVESTMENTS IN REAL ESTATE (Summary of Aggregate Estimated Fair Value of Assets and Liabilities) (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Assets acquired: | ' |
Investments in real estate | $25,500 |
Other assets | -89 |
Total assets acquired | 25,411 |
Liabilities assumed: | ' |
Accounts payable and other liabilities | 3,750 |
Total liabilities assumed | 3,750 |
Estimated fair value of net assets acquired | $21,661 |
LOANS_HELD_FOR_INVESTMENT_Deta
LOANS HELD FOR INVESTMENT (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | 332,351,000 | [1] | 48,894,000 | [1] |
Allowance for loan loss | 12,865,000 | 17,691,000 | ||
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | 906,100,000 | 1,200,000,000 | ||
Allowance for loan loss | 2,954,000 | 9,705,000 | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | ' | 34,000,000 | ||
Allowance for loan loss | 9,214,000 | 6,920,000 | ||
Number of loans impaired | 1 | ' | ||
Decrease in allowance for loan losses | 2,300,000 | ' | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 9,900,000 | 8,000,000 | ||
Number of loans impaired | 1 | 4 | ||
Commercial Real Estate Loans [Member] | California [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 39.20% | 47.70% | ||
Commercial Real Estate Loans [Member] | Arizona [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 7.10% | 7.90% | ||
Commercial Real Estate Loans [Member] | Texas [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 14.80% | 11.10% | ||
Commercial Real Estate Loans [Member] | Industry Grouping of Healthcare, Education and Childcare [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 15.20% | 13.20% | ||
Commercial Real Estate Loans [Member] | Preferred equity tranche [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
whole loan, preferred equity tranche | ' | 1,000,000 | ||
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 2,954,000 | 9,705,000 | ||
Number of loans impaired | 3 | 1 | ||
Decrease in allowance for loan losses | -6,800,000 | ' | ||
Bank Loans [Member] | Minimum [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'three month London Interbank Offered Rate | 'three month LIBOR | ||
Basis spread on variable rate | 1.50% | 1.50% | ||
Bank Loans [Member] | Maximum [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | ' | 'three month LIBOR | ||
Basis spread on variable rate | 10.00% | 8.80% | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
LOANS_HELD_FOR_INVESTMENT_Summ
LOANS HELD FOR INVESTMENT (Summary of Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Loan | |||||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Principal, Gross | $1,659,789,000 | $1,887,825,000 | ' | ||
Unamortized (discount) premium, gross | -8,834,000 | [1] | -27,460,000 | [1] | ' |
Gross carrying value of loans held for investment | 1,650,955,000 | [2] | 1,860,365,000 | [2] | ' |
Allowance for loan loss | 12,865,000 | 17,691,000 | 27,518,000 | ||
Unamortized (discount) premium, gross, allowance for loan loss | 0 | [1] | 0 | [1] | ' |
Carrying value, allowance for loan loss | -12,865,000 | -17,691,000 | [2] | ' | |
Principal, Net | 1,646,924,000 | 1,870,134,000 | ' | ||
Unamortized (discount) premium, net | -8,834,000 | [1] | -27,460,000 | [1] | ' |
Net carrying value of loans held for investment | 1,638,090,000 | [2] | 1,842,674,000 | [2] | ' |
Deferred amendment fees | 288,000 | 450,000 | ' | ||
Loans held for sale, investment in debt and equity securities | 332,400,000 | 14,900,000 | ' | ||
Loans held for sale, net | 332,351,000 | [3] | 48,894,000 | [3] | ' |
Number of loans held for sale | ' | 2 | ' | ||
Bank Loans [Member] | ' | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Principal, Gross | 914,676,000 | [4] | 1,218,563,000 | [4] | ' |
Unamortized (discount) premium, gross | -5,648,000 | [1],[4] | -25,249,000 | [1],[4] | ' |
Gross carrying value of loans held for investment | 909,028,000 | [2],[4] | 1,193,314,000 | [2],[4] | ' |
Deferred upfront fee | 260,000 | 334,000 | ' | ||
Loans held for sale, net | 906,100,000 | 1,200,000,000 | ' | ||
Whole Loans [Member] | ' | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Loans held for sale, net | ' | 34,000,000 | ' | ||
Commercial Real Estate Loans [Member] | ' | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Principal, Gross | 745,113,000 | 669,262,000 | ' | ||
Unamortized (discount) premium, gross | -3,186,000 | [1] | -2,211,000 | [1] | ' |
Gross carrying value of loans held for investment | 741,927,000 | [2] | 667,051,000 | [2] | ' |
Loan origination fees | 2,900,000 | 1,900,000 | ' | ||
Extension and exit fees | 189,000 | 214,000 | ' | ||
Commercial Real Estate Loans [Member] | Whole Loans [Member] | ' | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Principal, Gross | 671,118,000 | 569,829,000 | [5] | ' | |
Unamortized (discount) premium, gross | -3,003,000 | [1] | -1,891,000 | [1],[5] | ' |
Gross carrying value of loans held for investment | 668,115,000 | [2] | 567,938,000 | [2],[5] | ' |
Commercial Real Estate Loans [Member] | B Notes [Member] | ' | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Principal, Gross | 16,328,000 | 16,441,000 | ' | ||
Unamortized (discount) premium, gross | -90,000 | [1] | -114,000 | [1] | ' |
Gross carrying value of loans held for investment | 16,238,000 | [2] | 16,327,000 | [2] | ' |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | ' | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ' | ||
Principal, Gross | 57,667,000 | 82,992,000 | ' | ||
Unamortized (discount) premium, gross | -93,000 | [1] | -206,000 | [1] | ' |
Gross carrying value of loans held for investment | $57,574,000 | [2] | $82,786,000 | [2] | ' |
[1] | Amounts include deferred amendment fees of $288,000 and $450,000 and deferred upfront fees of $260,000 and $334,000 being amortized over the life of the bank loans as of September 30, 2013 and December 31, 2012, respectively. Amounts include loan origination fees of $2.9 million and $1.9 million and loan extension fees of $189,000 and $214,000 being amortized over the life of the commercial real estate loans as of September 30, 2013 and December 31, 2012, respectively. | ||||
[2] | Substantially all loans are pledged as collateral under various borrowings at September 30, 2013 and December 31, 2012, respectively. | ||||
[3] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 | ||||
[4] | Amounts include $332.4 million and $14.9 million of bank loans held for sale at September 30, 2013 and December 31, 2012, respectively. | ||||
[5] | Amount includes $34.0 million from two whole loans which are classified as loans held for sale at December 31, 2012. |
LOANS_HELD_FOR_INVESTMENT_Weig
LOANS HELD FOR INVESTMENT (Weighted Average Life of Bank Loans, at Amortized Cost) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Bank Loans [Member] | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Less than one year | $29,008 | [1] | $10,028 |
Greater than one year and less than five years | 574,042 | [1] | 821,568 |
Five years or greater | 305,978 | [1] | 361,718 |
Amortized Cost | 909,028 | [1] | 1,193,314 |
Bank Loans Held for Sale [Member] | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | |
Less than one year | 4,600 | ' | |
Greater than one year and less than five years | 157,400 | ' | |
Five years or greater | $170,300 | ' | |
[1] | Bank loans include $4.6 million with maturity dates less than one year, $157.4 million with maturity dates greater than one year and less than five years and $170.3 million with maturity dates five years or greater that are held for sale as of September 30, 2013. |
LOANS_HELD_FOR_INVESTMENT_Comm
LOANS HELD FOR INVESTMENT (Commercial Real Estate Loans Held for Investment) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 12,865,000 | 17,691,000 | ||
Loans held for sale, net | 332,351,000 | [1] | 48,894,000 | [1] |
Number of loans held for sale | ' | 2 | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 52 | [2] | 43 | [2] |
Amortized Cost | 741,927,000 | [2],[3] | 667,051,000 | [2],[3] |
Allowance for loan loss | 9,900,000 | 8,000,000 | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 9,214,000 | 6,920,000 | ||
Loans held for sale, net | ' | 34,000,000 | ||
Whole Loans [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | 668,115,000 | 567,938,000 | ||
Fixed contractual interest in floating rate whole loan | ' | 15.00% | ||
Whole Loans, Floating Rate [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for investment, unfunded loan commitments | 6,600,000 | 8,900,000 | ||
Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 47 | [4] | 37 | [4],[5],[6] |
Amortized Cost | 668,115,000 | [4] | 567,938,000 | [4],[5],[6] |
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | ' | 2,000,000 | ||
Whole Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'LIBOR | [4] | 'LIBOR | [4],[5],[6] |
Basis spread on variable rate | 2.50% | [4] | 2.50% | [4],[5],[6] |
Maturity Dates | 'December 2013 | [4],[7] | 'June 2013 | [4],[5],[6],[7] |
Whole Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'LIBOR | [4] | 'LIBOR | [4],[5],[6] |
Basis spread on variable rate | 8.00% | [4] | 5.50% | [4],[5],[6] |
Maturity Dates | 'August 2019 | [4],[7] | 'February 2019 | [4],[5],[6],[7] |
B Notes [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 166,000 | 206,000 | ||
B Notes [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | 16,238,000 | 16,327,000 | ||
B Notes, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 1 | 1 | ||
Amortized Cost | 16,238,000 | 16,327,000 | ||
Stated interest rate | 8.68% | 8.68% | ||
Maturity Dates | 'April 2016 | [7] | 'April 2016 | [7] |
Mezzanine Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 531,000 | 860,000 | ||
Mezzanine Loans [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | 57,574,000 | 82,786,000 | ||
Mezzanine Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | ' | 2 | ||
Amortized Cost | ' | 15,845,000 | ||
Mezzanine Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | ' | 'LIBOR | ||
Basis spread on variable rate | ' | 2.50% | ||
Maturity Dates | ' | 'August 2013 | [7] | |
Mezzanine Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | ' | 'LIBOR | ||
Basis spread on variable rate | ' | 7.45% | ||
Maturity Dates | ' | 'December 2013 | [7] | |
Mezzanine Loans, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 4 | [8] | 3 | [8] |
Amortized Cost | 57,574,000 | [8] | 66,941,000 | [8] |
Number of loan tranches | 2 | ' | ||
Mezzanine Loans, Fixed Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Stated interest rate | 0.50% | [8] | 0.50% | [8] |
Maturity Dates | 'December 2014 | [7],[8] | 'September 2014 | [7],[8] |
Mezzanine Loans, Fixed Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Stated interest rate | 20.00% | [8] | 20.00% | [8] |
Maturity Dates | 'September 2019 | [7],[8] | 'September 2019 | [7],[8] |
Mezzanine Loans, Fixed Rate, Tranche One [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Stated interest rate | 0.50% | ' | ||
Mezzanine Loans, Fixed Rate, Tranche Two [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'LIBOR | ' | ||
Basis spread on variable rate | 18.50% | ' | ||
Stated interest rate | 0.50% | ' | ||
Not included in total [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 9,900,000 | 8,000,000 | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 | |||
[2] | The total does not include an allowance for loan loss of $9.9 million and $8.0 million as of September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers | |||
[4] | Whole loans had $6.6 million and $8.9 million in unfunded loan commitments as of September 30, 2013 and December 31, 2012, respectively. These commitments are funded as the borrowers request additional funding and have satisfied the requirements to obtain this additional funding | |||
[5] | Amount includes $34.0 million from two whole loans that were classified as loans held for sale at December 31, 2012 | |||
[6] | Floating rate whole loans include a $2.0 million portion of a whole loan that has a fixed rate of 15.0% as of December 31, 2012 | |||
[7] | Maturity dates do not include possible extension options that may be available to the borrowers | |||
[8] | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches which both currently pay interest at 0.50%. In addition, the subordinate tranche accrues interest at LIBOR plus 18.50% which is deferred until maturity |
LOANS_HELD_FOR_INVESTMENT_Weig1
LOANS HELD FOR INVESTMENT (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) (Commercial Real Estate Loans [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2013 | $4,067 | [1] | $77,127 | [1] |
2014 | 11,398 | [1] | 20,694 | [1] |
2015 and thereafter | 726,462 | [1] | 569,230 | [1] |
Total | 741,927 | [1],[2] | 667,051 | [1],[2] |
B Notes [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2013 | 0 | 0 | ||
2014 | 0 | 0 | ||
2015 and thereafter | 16,238 | 16,327 | ||
Total | 16,238 | 16,327 | ||
Mezzanine Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2013 | 0 | 5,328 | ||
2014 | 11,398 | 20,694 | ||
2015 and thereafter | 46,176 | 56,764 | ||
Total | 57,574 | 82,786 | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2013 | 4,067 | 71,799 | ||
2014 | 0 | 0 | ||
2015 and thereafter | 664,048 | 496,139 | ||
Total | $668,115 | $567,938 | ||
[1] | Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers | |||
[2] | The total does not include an allowance for loan loss of $9.9 million and $8.0 million as of September 30, 2013 and December 31, 2012, respectively. |
LOANS_HELD_FOR_INVESTMENT_Allo
LOANS HELD FOR INVESTMENT (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | $12,865 | $17,691 |
B Notes [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 166 | 206 |
Percentage of Total Allowance | 1.29% | 1.16% |
Mezzanine Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 531 | 860 |
Percentage of Total Allowance | 4.12% | 4.86% |
Whole Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 9,214 | 6,920 |
Percentage of Total Allowance | 71.63% | 39.12% |
Bank Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | $2,954 | $9,705 |
Percentage of Total Allowance | 22.96% | 54.86% |
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 5 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Nov. 16, 2011 | Nov. 16, 2011 | Nov. 16, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 01, 2009 | Jun. 19, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 16, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 01, 2009 | Dec. 01, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 19, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 01, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Nov. 16, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 18, 2013 | Nov. 16, 2011 | Nov. 16, 2011 | Sep. 30, 2013 | Nov. 16, 2011 | Jan. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Jun. 19, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||
trust | trust | Preferred Shares - Series A | Preferred Shares - Series B | Series D Preferred Stock [Member] | CVC Credit Partners, LLC [Member] | Varde Investment Partners, LP [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | RRE VIP Borrower, LLC [Member] | Varde Investment Partners, LP [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Interest in RCT I and RCT II [Member] | Interest in RCT I and RCT II [Member] | Interest in RCT I and RCT II [Member] | Interest in RCT I and RCT II [Member] | Interest in RCT I [Member] | Interest in RCT II [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Resource Real Estate [Member] | Property | CVC Global Credit Opportunities Fund, LP [Member] | Interest in RCT II [Member] | RRE VIP Borrower, LLC [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | Life Care Funding, LLC [Member] | Life Care Funding, LLC [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | ||||||||||||||||||||||||||||||||||||||||||
LEAF Funding 3 [Member] | Preferred Shares - Series A | Preferred Shares - Series A | Preferred Shares - Series B | Preferred Shares - Series B | Series D Preferred Stock [Member] | Series A-1 Preferred Stock [Member] | Series E Preferred Stock [Member] | LEAF Funding 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares of stock received (in shares) | ' | ' | ' | ' | ' | 31,341 | 4,872 | 2,364 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred stock, coupon authorized (in hundredths) | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.70% | 27.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | |||
Investments in unconsolidated entities | $72,955,000 | [1] | ' | $72,955,000 | [1] | ' | $45,413,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,100,000 | ' | ' | ' | ' | ' | $36,300,000 | ' | ' | ' | ' | $1,500,000 | ' | $1,500,000 | ' | $774,000 | $774,000 | ($330,000) | ' | ($330,000) | ' | $2,300,000 | ' | ' | $575,000 | ' | $575,000 | $526,000 | ' | ' | $15,500,000 | ' | ' | $40,800,000 | $33,100,000 | ' | ' | $40,800,000 | $33,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000 | $1,700,000 | $15,500,000 | ' | $15,500,000 | ' | $575,000 | ' | $575,000 | $526,000 |
Value of equity of variable interest entity, threshold for obligation to contribute cash to VIE (less than approximately $18.7 million) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | 18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Measurement date of value of equity in VIE, number of days after next fiscal year end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Loss on transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares received in equity method transaction (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,341 | 4,872 | ' | 2,364 | 3,682 | 3,323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity contribution to VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | 2,000,000 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | |||
Accrued dividends on preferred stock investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings (losses) from unconsolidated subsidiaries | -505,000 | -779,000 | -858,000 | -1,469,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -346,000 | -1,000,000 | -378,000 | -2,300,000 | ' | ' | ' | ' | ' | ' | -521,000 | 346,000 | -735,000 | 931,000 | ' | ' | ' | 6,000 | -100,000 | 49,000 | ' | ' | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -107,000 | -349,000 | 433,000 | ' | 526,000 | ' | 6,000 | -100,000 | 49,000 | ' | |||
Ownership percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of trusts | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Related party interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 604,000 | 626,000 | 1,800,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization of deferred debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,000 | 46,000 | 143,000 | 136,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset acquisition funding minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset acquisition funding maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Management fees − related party | $5,113,000 | $5,521,000 | $11,006,000 | $13,512,000 | ' | ' | ' | ' | ' | ' | $6,500 | $11,000 | $23,000 | $35,000 | ' | ' | $7,000 | $0 | $33,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of condominium developments purchased by joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
FINANCING_RECEIVABLES_Details
FINANCING RECEIVABLES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | ||
Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | |||||
Loan | Loan | Loan | Loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of defaulted loans | ' | ' | ' | ' | 5 | ' | ' | 3 |
Loans and receivables | $1,646,924 | $1,870,134 | $909,028 | $1,193,314 | $5,400 | ' | ' | $3,600 |
Number of loans that defaulted during the period | ' | ' | ' | ' | 1 | 3 | 1 | 0 |
FINANCING_RECEIVABLES_Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | $17,691 | $27,518 |
Provision (benefit) for loan loss | 541 | 16,818 |
Loans charged-off | -5,367 | -26,645 |
Allowance for losses at end of period | 12,865 | 17,691 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 5,949 | 5,378 |
Collectively evaluated for impairment | 6,916 | 12,313 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 202,720 | 190,068 |
Collectively evaluated for impairment | 1,456,302 | 1,677,870 |
Loans acquired with deteriorated credit quality | 0 | 751 |
Commercial Portfolio Segment [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | 7,986 | 24,221 |
Provision (benefit) for loan loss | 2,017 | 5,225 |
Loans charged-off | -92 | -21,460 |
Allowance for losses at end of period | 9,911 | 7,986 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 4,067 | 2,142 |
Collectively evaluated for impairment | 5,844 | 5,844 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 191,100 | 177,055 |
Collectively evaluated for impairment | 550,827 | 489,996 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Bank Loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | 9,705 | 3,297 |
Provision (benefit) for loan loss | -1,476 | 11,593 |
Loans charged-off | -5,275 | -5,185 |
Allowance for losses at end of period | 2,954 | 9,705 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 1,882 | 3,236 |
Collectively evaluated for impairment | 1,072 | 6,469 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 3,553 | 4,689 |
Collectively evaluated for impairment | 905,475 | 1,187,874 |
Loans acquired with deteriorated credit quality | 0 | 751 |
Loans Receivable - Related Party [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | 0 | 0 |
Provision (benefit) for loan loss | 0 | 0 |
Loans charged-off | 0 | 0 |
Allowance for losses at end of period | 0 | 0 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 8,067 | 8,324 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | $0 | $0 |
FINANCING_RECEIVABLES_Credit_R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | ||
Rating 1 [Member] | Rating 1 [Member] | Rating 2 [Member] | Rating 2 [Member] | Rating 3 [Member] | Rating 3 [Member] | Rating 4 [Member] | Rating 4 [Member] | Rating 5 [Member] | Rating 5 [Member] | Held for Sale [Member] | Held for Sale [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and receivables | $1,646,924 | $1,870,134 | $909,028 | $1,193,314 | $514,277 | $1,095,148 | $39,123 | $33,677 | $16,206 | $27,837 | $3,518 | $16,318 | $3,553 | $5,440 | $332,351 | $14,894 |
FINANCING_RECEIVABLES_Credit_R1
FINANCING RECEIVABLES (Credit Risk Profiles of Commercial Real Estate Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | $1,646,924 | $1,870,134 |
Commercial Portfolio Segment [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 741,927 | 667,051 |
Commercial Portfolio Segment [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 664,917 | 482,079 |
Commercial Portfolio Segment [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 44,943 | 0 |
Commercial Portfolio Segment [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 32,067 | 150,972 |
Commercial Portfolio Segment [Member] | Rating 4 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
Commercial Portfolio Segment [Member] | Held for Sale [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 34,000 |
Whole Loans [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 668,115 | 567,938 |
Whole Loans [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 591,105 | 427,456 |
Whole Loans [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 44,943 | 0 |
Whole Loans [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 32,067 | 106,482 |
Whole Loans [Member] | Rating 4 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
Whole Loans [Member] | Held for Sale [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 34,000 |
B Notes [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 16,238 | 16,327 |
B Notes [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 16,238 | 16,327 |
B Notes [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
B Notes [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
B Notes [Member] | Rating 4 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
B Notes [Member] | Held for Sale [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
Mezzanine Loans [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 57,574 | 82,786 |
Mezzanine Loans [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 57,574 | 38,296 |
Mezzanine Loans [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
Mezzanine Loans [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 44,490 |
Mezzanine Loans [Member] | Rating 4 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
Mezzanine Loans [Member] | Held for Sale [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | $0 | $0 |
FINANCING_RECEIVABLES_Loan_Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis as of the Dates Indicated at Cost Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | $0 | $1,549 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 3,553 | 3,891 |
Total Past Due | 3,553 | 5,440 |
Current | 1,655,469 | 1,863,249 |
Total Loans Receivable | 1,659,022 | 1,868,689 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Whole Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 668,115 | 567,938 |
Total Loans Receivable | 668,115 | 567,938 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
B Notes [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 16,238 | 16,327 |
Total Loans Receivable | 16,238 | 16,327 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Mezzanine Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 57,574 | 82,786 |
Total Loans Receivable | 57,574 | 82,786 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Bank Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | 0 | 1,549 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 3,553 | 3,891 |
Total Past Due | 3,553 | 5,440 |
Current | 905,475 | 1,187,874 |
Total Loans Receivable | 909,028 | 1,193,314 |
Total Loans Greater Than 90 Days and Accruing | 0 | 0 |
Loans Receivable - Related Party [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | 0 | 0 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 8,067 | 8,324 |
Total Loans Receivable | 8,067 | 8,324 |
Total Loans Greater Than 90 Days and Accruing | $0 | $0 |
FINANCING_RECEIVABLES_Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Balance | $200,577 | $189,249 |
Unpaid Principal Balance | 200,577 | 189,249 |
Specific Allowance | -5,949 | -5,378 |
Average Investment in Impaired Loans | 184,005 | 175,330 |
Interest Income Recognized | 10,075 | 5,455 |
Whole Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 127,961 | 115,841 |
Loans with a specific valuation allowance, Recorded balance | 25,067 | 23,142 |
Recorded Balance | 153,028 | 138,983 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 127,961 | 115,841 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 25,067 | 23,142 |
Unpaid Principal Balance | 153,028 | 138,983 |
Specific Allowance | -4,067 | -2,142 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 121,371 | 114,682 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 24,562 | 22,576 |
Average Investment in Impaired Loans | 145,933 | 137,258 |
Loans without a specific valuation allowance, Interest Income Recognized | 6,951 | 3,436 |
Loans with a specific valuation allowance, Interest Income Recognized | 1,824 | 801 |
Interest Income Recognized | 8,775 | 4,237 |
B Notes [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 0 | 0 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Mezzanine Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 38,072 | 38,072 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 38,072 | 38,072 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 38,072 | 38,072 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 38,072 | 38,072 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 38,072 | 38,072 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 38,072 | 38,072 |
Loans without a specific valuation allowance, Interest Income Recognized | 1,300 | 367 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 1,300 | 367 |
Bank Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 0 | 0 |
Loans with a specific valuation allowance, Recorded balance | 3,553 | 5,440 |
Recorded Balance | 3,553 | 5,440 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 3,553 | 5,440 |
Unpaid Principal Balance | 3,553 | 5,440 |
Specific Allowance | -1,882 | -3,236 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Loans Receivable - Related Party [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 5,924 | 6,754 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 5,924 | 6,754 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 5,924 | 6,754 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 5,924 | 6,754 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 0 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 851 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | $0 | $851 |
FINANCING_RECEIVABLES_Loan_Por1
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Loan | Loan | Loan | Loan | |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 2 | 3 | 5 | 7 |
Pre-Modification Outstanding Recorded Balance | $48,374 | $80,622 | $111,294 | $214,577 |
Post-Modification Outstanding Recorded Balance | 52,716 | 80,622 | 115,636 | 197,291 |
Whole Loans [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 2 | 2 | 4 | 5 |
Pre-Modification Outstanding Recorded Balance | 48,374 | 42,550 | 104,702 | 168,708 |
Post-Modification Outstanding Recorded Balance | 52,716 | 42,550 | 109,044 | 151,422 |
B Notes [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Mezzanine Loans [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 1 | 0 | 1 |
Pre-Modification Outstanding Recorded Balance | 0 | 38,072 | 0 | 38,072 |
Post-Modification Outstanding Recorded Balance | 0 | 38,072 | 0 | 38,072 |
Bank Loans [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Loans Receivable | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | ' | 0 | ' | 0 |
Pre-Modification Outstanding Recorded Balance | ' | 0 | ' | 0 |
Post-Modification Outstanding Recorded Balance | ' | 0 | ' | 0 |
Loans Receivable - Related Party [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 1 | 1 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 | 6,592 | 7,797 |
Post-Modification Outstanding Recorded Balance | $0 | $0 | $6,592 | $7,797 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Write-off of unamortized balance of intangible asset | $2,600,000 | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | 904,000 | 1,249,000 | 3,041,000 | 3,974,000 | ' |
Expected amortization, 2013 | ' | 1,900,000 | ' | 1,900,000 | ' | ' |
Expected amortization, 2014 | ' | 1,800,000 | ' | 1,800,000 | ' | ' |
Expected amortization, 2015 | ' | 0 | ' | 0 | ' | ' |
Expected amortization, 2016 | ' | 0 | ' | 0 | ' | ' |
Expected amortization, 2017 | ' | 0 | ' | 0 | ' | ' |
Weighted average amortization period (in years) | ' | ' | ' | '8 years | ' | '8 years 8 months 12 days |
Accumulated amortization | ' | 11,975,000 | ' | 11,975,000 | ' | 10,511,000 |
Fee income | ' | 1,245,000 | 1,777,000 | 4,182,000 | 5,528,000 | ' |
Investment in RCAM [Member] | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated amortization | ' | 9,526,000 | ' | 9,526,000 | ' | 8,108,000 |
Fee income | ' | 1,200,000 | 1,800,000 | 4,200,000 | 5,400,000 | ' |
Depreciation and Amortization [Member] | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | $657,000 | ' | ' |
Whitney CLO I, Ltd. [Member] | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Preferred equity acquired | 66.60% | ' | ' | ' | ' | ' |
Ownership interests in variable interest entities (in hundredths) | 66.60% | 68.30% | ' | 68.30% | ' | ' |
Whitney CLO I, Ltd. [Member] | VIE, Primary Beneficiary [Member] | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Ownership interests in variable interest entities (in hundredths) | ' | 68.30% | ' | 68.30% | ' | ' |
INTANGIBLE_ASSETS_Summary_of_I
INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Beginning Balance | $23,703 | $23,703 | ||
Accumulated Amortization | -11,975 | -10,511 | ||
Net Asset | 11,728 | [1] | 13,192 | [1] |
Investment in RCAM [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Beginning Balance | 21,213 | 21,213 | ||
Accumulated Amortization | -9,526 | -8,108 | ||
Net Asset | 11,687 | 13,105 | ||
Investments in Real Estate [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Beginning Balance | 2,490 | 2,490 | ||
Accumulated Amortization | -2,449 | -2,403 | ||
Net Asset | 41 | 87 | ||
Investments in Real Estate [Member] | In Place Leases [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Beginning Balance | 2,461 | 2,461 | ||
Accumulated Amortization | -2,421 | -2,379 | ||
Net Asset | 40 | 82 | ||
Investments in Real Estate [Member] | Above (Below) Market Leases [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Beginning Balance | 29 | 29 | ||
Accumulated Amortization | -28 | -24 | ||
Net Asset | $1 | $5 | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
BORROWINGS_Schedule_of_Debt_De
BORROWINGS (Schedule of Debt) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | $1,422,430 | $1,785,600 | ||
Weighted Average Borrowing Rate | 1.73% | 1.62% | ||
Weighted Average Remaining Maturity | '9 years 7 months | '12 years 6 months | ||
Value of Collateral | 1,754,093 | 2,089,296 | ||
RREF CDO 2006-1 Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 95,151 | [1] | 145,664 | [1] |
Weighted Average Borrowing Rate | 1.86% | [1] | 1.42% | [1] |
Weighted Average Remaining Maturity | '32 years 11 months | [1] | '33 years 7 months | [1] |
Value of Collateral | 170,255 | [1] | 295,759 | [1] |
RREF CDO 2007-1 Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 178,575 | [2] | 225,983 | [2] |
Weighted Average Borrowing Rate | 0.85% | [2] | 0.81% | [2] |
Weighted Average Remaining Maturity | '33 years 0 months | [2] | '33 years 9 months | [2] |
Value of Collateral | 325,551 | [2] | 292,980 | [2] |
Apidos CDO I Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 101,827 | [3] | 202,969 | [3] |
Weighted Average Borrowing Rate | 1.53% | [3] | 1.07% | [3] |
Weighted Average Remaining Maturity | '3 years 9 months | [3] | '4 years 7 months | [3] |
Value of Collateral | 117,827 | [3] | 217,745 | [3] |
Apidos CDO III Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 145,875 | [4] | 221,304 | [4] |
Weighted Average Borrowing Rate | 0.86% | [4] | 0.80% | [4] |
Weighted Average Remaining Maturity | '6 years 8 months | [4] | '7 years 6 months | [4] |
Value of Collateral | 157,009 | [4] | 232,655 | [4] |
Apidos Cinco CDO Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 320,997 | [5] | 320,550 | [5] |
Weighted Average Borrowing Rate | 0.77% | [5] | 0.82% | [5] |
Weighted Average Remaining Maturity | '6 years 7 months | [5] | '7 years 5 months | [5] |
Value of Collateral | 339,154 | [5] | 344,105 | [5] |
Apidos CLO VIII Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 302,916 | [6] | 300,951 | [6] |
Weighted Average Borrowing Rate | 2.09% | [6] | 2.16% | [6] |
Weighted Average Remaining Maturity | '17 days | [6] | '8 years 9 months | [6] |
Value of Collateral | 351,434 | [6] | 351,014 | [6] |
Apidos CLO VIII Securitized Borrowings [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 18,444 | [7] | 20,047 | [7] |
Weighted Average Borrowing Rate | 14.13% | [7] | 15.27% | [7] |
Weighted Average Remaining Maturity | '17 days | [7] | '8 years 9 months | [7] |
Value of Collateral | 0 | [7] | 0 | [7] |
Whitney CLO I Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 0 | [8] | 171,555 | [8] |
Weighted Average Borrowing Rate | 0.00% | [8] | 1.82% | [8] |
Weighted Average Remaining Maturity | ' | '4 years 2 months | [8] | |
Value of Collateral | 8,573 | [8] | 191,704 | [8] |
Whitney CLO I Securitized Borrowings [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 2,424 | [8] | 5,860 | [8] |
Weighted Average Borrowing Rate | 5.78% | [8] | 9.50% | [8] |
Weighted Average Remaining Maturity | ' | '4 years 2 months | [8] | |
Value of Collateral | 0 | [8] | 0 | [8] |
Unsecured Junior Subordinated Debentures [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 50,956 | [9] | 50,814 | [9] |
Weighted Average Borrowing Rate | 4.22% | [9] | 4.26% | [9] |
Weighted Average Remaining Maturity | '22 years 11 months | [9] | '23 years 8 months | [9] |
Value of Collateral | 0 | [9] | 0 | [9] |
Repurchase Agreements [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 205,265 | [10] | 106,303 | [10] |
Weighted Average Borrowing Rate | 2.29% | [10] | 2.28% | [10] |
Weighted Average Remaining Maturity | '18 days | [10] | '18 days | [10] |
Value of Collateral | 284,290 | [10] | 145,234 | [10] |
Mortgage Payable [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | ' | 13,600 | ||
Weighted Average Borrowing Rate | ' | 4.17% | ||
Weighted Average Remaining Maturity | ' | '5 years 7 months | ||
Value of Collateral | ' | $18,100 | ||
[1] | Amount represents principal outstanding of $95.4 million and $146.4 million less unamortized issuance costs of $268,000 and $728,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2006. | |||
[2] | Amount represents principal outstanding of $179.4 million and $227.4 million less unamortized issuance costs of $786,000 and $1.4 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in June 2007. | |||
[3] | Amount represents principal outstanding of $101.8 million and $203.2 million less unamortized issuance costs of $0 and $274,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in August 2005. | |||
[4] | Amount represents principal outstanding of $146.1 million and $222.0 million less unamortized issuance costs of $205,000 and $659,000 as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in May 2006. | |||
[5] | Amount represents principal outstanding of $322.0 million and $322.0 million less unamortized issuance costs of $1.0 million and $1.5 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in May 2007. | |||
[6] | Amount represents principal outstanding of $317.6 million and $317.6 million, less unamortized issuance costs of $4.1 million and $4.7 million, and less unamortized discounts of $10.6 million and $11.9 million as of September 30, 2013 and December 31, 2012, respectively. This CDO transaction closed in October 2011. Apidos CLO VIII was called and the notes were paid in full in October 2013. | |||
[7] | The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Senior Notes, respectively. | |||
[8] | Amount represents principal outstanding of $174.1 million less unamortized discounts of $2.5 million as of December 31, 2012. In September 2013, the Company called and liquidated Whitney CLO I. As a result, substantially all of the remaining assets were sold and the balance on the outstanding notes totaling $103.7 million was paid down. | |||
[9] | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||
[10] | Amount represents principal outstanding of $52.7 million and $47.5 million less unamortized deferred debt costs of $47,000 and $23,000 plus accrued interest costs of $25,000 and $27,000 related to CMBS repurchase facilities as of September 30, 2013 and December 31, 2012, respectively, and principal outstanding of $153.8 million and $59.1 million less unamortized deferred debt costs of $1.3 million and $348,000 plus accrued interest costs of $161,000 and $79,000 related to CRE repurchase facilities as of September 30, 2013 and December 31, 2012. Amount does not reflect CMBS repurchase agreement borrowings that are components of Linked Transactions. At September 30, 2013 and December 31, 2012, the Company had repurchase agreements of $63.7 million and $20.4 million and accrued interest costs of $41,000 and $10,000, respectively, that were linked to CMBS purchases and accounted for as Linked Transactions, and, as such, the linked repurchase agreements are not included in the above table. (See Note 20). |
BORROWINGS_Schedule_of_Debt_Pa
BORROWINGS (Schedule of Debt - Parenthetical) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 31-May-13 | Oct. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||
CMBS linked transactions | CMBS linked transactions | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | RREF CDO 2006-1 Senior Notes [Member] | RREF CDO 2006-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos CLO VIII Senior Notes [Member] | Apidos CLO VIII Senior Notes [Member] | CMBS - Term Repurchase Facilities [Member] | CMBS - Term Repurchase Facilities [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | Mortgage Payable [Member] | Mortgage Payable [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | |||||
Linked Transactions | Linked Transactions | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Principal outstanding | ' | ' | ' | ' | ' | ' | ' | $95,400,000 | $146,400,000 | $179,400,000 | $227,400,000 | $101,800,000 | $203,200,000 | $146,100,000 | $222,000,000 | $322,000,000 | $322,000,000 | $317,600,000 | $317,600,000 | $52,700,000 | $47,500,000 | $153,800,000 | $59,100,000 | $0 | $13,600,000 | ' | $174,100,000 | ||
Unamortized debt issuance costs | ' | ' | ' | ' | ' | ' | ' | 268,000 | 728,000 | 786,000 | 1,400,000 | 0 | 274,000 | 205,000 | 659,000 | 1,000,000 | 1,500,000 | 4,100,000 | 4,700,000 | 47,000 | 23,000 | 1,300,000 | 348,000 | ' | ' | ' | ' | ||
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,600,000 | 11,900,000 | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ||
Accrued interest expense | 2,708,000 | [1] | 2,918,000 | [1] | 41,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 27,000 | 161,000 | 79,000 | ' | ' | ' | ' |
CMBS Linked repurchase agreement | ' | ' | 63,700,000 | 20,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Purchased equity interests | ' | ' | ' | ' | ' | 550,000 | 20,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Ownership interests in variable interest entities (in hundredths) | ' | ' | ' | ' | 68.30% | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $62,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $103,700,000 | ' | ||
[1] | September 30, 2013 December 31, 2012Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,166,209 $1,614,882 Accrued interest expense2,184 2,666 Derivatives, at fair value11,766 14,078 Accounts payable and other liabilities646 698 Total liabilities of consolidated VIEs$1,180,805 $1,632,324 |
BORROWINGS_Resource_Real_Estat
BORROWINGS (Resource Real Estate Funding CDO 2007-1) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2007 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2007 | 31-May-07 | |
Resource Real Estate Funding 2007-1 CDO Investor LLC [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | |||||
Senior Notes Class A-1 [Member] | Senior Notes Class A-1R [Member] | Senior Notes Class A-1R [Member] | Senior Notes Class A-1R [Member] | Senior Notes Class A-1R [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | Senior Notes Class D [Member] | Senior Notes Class E [Member] | Senior Notes Class F [Member] | Senior Notes Class G [Member] | Senior Notes Class H [Member] | Senior Notes Class J [Member] | Senior Notes Class K [Member] | Senior Notes Class L [Member] | Senior Notes Class M [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt issued | ' | ' | ' | ' | ' | ' | ' | 265,600,000 | 180,000,000 | 50,000,000 | ' | 50,000,000 | ' | 57,500,000 | 22,500,000 | 7,000,000 | ' | 26,800,000 | 11,900,000 | 11,900,000 | 11,300,000 | 11,300,000 | 11,300,000 | 10,000,000 | 18,800,000 | 28,800,000 | ' | ' |
Percentage of senior notes acquired by the parent | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Payments by parent to acquire notes issued by VIE | ' | ' | ' | ' | 41,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,000,000 | ' |
Repayments of debt | ' | ' | ' | ' | ' | 62,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | 'one-month LIBOR | ' | 'one-month LIBOR | 'one-month LIBOR | ' | 'one-month LIBOR | ' | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.28% | ' | ' | 0.32% | ' | 0.46% | 0.80% | ' | 0.95% | ' | 1.15% | 1.30% | 1.55% | 2.30% | 2.95% | 3.25% | ' | ' | ' | ' |
Commitment fee percentage on undrawn balance of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.42% | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 8.50% | ' | ' |
Weighted average interest rate on all notes issued to outside investors and net of repurchased notes (in hundredths) | ' | ' | ' | ' | ' | 0.85% | 0.81% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of notes | ' | ' | 0 | -4,850,000 | ' | ' | ' | ' | ' | 0 | 50,000,000 | 0 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of notes, weighted average price to par | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 90.00% | 0.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on the extinguishment of debt | $0 | $0 | $0 | $5,464,000 | ' | ' | ' | ' | ' | $0 | $3,600,000 | $0 | $3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BORROWINGS_Resource_Real_Estat1
BORROWINGS (Resource Real Estate Funding CDO 2006-1) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2006 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2006 | Aug. 31, 2006 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | 31-May-07 | |
Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | |||||
Senior Notes Class A-1 [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class A-2b [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | Senior Notes Class E [Member] | Senior Notes Class F [Member] | Senior Notes Class G [Member] | Senior Notes Class H [Member] | Senior Notes Class J [Member] | Senior Notes Class K [Member] | RCC Real Estate [Member] | Resource Real Estate Funding 2006-1 CDO Investor LLC [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | Senior Notes Class D [Member] | Senior Notes Class E [Member] | Senior Notes Class F [Member] | Senior Notes Class G [Member] | Senior Notes Class H [Member] | Senior Notes Class J [Member] | Senior Notes Class K [Member] | Senior Notes Class A and Class C [Member] | RCC Real Estate [Member] | |||||||||||
Senior Notes Class J and K [Member] | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | ' | ' | ' | ' | $345,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt issued | ' | ' | ' | ' | ' | ' | 308,700,000 | 129,400,000 | ' | 17,400,000 | 5,000,000 | 6,900,000 | 20,700,000 | ' | 15,500,000 | 20,700,000 | 19,800,000 | 17,300,000 | 12,900,000 | 14,700,000 | 28,400,000 | 43,100,000 | ' | ' | ' | 265,600,000 | 180,000,000 | 57,500,000 | 22,500,000 | 7,000,000 | ' | 26,800,000 | 11,900,000 | 11,900,000 | 11,300,000 | 11,300,000 | 11,300,000 | 10,000,000 | ' | ' |
Percentage of senior notes acquired by the parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Purchased equity interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total preference shares (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | 108,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | 'one-month LIBOR | ' | 'one-month LIBOR | 'one-month LIBOR | ' | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | 'one-month LIBOR | ' | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 0.32% | ' | 0.35% | ' | 0.40% | 0.62% | ' | 0.80% | 1.30% | 1.60% | 1.90% | 3.75% | ' | ' | ' | ' | ' | ' | ' | 0.28% | 0.46% | 0.80% | ' | 0.95% | ' | 1.15% | 1.30% | 1.55% | 2.30% | 2.95% | 3.25% | ' | ' |
Interest rate at period end (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.84% | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | 6.42% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate on all notes issued to outside investors and net of repurchased notes (in hundredths) | ' | ' | ' | ' | 1.86% | 1.42% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.85% | 0.81% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of notes | ' | ' | 0 | -4,850,000 | ' | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of notes, weighted average price to par | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81.63% | ' |
Gain on the extinguishment of debt | $0 | $0 | $0 | $5,464,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' |
BORROWINGS_Whitney_CLO_I_Detai
BORROWINGS (Whitney CLO I) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | Oct. 31, 2012 | ||
Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I Senior Notes [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | |||||
Senior Notes Class A-1L [Member] | Senior Notes Class A-1LA [Member] | Senior Notes Class A-1LB [Member] | Senior Notes Class A-2F [Member] | Senior Notes Class A-2L [Member] | Senior Notes Class A-3L [Member] | Senior Notes Class B-1LA [Member] | Senior Notes Class B-1LB [Member] | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Purchased equity interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $550,000 | $20,900,000 | ||
Purchased equity interests discount, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42.50% | ||
Ownership interests in variable interest entities (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68.30% | ' | 66.60% | ||
Repayments of debt | ' | ' | 103,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Face amount of debt issued | ' | ' | ' | ' | $48,800,000 | $26,500,000 | $36,500,000 | $19,800,000 | $15,000,000 | $25,000,000 | $23,500,000 | $14,400,000 | ' | ' | ' | ||
Description of variable rate basis | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ||
Basis spread on variable rate | ' | ' | ' | ' | 0.32% | 0.29% | 0.45% | 5.19% | 0.57% | 1.05% | 2.10% | 1.00% | ' | ' | ' | ||
Weighted-average interest rate | 1.73% | 1.62% | 0.00% | [1] | 1.82% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | Amount represents principal outstanding of $174.1 million less unamortized discounts of $2.5 million as of December 31, 2012. In September 2013, the Company called and liquidated Whitney CLO I. As a result, substantially all of the remaining assets were sold and the balance on the outstanding notes totaling $103.7 million was paid down. |
BORROWINGS_Apidos_CLO_VIII_Det
BORROWINGS (Apidos CLO VIII) (Details) (Apidos CLO VIII Senior Notes [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2011 |
Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class B-1 [Member] | Senior Notes Class B-2 [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | RCC Commercial [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt issued | ' | ' | 317,600,000 | 231,200,000 | 35,000,000 | 17,300,000 | 6,800,000 | 14,100,000 | 13,200,000 | ' |
Discount to investors | ' | ' | 4.40% | ' | ' | ' | ' | ' | ' | ' |
Purchased equity interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 |
Percentage of senior note acquired from VIE (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.00% |
Percentage of senior note acquired by unrelated third party (in hundredths) | ' | ' | 57.00% | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' |
Basis spread on variable rate | ' | ' | ' | 1.50% | 2.00% | 2.50% | 2.50% | 3.10% | 4.50% | ' |
Weighted average interest rate on all notes issued to outside investors and net of repurchased notes (in hundredths) | 2.09% | 2.16% | ' | ' | ' | ' | ' | ' | ' | ' |
BORROWINGS_Apidos_Cinco_CDO_De
BORROWINGS (Apidos Cinco CDO) (Details) (Apidos Cinco CDO Senior Notes [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-07 | 31-May-07 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-07 |
RCC Commercial [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2a [Member] | Senior Notes Class A-2b [Member] | Senior Notes Class A-3 [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | Apidos Cinco CDO Ltd [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt issued | ' | ' | ' | ' | 37,500,000 | 200,000,000 | 22,500,000 | 19,000,000 | 18,000,000 | 14,000,000 | 11,000,000 | 322,000,000 |
Payments by parent to acquire notes issued by VIE | ' | ' | ' | $28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of senior notes acquired by the parent | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' |
Basis spread on variable rate | ' | ' | ' | ' | 0.24% | 0.23% | 0.32% | 0.42% | 0.80% | 2.25% | 4.25% | ' |
Weighted average interest rate on all notes issued to outside investors and net of repurchased notes (in hundredths) | 0.77% | 0.82% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BORROWINGS_Apidos_CDO_III_Deta
BORROWINGS (Apidos CDO III) (Details) (Apidos CDO III Senior Notes [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-06 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-06 |
Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | RCC Commercial [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | $285,500,000 | ' | ' | ' | ' | ' | ' |
Face amount of debt issued | ' | ' | 262,500,000 | 212,000,000 | 19,000,000 | 15,000,000 | 10,500,000 | 6,000,000 | ' |
Payments by parent to acquire notes issued by VIE | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 |
Percentage of senior notes acquired by the parent | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Description of variable rate basis | ' | ' | ' | '3-month LIBOR | '3-month LIBOR | '3-month LIBOR | '3-month LIBOR | '3-month LIBOR | ' |
Basis spread on variable rate | ' | ' | ' | 0.26% | 0.45% | 0.75% | 1.75% | 4.25% | ' |
Weighted average interest rate on all notes issued to outside investors and net of repurchased notes (in hundredths) | 0.86% | 0.80% | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | $116,400,000 | ' | ' | ' | ' | ' |
BORROWINGS_Apidos_CDO_I_Detail
BORROWINGS (Apidos CDO I) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2005 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2005 | |
Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | |||||
Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class B [Member] | Senior Notes Class B [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class D [Member] | RCC Commercial [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Payments by parent to acquire notes issued by VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,500,000 |
Percentage of senior notes acquired by the parent | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt issued | ' | ' | ' | ' | ' | ' | 321,500,000 | 259,500,000 | 15,000,000 | 20,500,000 | 20,500,000 | ' | 13,000,000 | 8,000,000 | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | '3-month LIBOR | '3-month LIBOR | ' | '3-month LIBOR | ' | '3-month LIBOR | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 0.26% | 0.42% | ' | 0.75% | ' | 1.85% | ' | ' |
Interest rate at period end (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.25% | ' |
Weighted average interest rate on all notes issued to outside investors and net of repurchased notes (in hundredths) | ' | ' | ' | ' | 1.52% | 1.07% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of debt | ' | ' | ' | ' | ' | ' | ' | 217,700,000 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of notes | ' | ' | 0 | -4,850,000 | ' | ' | ' | ' | ' | 0 | 0 | 2,000,000 | ' | ' | ' |
Repurchase of notes, weighted average price to par | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 85.11% | ' | ' | ' |
Gain on the extinguishment of debt | $0 | $0 | $0 | $5,464,000 | ' | ' | ' | ' | ' | $0 | $0 | $298,000 | ' | ' | ' |
BORROWINGS_Unsecured_Junior_Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-06 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2006 | Sep. 30, 2013 | Sep. 30, 2013 | ||
Unsecured Junior Subordinated Debentures [Member] | Interest in RCT I [Member] | Interest in RCT I [Member] | Interest in RCT II [Member] | Interest in RCT II [Member] | RCT I entity [Member] | RCT I entity [Member] | RCT I entity [Member] | RCT II entity [Member] | RCT II entity [Member] | RCT II entity [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Interest in RCT I [Member] | Interest in RCT II [Member] | ||||||||
Unsecured Junior Subordinated Debentures [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Ownership percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ||
Face amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,800,000 | ' | ' | $25,800,000 | ' | ' | ||
Debt issuance costs, amortization period | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unamortized debt issuance costs | ' | ' | ' | ' | ' | ' | ' | 285,000 | 358,000 | ' | 306,000 | 377,000 | ' | ' | ' | ||
Interest rate at period end (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 4.22% | 4.26% | ' | 4.22% | 4.26% | ' | ' | ' | ||
Investments in unconsolidated entities | $72,955,000 | [1] | $45,413,000 | [1] | ' | $774,000 | $774,000 | $774,000 | $774,000 | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
BORROWINGS_CMBS_Term_Repurchas
BORROWINGS (CMBS – Term Repurchase Facility) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 01, 2013 | Feb. 28, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Weighted-average interest rate | ' | ' | 1.73% | 1.62% | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ' | ' | ||
Weighted Average Maturity in Days | ' | ' | '9 years 7 months | '12 years 6 months | ||
Weighted Average Interest Rate | ' | ' | 1.73% | 1.62% | ||
CMBS - Term Repurchase Facilities [Member] | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Unamortized debt issuance costs | ' | ' | $47,000 | $23,000 | ||
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | RCC Real Estate And RCC Commercial [Member] | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Face amount of debt issued | ' | ' | 51,000,000 | ' | ||
Debt instrument term | ' | ' | '2 years | ' | ||
Debt instrument term, option to extend | '1 year | '1 year | ' | ' | ||
Description of variable rate basis | ' | ' | 'one-month LIBOR | ' | ||
Weighted average basis spread on variable rate | ' | ' | 1.22% | ' | ||
Basis spread on variable rate | ' | ' | 1.00% | ' | ||
Line of credit facility, extension fee percentage (in hundredths) | ' | ' | 0.25% | ' | ||
Derivative, required securities average life (exceeds) | ' | ' | '2 years | ' | ||
Unamortized debt issuance costs | ' | ' | 47,000 | ' | ||
Debt instrument, fair value | ' | ' | 60,100,000 | ' | ||
Weighted-average interest rate | ' | ' | 1.30% | [1] | 1.53% | [1] |
Amount at Risk Under Facility [Abstract] | ' | ' | ' | ' | ||
Amount at Risk | ' | ' | 11,195,000 | [1],[2] | 10,722,000 | [1],[2] |
Weighted Average Maturity in Days | ' | ' | '18 days | [1] | '18 days | [1] |
Weighted Average Interest Rate | ' | ' | 1.30% | [1] | 1.53% | [1] |
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | RCC Real Estate [Member] | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Face amount of debt issued | ' | ' | ' | 42,500,000 | ||
Basis spread on variable rate | ' | ' | ' | 1.30% | ||
Unamortized debt issuance costs | ' | ' | ' | 23,000 | ||
Debt instrument, fair value | ' | ' | ' | 51,400,000 | ||
Weighted-average interest rate | ' | ' | ' | 1.53% | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ' | ' | ||
Weighted Average Interest Rate | ' | ' | ' | 1.53% | ||
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | Maximum [Member] | RCC Real Estate And RCC Commercial [Member] | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Face amount of debt issued | ' | ' | 100,000,000 | ' | ||
CMBS - Term Repurchase Facilities [Member] | Linked Transactions | Wells Fargo Bank, National Association [Member] | RCC Real Estate [Member] | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||
Description of variable rate basis | ' | ' | ' | 'one-month LIBOR | ||
Basis spread on variable rate | ' | ' | 1.42% | 1.22% | ||
Weighted-average interest rate | ' | ' | 1.60% | 1.40% | ||
CMBS Linked repurchase agreement | ' | ' | 9,300,000 | 12,200,000 | ||
Repurchase agreement, fair value of collateral securities | ' | ' | $11,300,000 | $14,600,000 | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ' | ' | ||
Weighted Average Interest Rate | ' | ' | 1.60% | 1.40% | ||
[1] | $9.3 million and $12.2 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012, respectively, (see Note 20). | |||||
[2] | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
BORROWINGS_CRE_Term_Repurchase
BORROWINGS (CRE - Term Repurchase Facility) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 02, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 27, 2012 | Sep. 30, 2013 | Jul. 19, 2013 | Jul. 19, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |||||
CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Repurchase Agreements [Member] | Repurchase Agreements [Member] | Repurchase Agreements [Member] | Repurchase Agreements [Member] | |||||||
Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Deutsche Bank AG [Member] | Deutsche Bank AG [Member] | Deutsche Bank AG [Member] | Wells Fargo Securities, LLC [Member] | Wells Fargo Securities, LLC [Member] | Linked Transactions | Linked Transactions | Linked Transactions | |||||||||
RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | Wells Fargo Securities, LLC [Member] | Wells Fargo Securities, LLC [Member] | ||||||||||
extension | option | Security | Maximum [Member] | option | Maximum [Member] | Security | Security | RCC Real Estate [Member] | RCC Real Estate [Member] | |||||||||||
Security | Security | Security | ||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | $250,000,000 | ' | ' | $150,000,000 | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ||||
Debt instrument term | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ||||
Debt instrument term, number of options to extend | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ||||
Debt instrument term, option to extend | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ||||
Loan origination fee | ' | ' | ' | ' | ' | 0.00375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Structuring fee | ' | ' | ' | ' | 101,000 | ' | ' | ' | ' | 0.0025 | ' | ' | ' | ' | ' | ' | ||||
Extension fee | ' | ' | ' | ' | 938,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Face amount of debt issued | ' | ' | ' | ' | ' | 152,500,000 | 58,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Unamortized debt issuance costs | ' | ' | 1,300,000 | 348,000 | ' | 1,300,000 | 348,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Collateral, number of securities | ' | ' | ' | ' | ' | 20 | 8 | ' | ' | ' | ' | 1 | 1 | ' | 7 | 1 | ||||
Debt instrument, fair value | ' | ' | ' | ' | ' | 220,200,000 | 85,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Description of variable rate basis | ' | ' | ' | ' | ' | 'one-month LIBOR | 'one-month LIBOR | ' | ' | ' | ' | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | ' | ||||
Basis spread on variable rate | ' | ' | ' | ' | ' | 2.43% | 2.67% | ' | ' | ' | ' | 1.01% | 1.25% | ' | 1.02% | 1.25% | ||||
Weighted-average interest rate | 1.73% | 1.62% | ' | ' | ' | 2.61% | 2.88% | ' | ' | ' | ' | 1.19% | [1] | 1.46% | [1] | ' | 1.20% | 1.46% | ||
Covenant requirement, maximum judgment allowed against subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Covenant requirement, maximum judgment allowed against company | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Covenant requirement, maximum amount of failure to pay or acceleration of a monetary obligation for subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Covenant requirement, maximum amount of failure to pay or acceleration of a monetary obligation for company | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||
Amount at Risk Under Facility [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Amount at Risk | ' | ' | ' | ' | ' | $66,619,000 | [2] | $26,332,000 | [2] | ' | ' | ' | ' | $10,854,000 | [1],[2] | $1,956,000 | [1],[2] | ' | ' | ' |
Weighted Average Maturity in Days | '9 years 7 months | '12 years 6 months | ' | ' | ' | '18 days | '18 days | ' | ' | ' | ' | '30 days | [1] | '28 days | [1] | ' | ' | ' | ||
Weighted Average Interest Rate | 1.73% | 1.62% | ' | ' | ' | 2.61% | 2.88% | ' | ' | ' | ' | 1.19% | [1] | 1.46% | [1] | ' | 1.20% | 1.46% | ||
[1] | $21.5 million and $3.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). | |||||||||||||||||||
[2] | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
BORROWINGS_ShortTerm_Repurchas
BORROWINGS (Short-Term Repurchase Agreements) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ||
Weighted-average interest rate | 1.73% | 1.62% | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Weighted Average Maturity in Days | '9 years 7 months | '12 years 6 months | ||
Weighted Average Borrowing Rate | 1.73% | 1.62% | ||
Short-Term Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted-average interest rate | 1.45% | 1.46% | ||
Debt instrument term | '12 months | ' | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Amount at Risk | 9,276,000 | [1] | 2,069,000 | [1] |
Weighted Average Maturity in Days | '19 days | '7 days | ||
Weighted Average Borrowing Rate | 1.45% | 1.46% | ||
Short-Term Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal outstanding | 1,700,000 | 1,900,000 | ||
Repurchase agreement, fair value of collateral securities | 2,800,000 | 3,100,000 | ||
Description of variable rate basis | 'one-month LIBOR | 'one-month LIBOR | ||
Basis spread on variable rate | 1.01% | 1.25% | ||
Weighted-average interest rate | 1.19% | [2] | 1.46% | [2] |
Collateral, number of securities | 1 | 1 | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Amount at Risk | 10,854,000 | [2],[3] | 1,956,000 | [2],[3] |
Weighted Average Maturity in Days | '30 days | [2] | '28 days | [2] |
Weighted Average Borrowing Rate | 1.19% | [2] | 1.46% | [2] |
Linked repurchase agreement borrowings included as derivative instruments | 21,500,000 | 3,500,000 | ||
Short-Term Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted-average interest rate | 0.98% | [4] | 1.01% | [4] |
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Amount at Risk | 9,696,000 | [3],[4] | 2,544,000 | [3],[4] |
Weighted Average Maturity in Days | '30 days | [4] | '11 days | [4] |
Weighted Average Borrowing Rate | 0.98% | [4] | 1.01% | [4] |
Linked repurchase agreement borrowings included as derivative instruments | 17,800,000 | 4,700,000 | ||
Short-Term Repurchase Agreements [Member] | Linked Transactions | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Description of variable rate basis | 'one-month LIBOR | ' | ||
Short-Term Repurchase Agreements [Member] | Linked Transactions | Deutsche Bank Securities, Inc [Member] | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal outstanding | 15,100,000 | 3,100,000 | ||
Repurchase agreement, fair value of collateral securities | 24,300,000 | 5,100,000 | ||
Description of variable rate basis | 'one-month LIBOR | 'one-month LIBOR | ||
Basis spread on variable rate | 1.27% | 1.25% | ||
Weighted-average interest rate | 1.45% | 1.46% | ||
Collateral, number of securities | 5 | ' | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Weighted Average Borrowing Rate | 1.45% | 1.46% | ||
Short-Term Repurchase Agreements [Member] | Linked Transactions | Wells Fargo Securities, LLC [Member] | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Repurchase agreement, fair value of collateral securities | 31,100,000 | 5,700,000 | ||
Basis spread on variable rate | 1.02% | 1.25% | ||
Weighted-average interest rate | 1.20% | 1.46% | ||
Collateral, number of securities | 7 | 1 | ||
CMBS Linked repurchase agreement | 21,500,000 | 3,500,000 | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Weighted Average Borrowing Rate | 1.20% | 1.46% | ||
Short-Term Repurchase Agreements [Member] | Linked Transactions | JP Morgan Securities, LLC [Member] | RCC Real Estate [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal outstanding | 17,800,000 | 4,700,000 | ||
Repurchase agreement, fair value of collateral securities | 26,800,000 | 7,200,000 | ||
Description of variable rate basis | 'one-month LIBOR | 'one-month LIBOR | ||
Basis spread on variable rate | 0.79% | 0.80% | ||
Weighted-average interest rate | 0.98% | 1.01% | ||
Collateral, number of securities | 4 | ' | ||
Amount at Risk Under Facility [Abstract] | ' | ' | ||
Weighted Average Borrowing Rate | 0.98% | 1.01% | ||
[1] | l to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||
[2] | $21.5 million and $3.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). | |||
[3] | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. | |||
[4] | $17.8 million and $4.7 million linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2013 and December 31, 2012. (See Note 20). |
BORROWINGS_Mortgage_Payable_De
BORROWINGS (Mortgage Payable) (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Aug. 01, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' |
Weighted-average interest rate | ' | 1.73% | 1.62% |
Mortgages [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument term | '7 years | ' | ' |
Principal outstanding | ' | $0 | $13,600,000 |
Description of variable rate basis | ' | 'one-month LIBOR | ' |
Basis spread on variable rate | ' | 3.95% | ' |
Weighted-average interest rate | ' | ' | 4.17% |
RCC Real Estate [Member] | Mortgages [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Number of multi family units | 504 | ' | ' |
Payment to acquire rental property | 18,100,000 | ' | ' |
Percentage of units occupied at acquisition | 95.00% | ' | ' |
SHARE_ISSUANCE_AND_REPURCHASE_
SHARE ISSUANCE AND REPURCHASE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 2 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Apr. 30, 2013 | Sep. 30, 2013 | Mar. 21, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Feb. 16, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 28, 2012 | |
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | ||||||
Dividend Reinvestment Plan March 21 2013 [Member] | Dividend Reinvestment Plan March 21 2013 [Member] | Dividend Reinvestment Plan February 16 2012 [Member] | Dividend Reinvestment Plan February 16 2012 [Member] | Dividend Reinvestment Plan February 16 2012 [Member] | At the Market Equity Offering Program March 15, 2013 [Member] | At the Market Equity Offering Program March 15, 2013 [Member] | At the Market Equity Offering Program March 15, 2013 [Member] | Previous At the Market Equity Offering Program [Member] | Previous At the Market Equity Offering Program [Member] | At the Market Equity Offering Program June 28 2012 [Member] | At the Market Equity Offering Program June 28 2012 [Member] | At the Market Equity Offering Program June 28 2012 [Member] | |||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued pursuant to the Management agreement (in shares) | 0 | 83,776 | 110,639 | 112,028 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of stock (in shares) | ' | ' | ' | ' | ' | 18,687,500 | ' | ' | ' | ' | ' | ' | ' | 156,550 | ' | ' | ' | ' | ' | ' | 4,579 | ' | ' |
Equity offering expenses, shares issued (in shares) | ' | ' | ' | ' | ' | 2,437,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | ' | $6.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from stock issuance, net of offering costs | ' | ' | ' | ' | ' | $114,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriting discounts and commissions | ' | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other offering expenses | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares allowed to be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | 1,000,000 |
Preferred stock, coupon authorized (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.25% | ' | ' | 8.25% | ' | ' | 8.25% | 8.50% | ' | ' | 8.50% | ' |
Stock issuance, weighted average offering price (in dollars per share) | ' | ' | ' | ' | ' | ' | $6.08 | ' | $6.20 | ' | ' | ' | ' | $24.06 | $24.82 | ' | $24.77 | ' | ' | ' | $25.02 | $24.26 | ' |
Preferred stock, shares issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,229,317 | 1,126,898 | 1,229,317 | 1,229,317 | ' | ' | ' | 680,952 | 676,373 | 415,952 | 415,952 | ' |
Shares authorized for dividend reinvestment plan (in shares) | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued from dividend reinvestment plan (in shares) | ' | ' | ' | ' | ' | ' | 153,094 | ' | 2,899,708 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment plan | ' | ' | ' | ' | ' | ' | 925,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued (in shares) | 127,237,134 | ' | 127,237,134 | ' | 105,118,093 | ' | 173,589 | ' | ' | 13,095,754 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive compensation value | $0 | $454,000 | $653,000 | $608,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Aug. 07, 2013 | Jun. 06, 2013 | Mar. 21, 2013 | Mar. 12, 2013 | Mar. 08, 2013 | Feb. 01, 2013 | Apr. 02, 2013 | Sep. 30, 2013 | Dec. 31, 2011 | Mar. 30, 2013 | Mar. 21, 2013 | Mar. 21, 2013 | Mar. 21, 2013 | Aug. 07, 2013 | Aug. 07, 2013 | Aug. 07, 2013 | |
Restricted Stock [Member] | Restricted Stock [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Loan Origination Performance Plan [Member] | Loan Origination Performance Plan [Member] | Loan Origination Performance Plan [Member] | Loan Origination Performance Plan [Member] | March 2014 Vesting [Member] | March 2015 Vesting [Member] | March 2016 Vesting [Member] | August 2014 Vesting [Member] | August 2015 Vesting [Member] | August 2016 Vesting [Member] | |||||
Director | Director | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | 2007 Omnibus Equity Compensation Plan [Member] | ||||||||
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||||||||||||||||||||
Restricted common stock and stock options [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non employee directors granted shares | ' | ' | ' | ' | 6 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of shares granted | ' | ' | ' | ' | $1,600,000 | $2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted common stock issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,719 | 5,485 | 2,000 | 16,065 | 13,572 | 3,582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.30% | 33.30% | 33.30% | 33.30% | 33.30% | 33.30% |
Additional shares authorized upon meeting performance thresholds (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 336,000 | ' | ' | ' | ' | ' | ' | ' |
Share grants on achievement of performance threshold (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable on performance shares granted and earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 168,000 | ' | ' | ' | ' | ' | ' |
Dividends payable on performance shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 235,200 | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | '18 months | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued pursuant to the Management agreement (in shares) | 0 | 83,776 | 110,639 | 112,028 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive compensation value | $0 | $454,000 | $653,000 | $608,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Quarterly Vesting Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.67% | 16.67% | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 3,308,343 |
Issued | 250,423 |
Vested | -503,641 |
Forfeited | -8,782 |
Unvested shares, end of period (in shares) | 3,046,343 |
Non-Employee Directors [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 19,509 |
Issued | 38,704 |
Vested | -19,509 |
Forfeited | 0 |
Unvested shares, end of period (in shares) | 38,704 |
Non-Employees [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 3,288,834 |
Issued | 211,719 |
Vested | -484,132 |
Forfeited | -8,782 |
Unvested shares, end of period (in shares) | 3,007,639 |
SHAREBASED_COMPENSATION_Status
SHARE-BASED COMPENSATION (Status of Unvested Stock Options) (Details) (Unvested [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Unvested [Member] | ' |
Stock options outstanding [Roll Forward] | ' |
Outstanding beginning of period (in shares) | 26,667 |
Granted (in shares) | 0 |
Vested (in shares) | -13,333 |
Forfeited (in shares) | 0 |
Outstanding end of period (in shares) | 13,334 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Outstanding beginning of period (in dollars per share) | $6.40 |
Vested (in dollars per share) | $6.40 |
Outstanding end of period (in dollars per share) | $6.40 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 |
SHAREBASED_COMPENSATION_Status1
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) (Vested [Member], USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Vested [Member] | ' |
Stock options outstanding [Roll Forward] | ' |
Outstanding beginning of period (in shares) | 614,999 |
Vested (in shares) | 13,333 |
Exercised (in shares) | 0 |
Forfeited (in shares) | -1,000 |
Outstanding end of period (in shares) | 627,332 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Outstanding beginning of period (in dollars per share) | $14.80 |
Vested (in dollars per share) | $6.40 |
Forfeited (in dollars per share) | $15 |
Outstanding end of period (in dollars per share) | $14.62 |
Weighted Average Remaining Contractual Term (in years) | '2 years |
Aggregate Intrinsic Value (in thousands) | $67 |
SHAREBASED_COMPENSATION_Compon
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | $2,120 | $1,404 | $7,866 | $3,412 |
Manager and Non Employees [Member] | Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 4 | 0 | 7 | 1 |
Manager and Non Employees [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 2,052 | 1,376 | 7,704 | 3,327 |
Non-Employee Directors [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | $64 | $28 | $155 | $84 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic: | ' | ' | ' | ' |
Net income allocable to common shares | $22,121 | $18,152 | $40,180 | $49,058 |
Weighted average number of shares outstanding | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 |
Basic net income per share (in dollars per share) | $0.18 | $0.20 | $0.34 | $0.58 |
Diluted: | ' | ' | ' | ' |
Net income allocable to common shares | $22,121 | $18,152 | $40,180 | $49,058 |
Weighted average number of shares outstanding | 124,212,032 | 89,066,927 | 116,471,142 | 84,594,892 |
Additional shares due to assumed conversion of dilutive instruments | 1,860,650 | 898,753 | 1,502,836 | 770,451 |
Adjusted weighted-average number of common shares outstanding | 126,072,682 | 89,965,680 | 117,973,978 | 85,365,343 |
Diluted net income per share (in dollars per share) | $0.18 | $0.20 | $0.34 | $0.57 |
Dilutive shares excluded from calculation of diluted net income per share | 640,666 | 641,666 | 640,666 | 641,666 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | ($27,078) | ' |
Other comprehensive gain/(loss) before reclassifications | ' | ' | 14,101 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -4,406 | ' |
Total other comprehensive income | 2,723 | 4,342 | 9,695 | 13,424 |
Accumulated other comprehensive loss, ending balance | -17,383 | ' | -17,383 | ' |
Net unrealized (loss) gain on derivatives | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | -15,595 | ' |
Other comprehensive gain/(loss) before reclassifications | ' | ' | 2,480 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 322 | ' |
Total other comprehensive income | ' | ' | 2,802 | ' |
Accumulated other comprehensive loss, ending balance | -12,793 | ' | -12,793 | ' |
Net unrealized (loss) gain on securities, available-for-sale | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | -11,483 | ' |
Other comprehensive gain/(loss) before reclassifications | ' | ' | 11,644 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -4,728 | ' |
Total other comprehensive income | ' | ' | 6,916 | ' |
Accumulated other comprehensive loss, ending balance | -4,567 | ' | -4,567 | ' |
Foreign Currency Translation | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | 0 | ' |
Other comprehensive gain/(loss) before reclassifications | ' | ' | -23 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | ' |
Total other comprehensive income | ' | ' | -23 | ' |
Accumulated other comprehensive loss, ending balance | ($23) | ' | ($23) | ' |
RELATED_PARTY_TRANSACTIONS_Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 17, 2011 | Nov. 24, 2010 | ||||
Transaction | Transaction | Transaction | ||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||
Base management fees paid by the Company | $5,113,000 | $5,521,000 | $11,006,000 | $13,512,000 | ' | ' | ' | |||
General and administrative | 1,288,000 | 844,000 | 4,428,000 | 3,377,000 | ' | ' | ' | |||
Investment securities, trading | 12,099,000 | [1] | 24,843,000 | 12,099,000 | [1] | 24,843,000 | 24,843,000 | [1] | ' | ' |
Increase (Decrease) fair market value of trading securities | ' | ' | 11,044,000 | 8,348,000 | ' | ' | ' | |||
Investments in unconsolidated entities | 72,955,000 | [1] | ' | 72,955,000 | [1] | ' | 45,413,000 | [1] | ' | ' |
Gain on sale of real estate | 16,607,000 | 0 | 16,607,000 | 0 | ' | ' | ' | |||
Resource Capital Corp [Member] | Resource America [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||
Number of common shares of the Company owned by a related party (in shares) | 2,781,403 | ' | 2,781,403 | ' | ' | ' | ' | |||
Ownership percentage (in hundredths) | 2.20% | ' | 2.20% | ' | ' | ' | ' | |||
Options to purchase common stock held by Resource America | 2,166 | ' | 2,166 | ' | ' | ' | ' | |||
Resource Capital Corp [Member] | Manager pursuant to the Management Agreement [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||
Base management fees paid by the Company | 3,000,000 | 2,100,000 | 8,600,000 | 5,900,000 | ' | ' | ' | |||
Incentive management fees, related party | 1,900,000 | 906,000 | 1,900,000 | 3,400,000 | ' | ' | ' | |||
General and administrative | 848,000 | 918,000 | 2,700,000 | 2,500,000 | ' | ' | ' | |||
Maximum investment amount | ' | ' | ' | ' | ' | ' | 5,000,000 | |||
Additional investment per Investment Management Agreement | ' | ' | ' | ' | ' | 8,000,000 | ' | |||
Management fee as a percentage of net profits in excess of preferred return (in hundredths) | ' | ' | ' | ' | ' | 20.00% | ' | |||
Total indebtedness | 3,600,000 | ' | 3,600,000 | ' | 3,800,000 | ' | ' | |||
Accrued management fees, related party | 1,000,000 | ' | 1,000,000 | ' | 833,000 | ' | ' | |||
Indebted expense reimbursement | 606,000 | ' | 606,000 | ' | 307,000 | ' | ' | |||
Investment Management Fees Payable | ' | ' | ' | ' | 2,600,000 | ' | ' | |||
Number of executed CDO transactions | 7 | ' | 7 | ' | 7 | ' | ' | |||
Resource Capital Corp [Member] | Resource Capital Markets, Inc. [Member] | ' | ' | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||
Base management fees paid by the Company | 30,000,000 | 2,200,000 | 30,000 | 3,700,000 | ' | ' | ' | |||
Investment securities, trading | 12,100,000 | ' | 12,100,000 | ' | 24,800,000 | ' | ' | |||
Increase (Decrease) fair market value of trading securities | ' | ' | -12,700,000 | ' | ' | ' | ' | |||
Share of net profits as per the Investment Management Agreement | 0 | 301,000 | 35,000 | 527,000 | ' | ' | ' | |||
Total indebtedness | 111,000 | ' | 111,000 | ' | 4,300,000 | ' | ' | |||
Accrued management fees, related party | 30,000 | ' | 30,000 | ' | ' | ' | ' | |||
Indebted expense reimbursement | 81,000 | ' | 81,000 | ' | 48,000 | ' | ' | |||
Accrued Incentive Management Fees Related Party | ' | ' | ' | ' | $4,300,000 | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
RELATED_PARTY_TRANSACTIONS_Rel1
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 12 Months Ended | 15 Months Ended | 28 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Nov. 16, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 16, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 05, 2010 | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Mar. 05, 2011 | Jun. 02, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 05, 2010 | Sep. 30, 2013 | Nov. 16, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 18, 2013 | Nov. 16, 2011 | Nov. 16, 2011 | Sep. 30, 2013 | Nov. 16, 2011 | Jan. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Preferred Shares - Series B | Interest in LCC [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Interest in LCC [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | Lease Equity Appreciation Fund II [Member] | LEAF Funding 3 [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | |||||||||
LEAF Commercial Capital, Inc. [Member] | LEAF Commercial Capital, Inc. [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | LEAF Funding 3 [Member] | ||||||||||||||||
LEAF Commercial Capital, Inc. [Member] | Preferred Shares - Series A | Preferred Shares - Series A | Preferred Shares - Series B | Preferred Shares - Series B | Series D Preferred Stock [Member] | Series A-1 Preferred Stock [Member] | Series E Preferred Stock [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, interest rate during period (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Origination fee with establishment of line of credit facility (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, extension fee percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,900,000 | 6,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares received in equity method transaction (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,341 | 4,872 | ' | 2,364 | 3,682 | 3,323 | ' | |||
Preferred stock, coupon authorized (in hundredths) | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | |||
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.70% | 27.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity contribution to VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | 3,300,000 | ' | |||
Accrued dividends on preferred stock investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,000 | ' | |||
Earnings (losses) from unconsolidated subsidiaries | -505,000 | -779,000 | -858,000 | -1,469,000 | ' | ' | -346,000 | -1,000,000 | -378,000 | -2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investments in unconsolidated entities | 72,955,000 | [1] | ' | 72,955,000 | [1] | ' | 45,413,000 | [1] | ' | ' | ' | ' | ' | 36,300,000 | 40,800,000 | 33,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,800,000 | 33,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Value of equity of variable interest entity, threshold for obligation to contribute cash to VIE (less than approximately $18.7 million) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | $18,700,000 | |||
Measurement date of value of equity in VIE, number of days after next fiscal year end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
RELATED_PARTY_TRANSACTIONS_Rel2
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 5 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Feb. 24, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Entity | Entity | Churchill Pacific Asset Management LLC [Member] | CVC Credit Partners, LLC [Member] | Resource America [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Apidos Capital Management LLC [Member] | Apidos Capital Management LLC [Member] | Apidos Capital Management LLC [Member] | Apidos Capital Management LLC [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | CVC Global Credit Opportunities Fund, LP [Member] | |||||||
CVC Capital Partners [Member] | Churchill Pacific Asset Management LLC [Member] | CVC Capital Partners [Member] | CVC Capital Partners [Member] | CVC Capital Partners [Member] | CVC Capital Partners [Member] | VIE, Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investments in unconsolidated entities | $72,955,000 | [1] | ' | $72,955,000 | [1] | ' | $45,413,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,500,000 | ' | $15,500,000 | $15,500,000 |
Equity contribution to VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 15,000,000 | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings (losses) from unconsolidated subsidiaries | -505,000 | -779,000 | -858,000 | -1,469,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 433,000 | ' | 526,000 | ' | |||
Ownership percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Purchase of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of CLO issuers | 5 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Assets under management, carrying amount | ' | ' | ' | ' | ' | 1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of subordinated fees the company is entitled to collect (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of incentive fees the company is entitled to collect (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | |||
Subordinated fees received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $160,000 | $197,000 | $515,000 | $604,000 | ' | ' | ' | ' | ' | ' | ' | |||
Preferred equity acquired | ' | ' | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | |||
Ownership interests in variable interest entities (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.60% | 68.30% | 68.30% | ' | ' | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
RELATED_PARTY_TRANSACTIONS_Rel3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 11 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 23-May-12 | Jun. 21, 2011 | 23-May-12 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 19, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 01, 2009 | Jun. 19, 2012 | Aug. 09, 2006 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 15, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 15, 2010 | Aug. 01, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 01, 2009 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 01, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Resource Real Estate Funding CDO 2006-1 [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | SLH Partners [Member] | SLH Partners [Member] | SLH Partners [Member] | SLH Partners [Member] | SLH Partners [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Lynnfield Place [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Capital Partners Inc [Member] | Resource Capital Partners Inc [Member] | Resource Capital Partners Inc [Member] | Resource Real Estate Opportunity Fund, L.P. [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | Varde Investment Partners, LP [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | RRE VIP Borrower, LLC [Member] | |||||||||
Minimum [Member] | Maximum [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Property | Commercial Real Estate Loans [Member] | Commercial Real Estate Loans [Member] | RRE VIP Borrower, LLC [Member] | Varde Investment Partners, LP [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | RRE VIP Borrower, LLC [Member] | SLH Partners [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource America [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | Resource Real Estate [Member] | RRE VIP Borrower, LLC [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||||||||||||||||||
Resource Capital Corp [Member] | Resource Capital Corp [Member] | extension | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Payable to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amount of loan to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Description of variable rate basis | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basis spread on variable rate | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Variable rate basis, floor | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 1.00% | 4.00% | ' | 4.00% | ' | ' | ' | ' | ' | 1.00% | 2.00% | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Base management fees paid by the Company | 5,113,000 | 5,521,000 | 11,006,000 | 13,512,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500 | 11,000 | 23,000 | 35,000 | ' | ' | ' | ' | ' | ' | 34,000 | 34,000 | 103,000 | 101,000 | 54,000 | 43,000 | 151,000 | 122,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000 | 0 | 33,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity contribution to VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Required contribution to joint venture, as a percentage of the total funding required for each asset acquisition on a monthly basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 5.00% | |||
Earnings (losses) from unconsolidated subsidiaries | -505,000 | -779,000 | -858,000 | -1,469,000 | ' | ' | -521,000 | 346,000 | -735,000 | 931,000 | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | -100,000 | 49,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -100,000 | 6,000 | -100,000 | 49,000 | ' | ' | -521,000 | 346,000 | -735,000 | 931,000 | ' | ' | ' | |||
Investments in unconsolidated entities | 72,955,000 | [1] | ' | 72,955,000 | [1] | ' | 45,413,000 | [1] | ' | -330,000 | ' | -330,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | 1,100,000 | 1,200,000 | 575,000 | ' | 575,000 | 526,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 575,000 | ' | 575,000 | 526,000 | ' | -330,000 | ' | -330,000 | ' | 2,300,000 | ' | ' |
Ownership percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Related party loan, stated interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Related party loan, additional interest in addition to stated interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of optional extensions permitted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Loans receivable–related party | 8,067,000 | [1] | ' | 8,067,000 | [1] | ' | 8,324,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans receivable - related party, principal payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, interest rate during period (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Origination fee with establishment of line of credit facility (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Exit fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Purchase of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | |||
Maximum management fee entitlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of condominium developments purchased by joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
RELATED_PARTY_TRANSACTIONS_Rel4
RELATED PARTY TRANSACTIONS (Relationship with The Bancorp) (Details) (Resource Capital Corp [Member], Bancorp [Member], USD $) | Jul. 07, 2011 |
Resource Capital Corp [Member] | Bancorp [Member] | ' |
Related Party Transaction [Line Items] | ' |
Revolving credit facility, maximum borrowing capacity | $10,000,000 |
RELATED_PARTY_TRANSACTIONS_Rel5
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) (Resource Capital Corp [Member], Ledgewood [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Resource Capital Corp [Member] | Ledgewood [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Legal fees | $70 | $160 | $155 | $277 |
DISTRIBUTIONS_Details
DISTRIBUTIONS (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 26, 2013 | Apr. 26, 2013 | Sep. 30, 2013 | Oct. 28, 2013 | Sep. 20, 2013 | Jul. 26, 2013 | Jun. 14, 2013 | Apr. 26, 2013 | Mar. 15, 2013 | Oct. 28, 2013 | Sep. 20, 2013 | Jul. 30, 2013 | Jun. 18, 2013 | Apr. 30, 2013 | Mar. 18, 2013 | Oct. 30, 2013 | Sep. 20, 2013 | Jul. 30, 2013 | Jun. 18, 2013 | Apr. 30, 2013 | Mar. 18, 2013 | Oct. 30, 2013 |
Subsequent Event [Member] | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series B [Member] | ||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxable income to be distributed, minimum (in hundredths) | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxable income distribution for corporate federal income tax exemption (in hundredths) | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock distributions declared, per share | ' | ' | ' | ' | $0.20 | ' | $0.20 | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions declared | ' | ' | ' | ' | $25,400 | ' | $25,400 | ' | $21,600 | ' | $362 | ' | $359 | ' | $359 | ' | $1,700 | ' | $1,600 | ' | $1,200 | ' |
Common stock distributions paid, per share | $0.20 | $0.20 | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions paid | ' | ' | ' | ' | ' | $21,600 | ' | $21,600 | ' | $25,400 | ' | $359 | ' | $359 | ' | $362 | ' | $1,600 | ' | $1,200 | ' | $1,700 |
Preferred stock distributions declared, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.53 | ' | $0.53 | ' | $0.53 | ' | $0.52 | ' | $0.52 | ' | $0.52 | ' |
Preferred stock distributions paid, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.53 | ' | $0.53 | ' | $0.53 | ' | $0.52 | ' | $0.52 | ' | $0.52 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Security | Security | Security | Security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Impairment loss included in earnings | $255 | $9 | $811 | $180 |
Number of impaired assets | 1 | 2 | 4 | 4 |
Provision for loan losses | 741 | 1,370 | 541 | 7,801 |
Nonrecurring | Level 3 | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Provision for loan losses | $69 | $3,400 | $3,100 | $5,600 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | |||||
Assets: | ' | ' | ' | ||
Investment securities, trading | $12,099 | [1] | $24,843 | [1] | $24,843 |
Investment securities available-for-sale | 220,684 | 231,590 | ' | ||
CMBS - linked transactions | 29,978 | [1] | 6,835 | [1] | ' |
Recurring Basis | ' | ' | ' | ||
Assets: | ' | ' | ' | ||
Investment securities, trading | 12,099 | 24,843 | ' | ||
Investment securities available-for-sale | 220,684 | 231,590 | ' | ||
CMBS - linked transactions | 29,978 | 6,835 | ' | ||
Total assets at fair value | 262,761 | 263,268 | ' | ||
Liabilities: | ' | ' | ' | ||
Derivatives (net) | 12,208 | 14,687 | ' | ||
Total liabilities at fair value | 12,208 | 14,687 | ' | ||
Recurring Basis | Level 1 | ' | ' | ' | ||
Assets: | ' | ' | ' | ||
Investment securities, trading | 0 | 0 | ' | ||
Investment securities available-for-sale | 4,972 | 9,757 | ' | ||
CMBS - linked transactions | 0 | 0 | ' | ||
Total assets at fair value | 4,972 | 9,757 | ' | ||
Liabilities: | ' | ' | ' | ||
Derivatives (net) | 0 | 0 | ' | ||
Total liabilities at fair value | 0 | 0 | ' | ||
Recurring Basis | Level 2 | ' | ' | ' | ||
Assets: | ' | ' | ' | ||
Investment securities, trading | 0 | 0 | ' | ||
Investment securities available-for-sale | 85,826 | 132,561 | ' | ||
CMBS - linked transactions | 9,410 | 4,802 | ' | ||
Total assets at fair value | 95,236 | 137,363 | ' | ||
Liabilities: | ' | ' | ' | ||
Derivatives (net) | 442 | 610 | ' | ||
Total liabilities at fair value | 442 | 610 | ' | ||
Recurring Basis | Level 3 | ' | ' | ' | ||
Assets: | ' | ' | ' | ||
Investment securities, trading | 12,099 | 24,843 | ' | ||
Investment securities available-for-sale | 129,886 | 89,272 | ' | ||
CMBS - linked transactions | 20,568 | 2,033 | ' | ||
Total assets at fair value | 162,553 | 116,148 | ' | ||
Liabilities: | ' | ' | ' | ||
Derivatives (net) | 11,766 | 14,077 | ' | ||
Total liabilities at fair value | $11,766 | $14,077 | ' | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) (Level 3, Investments, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Level 3 | Investments | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Beginning balance | $116,148 |
Total gains or losses (realized/unrealized): | ' |
Included in earnings | -8,530 |
Purchases | 89,514 |
Sales | -30,196 |
Paydowns | -20,186 |
Unrealized gains (losses) – included in accumulated other comprehensive income | -1,257 |
Transfers from level 2 | 0 |
Ending balance | $162,553 |
FAIR_VALUE_OF_FINANCIAL_INSTRU5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Liabilities Measured on Recurring Basis) (Details) (Level 3, Derivative Financial Instruments, Liabilities, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Level 3 | Derivative Financial Instruments, Liabilities | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Beginning balance | $14,077 |
Unrealized gains – included in accumulated other comprehensive income | -2,311 |
Ending balance | $11,766 |
FAIR_VALUE_OF_FINANCIAL_INSTRU6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) (USD $) | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Level 3 | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | Nonrecurring | |
Interest Rate Swap Agreements | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | |||
Discounted Cash Flow | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans held for sale, fair value | ' | $332,351 | $48,894 | $0 | $0 | $332,351 | $14,894 | $0 | $34,000 |
Impaired loans, fair value | ' | 1,046 | 25,366 | 0 | 0 | 1,046 | 4,366 | 0 | 21,000 |
Total assets at fair value | $12,208 | $333,397 | $74,260 | $0 | $0 | $333,397 | $19,260 | $0 | $55,000 |
Weighted average credit spreads (in hundredths) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | $1,305,739 | [1] | $1,793,780 | [1] |
Loans receivable-related party | 8,067 | [1] | 8,324 | [1] |
Carrying Amount | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 1,305,739 | 1,793,780 | ||
Loans receivable-related party | 8,067 | 8,324 | ||
CDO notes | 1,166,209 | 1,614,883 | ||
Junior subordinated notes | 50,956 | 50,814 | ||
Repurchase agreement, carrying amount | 205,265 | 106,303 | ||
Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 1,299,103 | 1,848,617 | ||
Loans receivable-related party | 8,067 | 8,324 | ||
CDO notes | 1,020,919 | 1,405,124 | ||
Junior subordinated notes | 17,450 | 17,308 | ||
Repurchase agreement, carrying amount | 205,265 | 106,303 | ||
Level 1 | Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 0 | 0 | ||
Loans receivable-related party | 0 | 0 | ||
CDO notes | 0 | 0 | ||
Junior subordinated notes | 0 | 0 | ||
Repurchase agreement, carrying amount | 0 | 0 | ||
Level 2 | Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 568,545 | 1,186,642 | ||
Loans receivable-related party | 0 | 0 | ||
CDO notes | 1,020,919 | 1,405,124 | ||
Junior subordinated notes | 0 | 0 | ||
Repurchase agreement, carrying amount | 0 | 0 | ||
Level 3 | Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 730,558 | 661,975 | ||
Loans receivable-related party | 8,067 | 8,324 | ||
CDO notes | 0 | 0 | ||
Junior subordinated notes | 17,450 | 17,308 | ||
Repurchase agreement, carrying amount | $205,265 | $106,303 | ||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 |
INTEREST_RATE_RISK_AND_DERIVAT2
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2008 | Sep. 30, 2013 | Sep. 30, 2008 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | |||
Derivative | Derivative | ||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Fair value | ' | ($12,208,000) | [1] | ' | ($14,687,000) | [1] | ' | ' | ' |
Interest Rate Swap | ' | ' | ' | ' | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Number of derivative instruments held | ' | 16 | ' | 16 | ' | ' | ' | ||
Average fixed interest rate (in hundredths) | ' | 5.01% | ' | 4.94% | ' | ' | ' | ||
Variable rate basis | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ||
Notional amount | ' | 130,785,000 | ' | 135,200,000 | 45,000,000 | ' | ' | ||
Fair value | ' | -12,200,000 | ' | -14,700,000 | ' | ' | ' | ||
Unrealized losses on non-designated derivative instruments | ' | 12,800,000 | ' | 15,600,000 | ' | ' | ' | ||
Gain (loss) on swap termination | 574,000 | ' | ' | ' | 4,200,000 | -2,600,000 | 119,000 | ||
Notional amount of derivative instrument terminated | $12,700,000 | ' | $53,600,000 | ' | ' | ' | ' | ||
[1] | The fair value of securities pledged against the Company's swaps was $8.3 million and $13.1 million at September 30, 2013 and December 31, 2012, respectively. |
INTEREST_RATE_RISK_AND_DERIVAT3
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||
In Thousands, unless otherwise specified | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | |||||
Interest expense | Derivatives, at fair value | Accumulated other comprehensive loss | |||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |||
Notional Amount | ' | ' | $130,785 | $135,200 | $45,000 | ' | ' | ' | |||
Fair Value | -12,208 | [1] | -14,687 | [1] | -12,200 | -14,700 | ' | ' | -12,208 | 12,793 | |
Unrealized Loss | ' | ' | ' | ' | ' | ($5,118) | [2] | ' | ' | ||
[1] | The fair value of securities pledged against the Company's swaps was $8.3 million and $13.1 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||
[2] | Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. |
INTEREST_RATE_RISK_AND_DERIVAT4
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Summary of Linked Transactions) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | $29,978 | [1] | ' | $29,978 | [1] | ' | $6,835 | [1] |
Unrealized gain (loss) and net interest income on linked transactions, net | 1,161 | 133 | -4,343 | 386 | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Less than one year | 42,561 | [2] | ' | 42,561 | [2] | ' | 42,618 | [2] |
Greater than one year and less than five years | 136,672 | ' | 136,672 | ' | 122,509 | |||
Greater than five years and less than ten years | 37,088 | ' | 37,088 | ' | 61,780 | |||
Greater than ten years | 4,363 | ' | 4,363 | ' | 4,683 | |||
Fair Value | 220,684 | ' | 220,684 | ' | 231,590 | |||
Amortized Cost | ' | ' | ' | ' | ' | |||
Less than one year | 45,731 | ' | 45,731 | ' | 46,522 | |||
Greater than one year and less than five years | 138,629 | ' | 138,629 | ' | 131,076 | |||
Greater than five years and less than ten years | 36,905 | ' | 36,905 | ' | 60,801 | |||
Greater than ten years | 4,695 | ' | 4,695 | ' | 4,675 | |||
Amortized Cost | 225,960 | ' | 225,960 | ' | 243,074 | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' | ' | ' | |||
Fair value, less than 12 months, CMBS | 66,016 | ' | 66,016 | ' | 45,248 | |||
Gross unrealized losses, less than 12 months | -8,426 | ' | -8,426 | ' | -632 | |||
Fair value, more than 12 months | 18,713 | ' | 18,713 | ' | 44,695 | |||
Gross unrealized losses, more than 12 months | -5,952 | ' | -5,952 | ' | -17,312 | |||
Fair value, total | 84,729 | ' | 84,729 | ' | 89,943 | |||
Gross unrealized losses, total | -14,378 | ' | -14,378 | ' | -17,944 | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
Accrued interest expense | 2,708 | [3] | ' | 2,708 | [3] | ' | 2,918 | [3] |
Linked Transactions | ' | ' | ' | ' | ' | |||
Components of Unrealized Net Gains and Net Interest Income (Expense) from Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Interest income attributable to CMBS underlying linked transactions | 801 | 193 | 2,005 | 573 | ' | |||
Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions | -201 | -60 | -524 | -187 | ' | |||
Change in fair value of linked transactions included in earnings | 561 | 0 | -5,824 | 0 | ' | |||
Unrealized (loss) gain and net interest income from linked transactions, net | 1,161 | 133 | -4,343 | 386 | ' | |||
Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
CMBS linked transactions, Amortized Cost | 98,954 | 27,082 | 98,954 | 27,082 | ' | |||
CMBS linked transactions, Unrealized Gains | 184 | 190 | 184 | 190 | ' | |||
CMBS linked transactions, Unrealized Losses | -5,659 | -22 | -5,659 | -22 | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Less than one year | 3,411 | ' | 3,411 | ' | 9,827 | |||
Greater than one year and less than five years | 20,483 | ' | 20,483 | ' | 5,444 | |||
Greater than five years and less than ten years | 55,996 | ' | 55,996 | ' | 11,979 | |||
Greater than ten years | 13,589 | ' | 13,589 | ' | ' | |||
Fair Value | 93,479 | ' | 93,479 | ' | 27,250 | |||
Amortized Cost | ' | ' | ' | ' | ' | |||
Less than one year | 3,389 | ' | 3,389 | ' | 9,822 | |||
Greater than one year and less than five years | 20,716 | ' | 20,716 | ' | 5,446 | |||
Greater than five years and less than ten years | 59,695 | ' | 59,695 | ' | 11,814 | |||
Greater than ten years | 15,154 | ' | 15,154 | ' | ' | |||
Amortized Cost | 98,954 | ' | 98,954 | ' | 27,082 | |||
Weighted Average Coupon | ' | ' | ' | ' | ' | |||
Less than one year | 5.28% | ' | 5.28% | ' | 5.09% | |||
Greater than one year and less than five years | 5.21% | ' | 5.21% | ' | 6.11% | |||
Greater than five years and less than ten years | 2.88% | ' | 2.88% | ' | 2.69% | |||
Greater than ten years | 3.34% | ' | 3.34% | ' | ' | |||
Weighted Average Coupon | 3.53% | ' | 3.53% | ' | 4.23% | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' | ' | ' | |||
Fair value, less than 12 months, CMBS | 76,779 | ' | 76,779 | ' | 20,894 | |||
Gross unrealized losses, less than 12 months | -5,659 | ' | -5,659 | ' | -22 | |||
Fair value, more than 12 months | 0 | ' | 0 | ' | 0 | |||
Gross unrealized losses, more than 12 months | 0 | ' | 0 | ' | 0 | |||
Fair value, total | 76,779 | ' | 76,779 | ' | 20,894 | |||
Gross unrealized losses, total | -5,659 | ' | -5,659 | ' | -22 | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at September 30, 2013 | 93,479 | 27,250 | 93,479 | 27,250 | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, including accrued interest | 63,760 | [4] | ' | 63,760 | [4] | ' | 20,415 | [4] |
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 0.00% | ' | 0.00% | ' | 1.40% | |||
Accrued interest expense | 41 | ' | 41 | ' | 10 | |||
Linked Transactions | CMBS linked transactions | Within 30 days | ' | ' | ' | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, including accrued interest | 63,760 | [4] | ' | 63,760 | [4] | ' | 20,415 | [4] |
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.25% | ' | 1.25% | ' | 1.40% | |||
Linked Transactions | CMBS linked transactions | 30 days to 90 days | ' | ' | ' | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, including accrued interest | 0 | [4] | ' | 0 | [4] | ' | 0 | [4] |
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 0.00% | ' | 0.00% | ' | 0.00% | |||
Not Designated as Hedging Instrument | Unrealized gain/(loss) and net interest income on linked transactions, net | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Unrealized gain (loss) and net interest income on linked transactions, net | ' | ' | -4,343 | 386 | ' | |||
Not Designated as Hedging Instrument | Linked Transactions, net at fair value | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | 29,978 | ' | 29,978 | ' | 6,835 | |||
Moody [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 27,250 | ' | ' | |||
Net Purchases | ' | ' | 56,972 | ' | ' | |||
Upgrades/ Downgrades | ' | ' | -5,452 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 14,709 | ' | ' | |||
Fair Value at September 30, 2013 | 93,479 | ' | 93,479 | ' | ' | |||
Moody [Member] | Moody's, Aaa Rating [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 14,585 | ' | ' | |||
Net Purchases | ' | ' | 10,090 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 5,204 | ' | ' | |||
Fair Value at September 30, 2013 | 29,879 | ' | 29,879 | ' | ' | |||
Moody [Member] | Moody's, Aa1 through Aa3 [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 0 | ' | ' | |||
Net Purchases | ' | ' | 8,925 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at September 30, 2013 | 8,925 | ' | 8,925 | ' | ' | |||
Moody [Member] | Moody's, A1 through A3 Rating [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 5,444 | ' | ' | |||
Net Purchases | ' | ' | 0 | ' | ' | |||
MTM Change Same Ratings | ' | ' | -5,444 | ' | ' | |||
Fair Value at September 30, 2013 | 0 | ' | 0 | ' | ' | |||
Moody [Member] | Moody's, Baa1 through Baa3 Rating [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 0 | ' | ' | |||
Net Purchases | ' | ' | 0 | ' | ' | |||
Upgrades/ Downgrades | ' | ' | -5,452 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 10,903 | ' | ' | |||
Fair Value at September 30, 2013 | 5,451 | ' | 5,451 | ' | ' | |||
Moody [Member] | Moody's, Ba1 through Ba3 Rating [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 0 | ' | ' | |||
Net Purchases | ' | ' | 8,939 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at September 30, 2013 | 8,939 | ' | 8,939 | ' | ' | |||
Moody [Member] | Moody's, B1 through B3 Rating [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 0 | ' | ' | |||
Net Purchases | ' | ' | 12,235 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at September 30, 2013 | 12,235 | ' | 12,235 | ' | ' | |||
Moody [Member] | Moody's, Non-Rated [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 7,221 | ' | ' | |||
Net Purchases | ' | ' | 16,783 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 4,046 | ' | ' | |||
Fair Value at September 30, 2013 | 28,050 | ' | 28,050 | ' | ' | |||
Standard & Poor [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 27,250 | ' | ' | |||
Net Purchases | ' | ' | 56,971 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 9,258 | ' | ' | |||
Fair Value at September 30, 2013 | 93,479 | ' | 93,479 | ' | ' | |||
Standard & Poor [Member] | Standard & Poor's, AAA Rating [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 21,806 | ' | ' | |||
Net Purchases | ' | ' | 0 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 732 | ' | ' | |||
Fair Value at September 30, 2013 | 22,538 | ' | 22,538 | ' | ' | |||
Standard & Poor [Member] | Standard & Poor's, BBB Plus through BBB Minus [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 0 | ' | ' | |||
Net Purchases | ' | ' | 9,942 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at September 30, 2013 | 9,942 | ' | 9,942 | ' | ' | |||
Standard & Poor [Member] | Standard & Poor's, B Plus through B Minus [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 5,444 | ' | ' | |||
Net Purchases | ' | ' | 11,485 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 8 | ' | ' | |||
Fair Value at September 30, 2013 | 16,937 | ' | 16,937 | ' | ' | |||
Standard & Poor [Member] | Standard & Poors, Non-Rated [Member] | Linked Transactions | CMBS linked transactions | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at December 31, 2012 | ' | ' | 0 | ' | ' | |||
Net Purchases | ' | ' | 35,544 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 8,518 | ' | ' | |||
Fair Value at September 30, 2013 | $44,062 | ' | $44,062 | ' | ' | |||
[1] | September 30, 2013 December 31, 2012Assets of consolidated VIEs included in the total assets above: Restricted cash$53,752 $90,108 Investments securities available-for-sale, pledged as collateral, at fair value110,993 135,566 Loans held for sale332,351 14,894 Loans, pledged as collateral and net of allowances of $7.3 million and $15.2 million981,513 1,678,719 Interest receivable5,506 5,986 Prepaid expenses254 328 Principal paydown receivable7 25,570 Other assets35 333 Total assets of consolidated VIEs$1,484,411 $1,951,504 | |||||||
[2] | The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. | |||||||
[3] | September 30, 2013 December 31, 2012Liabilities of consolidated VIEs included in the total liabilities above: Borrowings$1,166,209 $1,614,882 Accrued interest expense2,184 2,666 Derivatives, at fair value11,766 14,078 Accounts payable and other liabilities646 698 Total liabilities of consolidated VIEs$1,180,805 $1,632,324 | |||||||
[4] | Balance includes $41,000 of accrued interest expense as of September 30, 2013. |
OFFSETTING_OF_FINANCIAL_ASSETS2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities, Derivative hedging instruments, at fair value | $12,208,000 | [1] | $14,687,000 | [1] |
Gross Amounts of Recognized Liabilities, Repurchase agreements | 205,265,000 | [2] | 106,303,000 | [2] |
Gross Amounts of Recognized Liabilities | 217,473,000 | 120,990,000 | ||
Gross Amounts Offset in the Consolidated Balance Sheet, Derivative hedging instruments, at fair value | 0 | [1] | 0 | [1] |
Gross Amounts Offset in the Consolidated Balance Sheet, Repurchase agreements | 0 | [2] | 0 | [2] |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative hedging instruments, at fair value | 12,208,000 | [1] | 14,687,000 | [1] |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Repurchase agreements | 205,265,000 | [2] | 106,303,000 | [2] |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 217,473,000 | 120,990,000 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments, Derivative hedging instruments, at fair value | 0 | [1],[3] | 0 | [1],[3] |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments, repurchase agreements | 205,265,000 | [2],[3] | 106,303,000 | [2],[3] |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 205,265,000 | [3] | 106,303,000 | [3] |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Cash Collateral Pledged, derivative hedging instruments, at fair value | 500,000 | [1],[3] | 500,000 | [1],[3] |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Cash Collateral Pledged, repurchase agreements | 0 | [2],[3] | 0 | [2],[3] |
Gross Amounts Not Offset in the Consolidated Balance Sheet, Cash Collateral Pledged | 500,000 | [3] | 500,000 | [3] |
Net Amount, Derivative hedging instruments, at fair value | 11,708,000 | [1] | 14,187,000 | [1] |
Net Amount, Repurchase agreements | 0 | [2] | 0 | [2] |
Net Amount | 11,708,000 | 14,187,000 | ||
Fair value of securities pledged against derivative hedging instruments | 8,300,000 | 13,100,000 | ||
Fair value of securities pledged against repurchase agreements | $284,300,000 | $145,200,000 | ||
[1] | The fair value of securities pledged against the Company's swaps was $8.3 million and $13.1 million at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | The fair value of securities pledged against the Company's repurchase agreements was $284.3 million and $145.2 million at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Amounts disclosed in the Financial Instruments column of the table above represents collateral pledged that is available to be offset against liability balances associated with repurchase agreement and derivative transactions. Amounts disclosed in the Cash Collateral Pledged column of the table above represents amounts pledged as collateral against derivative transactions. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2013 | Oct. 15, 2013 | Oct. 31, 2013 | |
Preferred Stock [Member] | Convertible Senior Notes Due 2018 [Member] | Primary Capital Advisors LC [Member] | ||
Convertible Senior Notes [Member] | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Proceeds from issuance of preferred stock | $619,000 | ' | ' | ' |
Issuance of stock (in shares) | ' | 27,577 | ' | ' |
Debt principal amount, portion for underwriting agreement | ' | ' | 115,000,000 | ' |
Stated interest rate | ' | ' | 6.00% | ' |
Debt principal amount, portion for over-allotments | ' | ' | 15,000,000 | ' |
Proceeds from issuance of long-term debt | ' | ' | 111,100,000 | ' |
Acquisition, total | ' | ' | ' | 8,400,000 |
Acquisition, cash | ' | ' | ' | 7,600,000 |
Acquisition, stock | ' | ' | ' | 800,000 |
Acquisition, escrow deposit | ' | ' | ' | $1,800,000 |