Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 05, 2014 | |
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 | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 131,703,361 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $222,313 | [1] | $262,270 | [1] |
Restricted cash | 91,215 | [1] | 63,309 | [1] |
Investment securities, trading | 8,951 | [1] | 11,558 | [1] |
Investment securities available-for-sale, pledged as collateral, at fair value | 196,009 | [1] | 162,608 | [1] |
Investment securities available-for-sale, at fair value | 68,494 | [1] | 52,598 | [1] |
Linked transactions, net at fair value | 13,676 | [1] | 30,066 | [1] |
Loans held for sale | 40,286 | [1] | 21,916 | [1] |
Property available-for-sale | 29,509 | [1] | 25,346 | [1] |
Investment in real estate | 0 | [1] | 29,778 | [1] |
Loans, pledged as collateral and net of allowances of $6.5 million and $13.8 million ($120.8 million and $0 at fair value) | 1,740,656 | [1],[2] | 1,369,526 | [1] |
Loans receivable–related party net of allowances of $700,000 and $0 | 4,751 | [1] | 6,966 | [1] |
Investments in unconsolidated entities | 60,480 | [1] | 69,069 | [1] |
Derivatives, at fair value | 755 | [1] | 0 | [1] |
Interest receivable | 12,028 | [1] | 8,965 | [1] |
Deferred tax asset | 7,480 | [1] | 5,212 | [1] |
Principal paydown receivable | 31,950 | [1] | 6,821 | [1] |
Intangible assets | 10,771 | [1] | 11,822 | [1] |
Prepaid expenses | 4,153 | [1] | 2,871 | [1] |
Other assets | 15,272 | [1] | 10,726 | [1] |
Total assets | 2,558,749 | [1] | 2,151,427 | [1] |
LIABILITIES | ' | ' | ||
Borrowings ($140.2 million and $0 at fair value) | 1,579,834 | [3] | 1,319,810 | [3] |
Distribution payable | 28,697 | [3] | 27,023 | [3] |
Accrued interest expense | 2,063 | [3] | 1,693 | [3] |
Derivatives, at fair value | 9,855 | [3] | 10,586 | [3] |
Accrued tax liability | 2,389 | [3] | 1,629 | [3] |
Deferred tax liability | 4,036 | [3] | 4,112 | [3] |
Accounts payable and other liabilities | 9,948 | [3] | 12,650 | [3] |
Total liabilities | 1,636,822 | [3] | 1,377,503 | [3] |
STOCKHOLDERS’ EQUITY | ' | ' | ||
Common stock, par value $0.001: 500,000,000 shares authorized; 131,153,573 and 127,918,927 shares issued and outstanding (including 2,550,103 and 3,112,595 unvested restricted shares) | 131 | 128 | ||
Additional paid-in capital | 1,209,488 | 1,042,480 | ||
Accumulated other comprehensive loss | -10,194 | -14,043 | ||
Distributions in excess of earnings | -277,120 | -254,645 | ||
Total stockholders’ equity | 922,316 | 773,924 | ||
Non-Controlling interests | -389 | 0 | ||
Total equity | 921,927 | 773,924 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,558,749 | 2,151,427 | ||
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 | 5 | 3 | ||
Redeemable Preferred Stock Series C [Member] | ' | ' | ||
STOCKHOLDERS’ EQUITY | ' | ' | ||
Preferred stock, par value $0.001 | $5 | $0 | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 | |||
[2] | Contains loans for which the fair value option was elected with an unpaid principal balance of $124.9 million and a fair value of $120.8 million at June 30, 2014. | |||
[3] | June 30, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings ($140.2 million and $0 at fair value)$1,111,314 $1,070,339 Accrued interest expense1,295 918 Derivatives, at fair value9,071 10,191 Accounts payable and other liabilities1,958 1,604 Total liabilities of consolidated VIEs$1,123,638 $1,083,052 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
ASSETS | ' | ' | ' |
Loans receivable, allowance | $6,500,000 | $6,500,000 | $13,800,000 |
Loans, pledged as collateral, amount at fair value | 120,800,000 | 120,800,000 | 0 |
Loans receivable, allowance, related party | 700,000 | 700,000 | 0 |
Borrowings, amount at fair value | 140,200,000 | 140,200,000 | 0 |
STOCKHOLDERS’ EQUITY | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 131,153,573 | 131,153,573 | 127,918,927 |
Common stock, shares outstanding (in shares) | 131,153,573 | 131,153,573 | 127,918,927 |
Common stock, shares issued, non-vested restricted shares (in shares) | 2,550,103 | 2,550,103 | 3,112,595 |
Assets of consolidated VIEs included in total assets: | ' | ' | ' |
Restricted cash | 88,762,000 | 88,762,000 | 61,372,000 |
Investment securities available-for-sale, pledged as collateral, at fair value | 114,641,000 | 114,641,000 | 105,846,000 |
Loans held for sale | 1,808,000 | 1,808,000 | 2,376,000 |
Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value) | 1,234,382,000 | 1,234,382,000 | 1,219,569,000 |
Interest receivable | 6,955,000 | 6,955,000 | 5,627,000 |
Prepaid expenses | 154,000 | 154,000 | 247,000 |
Principal paydown receivable | 31,950,000 | 31,950,000 | 6,821,000 |
Total assets of consolidated VIEs | 1,478,652,000 | 1,478,652,000 | 1,401,858,000 |
Liabilities of consolidated VIEs included in total liabilities: | ' | ' | ' |
Borrowings ($140.2 million and $0 at fair value) | 1,111,314,000 | 1,111,314,000 | 1,070,339,000 |
Accrued interest expense | 1,295,000 | 1,295,000 | 918,000 |
Derivatives, at fair value | 9,071,000 | 9,071,000 | 10,191,000 |
Accounts payable and other liabilities | 1,958,000 | 1,958,000 | 1,604,000 |
Total liabilities of consolidated VIEs | 1,123,638,000 | 1,123,638,000 | 1,083,052,000 |
Variable interest entity, loans, pledged as collateral, allowance | 4,900,000 | 4,900,000 | 8,800,000 |
Variable interest entity, loans pledged as collateral, at fair value | 120,800,000 | 120,800,000 | 0 |
Variable interest entity, borrowings, at fair value | $140,200,000 | $140,200,000 | $0 |
Redeemable Preferred Stock Series A [Member] | ' | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | ' |
Preferred stock, coupon authorized (in hundredths) | ' | 8.50% | ' |
Preferred stock, shares issued (in shares) | 1,011,743 | 1,011,743 | 680,952 |
Preferred stock, shares outstanding (in shares) | 1,011,743 | 1,011,743 | 680,952 |
Redeemable Preferred Stock Series B [Member] | ' | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | ' |
Preferred stock, coupon authorized (in hundredths) | ' | 8.25% | ' |
Preferred stock, shares issued (in shares) | 4,611,294 | 4,611,294 | 3,485,078 |
Preferred stock, shares outstanding (in shares) | 4,611,294 | 4,611,294 | 3,485,078 |
Redeemable Preferred Stock Series C [Member] | ' | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | ' |
Preferred stock, coupon authorized (in hundredths) | 8.63% | 8.63% | ' |
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 | 0 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Loans | $26,219 | $26,184 | $46,448 | $53,996 |
Securities | 3,391 | 3,896 | 7,395 | 7,538 |
Interest income − other | 982 | 635 | 3,834 | 2,501 |
Total interest income | 30,592 | 30,715 | 57,677 | 64,035 |
Interest expense | 10,610 | 11,134 | 20,247 | 22,299 |
Net interest income | 19,982 | 19,581 | 37,430 | 41,736 |
Rental income | 1,507 | 5,052 | 6,659 | 11,226 |
Dividend income | 17 | 17 | 153 | 33 |
Equity in net earnings (losses) of unconsolidated subsidiaries | 1,762 | 72 | 3,776 | -353 |
Fee income | 2,717 | 1,527 | 5,473 | 2,937 |
Net realized and unrealized gains on sales of investment securities available-for-sale and loans | 4,261 | 2,394 | 7,941 | 2,785 |
Net realized and unrealized (losses) gains on investment securities, trading | -650 | -1,751 | -2,210 | -635 |
Unrealized gains (losses) and net interest income on linked transactions, net | 5,012 | -5,245 | 7,317 | -5,504 |
Total revenues | 34,608 | 21,647 | 66,539 | 52,225 |
OPERATING EXPENSES | ' | ' | ' | ' |
Management fees − related party | 3,314 | 2,915 | 6,394 | 5,893 |
Equity compensation − related party | 2,032 | 2,155 | 3,699 | 5,746 |
Rental operating expense | 1,077 | 3,624 | 4,473 | 7,561 |
General and administrative | 11,896 | 2,382 | 20,001 | 5,863 |
Depreciation and amortization | 760 | 999 | 1,596 | 2,137 |
Income tax (benefit) expense | -446 | 1,737 | -430 | 3,499 |
Net impairment losses recognized in earnings | 0 | 535 | 0 | 556 |
Provision (benefit) for loan losses | 782 | -1,242 | -3,178 | -200 |
Total operating expenses | 19,415 | 13,105 | 32,555 | 31,055 |
Net interest and other revenues less operating expenses | 15,193 | 8,542 | 33,984 | 21,170 |
OTHER REVENUE (EXPENSE) | ' | ' | ' | ' |
Loss on the reissuance of debt | -533 | 0 | -602 | 0 |
Other expense | 0 | 0 | -1,262 | 0 |
Gain on sale of real estate | 3,042 | 0 | 3,042 | 0 |
Total other revenue | 2,509 | 0 | 1,178 | 0 |
NET INCOME | 17,702 | 8,542 | 35,162 | 21,170 |
Net income allocated to preferred shares | -3,358 | -1,800 | -5,758 | -3,111 |
Net loss (income) allocable to non-controlling interest, net of taxes | 333 | -209 | 389 | 0 |
NET INCOME ALLOCABLE TO COMMON SHARES | $14,677 | $6,533 | $29,793 | $18,059 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $0.12 | $0.05 | $0.24 | $0.16 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $0.11 | $0.05 | $0.23 | $0.16 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 128,142,637 | 122,283,503 | 127,409,127 | 113,832,183 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $17,702 | $8,542 | $35,162 | $21,170 |
Other comprehensive income: | ' | ' | ' | ' |
Reclassification adjustment for gains (losses) included in net income | 2,722 | -4,498 | 4,187 | -5,125 |
Unrealized (losses) gains on available-for-sale securities, net | 264 | 4,699 | -1,490 | 9,922 |
Reclassification adjustments associated with unrealized losses from interest rate hedges included in net income | 72 | 138 | 142 | 193 |
Unrealized gains on derivatives, net | 803 | 1,330 | 1,190 | 1,982 |
Foreign currency translation | 16 | 0 | -180 | 0 |
Total other comprehensive (loss) income | 3,877 | 1,669 | 3,849 | 6,972 |
Comprehensive income before allocation to non-controlling interests and preferred shares | 21,579 | 10,211 | 39,011 | 28,142 |
Allocation to non-controlling interest | 333 | -209 | 389 | 0 |
Allocation to preferred shares | -3,358 | -1,800 | -5,758 | -3,111 |
Comprehensive income allocable to common shares | $18,554 | $8,202 | $33,642 | $25,031 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Distributions in Excess of Earnings [Member] | Noncontrolling Interest [Member] | Parent [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series C [Member] |
In Thousands, except Share data, unless otherwise specified | Additional Paid-In Capital [Member] | Noncontrolling Interest [Member] | Parent [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | |||||||||
Balance at Dec. 31, 2013 | $773,924 | $128 | $1,042,480 | ($14,043) | $0 | ($254,645) | $0 | $773,924 | ' | ' | ' | ' | $1 | $3 | $0 |
Balance (in shares) at Dec. 31, 2013 | 127,918,927 | 127,918,927 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment and stock purchase plan (in shares) | 2,600,000 | 2,588,327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment and stock purchase plan | 14,554 | 2 | 14,552 | ' | ' | ' | 0 | 14,554 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of stock | ' | ' | ' | ' | ' | ' | ' | ' | 153,643 | 153,636 | 0 | 153,643 | 0 | 2 | 5 |
Offering costs | -4,878 | ' | -4,878 | ' | ' | ' | 0 | -4,878 | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation (in shares) | ' | 646,319 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation | 1 | 1 | 0 | ' | ' | ' | 0 | 1 | ' | ' | ' | ' | ' | ' | ' |
Amortization of stock based compensation | 3,698 | ' | 3,698 | ' | ' | ' | 0 | 3,698 | ' | ' | ' | ' | ' | ' | ' |
Net Income | 35,551 | ' | ' | ' | 35,551 | ' | -389 | 35,162 | ' | ' | ' | ' | ' | ' | ' |
Preferred dividends | -5,758 | ' | ' | ' | -5,758 | ' | 0 | -5,758 | ' | ' | ' | ' | ' | ' | ' |
Securities available-for-sale, fair value adjustment, net | 2,697 | ' | ' | 2,697 | ' | ' | 0 | 2,697 | ' | ' | ' | ' | ' | ' | ' |
Designated derivatives, fair value adjustment | 1,332 | ' | ' | 1,332 | ' | ' | 0 | 1,332 | ' | ' | ' | ' | ' | ' | ' |
Cumulative translation adjustment | -180 | ' | ' | -180 | ' | ' | 0 | -180 | ' | ' | ' | ' | ' | ' | ' |
Distributions on common stock | -52,268 | ' | ' | ' | -29,793 | -22,475 | 0 | -52,268 | ' | ' | ' | ' | ' | ' | ' |
Balance at Jun. 30, 2014 | $922,316 | $131 | $1,209,488 | ($10,194) | $0 | ($277,120) | ($389) | $921,927 | ' | ' | ' | ' | $1 | $5 | $5 |
Balance (in shares) at Jun. 30, 2014 | 131,153,573 | 131,153,573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net income | $35,162,000 | $21,170,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Provision for loan losses | -3,178,000 | -200,000 | |
Depreciation of investments in real estate and other | 1,635,000 | 1,202,000 | |
Amortization of intangible assets | 1,024,000 | 996,000 | |
Amortization of term facilities | 0 | 495,000 | |
Accretion of net discounts on loans held for investment | -1,310,000 | -6,930,000 | |
Accretion of net discounts on securities available-for-sale | -1,637,000 | -1,430,000 | |
Amortization of discount on notes securitization | 41,000 | 1,772,000 | |
Amortization of debt issuance costs on notes of securitizations | 1,510,000 | 1,965,000 | |
Amortization of discounts on convertible notes | 659,000 | 0 | |
Amortization of stock-based compensation | 3,698,000 | 5,746,000 | |
Amortization of terminated derivative instruments | 142,000 | 193,000 | |
Accretion of interest-only available-for-sales securities | -339,000 | -485,000 | |
Deferred income tax (benefits) | -689,000 | -115,000 | |
Change in mortgage loans held for sale, net | -12,162,000 | 0 | |
Purchase of mortgage loans held for sale | ' | 0 | |
Purchase of securities, trading | 0 | -10,044,000 | |
Principal payments on securities, trading | 50,000 | 3,272,000 | |
Proceeds from sales of securities, trading | 379,000 | 18,713,000 | |
Net realized and unrealized loss on investment securities, trading | 2,210,000 | 635,000 | |
Net realized gain on sales of investment securities available-for-sale and loans | -2,148,000 | -2,785,000 | |
Loss on the reissuance of debt | 602,000 | 0 | |
Gain on the sale of real estate | -3,042,000 | 0 | |
Net impairment losses recognized in earnings | 0 | 548,000 | |
Linked Transactions fair value adjustments | -5,923,000 | 6,385,000 | |
Equity in net (earnings) losses of unconsolidated subsidiaries | -3,776,000 | 353,000 | |
Changes in operating assets and liabilities, net of acquisitions | 980,000 | 5,283,000 | |
Net cash provided by operating activities | 13,888,000 | 46,739,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Decrease (increase) in restricted cash, net of acquisitions | 10,543,000 | -5,926,000 | |
Purchase of securities available-for-sale | -107,339,000 | -96,031,000 | |
Principal payments received on securities available-for-sale | 25,774,000 | 20,040,000 | |
Proceeds from sale of securities available-for-sale | 99,151,000 | 7,025,000 | |
Proceeds from (investment in) unconsolidated entity | 8,911,000 | -15,534,000 | |
Acquisition of Moselle CLO S.A. | -30,433,000 | 0 | |
Proceeds from real estate held-for-sale | 31,202,000 | 0 | |
Improvement of real estate held-for-sale | 0 | -404,000 | |
Purchase of loans | -489,800,000 | -377,679,000 | |
Principal payments received on loans | 196,973,000 | 386,686,000 | |
Proceeds from sale of loans | 44,024,000 | 170,450,000 | |
Distributions from investments in real estate | 0 | 522,000 | |
Improvements in investments in real estate | 252,000 | -365,000 | |
Purchase of furniture and fixtures | -69,000 | 0 | |
Acquisition of property and equipment | -332,000 | 0 | |
Investment in loans - related parties | -244,000 | 0 | |
Principal payments received on loans – related parties | 1,759,000 | 362,000 | |
Net cash (used in) provided by investing activities | -209,628,000 | 89,146,000 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net proceeds from issuances of common stock (net of offering costs of $0 and $4,265) | 0 | 114,018,000 | |
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $19) | 14,554,000 | 18,164,000 | |
Proceeds from borrowings: | ' | ' | |
Repurchase agreements | 175,738,000 | 104,325,000 | |
Warehouse agreement | 43,000,000 | 0 | |
Reissuance of debt | 16,502,000 | 0 | |
Payments on borrowings: | ' | ' | |
Collateralized debt obligations | -152,556,000 | -286,962,000 | |
Warehouse agreement | -33,719,000 | 0 | |
Payment of debt issuance costs | -8,000 | -1,178,000 | |
Settlement of derivative instruments | 442,000 | 0 | |
Payment of equity to third party sub-note holders | -799,000 | -2,661,000 | |
Distributions paid on preferred stock | -4,679,000 | -2,446,000 | |
Distributions paid on common stock | -51,457,000 | -43,665,000 | |
Net cash provided by (used in) financing activities | 155,783,000 | -52,761,000 | |
NET DECREASE (INCREASE) IN CASH AND CASH EQUIVALENTS | -39,957,000 | 83,124,000 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 262,270,000 | [1] | 85,278,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 222,313,000 | [1] | 168,402,000 |
SUPPLEMENTAL DISCLOSURE: | ' | ' | |
Interest expense paid in cash | 17,438,000 | 20,214,000 | |
Income taxes paid in cash | 3,249,000 | 9,113,000 | |
Redeemable Preferred Stock Series A [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares, net of offering costs | 7,697,000 | 0 | |
Redeemable Preferred Stock Series B [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares, net of offering costs | 25,253,000 | 47,644,000 | |
Redeemable Preferred Stock Series C [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares, net of offering costs | $115,815,000 | $0 | |
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $0 | $19 |
Common Stock [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 0 | 4,265 |
Redeemable Preferred Stock Series A [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 167 | 0 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ' |
Redeemable Preferred Stock Series B [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 525 | 707 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ' |
Redeemable Preferred Stock Series C [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | $4,186 | $0 |
Preferred stock, coupon authorized (in hundredths) | 8.63% | ' |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended | |
Jun. 30, 2014 | ||
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 ("CRE") 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 CRE loans and CMBS. | |
◦ | Resource Capital Corp. CRE Notes 2013, Ltd. (“RCC CRE Notes 2013”), a Cayman Islands limited liability company and QRS. RCC CRE Notes 2013 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. | |
• | RCC Commercial, Inc. (“RCC Commercial”) holds bank loan investments and the Company's self-originated middle market loans. RCC Commercial owns 90% 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 structured notes, available-for-sale and investments in the subordinated notes of foreign syndicated bank loan collateralized loan obligations ("CLO"). Commercial II owns 100%, 68.3%, and 88.6% 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. In September 2013, the Company substantially liquidated Whitney CLO I and, as a result, all of the assets were sold. | |
◦ | Moselle CLO S.A. ("Moselle CLO"), incorporated in Luxembourg, is a CLO issuer whose assets consist of European senior secured loans, U.S. senior secured loans, U.S. senior unsecured loans, U.S. second lien loans, European mezzanine loans, and a limited amount of synthetic securities and other eligible debt obligations. | |
• | RCC Commercial III, Inc. (“Commercial III”) holds bank loan investments. 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 also owns 100% of the following: | |
◦ | Resource TRS, LLC, a Delaware limited liability company, which holds bank loan investments. | |
• | 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, which is entitled to collect senior, subordinated, and incentive fees related to three 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"). | |
• | 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. In October 2013, the Company substantially liquidated Apidos CLO VIII, and as a result, all of the assets were sold. | |
• | 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. The hotel condominium units were sold during the three months ended June 30, 2014. | |
• | Resource TRS V, Inc. (“Resource TRS V”), a TRS directly owned by the Company, held the Company's equity investment in a held for sale condominium complex. All of the condominiums were sold as of December 31, 2013. | |
• | 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, which owns a 50.2% 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. Although no further material purchase price adjustments for LCF are anticipated, the Company has not yet completed the process of estimating the fair value of assets acquired and liabilities assumed on this investment. Accordingly, the Company's preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as the Company completes the process. In accordance with FASB ASC Topic 805, changes, if any, to the preliminary estimates and allocation will be reported in the Company's consolidated financial statements, retrospectively. | |
• | RCC Residential, Inc., a TRS directly owned by the Company, is a Delaware corporation which owns 100% of the following entity: | |
◦ | Primary Capital Mortgage, LLC ("PCM"), (formerly known as Primary Capital Advisors LLC) , a limited liability company which originates and services residential mortgage loans. | |
▪ | RCC Residential Portfolio, Inc. ("RCC Resi Portfolio") is a Delaware corporation directly owned by the Company which invests in residential mortgage-backed securities (“RMBS”). | |
▪ | RCC Residential Portfolio TRS, Inc. ("RCC Resi TRS"), a TRS directly owned by the Company, is a Delaware corporation which intends to hold strategic residential positions which cannot be held by RCC Resi Portfolio. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | |
Jun. 30, 2014 | ||
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 and investment securities, available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as market participant assumptions with regard to other data such as prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If the difference between the value indicated by the third-party valuation firm and the dealer quote or bid is over a pre-determined threshold, the Company will evaluate the difference which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of income as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. | ||
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 consolidated statements of income. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. | ||
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. | ||
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. | |
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. For the Company's bank and CRE loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually 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. The reviews 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. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. | ||
Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are initially written down to fair value. They are re-measured on a nonrecurring basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). | ||
For the Company's residential mortgage loans, the allowance is based upon management's review of the collectability of the loans in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general components. For loans that are identified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. A general component is maintained to cover uncertainties that could affect management's estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||
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") Accounting Standards Codification ("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 with respect to the Company’s investments in real estate or intangible assets during the six months ended June 30, 2014 and 2013. | ||
Recent Accounting Standards | ||
In June 2014, the FASB issued guidance that changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement for repurchase arrangements. This amendment also requires additional disclosure for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. This guidance is effective for the first interim or annual period beginning after December 15, 2014. The Company expects to show assets, liabilities, income and expense gross on its consolidated financial statements and provide the additional required disclosure. | ||
In April 2014, the FASB issued guidance that changes the requirements for reporting discontinued operations. The amendments in this update require an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position. The amendments in this update also require additional disclosures about discontinued operations and new disclosures for disposal transactions of individually significant components of an entity that do not meet the definition of a discontinued operation. Additionally, this guidance both permits and expands the disclosures about an entity’s significant continuing involvement with a discontinued operation. This guidance is effective for all disposals or classifications as held for sale of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted for disposals that have not been reported in financial statements previously issued or available for sale. The Company has early adopted the provisions of this guidance. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
In January 2014, the FASB issued guidance that clarifies when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. Furthermore, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. 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 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. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
Reclassifications | ||
Certain reclassifications have been made to the 2013 consolidated financial statements to conform to the 2014 presentation. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
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 securitizations 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 such VIE should be consolidated. | ||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs (the Company is the primary beneficiary) | ||||||||||||||||||||||||||||||||||||||||
Based on management’s analysis, the Company is the primary beneficiary of nine VIEs at June 30, 2014: Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1, Whitney CLO I, RCC CRE Notes 2013 and Moselle CLO. In performing the primary beneficiary analysis for seven of these VIEs (other than Whitney CLO I and Moselle CLO, which are discussed below), it was determined that the parties that have the power to direct the activities that are most significant to each of these VIEs and who have 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 considering the design of the VIE, the principal-agency relationship between the Company and other members of the related-party group, and the relationship and significance of the activities of the VIE to the Company compared to the other members of the related-party group. | ||||||||||||||||||||||||||||||||||||||||
Except for Whitney CLO I and Moselle CLO, these securitizations were formed on behalf of the Company to invest in real estate-related securities, CMBS, property available-for-sale, bank loans, corporate bonds and asset-backed securities, 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 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 and is continually assessed. | ||||||||||||||||||||||||||||||||||||||||
Moselle CLO is a European securitization in which the Company purchased a $40.0 million interest in the form of subordinate notes representing 100% of the Class 1 Subordinated Notes and 67.9% of the Class 2 subordinated Notes in February 2014. The CLO is managed by an independent third-party and such collateral management activities were determined to be the activities that most significantly impact the economic performance of the CLO. Though neither the Company nor one of its related parties manages the CLO, due to certain unilateral kick-out rights within the collateral management agreement, it was determined that the Company had the power to direct the activities that most significantly impact the economic performance of Moselle CLO. Having both the power to direct the activities that most significantly impact Moselle CLO and a financial interest that is expected to absorb both positive and negative variability in the CLO that could potentially be significant, the Company was determined to be the the primary beneficiary of Moselle CLO and, therefore, consolidated the CLO. | ||||||||||||||||||||||||||||||||||||||||
Whitney CLO I is a securitization in which the Company acquired rights to manage the collateral assets held by the entity in February 2011. For a discussion on the primary beneficiary analysis for Whitney, see “— Unconsolidated VIEs – Resource Capital Asset Management,” below. | ||||||||||||||||||||||||||||||||||||||||
For a discussion of the Company’s securitizations, see Note 1 and for a discussion of the debt issued through the securitizations, 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 statements of income. | ||||||||||||||||||||||||||||||||||||||||
The Company has exposure to losses on its securitizations 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 securitizations, distributions with respect to its preferred equity interests. As a result of consolidation, debt and equity interests the Company holds in these securitizations have been eliminated, and the Company’s consolidated balance sheets reflects both the assets held and debt issued by the securitizations to third parties and any accrued expense to third parties. The Company's operating results and cash flows include the gross amounts related to the securitizations' assets and liabilities as opposed to the Company's net economic interests in the securitizations. Assets and liabilities related to the securitizations are disclosed, in the aggregate, on the Company's consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||||
The creditors of the Company’s nine 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 six months ended June 30, 2014, the Company has provided financial support of $10,000 and $549,000, respectively. For the three and six months ended June 30, 2013, the Company has provided financial support of $688,000 and $1.9 million, respectively. The Company has provided no other financial support to any other of its 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 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 June 30, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | RCC CRE Notes 2013 | Moselle | Total | |||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006-1 | 2007-1 | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Restricted cash (1) | $ | 7,323 | $ | 2,374 | $ | 30,731 | $ | 7 | $ | 80 | $ | 20 | $ | 250 | $ | 4,097 | $ | 43,880 | $ | 88,762 | ||||||||||||||||||||
Investment securities | 7,227 | 3,933 | 13,045 | — | — | 10,112 | 67,702 | — | 12,622 | 114,641 | ||||||||||||||||||||||||||||||
available-for-sale, | ||||||||||||||||||||||||||||||||||||||||
pledged as | ||||||||||||||||||||||||||||||||||||||||
collateral, at | ||||||||||||||||||||||||||||||||||||||||
fair value | ||||||||||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 59,177 | 102,046 | 302,247 | — | — | 154,012 | 218,384 | 277,750 | 120,766 | 1,234,382 | ||||||||||||||||||||||||||||||
Loans held for sale | — | 932 | 876 | — | — | — | — | — | — | 1,808 | ||||||||||||||||||||||||||||||
Interest receivable | (235 | ) | 495 | 932 | — | — | 1,995 | 2,322 | 1,446 | — | 6,955 | |||||||||||||||||||||||||||||
Prepaid assets | 8 | 10 | 23 | — | — | 18 | 95 | — | — | 154 | ||||||||||||||||||||||||||||||
Principal paydown | — | — | — | — | — | — | 9,300 | 22,650 | — | 31,950 | ||||||||||||||||||||||||||||||
receivable | ||||||||||||||||||||||||||||||||||||||||
Total assets (2) | $ | 73,500 | $ | 109,790 | $ | 347,854 | $ | 7 | $ | 80 | $ | 166,157 | $ | 298,053 | $ | 305,943 | $ | 177,268 | $ | 1,478,652 | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 56,922 | $ | 97,458 | $ | 319,639 | $ | — | $ | — | $ | 106,029 | $ | 126,004 | $ | 256,807 | $ | 148,455 | $ | 1,111,314 | ||||||||||||||||||||
Accrued | 234 | 49 | 307 | — | — | 44 | 94 | 190 | 377 | 1,295 | ||||||||||||||||||||||||||||||
interest expense | ||||||||||||||||||||||||||||||||||||||||
Derivatives, | — | — | — | — | — | 1,290 | 7,781 | — | — | 9,071 | ||||||||||||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||||||||||||||
Accounts payable | 12 | 19 | 29 | 198 | — | 9 | 1 | — | 1,690 | 1,958 | ||||||||||||||||||||||||||||||
and other liabilities | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 57,168 | $ | 97,526 | $ | 319,975 | $ | 198 | $ | — | $ | 107,372 | $ | 133,880 | $ | 256,997 | $ | 150,522 | $ | 1,123,638 | ||||||||||||||||||||
(1) Includes $4.3 million available for reinvestment in certain of the securitizations. | ||||||||||||||||||||||||||||||||||||||||
(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 financial statements as of June 30, 2014. 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, Inc. ("LEAF Financial"), a subsidiary of Resource America, and LEAF Commercial Capital, Inc. (“LCC”), another subsidiary 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. The Company’s investment in LCC was valued at $36.3 million based on a third-party valuation. The Company's fully-diluted interest in LCC assuming conversion is 28.3%. The Company’s investment in LCC was recorded at $40.1 million and $41.0 million as of June 30, 2014 and December 31, 2013, 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 28.3% 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. | ||||||||||||||||||||||||||||||||||||||||
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 bank loan assets through five CLOs. As a result, the Company became 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 amortized over the expected life of each CLO. The unamortized balance of the intangible asset was $10.3 million and $11.2 million at June 30, 2014 and December 31, 2013, respectively. The Company recognized fee income of $1.1 million and $2.8 million for the three and six months ended June 30, 2014, respectively, and $1.5 million and $2.9 million for the three and six months ended June 30, 2013, respectively. With respect to four of these CLOs, the Company determined that it does not hold a controlling financial interest and, therefore, is not the primary beneficiary. One of these CLOs was substantially liquidated in February 2013. With respect to the fifth CLO, Whitney CLO I, in October 2012, the Company purchased 66.6% of its preferred equity. Based upon that purchase, the Company determined that it did 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 had the power to direct the activities that are most significant to the VIE. As a result, together with the related party, the Company had 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 was 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 the CLO. In September 2013, the Company substantially liquidated Whitney CLO I, and, as a result, substantially all of the assets were sold. | ||||||||||||||||||||||||||||||||||||||||
The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of June 30, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Unconsolidated Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
LCC | Unsecured | Resource | Total | Maximum | ||||||||||||||||||||||||||||||||||||
Junior | Capital Asset | Exposure | ||||||||||||||||||||||||||||||||||||||
Subordinated | Management | to Loss | ||||||||||||||||||||||||||||||||||||||
Debentures | CDOs | |||||||||||||||||||||||||||||||||||||||
Investment in unconsolidated entities | $ | 40,144 | $ | 1,548 | $ | — | $ | 41,692 | $ | 41,692 | ||||||||||||||||||||||||||||||
Intangible assets | — | — | 10,341 | 10,341 | $ | 10,341 | ||||||||||||||||||||||||||||||||||
Total assets | 40,144 | 1,548 | 10,341 | 52,033 | ||||||||||||||||||||||||||||||||||||
Borrowings | — | 51,104 | — | 51,104 | N/A | |||||||||||||||||||||||||||||||||||
Total liabilities | — | 51,104 | — | 51,104 | N/A | |||||||||||||||||||||||||||||||||||
Net asset (liability) | $ | 40,144 | $ | (49,556 | ) | $ | 10,341 | $ | 929 | N/A | ||||||||||||||||||||||||||||||
Other than its 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 | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Non-cash financing activities include the following: | ||||||||
Distributions on common stock declared but not paid | $ | 26,179 | $ | 25,399 | ||||
Distribution on preferred stock declared but not paid | $ | 4,353 | $ | 1,944 | ||||
Issuance of restricted stock | $ | 646 | $ | 151 | ||||
INVESTMENT_SECURITIES_TRADING
INVESTMENT SECURITIES TRADING | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
INVESTMENT SECURITIES TRADING | ' | |||||||||||||||
INVESTMENT SECURITIES, TRADING | ||||||||||||||||
Structured notes are CLO debt securities collateralized by syndicated bank loans. The following table summarizes the Company's structured notes and RMBS which are classified as investment securities, trading and carried at fair value (in thousands): | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
As of June 30, 2014 | ||||||||||||||||
Structured notes, trading | $ | 8,056 | $ | 2,130 | $ | (1,567 | ) | $ | 8,619 | |||||||
RMBS, trading | 1,901 | — | (1,569 | ) | 332 | |||||||||||
Total | $ | 9,957 | $ | 2,130 | $ | (3,136 | ) | $ | 8,951 | |||||||
As of December 31, 2013 | ||||||||||||||||
Structured notes, trading | $ | 8,057 | $ | 4,050 | $ | (1,000 | ) | $ | 11,107 | |||||||
RMBS, trading | 1,919 | — | (1,468 | ) | 451 | |||||||||||
Total | $ | 9,976 | $ | 4,050 | $ | (2,468 | ) | $ | 11,558 | |||||||
The Company sold one security during the six months ended June 30, 2014, for a realized gain of $379,000. The Company held seven and eight investment securities, trading as of June 30, 2014 and December 31, 2013, respectively. |
INVESTMENT_SECURITIES_AVAILABL
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
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. 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. | |||||||||||||||||||||||||||||||||
ABS and structured notes are CLO debt securities collateralized by syndicated bank loans. The structured notes are foreign currency denominated ABS. 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 Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 175,983 | $ | 7,074 | $ | (10,683 | ) | $ | 172,374 | ||||||||||||||||||||||||
RMBS | 30,647 | — | — | 30,647 | |||||||||||||||||||||||||||||
ABS | 32,145 | 1,429 | (214 | ) | 33,360 | ||||||||||||||||||||||||||||
Structured notes | 23,203 | 1,452 | — | 24,655 | |||||||||||||||||||||||||||||
Corporate bonds | 3,360 | 107 | — | 3,467 | |||||||||||||||||||||||||||||
Total | $ | 265,338 | $ | 10,062 | $ | (10,897 | ) | $ | 264,503 | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS | $ | 185,178 | $ | 7,570 | $ | (12,030 | ) | $ | 180,718 | ||||||||||||||||||||||||
ABS | 25,406 | 1,644 | (394 | ) | 26,656 | ||||||||||||||||||||||||||||
Structured notes | 5,369 | — | — | 5,369 | |||||||||||||||||||||||||||||
Corporate bonds | 2,517 | 16 | (70 | ) | 2,463 | ||||||||||||||||||||||||||||
Total | $ | 218,470 | $ | 9,230 | $ | (12,494 | ) | $ | 215,206 | ||||||||||||||||||||||||
The following table summarizes the estimated maturities of the Company’s investment securities according to their estimated weighted average life classifications (in thousands, except percentages): | |||||||||||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized Cost | Weighted Average Coupon | ||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 41,371 | (1) | $ | 50,628 | 3.79% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 139,526 | 133,098 | 5.01% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 28,304 | 27,762 | 1.73% | ||||||||||||||||||||||||||||||
Greater than ten years | 55,302 | 53,850 | 6.49% | ||||||||||||||||||||||||||||||
Total | $ | 264,503 | $ | 265,338 | 4.78% | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 39,256 | (1) | $ | 40,931 | 5.25% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 139,700 | 141,760 | 4.69% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 26,526 | 25,707 | 1.10% | ||||||||||||||||||||||||||||||
Greater than ten years | 9,724 | 10,072 | 7.90% | ||||||||||||||||||||||||||||||
Total | $ | 215,206 | $ | 218,470 | 4.49% | ||||||||||||||||||||||||||||
(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 July 2014 to December 2022. 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 December 2019. | |||||||||||||||||||||||||||||||||
The following table shows the fair value, gross unrealized losses and number of securities aggregated by investment category and length of time, that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): | |||||||||||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized Losses | Number | Fair | Unrealized Losses | Number | Fair | Unrealized Losses | Number | |||||||||||||||||||||||||
Value | of | Value | of | Value | of | ||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 40,021 | $ | (649 | ) | 28 | $ | 22,249 | $ | (10,034 | ) | 12 | $ | 62,270 | $ | (10,683 | ) | 40 | |||||||||||||||
ABS | 827 | (10 | ) | 1 | 4,412 | (204 | ) | 8 | 5,239 | (214 | ) | 9 | |||||||||||||||||||||
Corporate bonds | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total temporarily | $ | 40,848 | $ | (659 | ) | 29 | $ | 26,661 | $ | (10,238 | ) | 20 | $ | 67,509 | $ | (10,897 | ) | 49 | |||||||||||||||
impaired securities | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS | $ | 52,012 | $ | (7,496 | ) | 34 | $ | 14,159 | $ | (4,534 | ) | 10 | $ | 66,171 | $ | (12,030 | ) | 44 | |||||||||||||||
ABS | 143 | (1 | ) | 1 | 6,692 | (393 | ) | 9 | 6,835 | (394 | ) | 10 | |||||||||||||||||||||
Corporate bonds | 865 | (70 | ) | 1 | — | — | — | 865 | (70 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 53,020 | $ | (7,567 | ) | 36 | $ | 20,851 | $ | (4,927 | ) | 19 | $ | 73,871 | $ | (12,494 | ) | 55 | |||||||||||||||
impaired securities | |||||||||||||||||||||||||||||||||
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 Company performs an on-going review of third-party reports and updated financial data on the properties underlying these securities 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 six months ended June 30, 2014 and 2013, the Company recognized other-than-temporary impairment losses of zero and $21,000, respectively, on positions that supported the Company’s CMBS investments. | |||||||||||||||||||||||||||||||||
The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of securities): | |||||||||||||||||||||||||||||||||
Positions Sold | Par Amount Sold | Realized Gain (Loss) | |||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS position | 3 | $ | 15,970 | $ | 480 | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS position | 4 | $ | 14,500 | $ | 466 | ||||||||||||||||||||||||||||
Corporate bond position | 35 | $ | 34,253 | $ | (474 | ) | |||||||||||||||||||||||||||
The amounts above do not include redemptions. During the three and six months ended June 30, 2014, the Company redeemed zero and one corporate bond positions with a total par value of $0 and $630,000, respectively, and recognized a loss of zero and $1,000, respectively. During the three and six months ended June 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 three and six months ended June 30, 2014, the Company had one ABS position redeemed with a total par of $2.5 million, and recognized a gain of $25,500. During the three and six months ended June 30, 2013, the Company had no ABS positions redeemed. | |||||||||||||||||||||||||||||||||
Changes in interest rates may also have an effect on the rate of principal prepayments and, as a result, prepayments on the Company’s investment portfolio. The aggregate discount (premium) recognized as of the periods indicated (in thousands) are: | |||||||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
CMBS | $ | 4,049 | $ | 6,583 | |||||||||||||||||||||||||||||
ABS | $ | 1,988 | $ | 2,394 | |||||||||||||||||||||||||||||
Corporate bond | $ | 96 | $ | 68 | |||||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE
INVESTMENTS IN REAL ESTATE | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Real Estate [Abstract] | ' | |||||
INVESTMENTS IN REAL ESTATE | ' | |||||
INVESTMENTS IN REAL ESTATE | ||||||
The table below summarizes the Company’s investments in real estate (in thousands, except number of properties): | ||||||
As of December 31, 2013 | ||||||
Book Value | Number of Properties | |||||
Multi-family property | $ | 22,107 | 1 | |||
Office property | 10,273 | 1 | ||||
Subtotal | 32,380 | |||||
Less: Accumulated depreciation | (2,602 | ) | ||||
Investments in real estate | $ | 29,778 | ||||
During the three and six months ended June 30, 2014, the Company made no acquisitions. The Company has two assets classified as property available-for-sale on the consolidated balance sheets at June 30, 2014. The Company confirmed the intent and ability to sell its office property and multi-family property in their present condition during the three and six months ended June 30, 2014. These properties qualified for held for sale accounting treatment upon meeting all applicable criteria on or prior to June 30, 2014, at which time depreciation and amortization were ceased. As such, the assets associated with the office property and multi-family property, with a carrying value of $9.6 million and $19.8 million, respectively, are separately classified and included in property available-for-sale on the Company's consolidated balance sheets at June 30, 2014. However, the anticipated sale of these properties did not qualify for discontinued operations and, therefore, the operations for all periods presented continue to be classified within continuing operations on the Company's consolidated statements of income. The Company expects the sale of both properties to close within the next six months. Pre-tax earnings recorded on the office property for the three and six months ended June 30, 2014 were losses of $9,000 and $25,000, respectively, and losses of $77,000 and $154,000 for the three and six months ended June 30, 2013, respectively. Pre-tax earnings recorded on the multi-family property for the three and six months ended June 30, 2014 were losses of $5,000 and $123,000, respectively, and earnings of $88,000 and $106,000 for the three and six months ended June 30, 2013, respectively. The Company's hotel property, which was classified as available-for-sale at March 31, 2014 and December 31, 2013, was sold during the three months ended June 30, 2014 for a gain of $3.0 million and is recorded in gain on sale of real estate on the Company's consolidated statements of income. | ||||||
During the year ended December 31, 2013, the Company made no acquisitions and sold one of its multi-family properties for a gain $16.6 million, which was recorded in gain on sale of real estate on the Company's consolidated statements of income. |
LOANS_HELD_FOR_INVESTMENT
LOANS HELD FOR INVESTMENT | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 (Discount) | Carrying | ||||||||||||||
Premium (1) | Value (2) | ||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | $ | 959,569 | $ | (4,823 | ) | $ | 954,746 | ||||||||||
B notes | 16,204 | (66 | ) | 16,138 | |||||||||||||
Mezzanine loans | 67,370 | (110 | ) | 67,260 | |||||||||||||
Total commercial real estate loans | 1,043,143 | (4,999 | ) | 1,038,144 | |||||||||||||
Bank loans | 709,102 | (2,521 | ) | 706,581 | |||||||||||||
Residential mortgage loans, held for investment | 2,470 | — | 2,470 | ||||||||||||||
Subtotal loans before allowances | 1,754,715 | (7,520 | ) | 1,747,195 | |||||||||||||
Allowance for loan loss | (6,539 | ) | — | (6,539 | ) | ||||||||||||
Total loans held for investment | 1,748,176 | (7,520 | ) | 1,740,656 | |||||||||||||
Bank loans held for sale | 15,427 | — | 15,427 | ||||||||||||||
Residential mortgage loans held for sale | 24,859 | — | 24,859 | ||||||||||||||
Total loans held for sale | 40,286 | — | 40,286 | ||||||||||||||
Total loans | $ | 1,788,462 | $ | (7,520 | ) | $ | 1,780,942 | ||||||||||
As of December 31, 2013 | |||||||||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | $ | 749,083 | $ | (3,294 | ) | $ | 745,789 | ||||||||||
B notes | 16,288 | (83 | ) | 16,205 | |||||||||||||
Mezzanine loans | 64,417 | (100 | ) | 64,317 | |||||||||||||
Total commercial real estate loans | 829,788 | (3,477 | ) | 826,311 | |||||||||||||
Bank loans (3) | 559,206 | (4,033 | ) | 555,173 | |||||||||||||
Residential Mortgage Loans, held for investment | 1,849 | — | 1,849 | ||||||||||||||
Subtotal loans before allowances | 1,390,843 | (7,510 | ) | 1,383,333 | |||||||||||||
Allowance for loan loss | (13,807 | ) | — | (13,807 | ) | ||||||||||||
Total loans held for investment | 1,377,036 | (7,510 | ) | 1,369,526 | |||||||||||||
Bank loans held for sale | 6,850 | — | 6,850 | ||||||||||||||
Residential mortgage loans held for sale | 15,066 | — | 15,066 | ||||||||||||||
Total loans held for sale | 21,916 | — | 21,916 | ||||||||||||||
Total loans | $ | 1,398,952 | $ | (7,510 | ) | $ | 1,391,442 | ||||||||||
-1 | Amounts include deferred amendment fees of $169,000 and $216,000 and deferred upfront fees of $112,000 and $141,000 being amortized over the life of the bank loans as of June 30, 2014 and December 31, 2013, respectively. Amounts include loan origination fees of $4.9 million and $3.3 million and loan extension fees of $177,000 and $73,000 being amortized over the life of the commercial real estate loans as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
At June 30, 2014 and December 31, 2013, approximately 32.6% and 39%, respectively, of the Company’s commercial real estate loan portfolio was concentrated in California; approximately 9.5% and 6.4%, respectively, in Arizona, and approximately 21% and 14.6%, respectively, in Texas. At June 30, 2014 and December 31, 2013, approximately 15.3% and 15.8%, respectively, of the Company’s bank loan portfolio was concentrated in the collective industry grouping of healthcare, education and childcare. At June 30, 2014, approximately 70.2% of the Company's residential mortgage loans were originated in Georgia, 9.4% in Virgina, 7.2% in North Carolina, 4.6% in Alabama and 5.4% in Tennessee. At December 31, 2013 approximately 66.0% of the Company's residential mortgage loans were originated in Georgia, 9.0% in North Carolina, 7.0% each in Tennessee and Virginia and 6.0% in Alabama. | |||||||||||||||||
At June 30, 2014, the Company’s bank loan portfolio including loans held for sale consisted of $721.3 million (net of allowance of $669,000) of floating rate loans, which bear interest ranging between the three month London Interbank Offered Rate (“LIBOR”) plus 1.5% and the three month LIBOR plus 13.0% with maturity dates ranging from June 2014 to February 2024. | |||||||||||||||||
At December 31, 2013, the Company’s bank loan portfolio including loans held for sale consisted of $558.6 million (net of allowance of $3.4 million) of floating rate loans, which bear interest ranging between the three month LIBOR plus 1.5% and the three month LIBOR plus 10.5% with maturity dates ranging from January 2014 to December 2021. | |||||||||||||||||
The following is a summary of the weighted average remaining lives of the Company’s bank loans, at amortized cost (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Less than one year | $ | 36,155 | $ | 36,985 | |||||||||||||
Greater than one year and less than five years | 528,687 | 379,874 | |||||||||||||||
Five years or greater | 157,166 | 145,164 | |||||||||||||||
$ | 722,008 | $ | 562,023 | ||||||||||||||
The following is a summary of the Company’s commercial real estate loans held for investment (in thousands): | |||||||||||||||||
Description | Quantity | Amortized Cost | Contracted | Maturity Dates(3) | |||||||||||||
Interest Rates | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Whole loans, floating rate (1) (4) (5) | 59 | $ | 954,746 | LIBOR plus 2.13% to | October 2014 to | ||||||||||||
LIBOR plus 12.14% | Feb-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,138 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 1 | 15,452 | LIBOR plus 15.32% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 51,808 | 0.50% to 18.71% | September 2014 to | |||||||||||||
Sep-21 | |||||||||||||||||
Total (2) | 64 | $ | 1,038,144 | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Whole loans, floating rate (1) (4) | 51 | $ | 745,789 | LIBOR plus 2.68% to | March 2014 to | ||||||||||||
LIBOR plus 12.14% | Feb-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,205 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 1 | 12,455 | LIBOR plus 15.32% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 51,862 | 0.50% to 18.72% | September 2014 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 56 | $ | 826,311 | ||||||||||||||
-1 | Whole loans had $52.5 million and $13.7 million in unfunded loan commitments as of June 30, 2014 and December 31, 2013, respectively. These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. | ||||||||||||||||
-2 | The total does not include an allowance for loan loss of $5.8 million and $10.4 million as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
-3 | Maturity dates do not include possible extension options that may be available to the borrowers. | ||||||||||||||||
-4 | As of June 30, 2014, floating rate whole loans includes $3.1 million and $12.0 million mezzanine components of two whole loans, which have a fixed rate of 15.0% and 12.0%, respectively. | ||||||||||||||||
-5 | Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2014. | ||||||||||||||||
-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 maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): | |||||||||||||||||
Description | 2014 | 2015 | 2016 and Thereafter | Total | |||||||||||||
As of June 30, 2014 | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,138 | $ | 16,138 | |||||||||
Mezzanine loans | 5,711 | — | 61,549 | 67,260 | |||||||||||||
Whole loans | — | — | 954,746 | 954,746 | |||||||||||||
Total (1) | $ | 5,711 | $ | — | $ | 1,032,433 | $ | 1,038,144 | |||||||||
As of December 31, 2013 | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,205 | $ | 16,205 | |||||||||
Mezzanine loans | 5,711 | — | 58,606 | 64,317 | |||||||||||||
Whole loans | — | 17,949 | 727,840 | 745,789 | |||||||||||||
Total (1) | $ | 5,711 | $ | 17,949 | $ | 802,651 | $ | 826,311 | |||||||||
-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 Total Allowance | |||||||||||||||
Loan Loss | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
B notes | $ | 76 | 1.16% | ||||||||||||||
Mezzanine loans | 314 | 4.80% | |||||||||||||||
Whole loans | 5,454 | 83.41% | |||||||||||||||
Bank loans | 669 | 10.23% | |||||||||||||||
Residential mortgage loans, held for investment | 26 | 0.40% | |||||||||||||||
Total | $ | 6,539 | |||||||||||||||
As of December 31, 2013 | |||||||||||||||||
B notes | $ | 174 | 1.26% | ||||||||||||||
Mezzanine loans | 559 | 4.05% | |||||||||||||||
Whole loans | 9,683 | 70.13% | |||||||||||||||
Bank loans | 3,391 | 24.56% | |||||||||||||||
Residential mortgage loans, held for investment | — | —% | |||||||||||||||
Total | $ | 13,807 | |||||||||||||||
As of June 30, 2014, the Company had recorded an allowance for loan losses on loans held for investment of $6.5 million consisting of a $669,000 allowance on the Company’s bank loan portfolio, $5.8 million allowance on the Company’s commercial real estate portfolio, and a $26,000 allowance on the Company's residential mortgage loans. | |||||||||||||||||
As of December 31, 2013, the Company had recorded an allowance for loan losses on loans held for investment of $13.8 million consisting of a $3.4 million allowance on the Company’s bank loan portfolio and a $10.4 million allowance on the Company’s commercial real estate portfolio. |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | ' | |||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | ||||||||||||||||||||||||||
The following table shows the Company's investments in unconsolidated entities as of June 30, 2014 and December 31, 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||
Balance as of | Balance as of | For the | For the | For the | For the | |||||||||||||||||||||
three months ended | six months | three months | six months | |||||||||||||||||||||||
ended | ended | ended | ||||||||||||||||||||||||
Ownership % | June 30, | December 31, | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | 2013 | |||||||||||||||||||||
Varde Investment Partners, L.P | 7.50% | $ | 654 | $ | 674 | $ | (19 | ) | $ | (20 | ) | $ | 19 | $ | 43 | |||||||||||
RRE VIP Borrower, LLC | 3% to 5% | — | — | 869 | 1,736 | (101 | ) | (214 | ) | |||||||||||||||||
Investment in LCC Preferred Stock | 28.20% | 40,144 | 41,016 | (278 | ) | (872 | ) | 304 | (32 | ) | ||||||||||||||||
Investment in RCT I and II (1) | 3% | 1,548 | 1,548 | (594 | ) | (1,184 | ) | (602 | ) | (1,195 | ) | |||||||||||||||
Investment in Preferred Equity (2) | various | — | 8,124 | 232 | 1,300 | 86 | 170 | |||||||||||||||||||
Investment in CVC Global Opps Fund | 34.40% | 18,134 | 16,177 | 1,124 | 1,958 | 93 | 93 | |||||||||||||||||||
Investment in Life Care | 50.20% | — | 1,530 | — | (75 | ) | (242 | ) | (242 | ) | ||||||||||||||||
Funding (3) | ||||||||||||||||||||||||||
Total | $ | 60,480 | $ | 69,069 | $ | 1,334 | $ | 2,843 | $ | (443 | ) | $ | (1,377 | ) | ||||||||||||
-1 | For the three and six months ended June 30, 2014 and 2013, these amounts are recorded in interest expense on the Company's consolidated statements of income. | |||||||||||||||||||||||||
-2 | For the three and six months ended June 30, 2014 and 2013, these amounts are recorded in interest income on loans on the Company's consolidated statements of income. | |||||||||||||||||||||||||
-3 | The Company began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation. | |||||||||||||||||||||||||
In May, June and July 2013, the Company invested $15.0 million into CVC Global Credit Opportunities Fund, L.P. (the "Partnership") which generally invests in assets through the Master Fund. 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. | ||||||||||||||||||||||||||
In January 2013, LTCC invested $2.0 million into LCF for the purpose of originating and acquiring life settlement contracts. In February 2014, the Company invested an additional $1.4 million which resulted in the consolidation of LCF during the first quarter of 2014. | ||||||||||||||||||||||||||
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. Resource Real Estate Management, LLC (“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 was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM received an annual asset management fee equal to 1% of outstanding contributions. No management fees were paid for the three and six months ended June 30, 2014. For the three and six months ended June 30, 2013, the Company paid RREM management fees of $10,000 and $26,000, respectively. All condominiums were sold as of December 31, 2013. | ||||||||||||||||||||||||||
On November 16, 2011, the Company, together with LEAF Financial and LCC, entered into a SPA with Eos. The Company’s resulting interest is accounted for under the equity method. (See Note 3). | ||||||||||||||||||||||||||
On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that holds an interest in a real estate joint venture) from Resource America at book value. 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 six months ended June 30, 2014, the Company paid RREM management fees of $1,000 and $6,000, respectively. For the three and six months ended June 30, 2013, the Company paid RREM management fees of $8,000 and $16,000, respectively. | ||||||||||||||||||||||||||
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. 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 six months ended June 30, 2014, the Company recognized $594,000 and $1.2 million, respectively, of interest expense with respect to the subordinated debentures it issued to RCT I and RCT II which included $50,000 and $99,000, respectively, of amortization of deferred debt issuance costs. For the three and six months ended June 30, 2013, the Company recognized $602,000 and $1.2 million, respectively, of interest expense with respect to the subordinated debentures it issued to RCT I and RCT II which included $48,000 and $95,000, respectively, of amortization of deferred debt issuance costs. |
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
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 | Residential Mortgage Loans | Loans Receivable-Related Party | Total | ||||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2014 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | 13,807 | ||||||||||||||||||
Provision for loan loss | (4,511 | ) | 607 | 26 | 700 | (3,178 | ) | |||||||||||||||||||||
Loans charged-off | (61 | ) | (3,329 | ) | — | — | (3,390 | ) | ||||||||||||||||||||
Allowance for losses at June 30, 2014 | $ | 5,844 | $ | 669 | $ | 26 | $ | 700 | $ | 7,239 | ||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,800 | $ | 441 | $ | — | $ | 700 | $ | 2,941 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 4,044 | $ | 228 | $ | 26 | $ | — | $ | 4,298 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 172,583 | $ | 1,566 | $ | — | $ | 5,451 | $ | 179,600 | ||||||||||||||||||
Collectively evaluated for impairment (1) | $ | 865,561 | $ | 704,896 | $ | 2,470 | $ | — | $ | 1,572,927 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 119 | $ | — | $ | — | $ | 119 | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2013 | $ | 7,986 | $ | 9,705 | $ | — | $ | — | $ | 17,691 | ||||||||||||||||||
Provision for loan loss | 2,686 | 334 | — | — | 3,020 | |||||||||||||||||||||||
Loans charged-off | (256 | ) | (6,648 | ) | — | — | (6,904 | ) | ||||||||||||||||||||
Allowance for losses at December 31, 2013 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | 13,807 | ||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,572 | $ | 2,621 | $ | — | $ | — | $ | 7,193 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 5,844 | $ | 770 | $ | — | $ | — | $ | 6,614 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: (2) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 194,403 | $ | 3,554 | $ | — | $ | 6,966 | $ | 204,923 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 631,908 | $ | 558,469 | $ | 16,915 | $ | — | $ | 1,207,292 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
-1 | Loan ending balance contains $120.8 million of loan value for which the fair value option has been elected. As such, no allowance for loan losses has been recognized for these loans. | |||||||||||||||||||||||||||
-2 | Loan balances as of December 31, 2013 include loans held for sale. | |||||||||||||||||||||||||||
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 June 30, 2014 | ||||||||||||||||||||||||||||
Bank loans | $ | 666,578 | $ | 33,999 | $ | 3,551 | $ | 768 | $ | 1,685 | $ | 15,427 | $ | 722,008 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Bank loans | $ | 488,004 | $ | 42,476 | $ | 18,806 | $ | 2,333 | $ | 3,554 | $ | 6,850 | $ | 562,023 | ||||||||||||||
All of the Company’s bank loans were performing with the exception of one loan with an amortized cost of $1.6 million as of June 30, 2014. Due to the consolidation of Moselle CLO in February 2014, the Company acquired six loans with deteriorated credit quality with an amortized cost of $119,000 as of June 30, 2014. As of December 31, 2013, all of the Company's bank loans were performing with the exception of three loans with an amortized cost of $3.6 million, one of which defaulted as of 2012, one of which defaulted as of March 31, 2013 and one of which defaulted as of June 30, 2013. | ||||||||||||||||||||||||||||
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 ends 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 June 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | 900,246 | $ | 32,500 | $ | 22,000 | $ | — | $ | — | $ | 954,746 | ||||||||||||||||
B notes | 16,138 | — | — | — | — | 16,138 | ||||||||||||||||||||||
Mezzanine loans | 45,460 | 21,800 | — | — | — | 67,260 | ||||||||||||||||||||||
$ | 961,844 | $ | 54,300 | $ | 22,000 | $ | — | $ | — | $ | 1,038,144 | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Whole loans | $ | 680,718 | $ | 32,500 | $ | 32,571 | $ | — | $ | — | $ | 745,789 | ||||||||||||||||
B notes | 16,205 | — | — | — | — | 16,205 | ||||||||||||||||||||||
Mezzanine loans | 51,862 | 12,455 | — | — | — | 64,317 | ||||||||||||||||||||||
$ | 748,785 | $ | 44,955 | $ | 32,571 | $ | — | $ | — | $ | 826,311 | |||||||||||||||||
All of the Company’s commercial real estate loans were current as of June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
Residential Mortgage Loans | ||||||||||||||||||||||||||||
Residential mortgage loans are reviewed periodically for collectability in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing underlying conditions. The Company also designates loans that are sold after the period ends as held for sale at the lower of their fair market value or cost. | ||||||||||||||||||||||||||||
Loans Receivable - Related Party | ||||||||||||||||||||||||||||
The Company recorded a $700,000 allowance for loan loss on a related party loan due to a default on an individually significant credit in the fund that caused an unplanned cash flow deficiency. | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 954,746 | $ | 954,746 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,138 | 16,138 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 67,260 | 67,260 | — | |||||||||||||||||||||
Bank loans (1) (2) | — | — | 1,685 | 1,685 | 720,323 | 722,008 | — | |||||||||||||||||||||
Residential mortgage loans (3) | — | — | 266 | 266 | 27,063 | 27,329 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 5,451 | 5,451 | — | |||||||||||||||||||||
Total loans | $ | — | $ | — | $ | 1,951 | $ | 1,951 | $ | 1,790,981 | $ | 1,792,932 | $ | — | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 745,789 | $ | 745,789 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,205 | 16,205 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 64,317 | 64,317 | — | |||||||||||||||||||||
Bank loans (2) | — | — | 3,554 | 3,554 | 558,469 | 562,023 | — | |||||||||||||||||||||
Residential mortgage loans (3) | 234 | 91 | 268 | 593 | 16,322 | 16,915 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 6,966 | 6,966 | — | |||||||||||||||||||||
Total loans | $ | 234 | $ | 91 | $ | 3,822 | $ | 4,147 | $ | 1,408,068 | $ | 1,412,215 | $ | — | ||||||||||||||
-1 | Contains loans for which the fair value method was elected with an unpaid principal balance of $4.8 million with a fair value of $119,000 at June 30, 2014. | |||||||||||||||||||||||||||
-2 | Contains $15.4 million and $6.9 million of bank loans held for sale at June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
-3 | Contains $24.9 million and $15.1 million of residential mortgage loans held for sale at June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
The following tables show impaired loans indicated (in thousands): | ||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,511 | $ | 127,511 | $ | — | $ | 126,070 | $ | 10,682 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 2,229 | ||||||||||||||||||
Bank loans | $ | 119 | $ | 119 | $ | — | $ | 119 | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 2,470 | $ | 2,470 | $ | — | $ | 2,470 | $ | 65 | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 7,000 | $ | 7,000 | $ | (1,800 | ) | $ | 7,000 | $ | 591 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 1,566 | $ | 1,566 | $ | (441 | ) | $ | 1,566 | $ | — | |||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 4,657 | $ | 4,657 | $ | (700 | ) | $ | 5,195 | $ | 85 | |||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 134,511 | $ | 134,511 | $ | (1,800 | ) | $ | 133,070 | $ | 11,273 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 2,229 | |||||||||||||||||||||||
Bank loans | 1,685 | 1,685 | (441 | ) | 1,685 | — | ||||||||||||||||||||||
Residential mortgage loans | 2,470 | 2,470 | — | 2,470 | 65 | |||||||||||||||||||||||
Loans receivable - related party | 4,657 | 4,657 | (700 | ) | 5,195 | 85 | ||||||||||||||||||||||
$ | 181,395 | $ | 181,395 | $ | (2,941 | ) | $ | 180,492 | $ | 13,652 | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 130,759 | $ | 130,759 | $ | — | $ | 123,495 | $ | 8,439 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 1,615 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 5,733 | $ | 5,733 | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 315 | $ | 268 | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 25,572 | $ | 25,572 | $ | (4,572 | ) | $ | 24,748 | $ | 1,622 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 3,554 | $ | 3,554 | $ | (2,621 | ) | $ | — | $ | — | |||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 156,331 | $ | 156,331 | $ | (4,572 | ) | $ | 148,243 | $ | 10,061 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 1,615 | |||||||||||||||||||||||
Bank loans | 3,554 | 3,554 | (2,621 | ) | — | — | ||||||||||||||||||||||
Residential mortgage loans | 315 | 268 | — | — | — | |||||||||||||||||||||||
Loans receivable - related party | 5,733 | 5,733 | — | — | — | |||||||||||||||||||||||
$ | 204,005 | $ | 203,958 | $ | (7,193 | ) | $ | 186,315 | $ | 11,676 | ||||||||||||||||||
Troubled-Debt Restructurings | ||||||||||||||||||||||||||||
The Company had no troubled-debt restructurings during the three months ended June 30, 2014 and 2013 or during the six months ended June 30, 2014. | ||||||||||||||||||||||||||||
The following table shows troubled-debt restructurings in the Company's loan portfolio during the six months ended June 30, 2013 (in thousands): | ||||||||||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 56,328 | $ | 56,328 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Residential mortgage loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 3 | $ | 62,920 | $ | 62,920 | |||||||||||||||||||||||
As of June 30, 2014 and 2013, there were no troubled-debt restructurings that subsequently defaulted. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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 the preferred equity of, 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% before the CLO was substantially liquidated in October 2013. 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. Upon acquisition of PCM, the Company recognized an intangible asset of $600,000 related to its wholesale-correspondent relationships, which have a finite life of approximately two years. | ||||||||||||
The Company expects to record amortization expense on intangible assets of approximately $2.1 million for the year ended December 31, 2014, $2.0 million for the year ended December 31, 2015, $1.8 million for the years ended December 31, 2016 and 2017 and $1.6 million for the year ended December 31, 2018. The weighted average amortization period was 7.1 years and 7.7 years at June 30, 2014 and December 31, 2013, respectively and the accumulated amortization was $11.0 million and $12.5 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||
The following table summarizes intangible assets (in thousands): | ||||||||||||
Asset Balance | Accumulated Amortization | Net Asset | ||||||||||
As of June 30, 2014 | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (10,872 | ) | $ | 10,341 | |||||
Investment in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (170 | ) | 430 | ||||||||
Total intangible assets | $ | 21,813 | $ | (11,042 | ) | $ | 10,771 | |||||
As of December 31, 2013 | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (9,980 | ) | $ | 11,233 | |||||
Investments in real estate: | ||||||||||||
In-place leases | 2,461 | (2,430 | ) | 31 | ||||||||
Above (below) market leases | 29 | (29 | ) | — | ||||||||
Investment in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (42 | ) | 558 | ||||||||
Total intangible assets | $ | 24,303 | $ | (12,481 | ) | $ | 11,822 | |||||
For the three and six months ended June 30, 2014, the Company recognized $1.1 million and $2.8 million, respectively, of fee income related to the investment in RCAM. For the three and six months ended June 30, 2013, the Company recognized $1.5 million and $2.9 million, respectively, of fee income related to the investment in RCAM. | ||||||||||||
The purchase price has been allocated to the assets acquired and liabilities assumed based upon the Company’s best estimate of fair value with any shortage under the net tangible and intangible assets acquired allocated to gain on bargain purchase. The gain on bargain purchase resulted from the stock grant described above being accounted for as compensation under GAAP and was recorded as other income (expense) on the Company's consolidate statement of income. | ||||||||||||
The following table sets forth the allocation of the purchase price as of December 31, 2013 (in thousands): | ||||||||||||
Assets acquired: | ||||||||||||
Cash and cash equivalents | $ | 1,233 | ||||||||||
Loans held for sale | 15,021 | |||||||||||
Loans held for investment | 2,071 | |||||||||||
Wholesale and correspondent relationships | 600 | |||||||||||
Other assets | 5,828 | |||||||||||
Total assets | 24,753 | |||||||||||
Less: Liabilities assumed: | ||||||||||||
Borrowings | 14,584 | |||||||||||
Other liabilities | 2,165 | |||||||||||
Total liabilities | 16,749 | |||||||||||
Gain on bargain purchase | 391 | |||||||||||
Total cash purchase price | $ | 7,613 | ||||||||||
Although no further material purchase price adjustments for PCM are anticipated, the Company has not yet completed the process of estimating the fair value of assets acquired and liabilities assumed on this investment. Accordingly, the Company's preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as the Company completes the process. In accordance with FASB ASC Topic 805, changes, if any, to the preliminary estimates and allocation will be reported in the Company's consolidated financial statements, retrospectively. |
BORROWINGS
BORROWINGS | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
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 is summarized in the following table (in thousands, except percentages): | ||||||||||||||||||||||||
Outstanding Borrowings | Unamortized | Principal | Weighted Average | Weighted Average | Value of | Date | ||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | Securitization Closed | |||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 106,029 | $ | 51 | $ | 106,080 | 1.92% | 32.1 years | $ | 174,237 | Aug-06 | |||||||||||||
RREF CDO 2007-1 Senior Notes | 126,004 | 355 | 126,359 | 0.99% | 32.3 years | 361,432 | Jun-07 | |||||||||||||||||
RCC CRE Notes 2013 | 256,807 | 3,683 | 260,490 | 2.02% | 14.5 years | 281,846 | Dec-13 | |||||||||||||||||
Apidos CDO I Senior Notes | 56,922 | — | 56,922 | 2.24% | 3.1 years | 73,276 | Aug-05 | |||||||||||||||||
Apidos CDO III Senior Notes | 97,458 | — | 97,458 | 1.01% | 6.2 years | 109,325 | May-06 | |||||||||||||||||
Apidos Cinco CDO Senior Notes | 319,639 | 553 | 320,192 | 0.73% | 5.9 years | 341,777 | May-07 | |||||||||||||||||
Whitney CLO I Senior Notes (1) | — | — | — | —% | N/A | 79 | N/A | |||||||||||||||||
Moselle CLO S.A. Senior Notes, at fair value (6) | 140,220 | — | 140,220 | 1.04% | 5.5 years | 175,641 | Oct-05 | |||||||||||||||||
Moselle CLO S.A. Securitized Borrowings, at fair value | 5,208 | — | 5,208 | 1.04% | N/A | — | N/A | |||||||||||||||||
Unsecured Junior Subordinated Debentures (2) | 51,104 | 444 | 51,548 | 4.18% | 22.3 years | — | May/Sept 2006 | |||||||||||||||||
6.0% Convertible Senior Notes | 107,550 | 7,450 | 115,000 | 6.00% | 4.4 years | — | Oct-13 | |||||||||||||||||
CRE - Term Repurchase Facilities (3) | 217,679 | 448 | 218,127 | 2.58% | 17 days | 315,579 | N/A | |||||||||||||||||
CMBS - Term Repurchase Facility (4) | 30,833 | — | 30,833 | 1.37% | 18 days | 37,784 | N/A | |||||||||||||||||
RMBS - Term Repurchase Facility (5) | 22,997 | 28 | 23,025 | 1.15% | 1 day | 27,669 | N/A | |||||||||||||||||
Residential Mortgage Financing Agreements | 23,679 | — | 23,679 | 3.99% | 130 days | 32,399 | N/A | |||||||||||||||||
CMBS - Short Term Repurchase Agreements | 17,705 | — | 17,705 | 1.40% | 2 days | 20,813 | N/A | |||||||||||||||||
Total | $ | 1,579,834 | $ | 13,012 | $ | 1,592,846 | 1.96% | 9.8 years | $ | 1,951,857 | ||||||||||||||
Outstanding Borrowings | Unamortized | Principal | Weighted Average | Weighted Average | Value of | Date | ||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | Securitization Closed | |||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 94,004 | $ | 205 | $ | 94,209 | 1.87% | 32.6 years | $ | 169,115 | Aug-06 | |||||||||||||
RREF CDO 2007-1 Senior Notes | 177,837 | 719 | 178,556 | 0.84% | 32.8 years | 318,933 | Jun-07 | |||||||||||||||||
RCC CRE Notes 2013 | 256,571 | 4,269 | 260,840 | 2.03% | 15.0 years | 305,586 | Dec-13 | |||||||||||||||||
Apidos CDO I Senior Notes | 87,131 | — | 87,131 | 1.68% | 3.6 years | 103,736 | Aug-05 | |||||||||||||||||
Apidos CDO III Senior Notes | 133,209 | 117 | 133,326 | 0.88% | 6.7 years | 145,930 | May-06 | |||||||||||||||||
Apidos Cinco CDO Senior Notes | 321,147 | 853 | 322,000 | 0.74% | 6.4 years | 342,796 | May-07 | |||||||||||||||||
Whitney CLO I Securitized Borrowings (1) | 440 | — | 440 | —% | N/A | 885 | N/A | |||||||||||||||||
Unsecured Junior | 51,005 | 543 | 51,548 | 4.19% | 22.8 years | — | May/Sept 2006 | |||||||||||||||||
Subordinated Debentures (2) | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | 106,535 | 8,465 | 115,000 | 6.00% | 4.9 years | — | Oct-13 | |||||||||||||||||
CRE - Term Repurchase Facilities (3) | 29,703 | 1,033 | 30,736 | 2.67% | 21 days | 48,186 | N/A | |||||||||||||||||
CMBS - Term Repurchase Facility (4) | 47,601 | 12 | 47,613 | 1.38% | 21 days | 56,949 | N/A | |||||||||||||||||
Residential Mortgage Financing Agreements | 14,627 | — | 14,627 | 4.24% | 56 days | 16,487 | N/A | |||||||||||||||||
Total | $ | 1,319,810 | $ | 16,216 | $ | 1,336,026 | 1.87% | 13.1 years | $ | 1,508,603 | ||||||||||||||
-1 | The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Securitized Borrowings, respectively. | |||||||||||||||||||||||
-2 | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||||||||||||||||||||||
-3 | Amounts also include accrued interest costs of $207,000 and $26,000 related to CRE repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | Amounts also include accrued interest costs of $14,000 and $22,000 related to CMBS repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||||||||||||||||||||||
-5 | Amount also includes accrued interest costs of $1,000 related to RMBS repurchase facilities as of June 30, 2014. | |||||||||||||||||||||||
-6 | The fair value option has been elected for the borrowings associated with Moselle CLO S.A.; as such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $143 million at June 30, 2014. | |||||||||||||||||||||||
Securitizations | ||||||||||||||||||||||||
RCC CRE Notes 2013 | ||||||||||||||||||||||||
In December 2013, the Company closed RCC CRE Notes 2013, a $307.8 million CRE securitization transaction that provided financing for transitional commercial real estate loans. The investments held by RCC CRE Notes 2013 securitized the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. RCC CRE Notes 2013 issued a total of $260.8 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class D senior notes (rated BBB:DBRS), Class E senior notes (rated BB:DBRS) and Class F senior notes (rated B:DBRS) for $30.0 million. In addition, RCC CRE Notes 2013 Investor, LLC, a subsidiary of RCC Real Estate, purchased a $16.9 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 RCC CRE Notes 2013 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 RCC CRE Notes 2013. There is no reinvestment period for RCC CRE Notes 2013, which will result in the sequential paydown of notes as underlying collateral matures and paydown. As of June 30, 2014, $350,000 of Class A notes have been paid down. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by RCC CRE Notes 2013 consisted of the following classes: (i) $136.9 million of Class A notes bearing interest at one-month LIBOR plus 1.30%; (ii) $78.5 million of Class A-S notes bearing interest at one-month LIBOR plus 2.15%; (iii) $30.8 million of Class B notes bearing interest at one-month LIBOR plus 2.85%; (iv) $14.6 million of Class C notes bearing interest at one-month LIBOR plus 3.50%; (v) $13.8 million of Class D notes bearing interest at one-month LIBOR plus 4.50%; (vi) $9.2 million of Class E notes bearing interest at one-month LIBOR plus 5.50%; (vii) and $6.9 million of Class F notes bearing interest at one-month LIBOR plus 6.50%. All of the notes issued mature in December 2028, although the Company has the right to call the notes anytime after January 2016 until maturity. The weighted average interest rate on all notes issued to outside investors was 2.02% at June 30, 2014. | ||||||||||||||||||||||||
As a result of the Company’s ownership of senior notes, the notes retained at the CRE securitization's closing eliminate in consolidation. | ||||||||||||||||||||||||
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 has resulted in the sequential paydown of notes as underlying collateral matures and pays down. As of June 30, 2014, $115.6 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 0.99% and 0.84% at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
During the six months ended June 30, 2014 and the year ended December 31, 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 has resulted in the sequential paydown of notes as underlying collateral matures and pays down. As of June 30, 2014, $116.9 million 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 1.92% and 1.87% at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
During the six months ended June 30, 2014 and the year ended December 31, 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. | ||||||||||||||||||||||||
Moselle CLO S.A. | ||||||||||||||||||||||||
In February 2014, the Company purchased 100% of the Class 1 Subordinated Notes and 67.9% of the Class 2 Subordinated Notes, which represented 88.6% of the outstanding subordinated notes in the European securitization Moselle CLO S.A. Due to the Company's economic interest combined with its contractual, unilateral kick-out rights acquired upon its purchase of a majority of the subordinate notes, the Company determined that it had a controlling financial interest and consolidated Moselle CLO. See Note 3. The notes purchased by the Company are subordinated in right of payment to all other notes issued by Moselle CLO. | ||||||||||||||||||||||||
The balances of the senior notes issued to investors when the Company acquired a controlling financial interest in February 2014 were as follows: (i) €24.9 million of Class A-1E notes bearing interest at LIBOR plus 0.25%: (ii) $24.9 million of Class A-1L notes bearing interest at LIBOR plus 0.25%: (iii) €10.3 million of Class A-1LE notes bearing interest at LIBOR plus 0.31%: (iv) $10.3 million of Class A-1LE USD notes bearing interest at LIBOR plus 0.31%; (v) €13.8 million of Class A-2E notes bearing interest at LIBOR plus 0.40%: (vi) $13.8 million of Class A-2L notes bearing interest at LIBOR plus 0.40%; (vii) €6.8 million of Class A-3E notes bearing interest at LIBOR plus 0.70%; (viii) $6.8 million of Class A-3L notes bearing interest at LIBOR plus 0.75%; (ix) €16.0 million of Class B-1E notes bearing interest at LIBOR plus 1.80%; and (x) $16.0 million of Class B-1L notes bearing interest at LIBOR plus 1.85%. | ||||||||||||||||||||||||
All notes issued mature on January 6, 2020. The Company has the right to call the notes anytime after January 6, 2010 until maturity. The weighted average interest rate on all notes was 1.04% at June 30, 2014. | ||||||||||||||||||||||||
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 represented 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 June 30, 2014 held 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 was subordinated in right of payment to all other securities issued by Whitney CLO I. In 2013, the Company substantially liquidated Whitney CLO I and, as a result, substantially all of the assets were sold. | ||||||||||||||||||||||||
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 Resource TRS III purchased a $15.0 million interest representing 43% of the outstanding subordinated debt. The remaining 57% of subordinated debt was owned by unrelated third parties. The subordinated debt interest was subordinated in right of payment to all other securities issued by Apidos CLO VIII. In 2013, Apidos CLO VIII was called and substantially liquidated and, as a result, 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 paydown the notes 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 ended in May 2014, which results in the sequential paydown of notes as underlying collateral matures and pays down. 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 0.73% and 0.74% at June 30, 2014 and December 31, 2013, respectively. As of June 30, 2014, $45,000 of Class A-1 notes and $264,000 of Class A-2A notes have been paid down. | ||||||||||||||||||||||||
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 consist 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 1.01% and 0.88% at June 30, 2014 and December 31, 2013, respectively. The reinvestment period for Apidos CDO III ended in June 2012 which has resulted in the sequential pay down of notes as underlying collateral matures and pays down. As of June 30, 2014, $165.0 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) $265.0 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 2.24% and 1.68% and at June 30, 2014 and December 31, 2013, respectively. The reinvestment period for Apidos CDO I ended in July 2011 which has resulted in the sequential pay down of notes as underlying collateral matures and pays down. As of June 30, 2014, $262.6 million of the Class A-1 notes have been paid down. | ||||||||||||||||||||||||
During the six months ended June 30, 2014 and the year ended December 31, 2013, the Company did not repurchase any notes. | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | ||||||||||||||||||||||||
On October 21, 2013, the Company issued and sold in a public offering $115.0 million aggregate principal amount of its 6.0% Convertible Senior Notes due 2018, ("6.0% Convertible Senior Notes"). After deducting the underwriting discount and the estimated offering costs, the Company received approximately $111.1 million of net proceeds. The discount of $4.9 million on the 6.0% Convertible Senior Notes reflects the difference between the stated value of the debt and the fair value of the notes as if they were issued without a conversion feature and at a higher rate of interest that the Company estimated would have been applicable without the conversion feature. The discount will be amortized on a straight-line basis as additional interest expense through maturity on December 1, 2018. Interest on the 6.0% Convertible Senior Notes is paid semi-annually and the 6.0% Convertible Senior Notes mature on December 1, 2018. Prior to December 1, 2018, the 6.0% Convertible Senior Notes are not redeemable at the Company's option, except to preserve the Company's status as a REIT. On or after December 1, 2018, the Company may redeem all or a portion of the 6.0% Convertible Senior Notes at a redemption price equal to the principal amount plus accrued and unpaid interest. Holders of 6.0% Convertible Senior Notes may require the Company to repurchase all or a portion of the 6.0% Convertible Senior Notes at a purchase price equal to the principal amount plus accrued and unpaid interest on December 1, 2018, or upon the occurrence of certain defined fundamental changes. The 6.0% Convertible Senior Notes are convertible at the option of the holder at a current conversion rate of 150.1502 common shares per $1,000 principal amount of 6.0% Convertible Senior Notes (equivalent to a current conversion price of $6.66 per common share). Upon conversion of 6.0% Convertible Senior Notes by a holder, the holder will receive cash, common shares of the Company or a combination of cash and common shares of the Company, at the Company's election. | ||||||||||||||||||||||||
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 $774,000 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 June 30, 2014 were $211,000 and $233,000, respectively. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II at December 31, 2013, were $261,000 and $282,000, respectively. The rates for RCT I and RCT II, at June 30, 2014, were 4.18% and 4.17%, respectively. The rates for RCT I and RCT II, at December 31, 2013, were 4.20% and 4.19%, 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 entities and records dividend income upon declaration by RCT I and RCT II. | ||||||||||||||||||||||||
Repurchase and Mortgage Finance Facilities | ||||||||||||||||||||||||
Borrowings under the repurchase and mortgage finance facilities agreements were guaranteed by the Company or one of its subsidiaries. The following table sets forth certain information with respect to the Company's borrowings is summarized in the following table (dollars in thousands): | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Outstanding | Value of | Number of | Weighted Average | Outstanding | Value of | Number of | Weighted Average | |||||||||||||||||
Borrowings | Collateral | Positions | Interest Rate | Borrowings | Collateral | Positions | Interest Rate | |||||||||||||||||
as Collateral | as Collateral | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (1) | $ | 30,833 | $ | 37,784 | 47 | 1.37% | $ | 47,601 | $ | 56,949 | 44 | 1.38% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank (2) | 202,821 | 293,496 | 12 | 2.55% | 30,003 | 48,186 | 3 | 2.67% | ||||||||||||||||
Deutsche Bank AG (3) | 14,858 | 22,083 | 3 | 3.03% | (300 | ) | — | — | —% | |||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
Deutsche Bank Securities, LLC | 17,705 | 20,813 | 6 | 1.40% | — | — | — | —% | ||||||||||||||||
RMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (4) | 22,997 | 27,669 | 6 | 1.15% | — | — | — | —% | ||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||
New Century Bank | 14,772 | 17,519 | 78 | 3.91% | 11,916 | 13,089 | 74 | 4.17% | ||||||||||||||||
ViewPoint Bank, NA | 8,907 | 14,880 | 48 | 4.12% | 2,711 | 3,398 | 17 | 4.58% | ||||||||||||||||
Totals | $ | 312,893 | $ | 434,244 | $ | 91,931 | $ | 121,622 | ||||||||||||||||
-1 | The Wells Fargo CMBS term facility borrowing includes zero and $12,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-2 | The Wells Fargo CRE term repurchase facility borrowing includes $419,000 and $732,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-3 | The Deutsche Bank term repurchase facility includes $29,000 and $300,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | The Wells Fargo RMBS term repurchase facility includes $28,000 of deferred debt issuance costs as of June 30, 2014. | |||||||||||||||||||||||
The assets in the following table are accounted for as linked transactions. These linked repurchase agreements are not included in borrowings on the Company's consolidated balance sheets (see Note 20). | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Borrowings | Value of Collateral | Number | Weighted Average | Borrowings | Value of Collateral | Number | Weighted Average | |||||||||||||||||
Under Linked | Under Linked | of Positions | Interest Rate | Under Linked | Under Linked | of Positions | Interest Rate | |||||||||||||||||
Transactions (1) | Transactions | as Collateral | of Linked | Transactions (1) | Transactions | as Collateral | of Linked | |||||||||||||||||
Under Linked | Transactions | Under Linked | Transactions | |||||||||||||||||||||
Transactions | Transactions | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank | $ | 5,959 | $ | 7,750 | 7 | 1.63% | $ | 6,506 | $ | 8,345 | 7 | 1.65% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank | — | — | — | —% | — | — | — | —% | ||||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | — | — | 0 | —% | 17,020 | 24,814 | 4 | 0.99% | ||||||||||||||||
Wells Fargo Securities, LLC | 4,183 | 6,309 | 7 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 18,584 | 28,211 | 15 | 1.41% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 28,726 | $ | 42,270 | $ | 64,094 | $ | 93,823 | ||||||||||||||||
The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): | ||||||||||||||||||||||||
Amount at | Weighted Average | Weighted Average | ||||||||||||||||||||||
Risk (1) | Maturity in Days | Interest Rate | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association (2) | $ | 7,549 | 18 | 1.37% | ||||||||||||||||||||
RMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 5,725 | 1 | 1.15% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 128,915 | 18 | 2.55% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 15,435 | 18 | 3.03% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC (3) | $ | — | 0 | —% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 2,115 | 30 | 1.37% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 9,778 | 26 | 1.40% | ||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
New Century Bank | $ | 15,227 | 62 | 3.91% | ||||||||||||||||||||
ViewPoint Bank, NA | $ | 9,089 | 183 | 4.12% | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association (2) | $ | 10,796 | 21 | 1.38% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 20,718 | 21 | 2.67% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC (3) | $ | 7,882 | 11 | 0.99% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 8,925 | 2 | 1.19% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 11,418 | 22 | 1.43% | ||||||||||||||||||||
-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 | $6.0 million and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of June 30, 2014 and December 31, 2013, respectively, (see Note 20). | |||||||||||||||||||||||
-3 | There are no linked repurchase agreement borrowings being included as derivative instruments as of June 30, 2014. As of December 31, 2013 $17.0 million of linked repurchase agreement borrowings are being included as derivative instruments. | |||||||||||||||||||||||
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 the Assets back to the RCC Subsidiaries at a date certain or on demand, against the transfer of funds from the RCC Subsidiaries to Wells Fargo. The maximum amount of the 2011 Facility is $100.0 million which had an original 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. The 2011 Facility has a current maturity date of 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 2011 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 financial debt covenants under the 2011 Facility and 2011 Guaranty as of June 30, 2014. | ||||||||||||||||||||||||
RMBS – Term Repurchase Facility | ||||||||||||||||||||||||
In June 2014, the registrant's wholly-owned subsidiaries, RCC Resi Portfolio and RCC Resi TRS (the “Sellers”) entered into a master repurchase and securities contract (the “2014 Facility”) with Wells Fargo. Under the 2014 Facility, from time to time, the parties may enter into transactions in which the Sellers and Wells Fargo agree to transfer from the Sellers to Wells Fargo all of their right, title and interest to certain residential mortgage backed securities and other assets against the transfer of funds by Wells Fargo to the Sellers, with a simultaneous agreement by Wells Fargo to transfer back to the Sellers such assets at a date certain or on demand, against the transfer of funds from the Sellers to Wells Fargo. The maximum amount of the 2014 Facility is $285.0 million which had an original one year term with a one year option to extend, and a maximum interest rate of 1.45% plus a 4.00% pricing margin. The 2014 Facility has a current maturity date of June 22, 2015. | ||||||||||||||||||||||||
The 2014 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 Sellers to repay the purchase price for purchased assets. | ||||||||||||||||||||||||
The 2014 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 Sellers to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. | ||||||||||||||||||||||||
Under the terms of the 2014 Facility and pursuant to a guarantee agreement dated June 20, 2014 (the “2014 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 Sellers to Wells Fargo under or in connection with the 2014 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 Sellers with respect to Wells Fargo under each of the governing documents. The 2014 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 Resi Portfolio and RCC Resi TRS were in compliance with all financial debt covenants under the 2014 Facility and 2014 Guaranty as of June 30, 2014. | ||||||||||||||||||||||||
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 an original maximum amount of $150.0 million and an initial 18 month term. The Company paid an origination fee of 37.5 basis points (0.375%). 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 27, 2015. The amendment also provides two additional one year extension options at RCC Real Estate's discretion. RCC Real Estate paid structuring fees 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. | ||||||||||||||||||||||||
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 a 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 the Company'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 June 30, 2014 and the Company was in compliance with all financial covenants under the 2012 Guaranty as of June 30, 2014. | ||||||||||||||||||||||||
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 has a maximum amount of $200.0 million and an initial 12 month term, ending on July 19, 2014, 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. | ||||||||||||||||||||||||
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 and SPE 5 were in compliance with all debt covenants as of June 30, 2014. | ||||||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
On November 6, 2012, RCC Real Estate entered into a master repurchase and securities agreement with JP Morgan Securities LLC to finance the purchase of CMBS. There is no stated maximum amount of the facility and the repurchase agreement has no stated maturity. Interest rates reset monthly. | ||||||||||||||||||||||||
On February 14, 2012, RCC Real Estate entered into a master repurchase and securities agreement with Wells Fargo Securities, LLC to finance the purchase 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. | ||||||||||||||||||||||||
On March 8, 2005, RCC Real Estate entered into a master repurchase and securities agreement with Deutsche Bank Securities Inc. to finance the purchase of CMBS and the origination of 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. | ||||||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
PCM has a master repurchase agreement with New Century Bank d/b/a Customer's Bank ("New Century") to finance the acquisition of residential mortgage loans. The facility has a maximum amount of $30.0 million and a termination date of July 2, 2014, which was amended from the original terms over the course of four amendments. At June 30, 2014, PCM had borrowed $14.8 million under this facility. The facility bears interest at one month LIBOR plus 3.50%. | ||||||||||||||||||||||||
The New Century facility contains provisions that provide New Century with certain rights if certain credit events have occurred with respect to one or more assets financed on the New Century facility to either require PCM to 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 New Century facility, or may only be required to the extent of the availability of such payments. | ||||||||||||||||||||||||
The New Century 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 in the nature of PCM's business as a mortgage banker as presently conducted or a change in senior management, including the employment of two senior members of PCM's management staff; breaches of covenants and/or certain representations and warranties; performance defaults by PCM; a judgment in an amount greater than $10,000 against PCM or $50,000 in the aggregate against PCM. 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 New Century facility and the liquidation by New Century of assets then subject to the New Century facility. The agreement requires PCM to maintain a minimum maintenance balance account at all times of $1.5 million and PCM was in compliance as of June 30, 2014. PCM was in compliance with all financial debt covenants as of June 30, 2014. | ||||||||||||||||||||||||
PCM has a loan participation agreement with ViewPoint Bank, NA ("ViewPoint") to finance the acquisition of residential mortgage loans. The facility has a maximum amount of $15.0 million and a termination date of December 30, 2014, which was amended from the original terms over the course of five amendments. At June 30, 2014, PCM had borrowed $8.9 million. The facility bears interest at one month LIBOR with a 4.00% floor. | ||||||||||||||||||||||||
The ViewPoint facility contains provisions that provide ViewPoint with certain rights if certain credit events have occurred with respect to one or more assets financed on the ViewPoint facility to either require PCM to 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 ViewPoint facility, or may only be required to the extent of the availability of such payments. The agreement requires PCM to maintain a minimum balance in a deposit account at all times of $1.0 million and PCM was in compliance as of June 30, 2014. | ||||||||||||||||||||||||
PCM received a waiver on a covenant due to an event of default that requires PCM to maintain consolidated net income of at least one dollar for the preceding twelve month period and not allow PCM's consolidated net income to be a negative number for three consecutive months. The waiver removed all existing defaults and waived the net income covenant requirement until September 30, 2014. PCM was in compliance with all other financial covenant requirements under the agreement as of June 30, 2014. | ||||||||||||||||||||||||
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 bore interest at a rate of one-month LIBOR plus 3.95%. At December 31, 2013 there were no outstanding borrowings under this agreement as the property was sold and the underlying mortgage was repaid in 2013. |
SHARE_ISSUANCE_AND_REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
SHARE ISSUANCE AND REPURCHASE | ' |
SHARE ISSUANCE AND REPURCHASE | |
In June 2014, the Company issued 4,800,000 shares of 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock, at a weighted average offering price of $25.00 per share. The Company received net proceeds at issuance of $116.2 million after the underwriters’ discount of approximately $3.8 million. The Series C preferred stock accrues cumulative cash dividends at a rate of 8.625% per year based on the $25.00 liquidation preference per share. Dividends are payable quarterly in arrears at the end of each January, April, July and October. The Series C preferred stock has no maturity date and the Company is not required to redeem the Series C Preferred Shares at any time. On or after July 30, 2024, the Company may, at its option, redeem the Series C preferred stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. | |
On December 17, 2013, Resource Capital Corp. (the “Company”) entered into an 8.50% Series A Cumulative Redeemable Preferred Stock At-the-Market Issuance Sales Agreement with Resource Capital Manager, Inc. and MLV & Co. LLC (“MLV”) to sell up to 600,000 shares of its 8.50% Series A Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), from time to time through an “at the market” equity offering program under which MLV will act as sales agent. Also on December 17, 2013, the Company entered into an 8.25% Series B Cumulative Redeemable Preferred Stock At-the-Market Issuance Sales Agreement, with the Manager and MLV to sell up to 1,400,000 shares of its 8.25% Series B Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series B 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 June 30, 2014, the Company issued 139,704 shares at a weighted average offering price of $23.82 and 622,317 shares at a weighted average offering price of $22.82, respectively of its Series A Preferred Stock and Series B Preferred Stock. As of June 30, 2014, 330,791 and 1,111,294, respectively had been issued from these plans. | |
On March 15, 2013, the Company and Resource Capital Manager entered into an At-the-Market Issuance Sales Agreement with 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. As of June 30, 2014, 1,500,000 shares have been issued under this agreement at a weighted average offering price of $24.42. This agreement was superseded by the December 2013 agreement with MLV. | |
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. During the three and six months ended June 30, 2014, the Company sold approximately 2.6 million and 2.6 million shares of common stock through this program, resulting in $14.4 million and $14.6 million, respectively. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 | Employees | Total | |||||||||||||
Unvested shares as of January 1, 2014 | 38,704 | 2,835,523 | 238,368 | 3,112,595 | ||||||||||||
Issued | 43,718 | 580,283 | 22,318 | 646,319 | ||||||||||||
Vested | (33,219 | ) | (1,175,592 | ) | — | (1,208,811 | ) | |||||||||
Forfeited | — | — | — | — | ||||||||||||
Unvested shares as of June 30, 2014 | 49,203 | 2,240,214 | 260,686 | 2,550,103 | ||||||||||||
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 six months ended June 30, 2014 and 2013, including the grant date fair value of shares issued to the Company’s seven non-employee directors, was $3.7 million, and $997,000, respectively. | ||||||||||||||||
The following table summarizes the restricted common stock grants during the six months ended June 30, 2014: | ||||||||||||||||
Date | Shares | Vesting/Year | Date(s) | |||||||||||||
January 30, 2014 | 459,307 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||||
January 30, 2014 | 22,318 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||||
February 3, 2014 | 5,972 | 100% | 2/3/15 | |||||||||||||
March 11, 2014 | 25,770 | 100% | 3/11/15 | |||||||||||||
March 12, 2014 | 6,044 | 100% | 3/12/15 | |||||||||||||
March 30, 2014 | 112,000 | 1/6 per quarter | 3/31/14, 6/30/14, 9/30/14, 12/31/14, 3/31/15, 6/30/15 (1) | |||||||||||||
March 31, 2014 | 8,976 | 25% | 3/31/15, 3/31/16, 3/31/17, 3/31/18 | |||||||||||||
June 6, 2014 | 5,932 | 100% | 6/6/15 | |||||||||||||
-1 | 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 will not record the dividend equivalent rights until earned. On March 30, 2014, the third annual measurement period ended and 112,000 shares were earned. In addition, $258,000 of accrued dividend equivalent rights were earned. | |||||||||||||||
-2 | All shares were issued from the 2007 Plan with the exception of these shares which were issued from unregistered shares as part of the consideration for the purchase of PCM. | |||||||||||||||
On October 31, 2013, the Company through its taxable REIT subsidiary, RCC Residential, Inc. acquired PCM, an Atlanta based company that originates and services residential mortgage loans for approximately $7.6 million in cash. As part of this transaction, a key employee of PCM was granted approximately $800,000 of the Company’s restricted stock. The grant is accounted for as compensation and is being amortized to equity compensation expense over three years, the vesting period. Dividends declared on the stock while unvested are recorded as a general and administrative expense. Dividends declared after the stock vests will be recorded as a distribution. For the three and six months ended June 30, 2014, $68,000 and $136,000 of amortization of this stock grant was recorded to equity compensation expense on the Company’s consolidated statement of income and $27,000 and $53,000 of expense related to dividends on unvested shares was recorded to general and administrative on the Company’s consolidated statement of income for the three and six months ended June 30, 2014. There was no such expense of the three and six months ended June 30, 2013. | ||||||||||||||||
The following table summarizes the status of the Company’s unvested stock options as of June 30, 2014: | ||||||||||||||||
Unvested Options | Options | Weighted Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 13,334 | $ | 6.4 | |||||||||||||
Granted | — | |||||||||||||||
Vested | (13,334 | ) | 6.4 | |||||||||||||
Forfeited | — | |||||||||||||||
Unvested at June 30, 2014 | — | $ | — | |||||||||||||
The following table summarizes the status of the Company’s vested stock options as of June 30, 2014: | ||||||||||||||||
Vested Options | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||
Vested as of January 1, 2014 | 627,332 | $ | 14.62 | |||||||||||||
Vested | 13,334 | 6.4 | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Vested as of June 30, 2014 | 640,666 | $ | 14.45 | 1 | $ | 3 | ||||||||||
The outstanding stock options have a weighted average remaining contractual term of one year. | ||||||||||||||||
The components of equity compensation expense for the periods presented as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options granted to Manager and non-employees | $ | — | $ | (4 | ) | $ | (2 | ) | $ | 3 | ||||||
Restricted shares granted non-employees | 1,784 | 2,102 | 3,213 | 5,652 | ||||||||||||
Restricted shares granted employees | 185 | — | 360 | — | ||||||||||||
Restricted shares granted to non-employee directors | 63 | 57 | 128 | 91 | ||||||||||||
Total equity compensation expense | $ | 2,032 | $ | 2,155 | $ | 3,699 | $ | 5,746 | ||||||||
There was no incentive fee paid to the Manager for the three and six months ended June 30, 2014. During the three and six months ended June 30, 2013, the Manager was paid no incentive and 110,639 shares as incentive compensation valued at $653,000 pursuant to the Management Agreement, respectively. 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 June 30, 2014. All awards are discretionary in nature and subject to approval by the Compensation Committee of the Company's board of directors. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic: | ||||||||||||||||
Net income allocable to common shares | $ | 14,677 | $ | 6,533 | $ | 29,793 | $ | 18,059 | ||||||||
Weighted average number of shares outstanding | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 | ||||||||||||
Basic net income per share | $ | 0.12 | $ | 0.05 | $ | 0.24 | $ | 0.16 | ||||||||
Diluted: | ||||||||||||||||
Net income allocable to common shares | $ | 14,677 | $ | 6,533 | $ | 29,793 | $ | 18,059 | ||||||||
Weighted average number of shares outstanding | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 | ||||||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,190,144 | 1,545,327 | 1,120,611 | 1,323,929 | ||||||||||||
Adjusted weighted-average number of common shares outstanding | 128,142,637 | 122,283,503 | 127,409,127 | 113,832,183 | ||||||||||||
Diluted net income per share | $ | 0.11 | $ | 0.05 | $ | 0.23 | $ | 0.16 | ||||||||
Potentially dilutive shares relating to 17,907,939 shares issuable in connection with the Company's 6% Convertible Senior Notes (See Note 12) and other convertible debt for the three and six months ended June 30, 2014 and 640,666 shares for the three and six months ended June 30, 2013, respectively, were not included in the calculation of diluted net income per share because the effect was anti-dilutive. The conversion price of the 6.0% Convertible Senior Notes is computed by dividing the par value of the outstanding 6.0% convertible senior notes by the conversion ratio at issuance. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Equity [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 six months ended June 30, 2014 (dollars in thousands): | ||||||||||||||||
Net unrealized (loss) gain on derivatives | Net unrealized (loss) gain on securities, | Foreign Currency Translation | Accumulated other comprehensive loss | |||||||||||||
available-for-sale | ||||||||||||||||
January 1, 2014 | $ | (11,155 | ) | $ | (3,084 | ) | $ | 196 | $ | (14,043 | ) | |||||
Other comprehensive gain (loss) before reclassifications | 1,190 | (1,490 | ) | (180 | ) | (480 | ) | |||||||||
Amounts reclassified from accumulated other | 142 | 4,187 | — | 4,329 | ||||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 1,332 | 2,697 | (180 | ) | 3,849 | |||||||||||
June 30, 2014 | $ | (9,823 | ) | $ | (387 | ) | $ | 16 | $ | (10,194 | ) | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2014 | |
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 June 30, 2014, Resource America owned 2,861,592 shares, or 2.2%, of the Company’s outstanding common stock. In addition, Resource America held 2,166 options to purchase restricted stock. | |
The Company is managed by the Manager, which is a wholly-owned subsidiary of Resource America, pursuant to a Management Agreement that provides for both base and incentive management fees. For the three and six months ended June 30, 2014, the Manager earned base management fees of approximately $3.2 million and $6.1 million, respectively. For the three and six months ended June 30, 2013, the Manager earned base management fees of approximately $3.0 million and $5.6 million, respectively. No incentive management fees were earned for the three and six months ended June 30, 2014 or 2013. The Company also reimburses the Manager and Resource America for expenses, including the expenses 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 six months ended June 30, 2014, the Company paid the Manager $1.4 million and $2.4 million, respectively, as expense reimbursements. For the three and six months ended June 30, 2013, the Company paid the Manager $955,000 and $1.8 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. The management fee is 20% of the amount by which the net profits exceed the preferred return. During the three and six months ended June 30, 2014, RCM earned no management fees. RCM earned $266,000 in management fees during the first quarter of 2013 which was later reversed in the quarter ended June 30, 2013 due to unrealized losses recognized and the portfolio not exceeding a preferred return. The Company has reinvested gains from its activity and holds $9.0 million in fair market value of trading securities as of June 30, 2014, a decrease of $2.6 million from $11.6 million at fair market value as of December 31, 2013. The Company and RCM also 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 six months ended June 30, 2014, RCM earned no earnings from its share of the net profits as defined in the Investment Management Agreement. During the three and six months ended June 30, 2013, RCM earned $0 and $35,000, respectively, as its share of the net profits as defined in the Investment Management Agreement. As of March 12, 2013, the Company was no longer required to maintain the escrow account, and it was agreed that no further amounts would be owed to RCM. The Company also reimburses RCM for expenses paid on the Company's behalf. For the three and six months ended June 30, 2014, the Company paid RCM $51,000 and $126,000, respectively, as expense reimbursements. For the three and six month ended June 30, 2013, the Company paid RCM $42,000 and $131,000, respectively, as expense reimbursements. The portfolio began a partial liquidation during the year ended December 31, 2013. | |
At June 30, 2014, the Company was indebted to the Manager for $1.8 million, comprised of base management fees of $1.2 million and expense reimbursements of $650,000. At December 31, 2013, the Company was indebted to the Manager for $1.6 million, comprised of base management fees of $997,000 and expense reimbursements of $572,000. At June 30, 2014, the Company was indebted to RCM under the Company’s Investment Management Agreement for $229,000 for expense reimbursements. At December 31, 2013, the Company was indebted to RCM under the Company’s Investment Management Agreement for $289,000, comprised of incentive management fees of $123,000 and expense reimbursements of $166,000. | |
During the year ended December 31, 2013, the Company, through one of its subsidiaries, began originating middle-market loans. Resource America is paid origination fees in connection with the Company’s middle-market lending operations, which fees may not exceed 2% of the loan balance for any loan originated. | |
On November 7, 2013, the Company, through a wholly-owned subsidiary, purchased all of the membership interests in Elevation Home Loans, LLC, a start-up residential mortgage company, from an employee of Resource America for $830,000, paid in the form of 136,659 shares of restricted Company common stock. The restricted stock vests in full on November 7, 2016, and includes dividend equivalent rights. | |
The Company had executed seven securitizations as of June 30, 2014 and December 31, 2013, 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 securitzation's entities and their assets. The Company substantially liquidated one of these CDOs in October 2013. | |
Relationship with LEAF Financial. LEAF Financial originated and managed 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 with interest 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 to 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. On December 17, 2013, the Company entered into another amendment to extend the maturity to February 15, 2015. Principal payments of $715,000 were made during the six months ended June 30, 2014. During the quarter ended June 30, 2014, the Company recorded a $700,000 allowance for loan loss on this loan. The loan amount outstanding at June 30, 2014 and December 31, 2013 was $4.7 million and $5.7 million, respectively. | |
On November 16, 2011, the Company, together with LEAF Financial and LCC, entered into the SPA with Eos (see Note 3). The Company’s resulting interest is accounted for under the equity method. For the three and six months ended June 30, 2014 the Company recorded losses of $278,000 and $872,000, respectively. For the three and six months ended June 30, 2013, the Company recorded earnings of $304,000 and a loss of $32,000, respectively, which was recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. The Company’s investment in LCC was valued at $40.1 million and $41.0 million as of June 30, 2014 and December 31, 2013, respectively. | |
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 was initially entitled to collect senior, subordinated and incentive fees related to five CLOs holding approximately $1.9 billion in assets managed by RCAM. RCAM is assisted by CVC Credit Partners in managing these 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 six months ended June 30, 2014, CVC Credit Partners earned subordinated fees of $330,000 and $700,000, respectively. For three and six months ended June 30, 2013, CVC Credit Partners earned subordinated fees of $174,000 and $355,000, 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 in February 2013. | |
In May, June and July 2013, the Company invested a total of $15.0 million in CVC Global Credit Opportunities Fund which generally invests in assets through the Master Fund (see Note 9). 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 six months ended June 30, 2014, the Company recorded earnings of $1.1 million and $2.0 million, respectively, which was recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. For both the three and six months ended June 30, 2013, the Company recorded earnings of $93,000. The Company's investment balance of $18.1 million and $16.2 million as of June 30, 2014 and December 31, 2013, respectively, is recorded as an investment in unconsolidated entities on the Company's consolidated balance sheets 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, B notes, mezzanine loans, and investments in real estate. The Company reimburses Resource Real Estate for loan origination costs associated with all loans originated. The Company had a receivable of $4,100 due from Resource Real Estate for loan origination costs in connection with the Company’s commercial real estate loan portfolio as of June 30, 2014. The Company had no indebtedness to Resource Real Estate for loan origination costs in connection with the Company’s commercial real estate loan portfolio as of December 31, 2013. | |
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. RREM 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 for the three and six months ended June 30, 2014 in the amounts of $35,000 and $69,000, respectively. The Company incurred fees payable to RREM for the three and six months ended June 30, 2013 in the amounts of $34,000 and $69,000, respectively. | |
On December 1, 2009, the Company purchased a membership interest in RRE VIP Borrower, LLC (an unconsolidated VIE that holds an interest in a real estate joint venture) from Resource America for $2.1 million, its book value (see Note 9). 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 six months ended June 30, 2014, the Company paid RREM management fees of $1,000 and $6,000, respectively. For the three and six months ended June 30, 2013, the Company paid RREM management fees of $8,000 and $16,000, respectively. For the three and six months ended June 30, 2014, the Company recorded income of $869,000 and $1.7 million, respectively. For the three and six months ended June 30, 2013, the Company recorded losses of $101,000 and $214,000, respectively, which was recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. The investment balance was zero at both June 30, 2014 and December 31, 2013, and is classified 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. Principal payments of $391,000 were made during the six months ended June 30, 2014. The loan balance was $558,000 and $950,000 at June 30, 2014 and December 31, 2013, respectively. | |
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. 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. On May 23, 2012, SLH Partners repaid the $7.0 million loan in its entirety. RREM was appointed as the asset manager of the venture. RREM performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM received an annual asset management fee equal to 4.0% of the gross receipts generated from the property. The Company held a $975,000 preferred equity investment in SLH Partners as of December 31, 2013. The investment was sold in 2014 for a $1.0 million gain which is recorded on the Company's income statement in equity of earnings of unconsolidated subsidiaries. | |
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 performed lease review and approval, debt service collection, loan workout, foreclosure, disposition and permitting, as applicable. RREM was also responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM was 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 amount of $50,000 and $97,000 during the three and six months ended June 30, 2013, respectively. No fees were paid during the three and six months ended June 30, 2014 as the property was sold on September 30, 2013 for a gain of $16.6 million, which was recorded in gain on sale of real estate on the consolidated statements of income. | |
On June 19, 2012, the Company entered into a joint venture with Värde Investment Partners, LP acting as lender, to purchase two condominium developments. RREM acted as asset manager and was responsible for engaging third parties to perform day-to-day property management, property leasing, rent collection, maintenance, and capital improvements. RREM received an annual asset management fee equal to 1% of outstanding contributions. No management fees were paid for the three and six months ended June 30, 2014. For the three and six months ended June 30, 2013, the Company paid RREM management fees of $10,000 and $26,000, respectively. For the three and six months ended June 30, 2014, the Company recorded losses of $19,000 and $20,000, respectively. For the three and six months ended June 30, 2013, the Company recorded earnings of $19,000 and $43,000, respectively, which were recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. All condominiums were sold as of December 31, 2013. | |
In December 2013, the Company closed RCC CRE Notes 2013, a $307.8 million real estate securitization that provides financing for commercial real estate loans. Resource Real Estate serves as special servicer. With respect to each Specialty Service Mortgage Loan, Resource Real Estate receives an amount equal to the product of (a) the Special Servicing Fee Rate, 0.25% per annum, and (b) the outstanding principal balance of such Specialty Service Mortgage Loan. The servicing fee is payable monthly, on an asset-by-asset basis. The Company utilizes the brokerage services of Resource Securities Inc. ("Resource Securities"), a wholly-owned broker-dealer subsidiary of Resource America, on a limited basis to conduct some of its asset trades. The Company paid Resource Securities a $205,000 placement agent fee in connection with this transaction. | |
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 six months ended June 30, 2014, the Company paid Ledgewood $120,000 and $158,000, respectively, in connection with legal services rendered to the Company. For the three and six months ended June 30, 2013, the Company paid Ledgewood $40,000 and $86,000, respectively, in connection with legal services rendered to the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||
The Company’s 2014 dividends will be determined by the Company’s board of directors which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. | |||||||||||||||||||||||||||||||||||
The following tables presents dividends declared (on a per share basis) for the three and six months ended June 30, 2014. | |||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Date Paid | Total | Dividend | |||||||||||||||||||||||||||||||||
Dividend Paid | Per Share | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||
31-Mar | 28-Apr | $ | 25,663 | $ | 0.2 | ||||||||||||||||||||||||||||||
30-Jun | 28-Jul | $ | 26,179 | $ | 0.2 | ||||||||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||||||||||
Series A | Series B | Series C | |||||||||||||||||||||||||||||||||
Date Paid | Total | Dividend | Date Paid | Total | Dividend | Date Paid | Total | Dividend | |||||||||||||||||||||||||||
Dividend Paid | Per Share | Dividend Paid | Per Share | Dividend Paid | Per Share | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||||||||
31-Mar | 30-Apr | $ | 463 | $ | 0.53125 | 31-Mar | 30-Apr | $ | 2,057 | $ | 0.515625 | ||||||||||||||||||||||||
30-Jun | 30-Jul | $ | 537 | $ | 0.53125 | 30-Jun | 30-Jul | $ | 2,378 | $ | 0.515625 | 30-Jun | 30-Jul | $ | 1,437 | $ | 0.299479 | ||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 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 data available in the market 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 a prioritization of inputs used in the valuation of 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 | ||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 8,951 | $ | 8,951 | |||||||||||||
Investment securities available-for-sale | 1,886 | 1,581 | 261,036 | 264,503 | |||||||||||||||||
CMBS - linked transactions | — | — | 13,676 | 13,676 | |||||||||||||||||
Derivatives (net) | — | 755 | — | 755 | |||||||||||||||||
Total assets at fair value | $ | 1,886 | $ | 2,336 | $ | 283,663 | $ | 287,885 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives (net) | $ | — | $ | 785 | $ | 9,070 | $ | 9,855 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 785 | $ | 9,070 | $ | 9,855 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 11,558 | $ | 11,558 | |||||||||||||
Investment securities available-for-sale | 2,370 | 92 | 207,375 | 209,837 | |||||||||||||||||
CMBS - linked transactions | — | — | 30,066 | 30,066 | |||||||||||||||||
Total assets at fair value | $ | 2,370 | $ | 92 | $ | 248,999 | $ | 251,461 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives (net) | $ | — | $ | 395 | $ | 10,191 | $ | 10,586 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 395 | $ | 10,191 | $ | 10,586 | |||||||||||||
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): | |||||||||||||||||||||
CMBS including Linked Transactions | ABS | RMBS | Structured Finance | Total | |||||||||||||||||
Balance, January 1, 2014 | $ | 210,785 | $ | 26,656 | $ | 451 | $ | 11,107 | $ | 248,999 | |||||||||||
Included in earnings | (720 | ) | 470 | — | 379 | 129 | |||||||||||||||
Purchases | 93,291 | 37,397 | 31,058 | — | 161,746 | ||||||||||||||||
Sales | (99,151 | ) | (2,494 | ) | — | (758 | ) | (102,403 | ) | ||||||||||||
Paydowns | (25,435 | ) | (5,403 | ) | (18 | ) | — | (30,856 | ) | ||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Settlements | — | — | — | — | — | ||||||||||||||||
Included in OCI | 7,280 | 1,388 | (511 | ) | (2,109 | ) | 6,048 | ||||||||||||||
Transfers out of Level 2 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||
Balance, June 30, 2014 | $ | 186,050 | $ | 58,014 | $ | 30,980 | $ | 8,619 | $ | 283,663 | |||||||||||
In accordance with ASC 820-10-50-2-bbb, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As such, the Company has not disclosed such information associated with fair values obtained from third-party pricing sources. Because the Company was not able to obtain significant observable inputs and market data points due to a change in methodology whereby the Company began using a third party valuation firm to determine fair value, the Company reclassified $94.9 million of CMBS (including certain CMBS accounted for as linked transactions, to Level 3 during the year ended December 31, 2013. | |||||||||||||||||||||
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, 2014 | $ | 10,191 | |||||||||||||||||||
Unrealized losses – included in accumulated other comprehensive income | (1,121 | ) | |||||||||||||||||||
Ending balance, June 30, 2014 | $ | 9,070 | |||||||||||||||||||
The Company had no losses included in earnings due to the other-than-temporary impairment charges during the three and six months ended June 30, 2014, respectively. The Company had $535,000 and $21,000 of losses included in earnings due to the other-than-temporary impairment charges during the three and six months ended June 30, 2013, 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 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 six months ended June 30, 2014 was $0 and $440,000, respectively. For the three and six months ended June 30, 2013, nonrecurring fair value losses for impaired loans was $2.4 million and $3.0 million, respectively, and is included in the consolidated statements of income as provision for loan and lease 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 | ||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loans held for sale | $ | — | $ | 15,427 | $ | 24,859 | $ | 40,286 | |||||||||||||
Impaired loans | — | 1,125 | 5,200 | 6,325 | |||||||||||||||||
Total assets at fair value | $ | — | $ | 16,552 | $ | 30,059 | $ | 46,611 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loans held for sale | $ | — | $ | 6,850 | $ | 15,066 | $ | 21,916 | |||||||||||||
Impaired loans | — | 225 | — | 225 | |||||||||||||||||
Total assets at fair value | $ | — | $ | 7,075 | $ | 15,066 | $ | 22,141 | |||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | |||||||||||||||||||||
Fair Value at June 30, 2014 | Valuation Technique | Significant Unobservable Inputs | Significant Unobservable Input Value | ||||||||||||||||||
Interest rate swap agreements | $ | 9,070 | Discounted cash flow | Weighted average credit spreads | 5.12 | % | |||||||||||||||
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 sheets. The fair value of the Company’s investment securities, trading is reported in Note 6. 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 this 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 Company elected the fair value option for Moselle, CLO upon consolidation in 2014. The fair value option was elected for this CLO due to the relative pricing visibility on both the underlying assets and the notes of the CLO. Additionally, the Company believes the fair value option also better reflects the nature and intent of management's investment in this vehicle. The Company recorded a gain of $1.3 million on the fair value of loans of Moselle CLO and a loss of $430,000 on the fair value of the notes of Moselle CLO as Net realized and unrealized gain/(loss) on investment securities available-for-sale and loans for the three months ended June 30, 2014 on the consolidated statement of income. The interest income recorded to Interest income - Loans on the consolidated income statement and the interest expense recorded to Interest expense on the consolidated income statement were calculated at the coupon rate. At June 30, 2014 there were no significant gains or losses for the assets or liabilities due to credit risk. | |||||||||||||||||||||
The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Loans held-for-investment (1) | $ | 1,740,656 | $ | 1,732,134 | $ | — | $ | 704,319 | $ | 1,027,815 | |||||||||||
Loans receivable-related party | $ | 4,751 | $ | 4,751 | $ | — | $ | — | $ | 4,751 | |||||||||||
CDO notes (2) | $ | 1,108,287 | $ | 1,020,334 | $ | — | $ | 1,020,334 | $ | — | |||||||||||
Junior subordinated notes | $ | 51,104 | $ | 17,598 | $ | — | $ | — | $ | 17,598 | |||||||||||
Repurchase agreements | $ | 312,893 | $ | 312,893 | $ | — | $ | — | $ | 312,893 | |||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Loans held-for-investment | $ | 1,369,526 | $ | 1,358,434 | $ | — | $ | 545,352 | $ | 813,082 | |||||||||||
Loans receivable-related party | $ | 6,966 | $ | 6,966 | $ | — | $ | — | $ | 6,966 | |||||||||||
CDO notes | $ | 1,070,339 | $ | 653,617 | $ | — | $ | 653,617 | $ | — | |||||||||||
Junior subordinated notes | $ | 51,005 | $ | 17,499 | $ | — | $ | — | $ | 17,499 | |||||||||||
Repurchase agreements | $ | 77,304 | $ | 77,304 | $ | — | $ | — | $ | 77,304 | |||||||||||
-1 | Contains loans for which the fair value option was elected with an unpaid principal balance of $124.9 million and a fair value of $120.8 million at June 30, 2014. | ||||||||||||||||||||
-2 | Contains CDO notes for which the fair value option was elected with an unpaid principal balance of $143 million and a fair value of $140.2 million at June 30, 2014. |
INTEREST_RATE_RISK_AND_DERIVAT
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
At June 30, 2014, the Company had 10 interest rate swap contracts outstanding whereby the Company paid an average fixed rate of 5.12% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $125.4 million at June 30, 2014. 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, 2013, the Company had 12 interest rate swap contracts outstanding whereby the Company paid an average fixed rate of 5.03% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $129.5 million at December 31, 2013. The counterparties for the Company’s designated interest rate hedge contracts are Credit Suisse International and Wells Fargo with which the Company has master netting agreements. | ||||||||||||||||||||||||
The estimated fair value of the Company’s interest rate swaps was ($9.4) million and ($10.6) million as of June 30, 2014 and December 31, 2013, respectively. The Company had aggregate unrealized losses of $9.8 million and $10.8 million on the interest rate swap agreements as of June 30, 2014 and December 31, 2013, 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. | ||||||||||||||||||||||||
Mortgage Banking Derivatives | ||||||||||||||||||||||||
The Company's mortgage banking subsidiary may use derivatives in the ordinary course of business that consist of forward sales contracts and interest rate lock commitments on residential mortgage loans. Forward sales contracts represent future commitments to deliver loans at a specified price and by a specified date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Rate lock commitments represent commitments to fund loans at a specific rate and by a specified time and are used to mitigate risk of changes in interest rate. These derivatives involve underling items, such as interest rates, and are designed to mitigate risk. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure limited to the amounts required to be received or paid. | ||||||||||||||||||||||||
Forward sales contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the parties to deliver commitments are unable to fulfill their obligations, the Company could potentially incur significant additional costs by replacing the positions at then current market rates. The Company manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Members. The Company does not expect any counterparty to default on its obligations and, therefore, the Company does not expect to incur any cost related to counterparty default. | ||||||||||||||||||||||||
The Company is exposed to interest rate risk on loans held for sale and interest rate lock commitments. As market interest rates increase or decrease, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase accordingly. To offset this interest rate risk, the Company may enter into derivatives such as forward contracts to sell loans. The fair value of these forward sales contracts will change as market interest rates change, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including market interest rate volatility, the amount of interest rate lock commitments that close, the ability to fill the forward contracts before expiration, and the time period required to close and sell loans. | ||||||||||||||||||||||||
The following tables present the fair value of the Company’s derivative financial instruments as well as their classification on the Company's consolidated balance sheets and on the consolidated statements of income for the years presented: | ||||||||||||||||||||||||
Fair Value of Derivative Instruments as of June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | 46,612 | Derivatives, at fair value | $ | 990 | |||||||||||||||||||
Forward sales commitments | $ | 750 | Derivatives, at fair value | $ | 1 | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 125,431 | Derivatives, at fair value | $ | 9,396 | |||||||||||||||||||
Interest rate lock agreements | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward sale commitments | $ | 57,429 | Derivatives, at fair value | $ | 459 | |||||||||||||||||||
Interest rate swap contracts | $ | 125,431 | Accumulated other comprehensive loss | $ | 9,396 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Loss (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 125,431 | Interest expense | $ | 3,267 | |||||||||||||||||||
Interest rate lock agreements | $ | 46,612 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 990 | |||||||||||||||||||
Forward sales commitments | $ | 58,179 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 458 | |||||||||||||||||||
(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, 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 statements of income. | ||||||||||||||||||||||||
The following tables present certain information about the CMBS and repurchase agreements underlying the Company's linked transactions at June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 13,676 | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 30,066 | ||||||||||||||||||||
. | ||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income for the | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Statement of Income Location | Revenues (1) | ||||||||||||||||||||||
Linked transactions at fair value, 2014 | Non-Hedging | Unrealized (loss) gain and net interest income on linked transactions, net | $ | 7,317 | ||||||||||||||||||||
Linked transactions at fair value, 2013 | Non-Hedging | Unrealized (loss) gain and net interest income on linked transactions, net | $ | (5,504 | ) | |||||||||||||||||||
-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 (losses) gains and net interest income from linked transactions, net, included in the Company's consolidated statements of income for the periods presented as follows ( in thousands): | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Components of Unrealized Net (Losses) Gains and Net Interest Income | ||||||||||||||||||||||||
Income from Linked Transactions | ||||||||||||||||||||||||
Interest income attributable to CMBS underlying linked transactions | $ | 1,078 | $ | 756 | $ | 2,009 | $ | 1,204 | ||||||||||||||||
Interest expense attributable to linked repurchase | (226 | ) | (207 | ) | (615 | ) | (323 | ) | ||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | 4,160 | (5,794 | ) | 5,923 | (6,385 | ) | ||||||||||||||||||
Unrealized net (losses) gains and net interest income from linked transactions | $ | 5,012 | $ | (5,245 | ) | $ | 7,317 | $ | (5,504 | ) | ||||||||||||||
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 Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 41,495 | $ | 815 | $ | (40 | ) | $ | 42,270 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 99,493 | $ | 446 | $ | (6,116 | ) | $ | 93,823 | |||||||||||||||
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 Cost | Weighted Average Coupon | |||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | —% | |||||||||||||||||||
Greater than one year and less than five years | 34,235 | 33,864 | 5.32% | |||||||||||||||||||||
Greater than five years and less than ten years | 8,035 | 7,631 | 4.22% | |||||||||||||||||||||
Greater than ten years | — | — | —% | |||||||||||||||||||||
Total | $ | 42,270 | $ | 41,495 | 5.12% | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Less than one year | $ | 540 | $ | 540 | 5.58% | |||||||||||||||||||
Greater than one year and less than five years | 26,120 | 26,516 | 5.32% | |||||||||||||||||||||
Greater than five years and less than ten years | 53,688 | 57,282 | 3.35% | |||||||||||||||||||||
Greater than ten years | 13,475 | 15,155 | 3.34% | |||||||||||||||||||||
Total | $ | 93,823 | $ | 99,493 | 3.84% | |||||||||||||||||||
The following table shows the fair value, gross unrealized losses and the length of time the investment securities available-for-sale 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 Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 6,205 | $ | (8 | ) | $ | 762 | $ | (32 | ) | $ | 6,967 | $ | (40 | ) | |||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 70,727 | $ | (5,198 | ) | $ | 9,318 | $ | (918 | ) | $ | 80,045 | $ | (6,116 | ) | |||||||||
The following table summarizes the Company's CMBS linked transactions at fair value (in thousands, except percentages): | ||||||||||||||||||||||||
December 31, | Net Purchase (Sales) | Upgrades/Downgrades | Paydowns | MTM Change on Same Ratings | June 30, | |||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 26,682 | $ | (18,704 | ) | $ | — | $ | (21 | ) | $ | 555 | $ | 8,512 | ||||||||||
Aa1 through Aa3 | 8,919 | (9,589 | ) | — | 670 | — | ||||||||||||||||||
A1 through A3 | — | — | — | — | — | |||||||||||||||||||
Baa1 through Baa3 | 6,473 | — | — | 90 | 6,563 | |||||||||||||||||||
Ba1 through Ba3 | 10,310 | (10,768 | ) | — | 458 | — | ||||||||||||||||||
B1 through B3 | 12,155 | 455 | — | 744 | 13,354 | |||||||||||||||||||
Non-Rated | 29,284 | (16,334 | ) | — | 891 | 13,841 | ||||||||||||||||||
Total | $ | 93,823 | $ | (54,940 | ) | $ | — | $ | (21 | ) | $ | 3,408 | $ | 42,270 | ||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 17,642 | $ | (9,773 | ) | $ | — | $ | (21 | ) | $ | (98 | ) | $ | 7,750 | |||||||||
BBB+ through BBB- | 9,953 | — | — | — | 206 | 10,159 | ||||||||||||||||||
BB+ through BB- | 2,865 | 127 | — | — | 235 | 3,227 | ||||||||||||||||||
B+ through B- | 19,619 | (2,745 | ) | — | — | 722 | 17,596 | |||||||||||||||||
CCC+ through CCC- | — | 2,776 | — | — | — | 2,776 | ||||||||||||||||||
Non-Rated | 43,744 | (45,325 | ) | — | — | 2,343 | 762 | |||||||||||||||||
Total | $ | 93,823 | $ | (54,940 | ) | $ | — | $ | (21 | ) | $ | 3,408 | $ | 42,270 | ||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Maturity or Repricing | Balance | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | ||||||||||||||||||||
Within 30 days | $ | 28,702 | 1.45 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 28,702 | 1.45 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
OFFSETTING_OF_FINANCIAL_ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 for the periods presented as follows (in thousands): | |||||||||||||||||||||||||
(iv) | |||||||||||||||||||||||||
Gross Amounts Not Offset in | |||||||||||||||||||||||||
the Consolidated Balance Sheets | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | Financial | Cash | (v) =iii) - (iv) | ||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Included in | Instruments (1) | Collateral | Net Amount | ||||||||||||||||||||
Recognized | Consolidated | the Consolidated | Pledged (2) | ||||||||||||||||||||||
Liabilities | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 9,396 | $ | — | $ | 9,396 | $ | — | $ | 500 | $ | 8,896 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 312,890 | — | 312,890 | 312,890 | — | — | |||||||||||||||||||
Total | $ | 322,286 | $ | — | $ | 322,286 | $ | 312,890 | $ | 500 | $ | 8,896 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 10,586 | $ | — | $ | 10,586 | $ | — | $ | 500 | $ | 10,086 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 91,931 | — | 91,931 | 91,931 | — | — | |||||||||||||||||||
Total | $ | 102,517 | $ | — | $ | 102,517 | $ | 91,931 | $ | 500 | $ | 10,086 | |||||||||||||
-1 | Amounts represent collateral pledged that is available to be offset against liability balances associated with repurchase agreement and derivative transactions. | ||||||||||||||||||||||||
-2 | Amounts represent amounts pledged as collateral against derivative transactions. | ||||||||||||||||||||||||
-3 | The fair value of securities pledged against the Company's swaps was $2.7 million and $3.5 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
-4 | The fair value of securities pledged against the Company's repurchase agreements was $434.2 million and $121.6 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
In the Company's consolidated balance sheets, all balances associated with 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. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
From time to time, the Company may become involved in litigation on various matters, including disputes arising out of loans in the Company's portfolio and agreements to purchase or sell assets. Given the nature of the Company's business activities, the Company considers these to be routine in the conduct of its business. The resolution of these various matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. Alternately, the Company may engage in settlement discussions on certain matters in order to avoid the additional costs of engaging in litigation. | |
The Company is unaware of any contingencies arising from such routine litigation that would require accrual or disclosure in the consolidated financial statements as of June 30, 2014. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2014 | |
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 $3.1 million in proceeds from the issuance of 549,788 shares of common stock through the Company's dividend reinvestment plan during July 2014. | |
Effective July 3, 2014, PCM closed a $75.0 million facility with Wells Fargo comprised of a $25.0 million maximum committed amount and a maximum uncommitted amount of $50.0 million, terminating on July 2, 2015. | |
On July 30, 2014, the Company closed Resource Capital Corp. 2014-CRE2, Ltd., a $354 million real estate securitization that provides financing for commercial real estate loans. At closing, the Company was able to pay down the Wells Fargo CRE term repurchase facility and the Deutsche Bank term repurchase facility by $217.8 million and $20.4 million, respectively. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
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 and investment securities, available-for-sale are reported at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as market participant assumptions with regard to other data such as prepayment, default, and recovery rates. These valuations are validated utilizing dealer quotes or bids. If the difference between the value indicated by the third-party valuation firm and the dealer quote or bid is over a pre-determined threshold, the Company will evaluate the difference which could result in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Any changes in fair value to the Company's investment securities, trading are recorded in the Company’s consolidated statements of income as net realized and unrealized (loss) gain on investment securities, trading. Any changes in fair value to the Company's investment securities available-for-sale are recorded in the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders' equity. | ||
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 consolidated statements of income. Where other market components are believed to be the cause of the impairment, that component of the impairment is recognized as other comprehensive loss. | ||
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. | ||
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. | |
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. For the Company's bank and CRE loan portfolios, loans held for investment are first individually evaluated for impairment to determine whether a specific reserve is required. Loans that are not determined to be impaired individually 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. The reviews 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. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. | ||
Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are initially written down to fair value. They are re-measured on a nonrecurring basis. The fair value is determined using unobservable inputs including estimates of selling costs (Level 3). | ||
For the Company's residential mortgage loans, the allowance is based upon management's review of the collectability of the loans in light of historical experience, the nature and amount of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general components. For loans that are identified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. A general component is maintained to cover uncertainties that could affect management's estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||
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") Accounting Standards Codification ("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 June 2014, the FASB issued guidance that changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement for repurchase arrangements. This amendment also requires additional disclosure for certain transactions comprising a transfer of a financial asset accounted for as a sale and an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. This guidance is effective for the first interim or annual period beginning after December 15, 2014. The Company expects to show assets, liabilities, income and expense gross on its consolidated financial statements and provide the additional required disclosure. | ||
In April 2014, the FASB issued guidance that changes the requirements for reporting discontinued operations. The amendments in this update require an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position. The amendments in this update also require additional disclosures about discontinued operations and new disclosures for disposal transactions of individually significant components of an entity that do not meet the definition of a discontinued operation. Additionally, this guidance both permits and expands the disclosures about an entity’s significant continuing involvement with a discontinued operation. This guidance is effective for all disposals or classifications as held for sale of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted for disposals that have not been reported in financial statements previously issued or available for sale. The Company has early adopted the provisions of this guidance. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
In January 2014, the FASB issued guidance that clarifies when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. Furthermore, the guidance requires interim and annual disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. 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 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. Adoption did not have a material impact on the Company's consolidated financial statements. | ||
Reclassifications | ' | |
Reclassifications | ||
Certain reclassifications have been made to the 2013 consolidated financial statements to conform to the 2014 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. | ||
The Company’s 2014 dividends will be determined by the Company’s board of directors which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional common shares. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | |
Jun. 30, 2014 | ||
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) | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | ' | |||||||||||||||||||||||||||||||||||||||
The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs as of June 30, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Unconsolidated Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
LCC | Unsecured | Resource | Total | Maximum | ||||||||||||||||||||||||||||||||||||
Junior | Capital Asset | Exposure | ||||||||||||||||||||||||||||||||||||||
Subordinated | Management | to Loss | ||||||||||||||||||||||||||||||||||||||
Debentures | CDOs | |||||||||||||||||||||||||||||||||||||||
Investment in unconsolidated entities | $ | 40,144 | $ | 1,548 | $ | — | $ | 41,692 | $ | 41,692 | ||||||||||||||||||||||||||||||
Intangible assets | — | — | 10,341 | 10,341 | $ | 10,341 | ||||||||||||||||||||||||||||||||||
Total assets | 40,144 | 1,548 | 10,341 | 52,033 | ||||||||||||||||||||||||||||||||||||
Borrowings | — | 51,104 | — | 51,104 | N/A | |||||||||||||||||||||||||||||||||||
Total liabilities | — | 51,104 | — | 51,104 | N/A | |||||||||||||||||||||||||||||||||||
Net asset (liability) | $ | 40,144 | $ | (49,556 | ) | $ | 10,341 | $ | 929 | N/A | ||||||||||||||||||||||||||||||
The following table shows the classification and carrying value of assets and liabilities of consolidated VIEs as of June 30, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | RCC CRE Notes 2013 | Moselle | Total | |||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006-1 | 2007-1 | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Restricted cash (1) | $ | 7,323 | $ | 2,374 | $ | 30,731 | $ | 7 | $ | 80 | $ | 20 | $ | 250 | $ | 4,097 | $ | 43,880 | $ | 88,762 | ||||||||||||||||||||
Investment securities | 7,227 | 3,933 | 13,045 | — | — | 10,112 | 67,702 | — | 12,622 | 114,641 | ||||||||||||||||||||||||||||||
available-for-sale, | ||||||||||||||||||||||||||||||||||||||||
pledged as | ||||||||||||||||||||||||||||||||||||||||
collateral, at | ||||||||||||||||||||||||||||||||||||||||
fair value | ||||||||||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 59,177 | 102,046 | 302,247 | — | — | 154,012 | 218,384 | 277,750 | 120,766 | 1,234,382 | ||||||||||||||||||||||||||||||
Loans held for sale | — | 932 | 876 | — | — | — | — | — | — | 1,808 | ||||||||||||||||||||||||||||||
Interest receivable | (235 | ) | 495 | 932 | — | — | 1,995 | 2,322 | 1,446 | — | 6,955 | |||||||||||||||||||||||||||||
Prepaid assets | 8 | 10 | 23 | — | — | 18 | 95 | — | — | 154 | ||||||||||||||||||||||||||||||
Principal paydown | — | — | — | — | — | — | 9,300 | 22,650 | — | 31,950 | ||||||||||||||||||||||||||||||
receivable | ||||||||||||||||||||||||||||||||||||||||
Total assets (2) | $ | 73,500 | $ | 109,790 | $ | 347,854 | $ | 7 | $ | 80 | $ | 166,157 | $ | 298,053 | $ | 305,943 | $ | 177,268 | $ | 1,478,652 | ||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 56,922 | $ | 97,458 | $ | 319,639 | $ | — | $ | — | $ | 106,029 | $ | 126,004 | $ | 256,807 | $ | 148,455 | $ | 1,111,314 | ||||||||||||||||||||
Accrued | 234 | 49 | 307 | — | — | 44 | 94 | 190 | 377 | 1,295 | ||||||||||||||||||||||||||||||
interest expense | ||||||||||||||||||||||||||||||||||||||||
Derivatives, | — | — | — | — | — | 1,290 | 7,781 | — | — | 9,071 | ||||||||||||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||||||||||||||
Accounts payable | 12 | 19 | 29 | 198 | — | 9 | 1 | — | 1,690 | 1,958 | ||||||||||||||||||||||||||||||
and other liabilities | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 57,168 | $ | 97,526 | $ | 319,975 | $ | 198 | $ | — | $ | 107,372 | $ | 133,880 | $ | 256,997 | $ | 150,522 | $ | 1,123,638 | ||||||||||||||||||||
(1) Includes $4.3 million available for reinvestment in certain of the securitizations. | ||||||||||||||||||||||||||||||||||||||||
(2) Assets of each of the consolidated VIEs may only be used to settle the obligations of each respective VIE. |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Other Significant Noncash Transactions | ' | |||||||
Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Non-cash financing activities include the following: | ||||||||
Distributions on common stock declared but not paid | $ | 26,179 | $ | 25,399 | ||||
Distribution on preferred stock declared but not paid | $ | 4,353 | $ | 1,944 | ||||
Issuance of restricted stock | $ | 646 | $ | 151 | ||||
INVESTMENT_SECURITIES_TRADING_
INVESTMENT SECURITIES TRADING (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Investment trading securities at fair value | ' | |||||||||||||||
The following table summarizes the Company's structured notes and RMBS which are classified as investment securities, trading and carried at fair value (in thousands): | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
As of June 30, 2014 | ||||||||||||||||
Structured notes, trading | $ | 8,056 | $ | 2,130 | $ | (1,567 | ) | $ | 8,619 | |||||||
RMBS, trading | 1,901 | — | (1,569 | ) | 332 | |||||||||||
Total | $ | 9,957 | $ | 2,130 | $ | (3,136 | ) | $ | 8,951 | |||||||
As of December 31, 2013 | ||||||||||||||||
Structured notes, trading | $ | 8,057 | $ | 4,050 | $ | (1,000 | ) | $ | 11,107 | |||||||
RMBS, trading | 1,919 | — | (1,468 | ) | 451 | |||||||||||
Total | $ | 9,976 | $ | 4,050 | $ | (2,468 | ) | $ | 11,558 | |||||||
INVESTMENT_SECURITIES_AVAILABL1
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||||||||||||||||
The aggregate discount (premium) recognized as of the periods indicated (in thousands) are: | |||||||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
CMBS | $ | 4,049 | $ | 6,583 | |||||||||||||||||||||||||||||
ABS | $ | 1,988 | $ | 2,394 | |||||||||||||||||||||||||||||
Corporate bond | $ | 96 | $ | 68 | |||||||||||||||||||||||||||||
The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of securities): | |||||||||||||||||||||||||||||||||
Positions Sold | Par Amount Sold | Realized Gain (Loss) | |||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS position | 3 | $ | 15,970 | $ | 480 | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS position | 4 | $ | 14,500 | $ | 466 | ||||||||||||||||||||||||||||
Corporate bond position | 35 | $ | 34,253 | $ | (474 | ) | |||||||||||||||||||||||||||
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 Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 175,983 | $ | 7,074 | $ | (10,683 | ) | $ | 172,374 | ||||||||||||||||||||||||
RMBS | 30,647 | — | — | 30,647 | |||||||||||||||||||||||||||||
ABS | 32,145 | 1,429 | (214 | ) | 33,360 | ||||||||||||||||||||||||||||
Structured notes | 23,203 | 1,452 | — | 24,655 | |||||||||||||||||||||||||||||
Corporate bonds | 3,360 | 107 | — | 3,467 | |||||||||||||||||||||||||||||
Total | $ | 265,338 | $ | 10,062 | $ | (10,897 | ) | $ | 264,503 | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS | $ | 185,178 | $ | 7,570 | $ | (12,030 | ) | $ | 180,718 | ||||||||||||||||||||||||
ABS | 25,406 | 1,644 | (394 | ) | 26,656 | ||||||||||||||||||||||||||||
Structured notes | 5,369 | — | — | 5,369 | |||||||||||||||||||||||||||||
Corporate bonds | 2,517 | 16 | (70 | ) | 2,463 | ||||||||||||||||||||||||||||
Total | $ | 218,470 | $ | 9,230 | $ | (12,494 | ) | $ | 215,206 | ||||||||||||||||||||||||
Estimated maturities of available-for-sale securities | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the estimated maturities of the Company’s investment securities according to their estimated weighted average life classifications (in thousands, except percentages): | |||||||||||||||||||||||||||||||||
Weighted Average Life | Fair Value | Amortized Cost | Weighted Average Coupon | ||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 41,371 | (1) | $ | 50,628 | 3.79% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 139,526 | 133,098 | 5.01% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 28,304 | 27,762 | 1.73% | ||||||||||||||||||||||||||||||
Greater than ten years | 55,302 | 53,850 | 6.49% | ||||||||||||||||||||||||||||||
Total | $ | 264,503 | $ | 265,338 | 4.78% | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 39,256 | (1) | $ | 40,931 | 5.25% | |||||||||||||||||||||||||||
Greater than one year and less than five years | 139,700 | 141,760 | 4.69% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 26,526 | 25,707 | 1.10% | ||||||||||||||||||||||||||||||
Greater than ten years | 9,724 | 10,072 | 7.90% | ||||||||||||||||||||||||||||||
Total | $ | 215,206 | $ | 218,470 | 4.49% | ||||||||||||||||||||||||||||
(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, gross unrealized losses and number of securities aggregated by investment category and length of time, that individual investment securities available-for-sale have been in a continuous unrealized loss position during the periods specified (in thousands, except number of securities): | |||||||||||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized Losses | Number | Fair | Unrealized Losses | Number | Fair | Unrealized Losses | Number | |||||||||||||||||||||||||
Value | of | Value | of | Value | of | ||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 40,021 | $ | (649 | ) | 28 | $ | 22,249 | $ | (10,034 | ) | 12 | $ | 62,270 | $ | (10,683 | ) | 40 | |||||||||||||||
ABS | 827 | (10 | ) | 1 | 4,412 | (204 | ) | 8 | 5,239 | (214 | ) | 9 | |||||||||||||||||||||
Corporate bonds | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total temporarily | $ | 40,848 | $ | (659 | ) | 29 | $ | 26,661 | $ | (10,238 | ) | 20 | $ | 67,509 | $ | (10,897 | ) | 49 | |||||||||||||||
impaired securities | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS | $ | 52,012 | $ | (7,496 | ) | 34 | $ | 14,159 | $ | (4,534 | ) | 10 | $ | 66,171 | $ | (12,030 | ) | 44 | |||||||||||||||
ABS | 143 | (1 | ) | 1 | 6,692 | (393 | ) | 9 | 6,835 | (394 | ) | 10 | |||||||||||||||||||||
Corporate bonds | 865 | (70 | ) | 1 | — | — | — | 865 | (70 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 53,020 | $ | (7,567 | ) | 36 | $ | 20,851 | $ | (4,927 | ) | 19 | $ | 73,871 | $ | (12,494 | ) | 55 | |||||||||||||||
impaired securities | |||||||||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE_Tab
INVESTMENTS IN REAL ESTATE (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Real Estate [Abstract] | ' | |||||
Investments in real estate | ' | |||||
The table below summarizes the Company’s investments in real estate (in thousands, except number of properties): | ||||||
As of December 31, 2013 | ||||||
Book Value | Number of Properties | |||||
Multi-family property | $ | 22,107 | 1 | |||
Office property | 10,273 | 1 | ||||
Subtotal | 32,380 | |||||
Less: Accumulated depreciation | (2,602 | ) | ||||
Investments in real estate | $ | 29,778 | ||||
LOANS_HELD_FOR_INVESTMENT_Tabl
LOANS HELD FOR INVESTMENT (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 (Discount) | Carrying | ||||||||||||||
Premium (1) | Value (2) | ||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | $ | 959,569 | $ | (4,823 | ) | $ | 954,746 | ||||||||||
B notes | 16,204 | (66 | ) | 16,138 | |||||||||||||
Mezzanine loans | 67,370 | (110 | ) | 67,260 | |||||||||||||
Total commercial real estate loans | 1,043,143 | (4,999 | ) | 1,038,144 | |||||||||||||
Bank loans | 709,102 | (2,521 | ) | 706,581 | |||||||||||||
Residential mortgage loans, held for investment | 2,470 | — | 2,470 | ||||||||||||||
Subtotal loans before allowances | 1,754,715 | (7,520 | ) | 1,747,195 | |||||||||||||
Allowance for loan loss | (6,539 | ) | — | (6,539 | ) | ||||||||||||
Total loans held for investment | 1,748,176 | (7,520 | ) | 1,740,656 | |||||||||||||
Bank loans held for sale | 15,427 | — | 15,427 | ||||||||||||||
Residential mortgage loans held for sale | 24,859 | — | 24,859 | ||||||||||||||
Total loans held for sale | 40,286 | — | 40,286 | ||||||||||||||
Total loans | $ | 1,788,462 | $ | (7,520 | ) | $ | 1,780,942 | ||||||||||
As of December 31, 2013 | |||||||||||||||||
Commercial real estate loans: | |||||||||||||||||
Whole loans | $ | 749,083 | $ | (3,294 | ) | $ | 745,789 | ||||||||||
B notes | 16,288 | (83 | ) | 16,205 | |||||||||||||
Mezzanine loans | 64,417 | (100 | ) | 64,317 | |||||||||||||
Total commercial real estate loans | 829,788 | (3,477 | ) | 826,311 | |||||||||||||
Bank loans (3) | 559,206 | (4,033 | ) | 555,173 | |||||||||||||
Residential Mortgage Loans, held for investment | 1,849 | — | 1,849 | ||||||||||||||
Subtotal loans before allowances | 1,390,843 | (7,510 | ) | 1,383,333 | |||||||||||||
Allowance for loan loss | (13,807 | ) | — | (13,807 | ) | ||||||||||||
Total loans held for investment | 1,377,036 | (7,510 | ) | 1,369,526 | |||||||||||||
Bank loans held for sale | 6,850 | — | 6,850 | ||||||||||||||
Residential mortgage loans held for sale | 15,066 | — | 15,066 | ||||||||||||||
Total loans held for sale | 21,916 | — | 21,916 | ||||||||||||||
Total loans | $ | 1,398,952 | $ | (7,510 | ) | $ | 1,391,442 | ||||||||||
-1 | Amounts include deferred amendment fees of $169,000 and $216,000 and deferred upfront fees of $112,000 and $141,000 being amortized over the life of the bank loans as of June 30, 2014 and December 31, 2013, respectively. Amounts include loan origination fees of $4.9 million and $3.3 million and loan extension fees of $177,000 and $73,000 being amortized over the life of the commercial real estate loans as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
Summary of the weighted average life of bank loans at amortized cost | ' | ||||||||||||||||
The following is a summary of the weighted average remaining lives of the Company’s bank loans, at amortized cost (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Less than one year | $ | 36,155 | $ | 36,985 | |||||||||||||
Greater than one year and less than five years | 528,687 | 379,874 | |||||||||||||||
Five years or greater | 157,166 | 145,164 | |||||||||||||||
$ | 722,008 | $ | 562,023 | ||||||||||||||
Summary of the commercial real estate loans | ' | ||||||||||||||||
The following is a summary of the Company’s commercial real estate loans held for investment (in thousands): | |||||||||||||||||
Description | Quantity | Amortized Cost | Contracted | Maturity Dates(3) | |||||||||||||
Interest Rates | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Whole loans, floating rate (1) (4) (5) | 59 | $ | 954,746 | LIBOR plus 2.13% to | October 2014 to | ||||||||||||
LIBOR plus 12.14% | Feb-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,138 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 1 | 15,452 | LIBOR plus 15.32% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 51,808 | 0.50% to 18.71% | September 2014 to | |||||||||||||
Sep-21 | |||||||||||||||||
Total (2) | 64 | $ | 1,038,144 | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Whole loans, floating rate (1) (4) | 51 | $ | 745,789 | LIBOR plus 2.68% to | March 2014 to | ||||||||||||
LIBOR plus 12.14% | Feb-19 | ||||||||||||||||
B notes, fixed rate | 1 | 16,205 | 8.68% | Apr-16 | |||||||||||||
Mezzanine loans, floating rate | 1 | 12,455 | LIBOR plus 15.32% | Apr-16 | |||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 51,862 | 0.50% to 18.72% | September 2014 to | |||||||||||||
Sep-19 | |||||||||||||||||
Total (2) | 56 | $ | 826,311 | ||||||||||||||
-1 | Whole loans had $52.5 million and $13.7 million in unfunded loan commitments as of June 30, 2014 and December 31, 2013, respectively. These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. | ||||||||||||||||
-2 | The total does not include an allowance for loan loss of $5.8 million and $10.4 million as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
-3 | Maturity dates do not include possible extension options that may be available to the borrowers. | ||||||||||||||||
-4 | As of June 30, 2014, floating rate whole loans includes $3.1 million and $12.0 million mezzanine components of two whole loans, which have a fixed rate of 15.0% and 12.0%, respectively. | ||||||||||||||||
-5 | Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2014. | ||||||||||||||||
-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 maturity of the Company’s commercial real estate loans, at amortized cost (in thousands): | |||||||||||||||||
Description | 2014 | 2015 | 2016 and Thereafter | Total | |||||||||||||
As of June 30, 2014 | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,138 | $ | 16,138 | |||||||||
Mezzanine loans | 5,711 | — | 61,549 | 67,260 | |||||||||||||
Whole loans | — | — | 954,746 | 954,746 | |||||||||||||
Total (1) | $ | 5,711 | $ | — | $ | 1,032,433 | $ | 1,038,144 | |||||||||
As of December 31, 2013 | |||||||||||||||||
B notes | $ | — | $ | — | $ | 16,205 | $ | 16,205 | |||||||||
Mezzanine loans | 5,711 | — | 58,606 | 64,317 | |||||||||||||
Whole loans | — | 17,949 | 727,840 | 745,789 | |||||||||||||
Total (1) | $ | 5,711 | $ | 17,949 | $ | 802,651 | $ | 826,311 | |||||||||
-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 Total Allowance | |||||||||||||||
Loan Loss | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
B notes | $ | 76 | 1.16% | ||||||||||||||
Mezzanine loans | 314 | 4.80% | |||||||||||||||
Whole loans | 5,454 | 83.41% | |||||||||||||||
Bank loans | 669 | 10.23% | |||||||||||||||
Residential mortgage loans, held for investment | 26 | 0.40% | |||||||||||||||
Total | $ | 6,539 | |||||||||||||||
As of December 31, 2013 | |||||||||||||||||
B notes | $ | 174 | 1.26% | ||||||||||||||
Mezzanine loans | 559 | 4.05% | |||||||||||||||
Whole loans | 9,683 | 70.13% | |||||||||||||||
Bank loans | 3,391 | 24.56% | |||||||||||||||
Residential mortgage loans, held for investment | — | —% | |||||||||||||||
Total | $ | 13,807 | |||||||||||||||
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Unconsolidated Entities | ' | |||||||||||||||||||||||||
The following table shows the Company's investments in unconsolidated entities as of June 30, 2014 and December 31, 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||
Balance as of | Balance as of | For the | For the | For the | For the | |||||||||||||||||||||
three months ended | six months | three months | six months | |||||||||||||||||||||||
ended | ended | ended | ||||||||||||||||||||||||
Ownership % | June 30, | December 31, | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | 2013 | |||||||||||||||||||||
Varde Investment Partners, L.P | 7.50% | $ | 654 | $ | 674 | $ | (19 | ) | $ | (20 | ) | $ | 19 | $ | 43 | |||||||||||
RRE VIP Borrower, LLC | 3% to 5% | — | — | 869 | 1,736 | (101 | ) | (214 | ) | |||||||||||||||||
Investment in LCC Preferred Stock | 28.20% | 40,144 | 41,016 | (278 | ) | (872 | ) | 304 | (32 | ) | ||||||||||||||||
Investment in RCT I and II (1) | 3% | 1,548 | 1,548 | (594 | ) | (1,184 | ) | (602 | ) | (1,195 | ) | |||||||||||||||
Investment in Preferred Equity (2) | various | — | 8,124 | 232 | 1,300 | 86 | 170 | |||||||||||||||||||
Investment in CVC Global Opps Fund | 34.40% | 18,134 | 16,177 | 1,124 | 1,958 | 93 | 93 | |||||||||||||||||||
Investment in Life Care | 50.20% | — | 1,530 | — | (75 | ) | (242 | ) | (242 | ) | ||||||||||||||||
Funding (3) | ||||||||||||||||||||||||||
Total | $ | 60,480 | $ | 69,069 | $ | 1,334 | $ | 2,843 | $ | (443 | ) | $ | (1,377 | ) | ||||||||||||
-1 | For the three and six months ended June 30, 2014 and 2013, these amounts are recorded in interest expense on the Company's consolidated statements of income. | |||||||||||||||||||||||||
-2 | For the three and six months ended June 30, 2014 and 2013, these amounts are recorded in interest income on loans on the Company's consolidated statements of income. | |||||||||||||||||||||||||
-3 | The Company began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation. |
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
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 | Residential Mortgage Loans | Loans Receivable-Related Party | Total | ||||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2014 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | 13,807 | ||||||||||||||||||
Provision for loan loss | (4,511 | ) | 607 | 26 | 700 | (3,178 | ) | |||||||||||||||||||||
Loans charged-off | (61 | ) | (3,329 | ) | — | — | (3,390 | ) | ||||||||||||||||||||
Allowance for losses at June 30, 2014 | $ | 5,844 | $ | 669 | $ | 26 | $ | 700 | $ | 7,239 | ||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,800 | $ | 441 | $ | — | $ | 700 | $ | 2,941 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 4,044 | $ | 228 | $ | 26 | $ | — | $ | 4,298 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 172,583 | $ | 1,566 | $ | — | $ | 5,451 | $ | 179,600 | ||||||||||||||||||
Collectively evaluated for impairment (1) | $ | 865,561 | $ | 704,896 | $ | 2,470 | $ | — | $ | 1,572,927 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 119 | $ | — | $ | — | $ | 119 | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2013 | $ | 7,986 | $ | 9,705 | $ | — | $ | — | $ | 17,691 | ||||||||||||||||||
Provision for loan loss | 2,686 | 334 | — | — | 3,020 | |||||||||||||||||||||||
Loans charged-off | (256 | ) | (6,648 | ) | — | — | (6,904 | ) | ||||||||||||||||||||
Allowance for losses at December 31, 2013 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | 13,807 | ||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,572 | $ | 2,621 | $ | — | $ | — | $ | 7,193 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 5,844 | $ | 770 | $ | — | $ | — | $ | 6,614 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: (2) | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 194,403 | $ | 3,554 | $ | — | $ | 6,966 | $ | 204,923 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 631,908 | $ | 558,469 | $ | 16,915 | $ | — | $ | 1,207,292 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
-1 | Loan ending balance contains $120.8 million of loan value for which the fair value option has been elected. As such, no allowance for loan losses has been recognized for these loans. | |||||||||||||||||||||||||||
-2 | Loan balances as of December 31, 2013 include loans held for sale. | |||||||||||||||||||||||||||
Credit quality indicators for Bank loans and 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 June 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | 900,246 | $ | 32,500 | $ | 22,000 | $ | — | $ | — | $ | 954,746 | ||||||||||||||||
B notes | 16,138 | — | — | — | — | 16,138 | ||||||||||||||||||||||
Mezzanine loans | 45,460 | 21,800 | — | — | — | 67,260 | ||||||||||||||||||||||
$ | 961,844 | $ | 54,300 | $ | 22,000 | $ | — | $ | — | $ | 1,038,144 | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Whole loans | $ | 680,718 | $ | 32,500 | $ | 32,571 | $ | — | $ | — | $ | 745,789 | ||||||||||||||||
B notes | 16,205 | — | — | — | — | 16,205 | ||||||||||||||||||||||
Mezzanine loans | 51,862 | 12,455 | — | — | — | 64,317 | ||||||||||||||||||||||
$ | 748,785 | $ | 44,955 | $ | 32,571 | $ | — | $ | — | $ | 826,311 | |||||||||||||||||
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 June 30, 2014 | ||||||||||||||||||||||||||||
Bank loans | $ | 666,578 | $ | 33,999 | $ | 3,551 | $ | 768 | $ | 1,685 | $ | 15,427 | $ | 722,008 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Bank loans | $ | 488,004 | $ | 42,476 | $ | 18,806 | $ | 2,333 | $ | 3,554 | $ | 6,850 | $ | 562,023 | ||||||||||||||
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 | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 954,746 | $ | 954,746 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,138 | 16,138 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 67,260 | 67,260 | — | |||||||||||||||||||||
Bank loans (1) (2) | — | — | 1,685 | 1,685 | 720,323 | 722,008 | — | |||||||||||||||||||||
Residential mortgage loans (3) | — | — | 266 | 266 | 27,063 | 27,329 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 5,451 | 5,451 | — | |||||||||||||||||||||
Total loans | $ | — | $ | — | $ | 1,951 | $ | 1,951 | $ | 1,790,981 | $ | 1,792,932 | $ | — | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 745,789 | $ | 745,789 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,205 | 16,205 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 64,317 | 64,317 | — | |||||||||||||||||||||
Bank loans (2) | — | — | 3,554 | 3,554 | 558,469 | 562,023 | — | |||||||||||||||||||||
Residential mortgage loans (3) | 234 | 91 | 268 | 593 | 16,322 | 16,915 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 6,966 | 6,966 | — | |||||||||||||||||||||
Total loans | $ | 234 | $ | 91 | $ | 3,822 | $ | 4,147 | $ | 1,408,068 | $ | 1,412,215 | $ | — | ||||||||||||||
-1 | Contains loans for which the fair value method was elected with an unpaid principal balance of $4.8 million with a fair value of $119,000 at June 30, 2014. | |||||||||||||||||||||||||||
-2 | Contains $15.4 million and $6.9 million of bank loans held for sale at June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
-3 | Contains $24.9 million and $15.1 million of residential mortgage loans held for sale at June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
Impaired loans | ' | |||||||||||||||||||||||||||
The following tables show impaired loans indicated (in thousands): | ||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,511 | $ | 127,511 | $ | — | $ | 126,070 | $ | 10,682 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 2,229 | ||||||||||||||||||
Bank loans | $ | 119 | $ | 119 | $ | — | $ | 119 | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 2,470 | $ | 2,470 | $ | — | $ | 2,470 | $ | 65 | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 7,000 | $ | 7,000 | $ | (1,800 | ) | $ | 7,000 | $ | 591 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 1,566 | $ | 1,566 | $ | (441 | ) | $ | 1,566 | $ | — | |||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 4,657 | $ | 4,657 | $ | (700 | ) | $ | 5,195 | $ | 85 | |||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 134,511 | $ | 134,511 | $ | (1,800 | ) | $ | 133,070 | $ | 11,273 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 2,229 | |||||||||||||||||||||||
Bank loans | 1,685 | 1,685 | (441 | ) | 1,685 | — | ||||||||||||||||||||||
Residential mortgage loans | 2,470 | 2,470 | — | 2,470 | 65 | |||||||||||||||||||||||
Loans receivable - related party | 4,657 | 4,657 | (700 | ) | 5,195 | 85 | ||||||||||||||||||||||
$ | 181,395 | $ | 181,395 | $ | (2,941 | ) | $ | 180,492 | $ | 13,652 | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 130,759 | $ | 130,759 | $ | — | $ | 123,495 | $ | 8,439 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 1,615 | ||||||||||||||||||
Bank loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 5,733 | $ | 5,733 | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 315 | $ | 268 | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 25,572 | $ | 25,572 | $ | (4,572 | ) | $ | 24,748 | $ | 1,622 | |||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 3,554 | $ | 3,554 | $ | (2,621 | ) | $ | — | $ | — | |||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 156,331 | $ | 156,331 | $ | (4,572 | ) | $ | 148,243 | $ | 10,061 | |||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 1,615 | |||||||||||||||||||||||
Bank loans | 3,554 | 3,554 | (2,621 | ) | — | — | ||||||||||||||||||||||
Residential mortgage loans | 315 | 268 | — | — | — | |||||||||||||||||||||||
Loans receivable - related party | 5,733 | 5,733 | — | — | — | |||||||||||||||||||||||
$ | 204,005 | $ | 203,958 | $ | (7,193 | ) | $ | 186,315 | $ | 11,676 | ||||||||||||||||||
Troubled debt restructurings on financing receivables | ' | |||||||||||||||||||||||||||
The following table shows troubled-debt restructurings in the Company's loan portfolio during the six months ended June 30, 2013 (in thousands): | ||||||||||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 56,328 | $ | 56,328 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Residential mortgage loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 3 | $ | 62,920 | $ | 62,920 | |||||||||||||||||||||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Summary of intangible assets | ' | |||||||||||
The following table summarizes intangible assets (in thousands): | ||||||||||||
Asset Balance | Accumulated Amortization | Net Asset | ||||||||||
As of June 30, 2014 | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (10,872 | ) | $ | 10,341 | |||||
Investment in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (170 | ) | 430 | ||||||||
Total intangible assets | $ | 21,813 | $ | (11,042 | ) | $ | 10,771 | |||||
As of December 31, 2013 | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (9,980 | ) | $ | 11,233 | |||||
Investments in real estate: | ||||||||||||
In-place leases | 2,461 | (2,430 | ) | 31 | ||||||||
Above (below) market leases | 29 | (29 | ) | — | ||||||||
Investment in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (42 | ) | 558 | ||||||||
Total intangible assets | $ | 24,303 | $ | (12,481 | ) | $ | 11,822 | |||||
Purchase Price Allocation | ' | |||||||||||
The following table sets forth the allocation of the purchase price as of December 31, 2013 (in thousands): | ||||||||||||
Assets acquired: | ||||||||||||
Cash and cash equivalents | $ | 1,233 | ||||||||||
Loans held for sale | 15,021 | |||||||||||
Loans held for investment | 2,071 | |||||||||||
Wholesale and correspondent relationships | 600 | |||||||||||
Other assets | 5,828 | |||||||||||
Total assets | 24,753 | |||||||||||
Less: Liabilities assumed: | ||||||||||||
Borrowings | 14,584 | |||||||||||
Other liabilities | 2,165 | |||||||||||
Total liabilities | 16,749 | |||||||||||
Gain on bargain purchase | 391 | |||||||||||
Total cash purchase price | $ | 7,613 | ||||||||||
BORROWINGS_Tables
BORROWINGS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||||||||||
Information with Respect to Borrowings | ' | |||||||||||||||||||||||
Certain information with respect to the Company’s borrowings is summarized in the following table (in thousands, except percentages): | ||||||||||||||||||||||||
Outstanding Borrowings | Unamortized | Principal | Weighted Average | Weighted Average | Value of | Date | ||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | Securitization Closed | |||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 106,029 | $ | 51 | $ | 106,080 | 1.92% | 32.1 years | $ | 174,237 | Aug-06 | |||||||||||||
RREF CDO 2007-1 Senior Notes | 126,004 | 355 | 126,359 | 0.99% | 32.3 years | 361,432 | Jun-07 | |||||||||||||||||
RCC CRE Notes 2013 | 256,807 | 3,683 | 260,490 | 2.02% | 14.5 years | 281,846 | Dec-13 | |||||||||||||||||
Apidos CDO I Senior Notes | 56,922 | — | 56,922 | 2.24% | 3.1 years | 73,276 | Aug-05 | |||||||||||||||||
Apidos CDO III Senior Notes | 97,458 | — | 97,458 | 1.01% | 6.2 years | 109,325 | May-06 | |||||||||||||||||
Apidos Cinco CDO Senior Notes | 319,639 | 553 | 320,192 | 0.73% | 5.9 years | 341,777 | May-07 | |||||||||||||||||
Whitney CLO I Senior Notes (1) | — | — | — | —% | N/A | 79 | N/A | |||||||||||||||||
Moselle CLO S.A. Senior Notes, at fair value (6) | 140,220 | — | 140,220 | 1.04% | 5.5 years | 175,641 | Oct-05 | |||||||||||||||||
Moselle CLO S.A. Securitized Borrowings, at fair value | 5,208 | — | 5,208 | 1.04% | N/A | — | N/A | |||||||||||||||||
Unsecured Junior Subordinated Debentures (2) | 51,104 | 444 | 51,548 | 4.18% | 22.3 years | — | May/Sept 2006 | |||||||||||||||||
6.0% Convertible Senior Notes | 107,550 | 7,450 | 115,000 | 6.00% | 4.4 years | — | Oct-13 | |||||||||||||||||
CRE - Term Repurchase Facilities (3) | 217,679 | 448 | 218,127 | 2.58% | 17 days | 315,579 | N/A | |||||||||||||||||
CMBS - Term Repurchase Facility (4) | 30,833 | — | 30,833 | 1.37% | 18 days | 37,784 | N/A | |||||||||||||||||
RMBS - Term Repurchase Facility (5) | 22,997 | 28 | 23,025 | 1.15% | 1 day | 27,669 | N/A | |||||||||||||||||
Residential Mortgage Financing Agreements | 23,679 | — | 23,679 | 3.99% | 130 days | 32,399 | N/A | |||||||||||||||||
CMBS - Short Term Repurchase Agreements | 17,705 | — | 17,705 | 1.40% | 2 days | 20,813 | N/A | |||||||||||||||||
Total | $ | 1,579,834 | $ | 13,012 | $ | 1,592,846 | 1.96% | 9.8 years | $ | 1,951,857 | ||||||||||||||
Outstanding Borrowings | Unamortized | Principal | Weighted Average | Weighted Average | Value of | Date | ||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | Securitization Closed | |||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 94,004 | $ | 205 | $ | 94,209 | 1.87% | 32.6 years | $ | 169,115 | Aug-06 | |||||||||||||
RREF CDO 2007-1 Senior Notes | 177,837 | 719 | 178,556 | 0.84% | 32.8 years | 318,933 | Jun-07 | |||||||||||||||||
RCC CRE Notes 2013 | 256,571 | 4,269 | 260,840 | 2.03% | 15.0 years | 305,586 | Dec-13 | |||||||||||||||||
Apidos CDO I Senior Notes | 87,131 | — | 87,131 | 1.68% | 3.6 years | 103,736 | Aug-05 | |||||||||||||||||
Apidos CDO III Senior Notes | 133,209 | 117 | 133,326 | 0.88% | 6.7 years | 145,930 | May-06 | |||||||||||||||||
Apidos Cinco CDO Senior Notes | 321,147 | 853 | 322,000 | 0.74% | 6.4 years | 342,796 | May-07 | |||||||||||||||||
Whitney CLO I Securitized Borrowings (1) | 440 | — | 440 | —% | N/A | 885 | N/A | |||||||||||||||||
Unsecured Junior | 51,005 | 543 | 51,548 | 4.19% | 22.8 years | — | May/Sept 2006 | |||||||||||||||||
Subordinated Debentures (2) | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | 106,535 | 8,465 | 115,000 | 6.00% | 4.9 years | — | Oct-13 | |||||||||||||||||
CRE - Term Repurchase Facilities (3) | 29,703 | 1,033 | 30,736 | 2.67% | 21 days | 48,186 | N/A | |||||||||||||||||
CMBS - Term Repurchase Facility (4) | 47,601 | 12 | 47,613 | 1.38% | 21 days | 56,949 | N/A | |||||||||||||||||
Residential Mortgage Financing Agreements | 14,627 | — | 14,627 | 4.24% | 56 days | 16,487 | N/A | |||||||||||||||||
Total | $ | 1,319,810 | $ | 16,216 | $ | 1,336,026 | 1.87% | 13.1 years | $ | 1,508,603 | ||||||||||||||
-1 | The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Securitized Borrowings, respectively. | |||||||||||||||||||||||
-2 | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||||||||||||||||||||||
-3 | Amounts also include accrued interest costs of $207,000 and $26,000 related to CRE repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | Amounts also include accrued interest costs of $14,000 and $22,000 related to CMBS repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||||||||||||||||||||||
-5 | Amount also includes accrued interest costs of $1,000 related to RMBS repurchase facilities as of June 30, 2014. | |||||||||||||||||||||||
Schedule of Linked Transactions | ' | |||||||||||||||||||||||
The assets in the following table are accounted for as linked transactions. These linked repurchase agreements are not included in borrowings on the Company's consolidated balance sheets (see Note 20). | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Borrowings | Value of Collateral | Number | Weighted Average | Borrowings | Value of Collateral | Number | Weighted Average | |||||||||||||||||
Under Linked | Under Linked | of Positions | Interest Rate | Under Linked | Under Linked | of Positions | Interest Rate | |||||||||||||||||
Transactions (1) | Transactions | as Collateral | of Linked | Transactions (1) | Transactions | as Collateral | of Linked | |||||||||||||||||
Under Linked | Transactions | Under Linked | Transactions | |||||||||||||||||||||
Transactions | Transactions | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank | $ | 5,959 | $ | 7,750 | 7 | 1.63% | $ | 6,506 | $ | 8,345 | 7 | 1.65% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank | — | — | — | —% | — | — | — | —% | ||||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | — | — | 0 | —% | 17,020 | 24,814 | 4 | 0.99% | ||||||||||||||||
Wells Fargo Securities, LLC | 4,183 | 6,309 | 7 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 18,584 | 28,211 | 15 | 1.41% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 28,726 | $ | 42,270 | $ | 64,094 | $ | 93,823 | ||||||||||||||||
Schedule of Amount at Risk under Credit Facility | ' | |||||||||||||||||||||||
The following table shows information about the amount at risk under the repurchase facilities (dollars in thousands): | ||||||||||||||||||||||||
Amount at | Weighted Average | Weighted Average | ||||||||||||||||||||||
Risk (1) | Maturity in Days | Interest Rate | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association (2) | $ | 7,549 | 18 | 1.37% | ||||||||||||||||||||
RMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 5,725 | 1 | 1.15% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 128,915 | 18 | 2.55% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 15,435 | 18 | 3.03% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC (3) | $ | — | 0 | —% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 2,115 | 30 | 1.37% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 9,778 | 26 | 1.40% | ||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
New Century Bank | $ | 15,227 | 62 | 3.91% | ||||||||||||||||||||
ViewPoint Bank, NA | $ | 9,089 | 183 | 4.12% | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association (2) | $ | 10,796 | 21 | 1.38% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 20,718 | 21 | 2.67% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC (3) | $ | 7,882 | 11 | 0.99% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 8,925 | 2 | 1.19% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 11,418 | 22 | 1.43% | ||||||||||||||||||||
-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 | $6.0 million and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of June 30, 2014 and December 31, 2013, respectively, (see Note 20). | |||||||||||||||||||||||
-3 | There are no linked repurchase agreement borrowings being included as derivative instruments as of June 30, 2014. As of December 31, 2013 $17.0 million of linked repurchase agreement borrowings are being included as derivative instruments. | |||||||||||||||||||||||
CRE - Term Repurchase Facility [Member] | ' | |||||||||||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||||||||||
Repurchase and Mortgage Finance Facilities | ' | |||||||||||||||||||||||
The following table sets forth certain information with respect to the Company's borrowings is summarized in the following table (dollars in thousands): | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Outstanding | Value of | Number of | Weighted Average | Outstanding | Value of | Number of | Weighted Average | |||||||||||||||||
Borrowings | Collateral | Positions | Interest Rate | Borrowings | Collateral | Positions | Interest Rate | |||||||||||||||||
as Collateral | as Collateral | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (1) | $ | 30,833 | $ | 37,784 | 47 | 1.37% | $ | 47,601 | $ | 56,949 | 44 | 1.38% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank (2) | 202,821 | 293,496 | 12 | 2.55% | 30,003 | 48,186 | 3 | 2.67% | ||||||||||||||||
Deutsche Bank AG (3) | 14,858 | 22,083 | 3 | 3.03% | (300 | ) | — | — | —% | |||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
Deutsche Bank Securities, LLC | 17,705 | 20,813 | 6 | 1.40% | — | — | — | —% | ||||||||||||||||
RMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (4) | 22,997 | 27,669 | 6 | 1.15% | — | — | — | —% | ||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||
New Century Bank | 14,772 | 17,519 | 78 | 3.91% | 11,916 | 13,089 | 74 | 4.17% | ||||||||||||||||
ViewPoint Bank, NA | 8,907 | 14,880 | 48 | 4.12% | 2,711 | 3,398 | 17 | 4.58% | ||||||||||||||||
Totals | $ | 312,893 | $ | 434,244 | $ | 91,931 | $ | 121,622 | ||||||||||||||||
-1 | The Wells Fargo CMBS term facility borrowing includes zero and $12,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-2 | The Wells Fargo CRE term repurchase facility borrowing includes $419,000 and $732,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-3 | The Deutsche Bank term repurchase facility includes $29,000 and $300,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | The Wells Fargo RMBS term repurchase facility includes $28,000 of deferred debt issuance costs as of June 30, 2014. |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 | Employees | Total | |||||||||||||
Unvested shares as of January 1, 2014 | 38,704 | 2,835,523 | 238,368 | 3,112,595 | ||||||||||||
Issued | 43,718 | 580,283 | 22,318 | 646,319 | ||||||||||||
Vested | (33,219 | ) | (1,175,592 | ) | — | (1,208,811 | ) | |||||||||
Forfeited | — | — | — | — | ||||||||||||
Unvested shares as of June 30, 2014 | 49,203 | 2,240,214 | 260,686 | 2,550,103 | ||||||||||||
Restricted Common Stock Grants | ' | |||||||||||||||
The following table summarizes the restricted common stock grants during the six months ended June 30, 2014: | ||||||||||||||||
Date | Shares | Vesting/Year | Date(s) | |||||||||||||
January 30, 2014 | 459,307 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||||
January 30, 2014 | 22,318 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||||
February 3, 2014 | 5,972 | 100% | 2/3/15 | |||||||||||||
March 11, 2014 | 25,770 | 100% | 3/11/15 | |||||||||||||
March 12, 2014 | 6,044 | 100% | 3/12/15 | |||||||||||||
March 30, 2014 | 112,000 | 1/6 per quarter | 3/31/14, 6/30/14, 9/30/14, 12/31/14, 3/31/15, 6/30/15 (1) | |||||||||||||
March 31, 2014 | 8,976 | 25% | 3/31/15, 3/31/16, 3/31/17, 3/31/18 | |||||||||||||
June 6, 2014 | 5,932 | 100% | 6/6/15 | |||||||||||||
Schedule of restricted stock granted | ' | |||||||||||||||
The following table summarizes the restricted common stock grants during the six months ended June 30, 2014: | ||||||||||||||||
Date | Shares | Vesting/Year | Date(s) | |||||||||||||
January 30, 2014 | 459,307 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||||
January 30, 2014 | 22,318 | 33.30% | 1/30/15, 1/30/16, 1/30/17 | |||||||||||||
February 3, 2014 | 5,972 | 100% | 2/3/15 | |||||||||||||
March 11, 2014 | 25,770 | 100% | 3/11/15 | |||||||||||||
March 12, 2014 | 6,044 | 100% | 3/12/15 | |||||||||||||
March 30, 2014 | 112,000 | 1/6 per quarter | 3/31/14, 6/30/14, 9/30/14, 12/31/14, 3/31/15, 6/30/15 (1) | |||||||||||||
March 31, 2014 | 8,976 | 25% | 3/31/15, 3/31/16, 3/31/17, 3/31/18 | |||||||||||||
June 6, 2014 | 5,932 | 100% | 6/6/15 | |||||||||||||
-1 | 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 will not record the dividend equivalent rights until earned. On March 30, 2014, the third annual measurement period ended and 112,000 shares were earned. In addition, $258,000 of accrued dividend equivalent rights were earned. | |||||||||||||||
-2 | All shares were issued from the 2007 Plan with the exception of these shares which were issued from unregistered shares as part of the consideration for the purchase of PCM. | |||||||||||||||
Summary of stock option transactions | ' | |||||||||||||||
The following table summarizes the status of the Company’s vested stock options as of June 30, 2014: | ||||||||||||||||
Vested Options | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||
Vested as of January 1, 2014 | 627,332 | $ | 14.62 | |||||||||||||
Vested | 13,334 | 6.4 | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Vested as of June 30, 2014 | 640,666 | $ | 14.45 | 1 | $ | 3 | ||||||||||
The following table summarizes the status of the Company’s unvested stock options as of June 30, 2014: | ||||||||||||||||
Unvested Options | Options | Weighted Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||||
Unvested at January 1, 2014 | 13,334 | $ | 6.4 | |||||||||||||
Granted | — | |||||||||||||||
Vested | (13,334 | ) | 6.4 | |||||||||||||
Forfeited | — | |||||||||||||||
Unvested at June 30, 2014 | — | $ | — | |||||||||||||
Summary of share based compensation expense | ' | |||||||||||||||
The components of equity compensation expense for the periods presented as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options granted to Manager and non-employees | $ | — | $ | (4 | ) | $ | (2 | ) | $ | 3 | ||||||
Restricted shares granted non-employees | 1,784 | 2,102 | 3,213 | 5,652 | ||||||||||||
Restricted shares granted employees | 185 | — | 360 | — | ||||||||||||
Restricted shares granted to non-employee directors | 63 | 57 | 128 | 91 | ||||||||||||
Total equity compensation expense | $ | 2,032 | $ | 2,155 | $ | 3,699 | $ | 5,746 | ||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic: | ||||||||||||||||
Net income allocable to common shares | $ | 14,677 | $ | 6,533 | $ | 29,793 | $ | 18,059 | ||||||||
Weighted average number of shares outstanding | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 | ||||||||||||
Basic net income per share | $ | 0.12 | $ | 0.05 | $ | 0.24 | $ | 0.16 | ||||||||
Diluted: | ||||||||||||||||
Net income allocable to common shares | $ | 14,677 | $ | 6,533 | $ | 29,793 | $ | 18,059 | ||||||||
Weighted average number of shares outstanding | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 | ||||||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,190,144 | 1,545,327 | 1,120,611 | 1,323,929 | ||||||||||||
Adjusted weighted-average number of common shares outstanding | 128,142,637 | 122,283,503 | 127,409,127 | 113,832,183 | ||||||||||||
Diluted net income per share | $ | 0.11 | $ | 0.05 | $ | 0.23 | $ | 0.16 | ||||||||
Recovered_Sheet1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of 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 six months ended June 30, 2014 (dollars in thousands): | ||||||||||||||||
Net unrealized (loss) gain on derivatives | Net unrealized (loss) gain on securities, | Foreign Currency Translation | Accumulated other comprehensive loss | |||||||||||||
available-for-sale | ||||||||||||||||
January 1, 2014 | $ | (11,155 | ) | $ | (3,084 | ) | $ | 196 | $ | (14,043 | ) | |||||
Other comprehensive gain (loss) before reclassifications | 1,190 | (1,490 | ) | (180 | ) | (480 | ) | |||||||||
Amounts reclassified from accumulated other | 142 | 4,187 | — | 4,329 | ||||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 1,332 | 2,697 | (180 | ) | 3,849 | |||||||||||
June 30, 2014 | $ | (9,823 | ) | $ | (387 | ) | $ | 16 | $ | (10,194 | ) | |||||
DISTRIBUTIONS_Tables
DISTRIBUTIONS (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||
DISTRIBUTIONS [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Dividends Declared | ' | ||||||||||||||||||||||||||||||||||
The following tables presents dividends declared (on a per share basis) for the three and six months ended June 30, 2014. | |||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Date Paid | Total | Dividend | |||||||||||||||||||||||||||||||||
Dividend Paid | Per Share | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||
31-Mar | 28-Apr | $ | 25,663 | $ | 0.2 | ||||||||||||||||||||||||||||||
30-Jun | 28-Jul | $ | 26,179 | $ | 0.2 | ||||||||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||||||||||
Series A | Series B | Series C | |||||||||||||||||||||||||||||||||
Date Paid | Total | Dividend | Date Paid | Total | Dividend | Date Paid | Total | Dividend | |||||||||||||||||||||||||||
Dividend Paid | Per Share | Dividend Paid | Per Share | Dividend Paid | Per Share | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||||||||
31-Mar | 30-Apr | $ | 463 | $ | 0.53125 | 31-Mar | 30-Apr | $ | 2,057 | $ | 0.515625 | ||||||||||||||||||||||||
30-Jun | 30-Jul | $ | 537 | $ | 0.53125 | 30-Jun | 30-Jul | $ | 2,378 | $ | 0.515625 | 30-Jun | 30-Jul | $ | 1,437 | $ | 0.299479 | ||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 | ||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 8,951 | $ | 8,951 | |||||||||||||
Investment securities available-for-sale | 1,886 | 1,581 | 261,036 | 264,503 | |||||||||||||||||
CMBS - linked transactions | — | — | 13,676 | 13,676 | |||||||||||||||||
Derivatives (net) | — | 755 | — | 755 | |||||||||||||||||
Total assets at fair value | $ | 1,886 | $ | 2,336 | $ | 283,663 | $ | 287,885 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives (net) | $ | — | $ | 785 | $ | 9,070 | $ | 9,855 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 785 | $ | 9,070 | $ | 9,855 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 11,558 | $ | 11,558 | |||||||||||||
Investment securities available-for-sale | 2,370 | 92 | 207,375 | 209,837 | |||||||||||||||||
CMBS - linked transactions | — | — | 30,066 | 30,066 | |||||||||||||||||
Total assets at fair value | $ | 2,370 | $ | 92 | $ | 248,999 | $ | 251,461 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives (net) | $ | — | $ | 395 | $ | 10,191 | $ | 10,586 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 395 | $ | 10,191 | $ | 10,586 | |||||||||||||
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): | |||||||||||||||||||||
CMBS including Linked Transactions | ABS | RMBS | Structured Finance | Total | |||||||||||||||||
Balance, January 1, 2014 | $ | 210,785 | $ | 26,656 | $ | 451 | $ | 11,107 | $ | 248,999 | |||||||||||
Included in earnings | (720 | ) | 470 | — | 379 | 129 | |||||||||||||||
Purchases | 93,291 | 37,397 | 31,058 | — | 161,746 | ||||||||||||||||
Sales | (99,151 | ) | (2,494 | ) | — | (758 | ) | (102,403 | ) | ||||||||||||
Paydowns | (25,435 | ) | (5,403 | ) | (18 | ) | — | (30,856 | ) | ||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Settlements | — | — | — | — | — | ||||||||||||||||
Included in OCI | 7,280 | 1,388 | (511 | ) | (2,109 | ) | 6,048 | ||||||||||||||
Transfers out of Level 2 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||
Balance, June 30, 2014 | $ | 186,050 | $ | 58,014 | $ | 30,980 | $ | 8,619 | $ | 283,663 | |||||||||||
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, 2014 | $ | 10,191 | |||||||||||||||||||
Unrealized losses – included in accumulated other comprehensive income | (1,121 | ) | |||||||||||||||||||
Ending balance, June 30, 2014 | $ | 9,070 | |||||||||||||||||||
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 | ||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loans held for sale | $ | — | $ | 15,427 | $ | 24,859 | $ | 40,286 | |||||||||||||
Impaired loans | — | 1,125 | 5,200 | 6,325 | |||||||||||||||||
Total assets at fair value | $ | — | $ | 16,552 | $ | 30,059 | $ | 46,611 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loans held for sale | $ | — | $ | 6,850 | $ | 15,066 | $ | 21,916 | |||||||||||||
Impaired loans | — | 225 | — | 225 | |||||||||||||||||
Total assets at fair value | $ | — | $ | 7,075 | $ | 15,066 | $ | 22,141 | |||||||||||||
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 December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | |||||||||||||||||||||
Fair Value at June 30, 2014 | Valuation Technique | Significant Unobservable Inputs | Significant Unobservable Input Value | ||||||||||||||||||
Interest rate swap agreements | $ | 9,070 | Discounted cash flow | Weighted average credit spreads | 5.12 | % | |||||||||||||||
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 in the following table (in thousands): | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Loans held-for-investment (1) | $ | 1,740,656 | $ | 1,732,134 | $ | — | $ | 704,319 | $ | 1,027,815 | |||||||||||
Loans receivable-related party | $ | 4,751 | $ | 4,751 | $ | — | $ | — | $ | 4,751 | |||||||||||
CDO notes (2) | $ | 1,108,287 | $ | 1,020,334 | $ | — | $ | 1,020,334 | $ | — | |||||||||||
Junior subordinated notes | $ | 51,104 | $ | 17,598 | $ | — | $ | — | $ | 17,598 | |||||||||||
Repurchase agreements | $ | 312,893 | $ | 312,893 | $ | — | $ | — | $ | 312,893 | |||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Loans held-for-investment | $ | 1,369,526 | $ | 1,358,434 | $ | — | $ | 545,352 | $ | 813,082 | |||||||||||
Loans receivable-related party | $ | 6,966 | $ | 6,966 | $ | — | $ | — | $ | 6,966 | |||||||||||
CDO notes | $ | 1,070,339 | $ | 653,617 | $ | — | $ | 653,617 | $ | — | |||||||||||
Junior subordinated notes | $ | 51,005 | $ | 17,499 | $ | — | $ | — | $ | 17,499 | |||||||||||
Repurchase agreements | $ | 77,304 | $ | 77,304 | $ | — | $ | — | $ | 77,304 | |||||||||||
-1 | Contains loans for which the fair value option was elected with an unpaid principal balance of $124.9 million and a fair value of $120.8 million at June 30, 2014. | ||||||||||||||||||||
-2 | Contains CDO notes for which the fair value option was elected with an unpaid principal balance of $143 million and a fair value of $140.2 million at June 30, 2014. |
INTEREST_RATE_RISK_AND_DERIVAT1
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | |||||||||||||||||||||||
Schedule of Linked Transactions | ' | |||||||||||||||||||||||
The assets in the following table are accounted for as linked transactions. These linked repurchase agreements are not included in borrowings on the Company's consolidated balance sheets (see Note 20). | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Borrowings | Value of Collateral | Number | Weighted Average | Borrowings | Value of Collateral | Number | Weighted Average | |||||||||||||||||
Under Linked | Under Linked | of Positions | Interest Rate | Under Linked | Under Linked | of Positions | Interest Rate | |||||||||||||||||
Transactions (1) | Transactions | as Collateral | of Linked | Transactions (1) | Transactions | as Collateral | of Linked | |||||||||||||||||
Under Linked | Transactions | Under Linked | Transactions | |||||||||||||||||||||
Transactions | Transactions | |||||||||||||||||||||||
CMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank | $ | 5,959 | $ | 7,750 | 7 | 1.63% | $ | 6,506 | $ | 8,345 | 7 | 1.65% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank | — | — | — | —% | — | — | — | —% | ||||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC | — | — | 0 | —% | 17,020 | 24,814 | 4 | 0.99% | ||||||||||||||||
Wells Fargo Securities, LLC | 4,183 | 6,309 | 7 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 18,584 | 28,211 | 15 | 1.41% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 28,726 | $ | 42,270 | $ | 64,094 | $ | 93,823 | ||||||||||||||||
Components of Unrealized Net Gains and Net Income from Linked Transactions | ' | |||||||||||||||||||||||
The following table presents certain information about the components of the unrealized (losses) gains and net interest income from linked transactions, net, included in the Company's consolidated statements of income for the periods presented as follows ( in thousands): | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Components of Unrealized Net (Losses) Gains and Net Interest Income | ||||||||||||||||||||||||
Income from Linked Transactions | ||||||||||||||||||||||||
Interest income attributable to CMBS underlying linked transactions | $ | 1,078 | $ | 756 | $ | 2,009 | $ | 1,204 | ||||||||||||||||
Interest expense attributable to linked repurchase | (226 | ) | (207 | ) | (615 | ) | (323 | ) | ||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | 4,160 | (5,794 | ) | 5,923 | (6,385 | ) | ||||||||||||||||||
Unrealized net (losses) gains and net interest income from linked transactions | $ | 5,012 | $ | (5,245 | ) | $ | 7,317 | $ | (5,504 | ) | ||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||
The aggregate discount (premium) recognized as of the periods indicated (in thousands) are: | ||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
CMBS | $ | 4,049 | $ | 6,583 | ||||||||||||||||||||
ABS | $ | 1,988 | $ | 2,394 | ||||||||||||||||||||
Corporate bond | $ | 96 | $ | 68 | ||||||||||||||||||||
The following table summarizes the Company's sales of investment securities available-for-sale (in thousands, except number of securities): | ||||||||||||||||||||||||
Positions Sold | Par Amount Sold | Realized Gain (Loss) | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS position | 3 | $ | 15,970 | $ | 480 | |||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS position | 4 | $ | 14,500 | $ | 466 | |||||||||||||||||||
Corporate bond position | 35 | $ | 34,253 | $ | (474 | ) | ||||||||||||||||||
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 Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS | $ | 175,983 | $ | 7,074 | $ | (10,683 | ) | $ | 172,374 | |||||||||||||||
RMBS | 30,647 | — | — | 30,647 | ||||||||||||||||||||
ABS | 32,145 | 1,429 | (214 | ) | 33,360 | |||||||||||||||||||
Structured notes | 23,203 | 1,452 | — | 24,655 | ||||||||||||||||||||
Corporate bonds | 3,360 | 107 | — | 3,467 | ||||||||||||||||||||
Total | $ | 265,338 | $ | 10,062 | $ | (10,897 | ) | $ | 264,503 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS | $ | 185,178 | $ | 7,570 | $ | (12,030 | ) | $ | 180,718 | |||||||||||||||
ABS | 25,406 | 1,644 | (394 | ) | 26,656 | |||||||||||||||||||
Structured notes | 5,369 | — | — | 5,369 | ||||||||||||||||||||
Corporate bonds | 2,517 | 16 | (70 | ) | 2,463 | |||||||||||||||||||
Total | $ | 218,470 | $ | 9,230 | $ | (12,494 | ) | $ | 215,206 | |||||||||||||||
Interest Rate Swap [Member] | ' | |||||||||||||||||||||||
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 Company's consolidated balance sheets and on the consolidated statements of income for the years presented: | ||||||||||||||||||||||||
Fair Value of Derivative Instruments as of June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | 46,612 | Derivatives, at fair value | $ | 990 | |||||||||||||||||||
Forward sales commitments | $ | 750 | Derivatives, at fair value | $ | 1 | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 125,431 | Derivatives, at fair value | $ | 9,396 | |||||||||||||||||||
Interest rate lock agreements | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward sale commitments | $ | 57,429 | Derivatives, at fair value | $ | 459 | |||||||||||||||||||
Interest rate swap contracts | $ | 125,431 | Accumulated other comprehensive loss | $ | 9,396 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income | ' | |||||||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Loss (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 125,431 | Interest expense | $ | 3,267 | |||||||||||||||||||
Interest rate lock agreements | $ | 46,612 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 990 | |||||||||||||||||||
Forward sales commitments | $ | 58,179 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 458 | |||||||||||||||||||
(1)Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. | ||||||||||||||||||||||||
Linked Transactions [Member] | ' | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Statement of Income Location | Revenues (1) | ||||||||||||||||||||||
Linked transactions at fair value, 2014 | Non-Hedging | Unrealized (loss) gain and net interest income on linked transactions, net | $ | 7,317 | ||||||||||||||||||||
Linked transactions at fair value, 2013 | Non-Hedging | Unrealized (loss) gain and net interest income on linked transactions, net | $ | (5,504 | ) | |||||||||||||||||||
-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 June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 13,676 | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 30,066 | ||||||||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||
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 Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 41,495 | $ | 815 | $ | (40 | ) | $ | 42,270 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 99,493 | $ | 446 | $ | (6,116 | ) | $ | 93,823 | |||||||||||||||
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 Cost | Weighted Average Coupon | |||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Less than one year | $ | — | $ | — | —% | |||||||||||||||||||
Greater than one year and less than five years | 34,235 | 33,864 | 5.32% | |||||||||||||||||||||
Greater than five years and less than ten years | 8,035 | 7,631 | 4.22% | |||||||||||||||||||||
Greater than ten years | — | — | —% | |||||||||||||||||||||
Total | $ | 42,270 | $ | 41,495 | 5.12% | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Less than one year | $ | 540 | $ | 540 | 5.58% | |||||||||||||||||||
Greater than one year and less than five years | 26,120 | 26,516 | 5.32% | |||||||||||||||||||||
Greater than five years and less than ten years | 53,688 | 57,282 | 3.35% | |||||||||||||||||||||
Greater than ten years | 13,475 | 15,155 | 3.34% | |||||||||||||||||||||
Total | $ | 93,823 | $ | 99,493 | 3.84% | |||||||||||||||||||
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 investment securities available-for-sale 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 Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 6,205 | $ | (8 | ) | $ | 762 | $ | (32 | ) | $ | 6,967 | $ | (40 | ) | |||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 70,727 | $ | (5,198 | ) | $ | 9,318 | $ | (918 | ) | $ | 80,045 | $ | (6,116 | ) | |||||||||
CMBS Linked Transactions by Ratings Category | ' | |||||||||||||||||||||||
The following table summarizes the Company's CMBS linked transactions at fair value (in thousands, except percentages): | ||||||||||||||||||||||||
December 31, | Net Purchase (Sales) | Upgrades/Downgrades | Paydowns | MTM Change on Same Ratings | June 30, | |||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 26,682 | $ | (18,704 | ) | $ | — | $ | (21 | ) | $ | 555 | $ | 8,512 | ||||||||||
Aa1 through Aa3 | 8,919 | (9,589 | ) | — | 670 | — | ||||||||||||||||||
A1 through A3 | — | — | — | — | — | |||||||||||||||||||
Baa1 through Baa3 | 6,473 | — | — | 90 | 6,563 | |||||||||||||||||||
Ba1 through Ba3 | 10,310 | (10,768 | ) | — | 458 | — | ||||||||||||||||||
B1 through B3 | 12,155 | 455 | — | 744 | 13,354 | |||||||||||||||||||
Non-Rated | 29,284 | (16,334 | ) | — | 891 | 13,841 | ||||||||||||||||||
Total | $ | 93,823 | $ | (54,940 | ) | $ | — | $ | (21 | ) | $ | 3,408 | $ | 42,270 | ||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 17,642 | $ | (9,773 | ) | $ | — | $ | (21 | ) | $ | (98 | ) | $ | 7,750 | |||||||||
BBB+ through BBB- | 9,953 | — | — | — | 206 | 10,159 | ||||||||||||||||||
BB+ through BB- | 2,865 | 127 | — | — | 235 | 3,227 | ||||||||||||||||||
B+ through B- | 19,619 | (2,745 | ) | — | — | 722 | 17,596 | |||||||||||||||||
CCC+ through CCC- | — | 2,776 | — | — | — | 2,776 | ||||||||||||||||||
Non-Rated | 43,744 | (45,325 | ) | — | — | 2,343 | 762 | |||||||||||||||||
Total | $ | 93,823 | $ | (54,940 | ) | $ | — | $ | (21 | ) | $ | 3,408 | $ | 42,270 | ||||||||||
CMBS Linked Repurchase Agreements | ' | |||||||||||||||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Maturity or Repricing | Balance | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | ||||||||||||||||||||
Within 30 days | $ | 28,702 | 1.45 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 28,702 | 1.45 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
OFFSETTING_OF_FINANCIAL_ASSETS1
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | ' | ||||||||||||||||||||||||
Offsetting Financial Liabilities and Derivative Liabilities | ' | ||||||||||||||||||||||||
The following table presents a summary of the Company's offsetting of financial liabilities and derivative liabilities for the periods presented as follows (in thousands): | |||||||||||||||||||||||||
(iv) | |||||||||||||||||||||||||
Gross Amounts Not Offset in | |||||||||||||||||||||||||
the Consolidated Balance Sheets | |||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | Financial | Cash | (v) =iii) - (iv) | ||||||||||||||||||||
Gross Amounts of | Gross Amounts Offset in the | Net Amounts of Liabilities Included in | Instruments (1) | Collateral | Net Amount | ||||||||||||||||||||
Recognized | Consolidated | the Consolidated | Pledged (2) | ||||||||||||||||||||||
Liabilities | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 9,396 | $ | — | $ | 9,396 | $ | — | $ | 500 | $ | 8,896 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 312,890 | — | 312,890 | 312,890 | — | — | |||||||||||||||||||
Total | $ | 322,286 | $ | — | $ | 322,286 | $ | 312,890 | $ | 500 | $ | 8,896 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 10,586 | $ | — | $ | 10,586 | $ | — | $ | 500 | $ | 10,086 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 91,931 | — | 91,931 | 91,931 | — | — | |||||||||||||||||||
Total | $ | 102,517 | $ | — | $ | 102,517 | $ | 91,931 | $ | 500 | $ | 10,086 | |||||||||||||
-1 | Amounts represent collateral pledged that is available to be offset against liability balances associated with repurchase agreement and derivative transactions. | ||||||||||||||||||||||||
-2 | Amounts represent amounts pledged as collateral against derivative transactions. | ||||||||||||||||||||||||
-3 | The fair value of securities pledged against the Company's swaps was $2.7 million and $3.5 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
-4 | The fair value of securities pledged against the Company's repurchase agreements was $434.2 million and $121.6 million at June 30, 2014 and December 31, 2013, respectively. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-13 | 31-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | Apidos CDO III Ltd. [Member] | Apidos Cinco CDO Ltd [Member] | Whitney CLO I, Ltd. [Member] | Moselle CLO [Member] | Apidos CDO I Ltd. [Member] | Resource TRS, Inc. [Member] | Resource Capital Asset Management [Member] | CVC Credit Partners, LLC [Member] | Apidos CLO VIII Ltd. [Member] | Apidos CLO VIII Ltd. [Member] | Life Care Funding, LLC [Member] | Long Term Care Conversion Funding [Member] | Primary Capital Advisors LLC [Member] | |
RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Commercial [Member] | RCC Commercial II [Member] | RCC Commercial II [Member] | RCC Commercial II [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 Funding [Member] | Long Term Care Conversion, Inc [Member] | RCC Residential, Inc. [Member] | |
Entity | |||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interests in variable interest entity | 100.00% | 100.00% | 90.00% | 100.00% | 68.30% | 88.60% | 10.00% | 100.00% | 100.00% | 33.00% | 33.00% | 10.00% | 50.20% | 100.00% | 100.00% |
Number of CDO issuers | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Impairment charges | $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 $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||
31-May-13 | Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Nov. 16, 2011 | Feb. 28, 2014 | Feb. 28, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Oct. 31, 2012 | 31-May-13 | Nov. 16, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | Nov. 16, 2011 | Nov. 16, 2011 | Nov. 16, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2013 | Feb. 28, 2011 | Feb. 28, 2014 | Feb. 28, 2014 | ||||
credit | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Moselle CLO [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] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [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] | 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] | Class 1 Subordinated Notes [Member] | Class 2 Subordinated Notes [Member] | ||||||||||
Entity | Entity | Entity | Moselle CLO [Member] | 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] | Investment in RCT I and II | Interest in RCT I | Interest in RCT II | Investment in RCAM [Member] | Investment in RCAM [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | ||||||||||||||||||||||||
Position | Preferred Shares - Series A [Member] | Preferred Shares - Series B [Member] | Series D Preferred Stock [Member] | Entity | Entity | |||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of consolidated VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of VIEs for which persons of power are considered a related party group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of credits supported in VIE | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Financial support provided to VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | $688,000 | $549,000 | $1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares received in equity method transaction (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,341 | 4,872 | 2,364 | ' | ' | ' | ' | ' | ' | ' | |||
Preferred stock, coupon authorized (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage in VIE | 68.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.70% | 28.30% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | |||
Investments in unconsolidated entities | ' | ' | 60,480,000 | [1] | ' | 60,480,000 | [1] | ' | 69,069,000 | [1] | 40,144,000 | 41,016,000 | 36,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,100,000 | 41,000,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' |
Acquisition of membership interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of outstanding notes purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 67.90% | |||
Variable interest entity, number of board positions held by the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Variable interest entity, total number of board positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of total value of trusts owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | |||
Borrowings ($140.2 million and $0 at fair value) | ' | ' | 1,579,834,000 | [2] | ' | 1,579,834,000 | [2] | ' | 1,319,810,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | 25,800,000 | ' | ' | ' | ' |
Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of CLOs held by purchased entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | |||
Intangible assets | ' | ' | 10,771,000 | [1] | ' | 10,771,000 | [1] | ' | 11,822,000 | [1] | ' | ' | ' | ' | ' | 10,300,000 | ' | 10,300,000 | ' | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee income | ' | ' | $2,717,000 | $1,527,000 | $5,473,000 | $2,937,000 | ' | ' | ' | ' | ' | ' | $1,100,000 | $1,500,000 | $2,800,000 | $2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of CLOs liquidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | |||
Preferred equity interest acquired | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interests in variable interest entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88.60% | ' | ' | ' | ' | ' | ' | 68.30% | 66.60% | ' | ' | ' | ' | ' | ' | 68.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 | |||||||||||||||||||||||||||||||||||||||||
[2] | June 30, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings ($140.2 million and $0 at fair value)$1,111,314 $1,070,339 Accrued interest expense1,295 918 Derivatives, at fair value9,071 10,191 Accounts payable and other liabilities1,958 1,604 Total liabilities of consolidated VIEs$1,123,638 $1,083,052 |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
ASSETS | ' | ' | |
Restricted cash | $88,762,000 | $61,372,000 | |
Investment securities available-for-sale, pledged as collateral, at fair value | 114,641,000 | 105,846,000 | |
Loans, pledged as collateral | 1,234,382,000 | 1,219,569,000 | |
Loans held for sale | 1,808,000 | 2,376,000 | |
Interest receivable | 6,955,000 | 5,627,000 | |
Prepaid assets | 154,000 | 247,000 | |
Principal paydown receivable | 31,950,000 | 6,821,000 | |
Total assets of consolidated VIEs | 1,478,652,000 | 1,401,858,000 | |
LIABILITIES | ' | ' | |
Borrowings | 1,111,314,000 | 1,070,339,000 | |
Accrued interest expense | 1,295,000 | 918,000 | |
Derivatives, at fair value | 9,071,000 | 10,191,000 | |
Accounts payable and other liabilities | 1,958,000 | 1,604,000 | |
Total liabilities of consolidated VIEs | 1,123,638,000 | 1,083,052,000 | |
VIE, Primary Beneficiary [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 88,762,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 114,641,000 | ' | |
Loans, pledged as collateral | 1,234,382,000 | ' | |
Loans held for sale | 1,808,000 | ' | |
Interest receivable | 6,955,000 | ' | |
Prepaid assets | 154,000 | ' | |
Principal paydown receivable | 31,950,000 | ' | |
Total assets of consolidated VIEs | 1,478,652,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 1,111,314,000 | ' | |
Accrued interest expense | 1,295,000 | ' | |
Derivatives, at fair value | 9,071,000 | ' | |
Accounts payable and other liabilities | 1,958,000 | ' | |
Total liabilities of consolidated VIEs | 1,123,638,000 | ' | |
Restricted cash available for reinvestment in certain of the CDOs | 4,300,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos CDO I Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 7,323,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 7,227,000 | ' | |
Loans, pledged as collateral | 59,177,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | -235,000 | ' | |
Prepaid assets | 8,000 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 73,500,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 56,922,000 | ' | |
Accrued interest expense | 234,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 12,000 | ' | |
Total liabilities of consolidated VIEs | 57,168,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos CDO III Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 2,374,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 3,933,000 | ' | |
Loans, pledged as collateral | 102,046,000 | ' | |
Loans held for sale | 932,000 | ' | |
Interest receivable | 495,000 | ' | |
Prepaid assets | 10,000 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 109,790,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 97,458,000 | ' | |
Accrued interest expense | 49,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 19,000 | ' | |
Total liabilities of consolidated VIEs | 97,526,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 30,731,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 13,045,000 | ' | |
Loans, pledged as collateral | 302,247,000 | ' | |
Loans held for sale | 876,000 | ' | |
Interest receivable | 932,000 | ' | |
Prepaid assets | 23,000 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 347,854,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 319,639,000 | ' | |
Accrued interest expense | 307,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 29,000 | ' | |
Total liabilities of consolidated VIEs | 319,975,000 | ' | |
VIE, Primary Beneficiary [Member] | Apidos CLO VIII Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 7,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | ' | |
Loans, pledged as collateral | 0 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 0 | ' | |
Prepaid assets | 0 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 7,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 0 | ' | |
Accrued interest expense | 0 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 198,000 | ' | |
Total liabilities of consolidated VIEs | 198,000 | ' | |
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 80,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | ' | |
Loans, pledged as collateral | 0 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 0 | ' | |
Prepaid assets | 0 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 80,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 0 | ' | |
Accrued interest expense | 0 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 0 | ' | |
Total liabilities of consolidated VIEs | 0 | ' | |
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 | 10,112,000 | ' | |
Loans, pledged as collateral | 154,012,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 1,995,000 | ' | |
Prepaid assets | 18,000 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 166,157,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 106,029,000 | ' | |
Accrued interest expense | 44,000 | ' | |
Derivatives, at fair value | 1,290,000 | ' | |
Accounts payable and other liabilities | 9,000 | ' | |
Total liabilities of consolidated VIEs | 107,372,000 | ' | |
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 250,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 67,702,000 | ' | |
Loans, pledged as collateral | 218,384,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 2,322,000 | ' | |
Prepaid assets | 95,000 | ' | |
Principal paydown receivable | 9,300,000 | ' | |
Total assets of consolidated VIEs | 298,053,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 126,004,000 | ' | |
Accrued interest expense | 94,000 | ' | |
Derivatives, at fair value | 7,781,000 | ' | |
Accounts payable and other liabilities | 1,000 | ' | |
Total liabilities of consolidated VIEs | 133,880,000 | ' | |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2013 [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 4,097,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | ' | |
Loans, pledged as collateral | 277,750,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 1,446,000 | ' | |
Prepaid assets | 0 | ' | |
Principal paydown receivable | 22,650,000 | ' | |
Total assets of consolidated VIEs | 305,943,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 256,807,000 | ' | |
Accrued interest expense | 190,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 0 | ' | |
Total liabilities of consolidated VIEs | 256,997,000 | ' | |
VIE, Primary Beneficiary [Member] | Moselle CLO [Member] | ' | ' | |
ASSETS | ' | ' | |
Restricted cash | 43,880,000 | [1] | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 12,622,000 | ' | |
Loans, pledged as collateral | 120,766,000 | ' | |
Loans held for sale | 0 | ' | |
Interest receivable | 0 | ' | |
Prepaid assets | 0 | ' | |
Principal paydown receivable | 0 | ' | |
Total assets of consolidated VIEs | 177,268,000 | [2] | ' |
LIABILITIES | ' | ' | |
Borrowings | 148,455,000 | ' | |
Accrued interest expense | 377,000 | ' | |
Derivatives, at fair value | 0 | ' | |
Accounts payable and other liabilities | 1,690,000 | ' | |
Total liabilities of consolidated VIEs | $150,522,000 | ' | |
[1] | Includes $4.3 million available for reinvestment in certain of the securitizations. | ||
[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 $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | $41,692 |
Intangible assets | 10,341 |
Total assets | 52,033 |
Borrowings | 51,104 |
Total liabilities | 51,104 |
Net asset (liability) | 929 |
Investments in Unconsolidated Entities [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 41,692 |
Intangible Assets [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 10,341 |
LEAF Commercial Capital, Inc. [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 40,144 |
Intangible assets | 0 |
Total assets | 40,144 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 40,144 |
Unsecured Junior Subordinated Debentures [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 1,548 |
Intangible assets | 0 |
Total assets | 1,548 |
Borrowings | 51,104 |
Total liabilities | 51,104 |
Net asset (liability) | -49,556 |
Resource Capital Asset Management [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 0 |
Intangible assets | 10,341 |
Total assets | 10,341 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $10,341 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Non-cash financing activities include the following: | ' | ' |
Issuance of restricted stock | $646 | $151 |
Common Stock [Member] | ' | ' |
Non-cash financing activities include the following: | ' | ' |
Distributions on common and preferred stock declared but not paid | 26,179 | 25,399 |
Preferred Stock [Member] | ' | ' |
Non-cash financing activities include the following: | ' | ' |
Distributions on common and preferred stock declared but not paid | $4,353 | $1,944 |
INVESTMENT_SECURITIES_TRADING_1
INVESTMENT SECURITIES TRADING (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Security | Security | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Trading Securities, Number Sold | 1 | ' |
Trading Securities, Realized Gain | $379 | ' |
Number of trading securities held | 7 | 8 |
INVESTMENT_SECURITIES_TRADING_2
INVESTMENT SECURITIES TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Amortized Cost | $9,957 | $9,976 | ||
Unrealized Gains | 2,130 | 4,050 | ||
Unrealized Losses | -3,136 | -2,468 | ||
Fair Value | 8,951 | [1] | 11,558 | [1] |
Structured Notes [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Amortized Cost | 8,056 | 8,057 | ||
Unrealized Gains | 2,130 | 4,050 | ||
Unrealized Losses | -1,567 | -1,000 | ||
Fair Value | 8,619 | 11,107 | ||
RMBS [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Amortized Cost | 1,901 | 1,919 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | -1,569 | -1,468 | ||
Fair Value | $332 | $451 | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
INVESTMENT_SECURITIES_AVAILABL2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Security | Security | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Other-than-temporary impairment losses | ' | ' | $0 | $548,000 | ' |
CMBS [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Other-than-temporary impairment losses | 0 | 535,000 | 0 | 21,000 | ' |
Number of positions sold | ' | ' | 3 | ' | 4 |
Par value of securities sold | ' | ' | 15,970,000 | ' | 14,500,000 |
Gain (loss) on sale, securities sold | ' | ' | 480,000 | ' | 466,000 |
Corporate bonds [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Number of securities redeemed | 0 | 2 | 1 | 2 | ' |
Par value of securities redeemed | 0 | 3,500,000 | 630,000 | 3,500,000 | ' |
Loss on available-for-sale securities redeemed | 0 | 11,000 | 1,000 | 11,000 | ' |
Number of positions sold | ' | ' | ' | ' | 35 |
Par value of securities sold | ' | ' | ' | ' | 34,253,000 |
Gain (loss) on sale, securities sold | ' | ' | ' | ' | -474,000 |
ABS [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Number of securities redeemed | 1 | 0 | 1 | 0 | ' |
Par value of securities redeemed | 2,500,000 | ' | 2,500,000 | ' | ' |
Gain on available-for-sale securities redeemed | $25,500 | ' | $25,500 | ' | ' |
INVESTMENT_SECURITIES_AVAILABL3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | $265,338 | $218,470 | ||
Unrealized Gains | 10,062 | 9,230 | ||
Unrealized Losses | -10,897 | -12,494 | ||
Fair Value | 264,503 | 215,206 | ||
Investment securities available-for-sale, pledged as collateral, at fair value | 196,009 | [1] | 162,608 | [1] |
CMBS [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 175,983 | 185,178 | ||
Unrealized Gains | 7,074 | 7,570 | ||
Unrealized Losses | -10,683 | -12,030 | ||
Fair Value | 172,374 | 180,718 | ||
RMBS [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 30,647 | ' | ||
Unrealized Gains | 0 | ' | ||
Unrealized Losses | 0 | ' | ||
Fair Value | 30,647 | ' | ||
ABS [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 32,145 | 25,406 | ||
Unrealized Gains | 1,429 | 1,644 | ||
Unrealized Losses | -214 | -394 | ||
Fair Value | 33,360 | 26,656 | ||
Structured Notes [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 23,203 | 5,369 | ||
Unrealized Gains | 1,452 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 24,655 | 5,369 | ||
Corporate bonds [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 3,360 | 2,517 | ||
Unrealized Gains | 107 | 16 | ||
Unrealized Losses | 0 | -70 | ||
Fair Value | $3,467 | $2,463 | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
INVESTMENT_SECURITIES_AVAILABL4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value | ' | ' | ||
Less than one year | $41,371 | [1] | $39,256 | [1] |
Greater than one year and less than five years | 139,526 | 139,700 | ||
Greater than five years and less than ten years | 28,304 | 26,526 | ||
Greater than ten years | 55,302 | 9,724 | ||
Total | 264,503 | 215,206 | ||
Amortized Cost | ' | ' | ||
Less than one year | 50,628 | 40,931 | ||
Greater than one year and less than five years | 133,098 | 141,760 | ||
Greater than five years and less than ten years | 27,762 | 25,707 | ||
Greater than ten years | 53,850 | 10,072 | ||
Total | $265,338 | $218,470 | ||
Weighted Average Coupon | ' | ' | ||
Less than one year | 3.79% | 5.25% | ||
Greater than one year and less than five years | 5.01% | 4.69% | ||
Greater than five years and less than ten years | 1.73% | 1.10% | ||
Greater than ten years | 6.49% | 7.90% | ||
Total | 4.78% | 4.49% | ||
[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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Security | Security |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | $40,848 | $53,020 |
Unrealized Losses, less than 12 months | -659 | -7,567 |
Number of Securities, less than 12 months | 29 | 36 |
Fair value, more than 12 months | 26,661 | 20,851 |
Unrealized losses, more than 12 Months | -10,238 | -4,927 |
Number of Securities, more than 12 Months | 20 | 19 |
Fair value, total | 67,509 | 73,871 |
Unrealized losses, total | -10,897 | -12,494 |
Number of Securities, total | 49 | 55 |
CMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | 40,021 | 52,012 |
Unrealized Losses, less than 12 months | -649 | -7,496 |
Number of Securities, less than 12 months | 28 | 34 |
Fair value, more than 12 months | 22,249 | 14,159 |
Unrealized losses, more than 12 Months | -10,034 | -4,534 |
Number of Securities, more than 12 Months | 12 | 10 |
Fair value, total | 62,270 | 66,171 |
Unrealized losses, total | -10,683 | -12,030 |
Number of Securities, total | 40 | 44 |
ABS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | 827 | 143 |
Unrealized Losses, less than 12 months | -10 | -1 |
Number of Securities, less than 12 months | 1 | 1 |
Fair value, more than 12 months | 4,412 | 6,692 |
Unrealized losses, more than 12 Months | -204 | -393 |
Number of Securities, more than 12 Months | 8 | 9 |
Fair value, total | 5,239 | 6,835 |
Unrealized losses, total | -214 | -394 |
Number of Securities, total | 9 | 10 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | 0 | 865 |
Unrealized Losses, less than 12 months | 0 | -70 |
Number of Securities, less than 12 months | 0 | 1 |
Fair value, more than 12 months | 0 | 0 |
Unrealized losses, more than 12 Months | 0 | 0 |
Number of Securities, more than 12 Months | 0 | 0 |
Fair value, total | 0 | 865 |
Unrealized losses, total | $0 | ($70) |
Number of Securities, total | 0 | 1 |
INVESTMENT_SECURITIES_AVAILABL6
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Security | Security | |
CMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Positions Sold | 3 | 4 |
Par Amount Sold | $15,970 | $14,500 |
Realized Gain (Loss) | 480 | 466 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Positions Sold | ' | 35 |
Par Amount Sold | ' | 34,253 |
Realized Gain (Loss) | ' | ($474) |
INVESTMENT_SECURITIES_AVAILABL7
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Aggregate Discount due to Interest Rate Changes Exceeded Aggregate Premium) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Excess of aggregate discount over aggregate premium | $4,049 | $6,583 |
ABS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Excess of aggregate discount over aggregate premium | 1,988 | 2,394 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Excess of aggregate discount over aggregate premium | $96 | $68 |
INVESTMENTS_IN_REAL_ESTATE_Det
INVESTMENTS IN REAL ESTATE (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||
Property | Property | Property | ||||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | |||
Number of real estate properties acquired | 0 | ' | 0 | ' | 0 | |||
Number of real estate properties available-for-sale | ' | ' | 2 | ' | ' | |||
Property available-for-sale | $29,509 | [1] | ' | $29,509 | [1] | ' | $25,346 | [1] |
Loss from real estate held-for-sale | -5 | 88 | -123 | 106 | ' | |||
Number of real estate properties sold | ' | ' | ' | ' | 1 | |||
Gain on sale of real estate | 3,000 | ' | 3,042 | 0 | 16,600 | |||
Office property [Member] | ' | ' | ' | ' | ' | |||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | |||
Property available-for-sale | 9,600 | ' | 9,600 | ' | ' | |||
Loss from real estate held-for-sale | -9 | -77 | -25 | -154 | ' | |||
Multi-family property [Member] | ' | ' | ' | ' | ' | |||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | |||
Property available-for-sale | $19,800 | ' | $19,800 | ' | ' | |||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
INVESTMENTS_IN_REAL_ESTATE_Inv
INVESTMENTS IN REAL ESTATE (Investments in Real Estate) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Book Value | $32,380 |
Less: Accumulated depreciation | -2,602 |
Investments in real estate | 29,778 |
Multi-family property [Member] | ' |
Book Value | 22,107 |
Number of Properties | 1 |
Office property [Member] | ' |
Book Value | $10,273 |
Number of Properties | 1 |
LOANS_HELD_FOR_INVESTMENT_Deta
LOANS HELD FOR INVESTMENT (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | 40,286 | [1] | 21,916 | [1] |
Allowance for loan loss | 6,539 | 13,807 | ||
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | 721,300 | 558,600 | ||
Allowance for loan loss | 669 | 3,391 | ||
Residential Mortgage Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 26 | 0 | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 5,454 | 9,683 | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 669 | 3,400 | ||
Loans, allowances | 5,800 | 10,400 | ||
Commercial Real Estate Loans [Member] | California [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 32.60% | 39.00% | ||
Commercial Real Estate Loans [Member] | Arizona [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 9.50% | 6.40% | ||
Commercial Real Estate Loans [Member] | Texas [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 21.00% | 14.60% | ||
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) | 15.30% | 15.80% | ||
Residential Mortgage Loans [Member] | Georgia [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 70.20% | 66.00% | ||
Residential Mortgage Loans [Member] | Virginia [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 9.40% | ' | ||
Residential Mortgage Loans [Member] | North Carolina [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 7.20% | 9.00% | ||
Residential Mortgage Loans [Member] | Alabama [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 4.60% | 6.00% | ||
Residential Mortgage Loans [Member] | Tennessee and Virginia [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 5.40% | 7.00% | ||
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans, allowances | 669 | 3,400 | ||
Bank Loans [Member] | Minimum [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'three month London Interbank Offered Rate | ' | ||
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 | 'three month LIBOR | ||
Basis spread on variable rate | 13.00% | 10.50% | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
LOANS_HELD_FOR_INVESTMENT_Summ
LOANS HELD FOR INVESTMENT (Summary of Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | $1,754,715,000 | $1,390,843,000 | ||
Unamortized (discount) premium, gross | -7,520,000 | [1] | -7,510,000 | [1] |
Gross carrying value of loans held for investment | 1,747,195,000 | [2] | 1,383,333,000 | [2] |
Allowance for loan loss | -6,539,000 | -13,807,000 | ||
Unamortized (discount) premium, gross, allowance for loan loss | 0 | [1] | 0 | [1] |
Carrying value, allowance for loan loss | -6,539,000 | [2] | -13,807,000 | [2] |
Principal, Net | 1,748,176,000 | 1,377,036,000 | ||
Unamortized (discount) premium, net | -7,520,000 | [1] | -7,510,000 | [1] |
Net carrying value of loans held for investment | 1,740,656,000 | [2] | 1,369,526,000 | [2] |
Loans held for sale | 40,286,000 | [2] | 21,916,000 | [2] |
Loans held for investment and held for sale | 1,788,462,000 | 1,398,952,000 | ||
Loans held for investment and held for sale, net carrying value | 1,780,942,000 | [2] | 1,391,442,000 | [2] |
Deferred amendment fees | 169,000 | 216,000 | ||
Loans held for sale, net | 40,286,000 | [3] | 21,916,000 | [3] |
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 709,102,000 | 559,206,000 | ||
Unamortized (discount) premium, gross | -2,521,000 | [1] | -4,033,000 | [1] |
Gross carrying value of loans held for investment | 706,581,000 | [2] | 555,173,000 | [2] |
Loans held for sale | 15,427,000 | [2] | 6,850,000 | [2] |
Deferred upfront fee | 112,000 | 141,000 | ||
Loans held for sale, net | 721,300,000 | 558,600,000 | ||
Residential mortgage loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 2,470,000 | 1,849,000 | ||
Unamortized (discount) premium, gross | 0 | [1] | 0 | [1] |
Gross carrying value of loans held for investment | 2,470,000 | [2] | 1,849,000 | [2] |
Loans held for sale | 24,859,000 | [2] | 15,066,000 | [2] |
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 1,043,143,000 | 829,788,000 | ||
Unamortized (discount) premium, gross | -4,999,000 | [1] | -3,477,000 | [1] |
Gross carrying value of loans held for investment | 1,038,144,000 | [2] | 826,311,000 | [2] |
Loan origination fees | 4,900,000 | 3,300,000 | ||
Extension and exit fees | 177,000 | 73,000 | ||
Commercial Real Estate Loans [Member] | Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 959,569,000 | 749,083,000 | ||
Unamortized (discount) premium, gross | -4,823,000 | [1] | -3,294,000 | [1] |
Gross carrying value of loans held for investment | 954,746,000 | [2] | 745,789,000 | [2] |
Commercial Real Estate Loans [Member] | B Notes [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 16,204,000 | 16,288,000 | ||
Unamortized (discount) premium, gross | -66,000 | [1] | -83,000 | [1] |
Gross carrying value of loans held for investment | 16,138,000 | [2] | 16,205,000 | [2] |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 67,370,000 | 64,417,000 | ||
Unamortized (discount) premium, gross | -110,000 | [1] | -100,000 | [1] |
Gross carrying value of loans held for investment | $67,260,000 | [2] | $64,317,000 | [2] |
[1] | Amounts include deferred amendment fees of $169,000 and $216,000 and deferred upfront fees of $112,000 and $141,000 being amortized over the life of the bank loans as of June 30, 2014 and December 31, 2013, respectively. Amounts include loan origination fees of $4.9 million and $3.3 million and loan extension fees of $177,000 and $73,000 being amortized over the life of the commercial real estate loans as of June 30, 2014 and December 31, 2013, respectively. | |||
[2] | Substantially all loans are pledged as collateral under various borrowings at June 30, 2014 and December 31, 2013, respectively. | |||
[3] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
LOANS_HELD_FOR_INVESTMENT_Weig
LOANS HELD FOR INVESTMENT (Weighted Average Life of Bank Loans, at Amortized Cost) (Details) (Bank Loans [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Bank Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Less than one year | $36,155 | $36,985 |
Greater than one year and less than five years | 528,687 | 379,874 |
Five years or greater | 157,166 | 145,164 |
Total | $722,008 | $562,023 |
LOANS_HELD_FOR_INVESTMENT_Comm
LOANS HELD FOR INVESTMENT (Commercial Real Estate Loans Held for Investment) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | |||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 6,539,000 | 13,807,000 | ||
Loans held for sale, net | 40,286,000 | [1] | 21,916,000 | [1] |
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 64 | [2] | 56 | [2] |
Amortized Cost | 1,038,144,000 | [2],[3] | 826,311,000 | [2],[3] |
Allowance for loan loss | 669,000 | 3,400,000 | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 5,454,000 | 9,683,000 | ||
Whole Loans [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | 954,746,000 | 745,789,000 | ||
Whole Loans, Floating Rate [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for investment, unfunded loan commitments | 52,500,000 | 13,700,000 | ||
Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 59 | [4],[5],[6] | 51 | [4],[5],[7] |
Amortized Cost | 954,746,000 | [4],[5],[6] | 745,789,000 | [4],[5],[7] |
Whole Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'LIBOR | [4],[5],[6] | 'LIBOR | [4],[5],[7] |
Basis spread on variable rate | 2.13% | [4],[5],[6] | 2.68% | [4],[5],[7] |
Maturity Dates | 'October 2014 | [4],[5],[6],[8] | 'March 2014 | [4],[5],[7],[8] |
Whole Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'LIBOR | [4],[5],[6] | 'LIBOR | [4],[5],[7] |
Basis spread on variable rate | 12.14% | [4],[5],[6] | 12.14% | [4],[5],[7] |
Maturity Dates | 'February 2019 | [4],[5],[6],[8] | 'February 2019 | [4],[5],[7],[8] |
Preferred equity tranche [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | ' | 799,000 | ||
Preferred equity tranche [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Fixed preferred equity interest in floating rate whole loan | ' | 10.00% | ||
B Notes [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 76,000 | 174,000 | ||
B Notes [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | 16,138,000 | 16,205,000 | ||
B Notes, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 1 | 1 | ||
Amortized Cost | 16,138,000 | 16,205,000 | ||
Stated interest rate | 8.68% | 8.68% | ||
B Notes, Fixed Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Maturity Dates | 'April 2016 | [8] | 'April 2016 | [8] |
Mezzanine Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 314,000 | 559,000 | ||
Mezzanine Loans [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Amortized Cost | 67,260,000 | 64,317,000 | ||
Mezzanine Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 1 | 1 | ||
Amortized Cost | 15,452,000 | 12,455,000 | ||
Variable rate basis | ' | 'LIBOR | ||
Basis spread on variable rate | 15.32% | 15.32% | ||
Maturity Dates | 'April 2016 | [8] | 'April 2016 | [8] |
Mezzanine Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Variable rate basis | 'LIBOR | ' | ||
Mezzanine Loans, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Quantity | 3 | [7] | 3 | [7] |
Amortized Cost | 51,808,000 | [7] | 51,862,000 | [7] |
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% | 0.50% | ||
Maturity Dates | 'September 2014 | [8] | 'September 2014 | [8] |
Mezzanine Loans, Fixed Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Stated interest rate | 18.71% | 18.72% | ||
Maturity Dates | 'September 2021 | [8] | 'September 2019 | [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 | 5,800,000 | 10,400,000 | ||
Whole Loans, Fixed Rate, Loan One [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | 3,100,000 | ' | ||
Fixed contractual interest in floating rate whole loan | 15.00% | ' | ||
Whole Loans, Fixed Rate, Loan Two [Member] | Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
The amortized cost of loans held for investments, fixed rate whole loans included in floating rate whole loans. | 12,000,000 | ' | ||
Fixed contractual interest in floating rate whole loan | 12.00% | ' | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 | |||
[2] | The total does not include an allowance for loan loss of $5.8 million and $10.4 million as of June 30, 2014 and December 31, 2013, respectively. | |||
[3] | Weighted average life of commercial real estate loans assumes full exercise of extension options available to borrowers. | |||
[4] | Whole loans had $52.5 million and $13.7 million in unfunded loan commitments as of June 30, 2014 and December 31, 2013, respectively. These unfunded commitments are advanced as the borrowers formally request additional funding as permitted under the loan agreement and any necessary approvals have been obtained. | |||
[5] | loating rate whole loans includes $3.1 million and $12.0 million mezzanine components of two whole loans, which have a fixed rate of 15.0% and 12.0% | |||
[6] | Floating rate whole loans include a $799,000 junior mezzanine tranche of a whole loan that has a fixed rate of 10.0% as of June 30, 2014. | |||
[7] | 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. | |||
[8] | Maturity dates do not include possible extension options that may be available to the borrowers. |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2014 | $5,711 | [1] | $5,711 | [1] |
2015 | 0 | [1] | 17,949 | [1] |
2016 and thereafter | 1,032,433 | [1] | 802,651 | [1] |
Total | 1,038,144 | [1],[2] | 826,311 | [1],[2] |
B Notes [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2014 | 0 | 0 | ||
2015 | 0 | 0 | ||
2016 and thereafter | 16,138 | 16,205 | ||
Total | 16,138 | 16,205 | ||
Mezzanine Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2014 | 5,711 | 5,711 | ||
2015 | 0 | 0 | ||
2016 and thereafter | 61,549 | 58,606 | ||
Total | 67,260 | 64,317 | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
2014 | 0 | 0 | ||
2015 | 0 | 17,949 | ||
2016 and thereafter | 954,746 | 727,840 | ||
Total | $954,746 | $745,789 | ||
[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 $5.8 million and $10.4 million as of June 30, 2014 and December 31, 2013, respectively. |
LOANS_HELD_FOR_INVESTMENT_Allo
LOANS HELD FOR INVESTMENT (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | $6,539 | $13,807 |
B Notes [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 76 | 174 |
Percentage of Total Allowance | 1.16% | 1.26% |
Mezzanine Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 314 | 559 |
Percentage of Total Allowance | 4.80% | 4.05% |
Whole Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 5,454 | 9,683 |
Percentage of Total Allowance | 83.41% | 70.13% |
Bank Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 669 | 3,391 |
Percentage of Total Allowance | 10.23% | 24.56% |
Residential Mortgage Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | $26 | $0 |
Percentage of Total Allowance | 0.40% | 0.00% |
INVESTMENTS_IN_UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Schedule of Unconsolidated Entities (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 16, 2011 | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | $60,480 | [1] | ' | $60,480 | [1] | ' | $69,069 | [1] | ' |
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 1,334 | -443 | 2,843 | -1,377 | ' | ' | |||
Varde Investment Partners, L.P | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 7.50% | ' | 7.50% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 654 | ' | 654 | ' | 674 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | -19 | 19 | -20 | 43 | ' | ' | |||
RRE VIP Borrower, LLC | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | 0 | ' | 0 | ' | 0 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 869 | -101 | 1,736 | -214 | ' | ' | |||
Investment in LCC Preferred Stock | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 28.20% | ' | 28.20% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 40,144 | ' | 40,144 | ' | 41,016 | 36,300 | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | -278 | 304 | -872 | -32 | ' | ' | |||
Investment in RCT I and II | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 3.00% | ' | 3.00% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 1,548 | ' | 1,548 | ' | 1,548 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | -594 | -602 | -1,184 | -1,195 | ' | ' | |||
Investment in Preferred Equity | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | 0 | ' | 0 | ' | 8,124 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 232 | 86 | 1,300 | 170 | ' | ' | |||
Investment in CVC Global Opps Fund | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 34.40% | ' | 34.40% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 18,134 | ' | 18,134 | ' | 16,177 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 1,124 | 93 | 1,958 | 93 | ' | ' | |||
Investment in Life Care Funding | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 50.20% | ' | 50.20% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 0 | ' | 0 | ' | 1,530 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | $0 | ($242) | ($75) | ($242) | ' | ' | |||
Minimum [Member] | RRE VIP Borrower, LLC | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 3.00% | ' | 3.00% | ' | ' | ' | |||
Maximum [Member] | RRE VIP Borrower, LLC | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 5.00% | ' | 5.00% | ' | ' | ' | |||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
INVESTMENTS_IN_UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Jan. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 19, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 16, 2011 | Dec. 01, 2009 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Investment in CVC Global Opps Fund | Investment in CVC Global Opps Fund | Investment in CVC Global Opps Fund | Investment in CVC Global Opps Fund | Investment in CVC Global Opps Fund | Investment in CVC Global Opps Fund | Investment in Life Care Funding | Investment in Life Care Funding | Investment in Life Care Funding | Investment in Life Care Funding | Investment in Life Care Funding | Investment in Life Care Funding | Investment in Life Care Funding | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | Investment in RCT I and II | Investment in RCT I and II | Investment in RCT I and II | Investment in RCT I and II | Investment in RCT I and II | Interest in RCT I | Interest in RCT II | 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] | |||||||||
Property | trust | trust | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition of membership interests | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | $1,400,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment management fee, percent | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investments in unconsolidated entities | 60,480,000 | [1] | ' | 60,480,000 | [1] | ' | 69,069,000 | [1] | 18,134,000 | ' | ' | 18,134,000 | ' | 16,177,000 | ' | ' | 0 | ' | 0 | ' | 1,530,000 | 654,000 | ' | 654,000 | ' | 674,000 | ' | 40,144,000 | ' | 40,144,000 | ' | 41,016,000 | 36,300,000 | ' | 0 | ' | 0 | ' | 0 | 1,548,000 | ' | 1,548,000 | ' | 1,548,000 | 774,000 | 774,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 1,334,000 | -443,000 | 2,843,000 | -1,377,000 | ' | 1,124,000 | ' | 93,000 | 1,958,000 | 93,000 | ' | ' | ' | 0 | -242,000 | -75,000 | -242,000 | ' | -19,000 | 19,000 | -20,000 | 43,000 | ' | ' | -278,000 | 304,000 | -872,000 | -32,000 | ' | ' | ' | 869,000 | -101,000 | 1,736,000 | -214,000 | ' | -594,000 | -602,000 | -1,184,000 | -1,195,000 | ' | ' | ' | ' | ' | ' | ' | ' | -101,000 | ' | -214,000 | |||
Number of condominium developments purchased by joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | |||
Management fees − related party | 3,314,000 | 2,915,000 | 6,394,000 | 5,893,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 8,000 | 6,000 | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 10,000 | 0 | 26,000 | 1,000 | 8,000 | 6,000 | 16,000 | |||
Number of trusts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage (percent) | ' | ' | ' | ' | ' | 34.40% | ' | ' | 34.40% | ' | ' | ' | ' | 50.20% | ' | 50.20% | ' | ' | 7.50% | ' | 7.50% | ' | ' | ' | 28.20% | ' | 28.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization of deferred debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000 | $48,000 | $99,000 | $95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
FINANCING_RECEIVABLES_Details
FINANCING RECEIVABLES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | |
Loan | Loan | Loan | Deteriorated Credit Quality [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Bank Loans [Member] | Loans Receivable - Related Party [Member] | Loans Receivable - Related Party [Member] | |||
Loan | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | ||||||||||
Loan | Loan | |||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loans receivable | $782,000 | ($1,242,000) | ($3,178,000) | ($200,000) | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 | $700,000 |
Number of defaulted loans | 1 | ' | 1 | ' | 3 | ' | ' | ' | ' | ' | 1 | 1 | ' | ' |
Loans and receivables | $1,748,176,000 | ' | $1,748,176,000 | ' | $1,377,036,000 | $119,000 | $722,008,000 | $562,023,000 | $1,600,000 | $3,600,000 | ' | ' | ' | ' |
Number of loans with deteriorated credit quality | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
FINANCING_RECEIVABLES_Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ||
Allowance for losses at beginning of period | $13,807,000 | $17,691,000 | ||
Provision for loan loss | -3,178,000 | 3,020,000 | ||
Loans charged-off | -3,390,000 | -6,904,000 | ||
Allowance for losses at end of period | 7,239,000 | 13,807,000 | ||
Allowance for losses, ending balance: | ' | ' | ||
Individually evaluated for impairment | 2,941,000 | 7,193,000 | ||
Collectively evaluated for impairment | 4,298,000 | 6,614,000 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans, ending balance: | ' | ' | ||
Individually evaluated for impairment | 179,600,000 | 204,923,000 | [1] | |
Collectively evaluated for impairment | 1,572,927,000 | [1] | 1,207,292,000 | [1] |
Loans acquired with deteriorated credit quality | 119,000 | 0 | [1] | |
Loans, pledged as collateral, amount at fair value | 120,800,000 | 0 | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ||
Allowance for losses at beginning of period | 10,416,000 | 7,986,000 | ||
Provision for loan loss | -4,511,000 | 2,686,000 | ||
Loans charged-off | -61,000 | -256,000 | ||
Allowance for losses at end of period | 5,844,000 | 10,416,000 | ||
Allowance for losses, ending balance: | ' | ' | ||
Individually evaluated for impairment | 1,800,000 | 4,572,000 | ||
Collectively evaluated for impairment | 4,044,000 | 5,844,000 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans, ending balance: | ' | ' | ||
Individually evaluated for impairment | 172,583,000 | 194,403,000 | [1] | |
Collectively evaluated for impairment | 865,561,000 | [1] | 631,908,000 | [1] |
Loans acquired with deteriorated credit quality | 0 | 0 | [1] | |
Bank Loans [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ||
Allowance for losses at beginning of period | 3,391,000 | 9,705,000 | ||
Provision for loan loss | 607,000 | 334,000 | ||
Loans charged-off | -3,329,000 | -6,648,000 | ||
Allowance for losses at end of period | 669,000 | 3,391,000 | ||
Allowance for losses, ending balance: | ' | ' | ||
Individually evaluated for impairment | 441,000 | 2,621,000 | ||
Collectively evaluated for impairment | 228,000 | 770,000 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans, ending balance: | ' | ' | ||
Individually evaluated for impairment | 1,566,000 | 3,554,000 | [1] | |
Collectively evaluated for impairment | 704,896,000 | [1] | 558,469,000 | [1] |
Loans acquired with deteriorated credit quality | 119,000 | 0 | [1] | |
Residential Mortgage Loans [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ||
Allowance for losses at beginning of period | 0 | 0 | ||
Provision for loan loss | 26,000 | 0 | ||
Loans charged-off | 0 | 0 | ||
Allowance for losses at end of period | 26,000 | 0 | ||
Allowance for losses, ending balance: | ' | ' | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 26,000 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans, ending balance: | ' | ' | ||
Individually evaluated for impairment | 0 | 0 | [1] | |
Collectively evaluated for impairment | 2,470,000 | [1] | 16,915,000 | [1] |
Loans acquired with deteriorated credit quality | 0 | 0 | [1] | |
Loans Receivable - Related Party [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ||
Allowance for losses at beginning of period | 0 | 0 | ||
Provision for loan loss | 700,000 | 0 | ||
Loans charged-off | 0 | 0 | ||
Allowance for losses at end of period | 700,000 | 0 | ||
Allowance for losses, ending balance: | ' | ' | ||
Individually evaluated for impairment | 700,000 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans, ending balance: | ' | ' | ||
Individually evaluated for impairment | 5,451,000 | 6,966,000 | [1] | |
Collectively evaluated for impairment | 0 | [1] | 0 | [1] |
Loans acquired with deteriorated credit quality | 0 | 0 | [1] | |
Loans Receivable [Member] | ' | ' | ||
Loans, ending balance: | ' | ' | ||
Loans, pledged as collateral, amount at fair value | $120,800,000 | ' | ||
[1] | Loan ending balance contains $120.8 million of loan value for which the fair value option has been elected. As such, no allowance for loan losses has been recognized for these loans. |
FINANCING_RECEIVABLES_Credit_R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | $1,748,176 | $1,377,036 | ||
Loans held for sale | 40,286 | [1] | 21,916 | [1] |
Bank Loans [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | 722,008 | 562,023 | ||
Loans held for sale | 15,427 | 6,850 | ||
Bank Loans [Member] | Rating 1 [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | 666,578 | 488,004 | ||
Bank Loans [Member] | Rating 2 [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | 33,999 | 42,476 | ||
Bank Loans [Member] | Rating 3 [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | 3,551 | 18,806 | ||
Bank Loans [Member] | Rating 4 [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | 768 | 2,333 | ||
Bank Loans [Member] | Rating 5 [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans and receivables | $1,685 | $3,554 | ||
[1] | Substantially all loans are pledged as collateral under various borrowings at June 30, 2014 and December 31, 2013, respectively. |
FINANCING_RECEIVABLES_Credit_R1
FINANCING RECEIVABLES (Credit Risk Profiles of Commercial Real Estate Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | $1,748,176 | $1,377,036 |
Whole Loans [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 954,746 | 745,789 |
Whole Loans [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 900,246 | 680,718 |
Whole Loans [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 32,500 | 32,500 |
Whole Loans [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 22,000 | 32,571 |
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 | 0 |
B Notes [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 16,138 | 16,205 |
B Notes [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 16,138 | 16,205 |
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 | 67,260 | 64,317 |
Mezzanine Loans [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 45,460 | 51,862 |
Mezzanine Loans [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 21,800 | 12,455 |
Mezzanine Loans [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 0 |
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 |
Commercial Portfolio Segment [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 1,038,144 | 826,311 |
Commercial Portfolio Segment [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 961,844 | 748,785 |
Commercial Portfolio Segment [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 54,300 | 44,955 |
Commercial Portfolio Segment [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 22,000 | 32,571 |
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 | $0 |
FINANCING_RECEIVABLES_Loan_Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis as of the Dates Indicated at Cost Basis) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-59 Days | $0 | $234 | ||
60-89 Days | 0 | 91 | ||
Greater than 90 Days | 1,951 | 3,822 | ||
Total Past Due | 1,951 | 4,147 | ||
Current | 1,790,981 | 1,408,068 | ||
Total Loans Receivable | 1,792,932 | 1,412,215 | ||
Total Loans Greater Than 90 days and accruing | 0 | 0 | ||
Loans, fair value method elected, unpaid principal balance | 181,395 | 203,958 | ||
Loans held for sale | 40,286 | [1] | 21,916 | [1] |
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 | 954,746 | 745,789 | ||
Total Loans Receivable | 954,746 | 745,789 | ||
Total Loans Greater Than 90 days and accruing | 0 | ' | ||
Loans, fair value method elected, unpaid principal balance | 134,511 | 156,331 | ||
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 | 16,138 | 16,205 | ||
Total Loans Receivable | 16,138 | 16,205 | ||
Total Loans Greater Than 90 days and accruing | 0 | 0 | ||
Loans, fair value method elected, unpaid principal balance | 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 | 67,260 | 64,317 | ||
Total Loans Receivable | 67,260 | 64,317 | ||
Total Loans Greater Than 90 days and accruing | 0 | 0 | ||
Loans, fair value method elected, unpaid principal balance | 38,072 | 38,072 | ||
Bank Loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-59 Days | 0 | [2],[3] | 0 | [2] |
60-89 Days | 0 | [2],[3] | 0 | [2] |
Greater than 90 Days | 1,685 | [2],[3] | 3,554 | [2] |
Total Past Due | 1,685 | [2],[3] | 3,554 | [2] |
Current | 720,323 | [2],[3] | 558,469 | [2] |
Total Loans Receivable | 722,008 | [2],[3] | 562,023 | [2] |
Total Loans Greater Than 90 days and accruing | 0 | [2],[3] | 0 | [2] |
Loans, fair value method elected, unpaid principal balance | 1,685 | 3,554 | ||
Loans held for sale | 15,427 | 6,850 | ||
Residential Mortgage Loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-59 Days | 0 | [4] | 234 | [4] |
60-89 Days | 0 | [4] | 91 | [4] |
Greater than 90 Days | 266 | [4] | 268 | [4] |
Total Past Due | 266 | [4] | 593 | [4] |
Current | 27,063 | [4] | 16,322 | [4] |
Total Loans Receivable | 27,329 | [4] | 16,915 | [4] |
Total Loans Greater Than 90 days and accruing | 0 | [4] | 0 | [4] |
Loans, fair value method elected, unpaid principal balance | 2,470 | 268 | ||
Loans held for sale | 24,859 | 15,066 | ||
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 | 5,451 | 6,966 | ||
Total Loans Receivable | 5,451 | 6,966 | ||
Total Loans Greater Than 90 days and accruing | 0 | 0 | ||
Loans, fair value method elected, unpaid principal balance | 4,657 | 5,733 | ||
Loans Receivable [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans, fair value method elected, unpaid principal balance | 4,800 | ' | ||
Loans, fair value method elected, fair value | $119 | ' | ||
[1] | Substantially all loans are pledged as collateral under various borrowings at June 30, 2014 and December 31, 2013, respectively. | |||
[2] | Contains $15.4 million and $6.9 million of bank loans held for sale at June 30, 2014 and December 31, 2013, respectively. | |||
[3] | Contains loans for which the fair value method was elected with an unpaid principal balance of $4.8 million with a fair value of $119,000 at June 30, 2014. | |||
[4] | Contains $24.9 million and $15.1 million of residential mortgage loans held for sale at June 30, 2014 and December 31, 2013, respectively. |
FINANCING_RECEIVABLES_Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Balance | $181,395 | $204,005 |
Unpaid Principal Balance | 181,395 | 203,958 |
Specific Allowance | -2,941 | -7,193 |
Average Investment in Impaired Loans | 180,492 | 186,315 |
Interest Income Recognized | 13,652 | 11,676 |
Whole Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 127,511 | 130,759 |
Loans with a specific valuation allowance, Recorded balance | 7,000 | 25,572 |
Recorded Balance | 134,511 | 156,331 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 127,511 | 130,759 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 7,000 | 25,572 |
Unpaid Principal Balance | 134,511 | 156,331 |
Specific Allowance | -1,800 | -4,572 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 126,070 | 123,495 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 7,000 | 24,748 |
Average Investment in Impaired Loans | 133,070 | 148,243 |
Loans without a specific valuation allowance, Interest Income Recognized | 10,682 | 8,439 |
Loans with a specific valuation allowance, Interest Income Recognized | 591 | 1,622 |
Interest Income Recognized | 11,273 | 10,061 |
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 | 2,229 | 1,615 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 2,229 | 1,615 |
Bank Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 119 | 0 |
Loans with a specific valuation allowance, Recorded balance | 1,566 | 3,554 |
Recorded Balance | 1,685 | 3,554 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 119 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,566 | 3,554 |
Unpaid Principal Balance | 1,685 | 3,554 |
Specific Allowance | -441 | -2,621 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 119 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 1,566 | 0 |
Average Investment in Impaired Loans | 1,685 | 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 |
Residential Mortgage Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 2,470 | 315 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 2,470 | 315 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 2,470 | 268 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 2,470 | 268 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 2,470 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 2,470 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 65 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 65 | 0 |
Loans Receivable - Related Party [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 0 | 5,733 |
Loans with a specific valuation allowance, Recorded balance | 4,657 | 0 |
Recorded Balance | 4,657 | 5,733 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 5,733 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 4,657 | 0 |
Unpaid Principal Balance | 4,657 | 5,733 |
Specific Allowance | -700 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 5,195 | 0 |
Average Investment in Impaired Loans | 5,195 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 85 | 0 |
Interest Income Recognized | $85 | $0 |
FINANCING_RECEIVABLES_Loan_Por1
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 |
Loan | Loan | Loan | |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | 0 | 0 | 3 |
Pre-Modification Outstanding Recorded Balance | ' | ' | $62,920 |
Post-Modification Outstanding Recorded Balance | ' | ' | 62,920 |
Whole Loans [Member] | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | ' | ' | 2 |
Pre-Modification Outstanding Recorded Balance | ' | ' | 56,328 |
Post-Modification Outstanding Recorded Balance | ' | ' | 56,328 |
B Notes [Member] | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | ' | ' | 0 |
Pre-Modification Outstanding Recorded Balance | ' | ' | 0 |
Post-Modification Outstanding Recorded Balance | ' | ' | 0 |
Mezzanine Loans [Member] | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | ' | ' | 0 |
Pre-Modification Outstanding Recorded Balance | ' | ' | 0 |
Post-Modification Outstanding Recorded Balance | ' | ' | 0 |
Bank Loans [Member] | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | ' | ' | 0 |
Pre-Modification Outstanding Recorded Balance | ' | ' | 0 |
Post-Modification Outstanding Recorded Balance | ' | ' | 0 |
Residential Mortgage Loans [Member] | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | ' | ' | 0 |
Pre-Modification Outstanding Recorded Balance | ' | ' | 0 |
Post-Modification Outstanding Recorded Balance | ' | ' | 0 |
Loans Receivable - Related Party [Member] | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' |
Number of Loans | ' | ' | 1 |
Pre-Modification Outstanding Recorded Balance | ' | ' | 6,592 |
Post-Modification Outstanding Recorded Balance | ' | ' | $6,592 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
31-May-13 | Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Investment in RCAM [Member] | Investment in RCAM [Member] | Depreciation and Amortization [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Wholesale or Correspondent Relationships [Member] | Wholesale or Correspondent Relationships [Member] | Primary Capital Advisors LLC [Member] | Primary Capital Advisors LLC [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | Investment in RCAM [Member] | |||||||||
Investment in PCA [Member] | Investment in PCA [Member] | ||||||||||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred equity interest acquired | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off of unamortized balance of intangible asset | ' | ' | ' | ' | ' | ' | ' | $2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in VIE | 68.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 760,000 | 999,000 | 1,596,000 | 2,137,000 | ' | ' | ' | ' | 657,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Balance | ' | ' | 21,813,000 | ' | 21,813,000 | ' | 24,303,000 | ' | 21,213,000 | 21,213,000 | ' | ' | ' | ' | ' | 600,000 | 600,000 | ' | ' | ' | ' | ' | ' |
Expected amortization, 2014 | ' | ' | 2,100,000 | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization, 2015 | ' | ' | 2,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization, 2016 | ' | ' | 1,800,000 | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization, 2017 | ' | ' | 1,800,000 | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization, 2018 | ' | ' | 1,600,000 | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average amortization period (in years) | ' | ' | ' | ' | '7 years 1 month | ' | '7 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | ' | ' | 11,042,000 | ' | 11,042,000 | ' | 12,481,000 | ' | 10,872,000 | 9,980,000 | ' | ' | ' | ' | ' | 170,000 | 42,000 | ' | ' | ' | ' | ' | ' |
Fee income | ' | ' | 2,717,000 | 1,527,000 | 5,473,000 | 2,937,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 1,500,000 | 2,800,000 | 2,900,000 |
Total cash purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000 | 7,613,000 | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,000 | $0 | $53,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' |
INTANGIBLE_ASSETS_Summary_of_I
INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | $21,813 | $24,303 | ||
Accumulated Amortization | -11,042 | -12,481 | ||
Net Asset | 10,771 | [1] | 11,822 | [1] |
Investment in RCAM [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | 21,213 | 21,213 | ||
Accumulated Amortization | -10,872 | -9,980 | ||
Net Asset | 10,341 | 11,233 | ||
Investments in Real Estate [Member] | In Place Leases [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | ' | 2,461 | ||
Accumulated Amortization | ' | -2,430 | ||
Net Asset | ' | 31 | ||
Investments in Real Estate [Member] | Above (Below) Market Leases [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | ' | 29 | ||
Accumulated Amortization | ' | -29 | ||
Net Asset | ' | 0 | ||
Investment in PCA [Member] | Wholesale or Correspondent Relationships [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | 600 | 600 | ||
Accumulated Amortization | -170 | -42 | ||
Net Asset | $430 | $558 | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
INTANGIBLE_ASSETS_Allocation_o
INTANGIBLE ASSETS (Allocation of Purchase Price) (Details) (Primary Capital Advisors LLC [Member], USD $) | 0 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2013 |
Primary Capital Advisors LLC [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Cash and cash equivalents | ' | $1,233 |
Loans held for sale | ' | 15,021 |
Loans held for investment | ' | 2,071 |
Wholesale and correspondent relationships | ' | 600 |
Other assets | ' | 5,828 |
Total assets acquired | ' | 24,753 |
Borrowings | ' | 14,584 |
Other liabilities | ' | 2,165 |
Total liabilities | ' | 16,749 |
Gain on bargain purchase | ' | 391 |
Total cash purchase price | $7,600 | $7,613 |
BORROWINGS_Narrative_Details
BORROWINGS (Narrative) (Details) | 6 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 5 Months Ended | 5 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 7 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Feb. 27, 2012 | Apr. 02, 2013 | 31-May-07 | 31-May-06 | 31-May-07 | 31-May-06 | Aug. 31, 2005 | 31-May-07 | 31-May-06 | Aug. 31, 2005 | 31-May-07 | 31-May-06 | Aug. 31, 2005 | 31-May-07 | 31-May-06 | Aug. 31, 2005 | 31-May-07 | 31-May-07 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2005 | Aug. 31, 2005 | Aug. 31, 2005 | Aug. 31, 2005 | Aug. 31, 2005 | Aug. 31, 2005 | Aug. 31, 2005 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2014 | Jun. 30, 2007 | Jun. 30, 2014 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2007 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Jun. 30, 2014 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Aug. 31, 2006 | Jun. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Jun. 30, 2014 | Oct. 31, 2011 | Oct. 31, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | 31-May-07 | 31-May-07 | 31-May-07 | 31-May-07 | 31-May-07 | Jun. 30, 2014 | 31-May-07 | Jun. 30, 2014 | 31-May-07 | 31-May-07 | 31-May-07 | Jun. 30, 2014 | Dec. 31, 2013 | 31-May-06 | 31-May-06 | 31-May-06 | 31-May-06 | 31-May-06 | Jun. 30, 2014 | 31-May-06 | 31-May-06 | Oct. 21, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Aug. 01, 2011 | Jun. 30, 2007 | Jun. 30, 2007 | Aug. 31, 2006 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Jun. 30, 2014 | 31-May-13 | Oct. 31, 2012 | 31-May-07 | Jun. 30, 2014 | Dec. 31, 2013 | 31-May-06 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2006 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 02, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 19, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 08, 2005 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||||||||||||
USD ($) | USD ($) | USD ($) | RCC Real Estate [Member] | RCC Real Estate [Member] | Senior Notes Class D [Member] | Senior Notes Class D [Member] | Senior Notes Class B [Member] | Senior Notes Class B [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class C [Member] | Senior Notes Class C [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2a [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class A-2b [Member] | Senior Notes Class A-3 [Member] | CMBS - Term Repurchase Facilities [Member] | RMBS - Term Repurchase Facility [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] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [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] | 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] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Apidos CLO VIII Senior Notes [Member] | Apidos CLO VIII Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | 6% Convertible Senior Notes [Member] | 6% Convertible Senior Notes [Member] | 6% Convertible Senior Notes [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Resource Real Estate Funding 2007-1 CDO Investor LLC [Member] | Resource Real Estate Funding 2007-1 CDO Investor LLC [Member] | Resource Real Estate Funding 2006-1 CDO Investor LLC [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Apidos Cinco CDO Ltd [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] | Interest in RCT I | Interest in RCT I | Interest in RCT II | Interest in RCT II | Wells Fargo Bank, National Association [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] | Wells Fargo Bank, National Association [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] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Deutsche Bank AG [Member] | Deutsche Bank AG [Member] | Deutsche Bank AG [Member] | Deutsche Bank Securities, Inc [Member] | Deutsche Bank Securities, Inc [Member] | Deutsche Bank Securities, Inc [Member] | Deutsche Bank Securities, Inc [Member] | New Century Bank [Member] | ViewPoint Bank, NA [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | RCC Commercial [Member] | Senior Notes Class D [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | USD ($) | USD ($) | RCC CRE Notes 2012 Investor, LLC [Member] | Senior Notes Class D [Member] | Senior Notes Class A [Member] | Senior Notes Class A-S [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class E [Member] | Senior Notes Class F [Member] | USD ($) | USD ($) | USD ($) | RCC Real Estate [Member] | Senior Notes Class D [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class E [Member] | Senior Notes Class F [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-1R [Member] | Senior Notes Class A-1R [Member] | Senior Notes Class A-2 [Member] | Senior Notes Class G [Member] | Senior Notes Class H [Member] | Senior Notes Class J [Member] | Senior Notes Class K [Member] | Senior Notes Class L [Member] | Senior Notes Class M [Member] | USD ($) | RCC Real Estate [Member] | Senior Notes Class D [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class E [Member] | Senior Notes Class F [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 G [Member] | Senior Notes Class H [Member] | Senior Notes Class J [Member] | Senior Notes Class K [Member] | Senior Notes Class J and K [Member] | USD ($) | Senior Notes Class A-1E [Member] | Senior Notes Class A-1L [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-2E [Member] | Senior Notes Class A-2L [Member] | Senior Notes Class A-3E [Member] | Senior Notes Class A-3L [Member] | Senior Notes Class B-1E [Member] | Senior Notes Class B-1L [Member] | Senior Notes Class B-1L [Member] | USD ($) | RCC Commercial [Member] | USD ($) | USD ($) | USD ($) | RCC Commercial [Member] | Senior Notes Class D [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2a [Member] | Senior Notes Class A-2a [Member] | Senior Notes Class A-2b [Member] | Senior Notes Class A-3 [Member] | USD ($) | USD ($) | USD ($) | RCC Commercial [Member] | Senior Notes Class D [Member] | Senior Notes Class B [Member] | Senior Notes Class C [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-1 [Member] | Senior Notes Class A-2 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | RCC Real Estate [Member] | RCC Real Estate [Member] | USD ($) | RREF CDO 2007-1 Senior Notes [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Class 1 Subordinated Notes [Member] | Class 2 Subordinated Notes [Member] | USD ($) | USD ($) | Apidos Cinco CDO Senior Notes [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | USD ($) | Unsecured Junior Subordinated Debentures [Member] | USD ($) | Unsecured Junior Subordinated Debentures [Member] | CMBS - Term Repurchase Facilities [Member] | CMBS - Term Repurchase Facilities [Member] | CMBS - Term Repurchase Facilities [Member] | CMBS - Term Repurchase Facilities [Member] | CMBS - Term Repurchase Facilities [Member] | RMBS - Term Repurchase Facility [Member] | RMBS - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | RCC Real Estate SPE 5 [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | CRE - Term Repurchase Facility [Member] | Primary Capital Advisors LLC [Member] | Primary Capital Advisors LLC [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | ||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | RCC Real Estate [Member] | EUR (€) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate And RCC Commercial [Member] | Linked and Non-linked Transactions [Member] | Linked and Non-linked Transactions [Member] | Linked and Non-linked Transactions [Member] | Linked and Non-linked Transactions [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | Linked and Non-linked Transactions [Member] | Linked and Non-linked Transactions [Member] | USD ($) | USD ($) | RCC Real Estate SPE 5 [Member] | USD ($) | USD ($) | Linked and Non-linked Transactions [Member] | USD ($) | USD ($) | CMBS - Term Repurchase Facilities [Member] | CRE - Term Repurchase Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | Unit | USD ($) | USD ($) | RCC Residential Portfolio Inc. and RCC Residential Portfolio TRS Inc. [Member] | USD ($) | USD ($) | USD ($) | option | USD ($) | Amendment | Amendment | RCC Real Estate And RCC Commercial [Member] | RCC Real Estate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | option | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Closing transaction amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | $307,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $345,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000,000 | ' | ' | ' | $350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $285,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Face amount of debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 321,500,000 | ' | 8,000,000 | 20,500,000 | 13,000,000 | 265,000,000 | 15,000,000 | ' | 260,800,000 | ' | 13,800,000 | 136,900,000 | 78,500,000 | 30,800,000 | 14,600,000 | 9,200,000 | 6,900,000 | ' | ' | ' | ' | 26,800,000 | 22,500,000 | 7,000,000 | 11,900,000 | 11,900,000 | 180,000,000 | ' | 50,000,000 | ' | 57,500,000 | 11,300,000 | 11,300,000 | 11,300,000 | 10,000,000 | 18,800,000 | 28,800,000 | ' | ' | 308,700,000 | ' | 15,500,000 | 6,900,000 | 20,700,000 | 20,700,000 | 19,800,000 | 129,400,000 | ' | 17,400,000 | 5,000,000 | 17,300,000 | 12,900,000 | 14,700,000 | 28,400,000 | 43,100,000 | ' | 24,900,000 | 24,900,000 | 10,300,000 | 10,300,000 | 13,800,000 | 13,800,000 | 6,800,000 | 6,800,000 | 16,000,000 | 16,000,000 | ' | 317,600,000 | ' | ' | ' | ' | ' | 11,000,000 | 18,000,000 | 14,000,000 | ' | 37,500,000 | ' | 200,000,000 | 22,500,000 | 19,000,000 | ' | ' | 262,500,000 | ' | 6,000,000 | 15,000,000 | 10,500,000 | ' | 212,000,000 | 19,000,000 | 115,000,000 | ' | ' | ' | ' | 217,679,000 | [1] | ' | ' | ' | ' | ' | 265,600,000 | ' | ' | ' | ' | ' | ' | ' | 322,000,000 | ' | ' | 25,800,000 | ' | ' | 25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 285,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ||||||||||
Discount to investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.42% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.84% | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.18% | 4.20% | ' | 4.17% | 4.19% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Commitment fee percentage on undrawn balance of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Percentage of senior notes acquired by the parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Cumulative amount of debt paid down | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 262,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,600,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | 264,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 165,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Payments by parent to acquire notes issued by VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,500,000 | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Purchased equity interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,300,000 | ' | ' | ' | ' | 550,000 | 20,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Percentage of total preference shares (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Description of variable rate basis | ' | ' | ' | ' | ' | 'LIBOR | '3-month LIBOR | 'LIBOR | '3-month LIBOR | '3-month LIBOR | 'LIBOR | '3-month LIBOR | '3-month LIBOR | 'LIBOR | '3-month LIBOR | '3-month LIBOR | 'LIBOR | '3-month LIBOR | '3-month LIBOR | 'LIBOR | '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 | ' | ' | ' | ' | ' | ' | '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 | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one month LIBOR | 'one month LIBOR | ' | ' | |||||||||||
Basis spread on variable rate | ' | ' | ' | ' | ' | 4.25% | 4.25% | 0.80% | 0.75% | 0.75% | 2.25% | 1.75% | 1.85% | 0.24% | 0.26% | 0.26% | 0.23% | 0.45% | 0.42% | 0.32% | 0.42% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 1.30% | 2.15% | 2.85% | 3.50% | 5.50% | 6.50% | ' | ' | ' | ' | 0.95% | 0.80% | ' | 1.15% | 1.30% | 0.28% | ' | 0.32% | ' | 0.46% | 1.55% | 2.30% | 2.95% | 3.25% | ' | ' | ' | ' | ' | ' | 0.80% | 0.40% | 0.62% | 1.30% | 1.60% | 0.32% | ' | 0.35% | ' | 1.90% | 3.75% | ' | ' | ' | ' | 0.25% | 0.25% | 0.31% | 0.31% | 0.40% | 0.40% | 0.70% | 0.75% | 1.80% | 1.85% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 4.00% | ' | ' | |||||||||||
Weighted average interest rate | 1.96% | ' | 1.87% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.37% | [2] | 1.15% | [3] | 2.24% | 1.68% | ' | ' | ' | ' | ' | ' | ' | 2.03% | 2.02% | ' | ' | ' | ' | ' | ' | ' | ' | 0.99% | 0.84% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.92% | 1.87% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.04% | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.04% | ' | ' | 0.73% | 0.74% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.01% | 0.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 4.18% | [5] | 4.19% | [5] | 2.58% | [1] | 2.67% | [1] | 4.24% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.37% | [6] | 1.38% | [6] | 1.15% | ' | ' | ' | ' | 2.55% | 2.67% | ' | ' | ' | ' | ' | ' | 3.03% | ' | ' | ' | ' | ||
Percentage of outstanding notes purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 67.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Purchased equity interests discount, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Ownership interests in variable interest entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88.60% | 68.30% | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Percentage of senior note acquired from VIE (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Percentage of senior note acquired by unrelated third party (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Reissuance of debt | 16,502,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Debt conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1501052 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Conversion price per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.66 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Investments in unconsolidated entities | 60,480,000 | [7] | ' | 69,069,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 774,000 | 774,000 | 774,000 | 774,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Debt issuance costs, amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Unamortized Issuance Costs and Discounts | 13,012,000 | ' | 16,216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 28,000 | [3] | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 4,269,000 | 3,683,000 | ' | ' | ' | ' | ' | ' | ' | ' | 355,000 | 719,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 553,000 | 853,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 117,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,465,000 | 444,000 | [5] | 543,000 | [5] | 448,000 | [1] | 1,033,000 | [1] | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 211,000 | 261,000 | ' | 233,000 | 282,000 | ' | ' | ' | ' | ' | 0 | 12,000 | ' | ' | ' | ' | ' | ' | 419,000 | 732,000 | ' | ' | ' | ' | ' | ' | 29,000 | 300,000 | ' | ' | ' | ' | ' | ||||
Debt instrument term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | '1 year | ' | '18 months | ' | ' | ' | '12 months | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Long-term Debt, Gross | 1,592,846,000 | ' | 1,336,026,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,833,000 | [2] | 23,025,000 | [3] | 56,922,000 | 87,131,000 | ' | ' | ' | ' | ' | ' | ' | 260,840,000 | 260,490,000 | ' | ' | ' | ' | ' | ' | ' | ' | 126,359,000 | 178,556,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,220,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320,192,000 | 322,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,458,000 | 133,326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,000,000 | 51,548,000 | [5] | 51,548,000 | [5] | 218,127,000 | [1] | 30,736,000 | [1] | 14,627,000 | ' | 13,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loan origination fee | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Debt instrument term, option to extend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Structuring fee, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Line of credit facility, extension fee percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Maximum amount of facility | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | 30,000,000 | 15,000,000 | ' | 150,000,000 | |||||||||||
Debt instrument term, number of options to extend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Structuring fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Extension fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 938,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Judgment allowed against subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | 10,000 | ' | ' | ' | |||||||||||
Judgment allowed against Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Number of amendments to facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 5 | ' | ' | |||||||||||
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,800,000 | 8,900,000 | ' | ' | |||||||||||
Judgment allowed against subsidiary or guarantor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | |||||||||||
Minimum maintenance balance required to be maintained | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,000,000 | ' | ' | |||||||||||
Number of multi family units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 504 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Payment to acquire rental property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Percentage of units occupied at acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
[1] | Amounts also include accrued interest costs of $207,000 and $26,000 related to CRE repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Amounts also include accrued interest costs of $14,000 and $22,000 related to CMBS repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Amount also includes accrued interest costs of $1,000 related to RMBS repurchase facilities as of June 30, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The fair value option has been elected for the borrowings associated with Moselle CLO S.A.; as such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $143 million at June 30, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of June 30, 2014 and December 31, 2013, respectively, (see Note 20). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
BORROWINGS_Schedule_of_Debt_De
BORROWINGS (Schedule of Debt) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | $1,579,834,000 | $1,319,810,000 | ||
Unamortized Issuance Costs and Discounts | 13,012,000 | 16,216,000 | ||
Principal Outstanding | 1,592,846,000 | 1,336,026,000 | ||
Weighted Average Borrowing Rate | 1.96% | 1.87% | ||
Weighted Average Remaining Maturity | '9 years 10 months | '13 years 1 month | ||
Value of Collateral | 1,951,857,000 | 1,508,603,000 | ||
Accrued interest costs | 2,063,000 | [1] | 1,693,000 | [1] |
RREF CDO 2006-1 Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 106,029,000 | 94,004,000 | ||
Unamortized Issuance Costs and Discounts | 51,000 | 205,000 | ||
Principal Outstanding | 106,080,000 | 94,209,000 | ||
Weighted Average Borrowing Rate | 1.92% | 1.87% | ||
Weighted Average Remaining Maturity | '32 years 1 month | '32 years 7 months | ||
Value of Collateral | 174,237,000 | 169,115,000 | ||
RREF CDO 2007-1 Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 126,004,000 | 177,837,000 | ||
Unamortized Issuance Costs and Discounts | 355,000 | 719,000 | ||
Principal Outstanding | 126,359,000 | 178,556,000 | ||
Weighted Average Borrowing Rate | 0.99% | 0.84% | ||
Weighted Average Remaining Maturity | '32 years 4 months | '32 years 9 months | ||
Value of Collateral | 361,432,000 | 318,933,000 | ||
RCC CRE Notes 2013 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 256,807,000 | 256,571,000 | ||
Unamortized Issuance Costs and Discounts | 3,683,000 | 4,269,000 | ||
Principal Outstanding | 260,490,000 | 260,840,000 | ||
Weighted Average Borrowing Rate | 2.02% | 2.03% | ||
Weighted Average Remaining Maturity | '14 years 6 months | '15 years 0 months | ||
Value of Collateral | 281,846,000 | 305,586,000 | ||
Apidos CDO I Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 56,922,000 | 87,131,000 | ||
Unamortized Issuance Costs and Discounts | 0 | 0 | ||
Principal Outstanding | 56,922,000 | 87,131,000 | ||
Weighted Average Borrowing Rate | 2.24% | 1.68% | ||
Weighted Average Remaining Maturity | '3 years 1 month | '3 years 7 months | ||
Value of Collateral | 73,276,000 | 103,736,000 | ||
Apidos CDO III Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 97,458,000 | 133,209,000 | ||
Unamortized Issuance Costs and Discounts | 0 | 117,000 | ||
Principal Outstanding | 97,458,000 | 133,326,000 | ||
Weighted Average Borrowing Rate | 1.01% | 0.88% | ||
Weighted Average Remaining Maturity | '6 years 2 months | '6 years 8 months | ||
Value of Collateral | 109,325,000 | 145,930,000 | ||
Apidos Cinco CDO Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 319,639,000 | 321,147,000 | ||
Unamortized Issuance Costs and Discounts | 553,000 | 853,000 | ||
Principal Outstanding | 320,192,000 | 322,000,000 | ||
Weighted Average Borrowing Rate | 0.73% | 0.74% | ||
Weighted Average Remaining Maturity | '5 years 11 months | '6 years 5 months | ||
Value of Collateral | 341,777,000 | 342,796,000 | ||
Whitney CLO I Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 0 | [2] | ' | |
Unamortized Issuance Costs and Discounts | 0 | [2] | ' | |
Principal Outstanding | 0 | [2] | ' | |
Weighted Average Borrowing Rate | 0.00% | [2] | ' | |
Value of Collateral | 79,000 | [2] | ' | |
Whitney CLO I Securitized Borrowings [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | ' | 440,000 | [2] | |
Unamortized Issuance Costs and Discounts | ' | 0 | [2] | |
Principal Outstanding | ' | 440,000 | [2] | |
Weighted Average Borrowing Rate | ' | 0.00% | [2] | |
Value of Collateral | ' | 885,000 | [2] | |
Moselle CLO S.A. Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 140,220,000 | [3] | ' | |
Unamortized Issuance Costs and Discounts | 0 | [3] | ' | |
Principal Outstanding | 140,220,000 | [3] | ' | |
Weighted Average Borrowing Rate | 1.04% | [3] | ' | |
Weighted Average Remaining Maturity | '5 years 6 months | [3] | ' | |
Value of Collateral | 175,641,000 | [3] | ' | |
Moselle CLO S.A. Securitized Borrowings [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 5,208,000 | ' | ||
Unamortized Issuance Costs and Discounts | 0 | ' | ||
Principal Outstanding | 5,208,000 | ' | ||
Weighted Average Borrowing Rate | 1.04% | ' | ||
Value of Collateral | 0 | ' | ||
Unsecured Junior Subordinated Debentures [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 51,104,000 | [4] | 51,005,000 | [4] |
Unamortized Issuance Costs and Discounts | 444,000 | [4] | 543,000 | [4] |
Principal Outstanding | 51,548,000 | [4] | 51,548,000 | [4] |
Weighted Average Borrowing Rate | 4.18% | [4] | 4.19% | [4] |
Weighted Average Remaining Maturity | '22 years 4 months | [4] | '22 years 9 months | [4] |
Value of Collateral | 0 | [4] | 0 | [4] |
6% Convertible Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | ' | 106,535,000 | ||
Unamortized Issuance Costs and Discounts | ' | 8,465,000 | ||
Principal Outstanding | ' | 115,000,000 | ||
Weighted Average Borrowing Rate | ' | 6.00% | ||
Weighted Average Remaining Maturity | ' | '4 years 11 months | ||
Value of Collateral | ' | 0 | ||
Short-Term Repurchase Agreements [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | ' | 47,601,000 | [5] | |
Unamortized Issuance Costs and Discounts | ' | 12,000 | [5] | |
Principal Outstanding | ' | 47,613,000 | [5] | |
Weighted Average Borrowing Rate | ' | 1.38% | [5] | |
Weighted Average Remaining Maturity | ' | '21 days | [5] | |
Value of Collateral | ' | 56,949,000 | [5] | |
Mortgages [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | ' | 14,627,000 | ||
Unamortized Issuance Costs and Discounts | ' | 0 | ||
Principal Outstanding | ' | 14,627,000 | ||
Weighted Average Borrowing Rate | ' | 4.24% | ||
Weighted Average Remaining Maturity | ' | '56 days | ||
Value of Collateral | ' | 16,487,000 | ||
Convertible Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 107,550,000 | ' | ||
Unamortized Issuance Costs and Discounts | 7,450,000 | ' | ||
Principal Outstanding | 115,000,000 | ' | ||
Weighted Average Borrowing Rate | 6.00% | ' | ||
Weighted Average Remaining Maturity | '4 years 5 months | ' | ||
Value of Collateral | 0 | ' | ||
CRE - Term Repurchase Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | ' | 29,703,000 | [6] | |
Unamortized Issuance Costs and Discounts | 448,000 | [6] | 1,033,000 | [6] |
Principal Outstanding | 218,127,000 | [6] | 30,736,000 | [6] |
Weighted Average Borrowing Rate | 2.58% | [6] | 2.67% | [6] |
Weighted Average Remaining Maturity | '17 days | [6] | '21 days | [6] |
Value of Collateral | 315,579,000 | [6] | 48,186,000 | [6] |
Accrued interest costs | 207,000 | 26,000 | ||
CMBS - Term Repurchase Facilities [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 30,833,000 | [5] | ' | |
Unamortized Issuance Costs and Discounts | 0 | [5] | ' | |
Principal Outstanding | 30,833,000 | [5] | ' | |
Weighted Average Borrowing Rate | 1.37% | [5] | ' | |
Weighted Average Remaining Maturity | '18 days | [5] | ' | |
Value of Collateral | 37,784,000 | [5] | ' | |
Accrued interest costs | 14,000 | 22,000 | ||
RMBS - Term Repurchase Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 22,997,000 | [7] | ' | |
Unamortized Issuance Costs and Discounts | 28,000 | [7] | ' | |
Principal Outstanding | 23,025,000 | [7] | ' | |
Weighted Average Borrowing Rate | 1.15% | [7] | ' | |
Weighted Average Remaining Maturity | '1 day | [7] | ' | |
Value of Collateral | 27,669,000 | [7] | ' | |
Accrued interest costs | 1,000 | ' | ||
Residential Mortgage Financing Agreements [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 23,679,000 | ' | ||
Unamortized Issuance Costs and Discounts | 0 | ' | ||
Principal Outstanding | 23,679,000 | ' | ||
Weighted Average Borrowing Rate | 3.99% | ' | ||
Weighted Average Remaining Maturity | '130 days | ' | ||
Value of Collateral | 32,399,000 | ' | ||
CMBS - Short Term Repurchase Agreements [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 17,705,000 | ' | ||
Unamortized Issuance Costs and Discounts | 0 | ' | ||
Principal Outstanding | 17,705,000 | ' | ||
Weighted Average Borrowing Rate | 1.40% | ' | ||
Weighted Average Remaining Maturity | '2 days | ' | ||
Value of Collateral | 20,813,000 | ' | ||
Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
CDO notes | $143,000,000 | ' | ||
[1] | June 30, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings ($140.2 million and $0 at fair value)$1,111,314 $1,070,339 Accrued interest expense1,295 918 Derivatives, at fair value9,071 10,191 Accounts payable and other liabilities1,958 1,604 Total liabilities of consolidated VIEs$1,123,638 $1,083,052 | |||
[2] | The securitized borrowings are collateralized by the same assets as the Apidos CLO VIII Senior Notes and the Whitney CLO I Securitized Borrowings, respectively. | |||
[3] | The fair value option has been elected for the borrowings associated with Moselle CLO S.A.; as such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $143 million at June 30, 2014. | |||
[4] | Amount represents junior subordinated debentures issued to RCT I and RCT II in May 2006 and September 2006, respectively. | |||
[5] | Amounts also include accrued interest costs of $14,000 and $22,000 related to CMBS repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||
[6] | Amounts also include accrued interest costs of $207,000 and $26,000 related to CRE repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. | |||
[7] | Amount also includes accrued interest costs of $1,000 related to RMBS repurchase facilities as of June 30, 2014. |
BORROWINGS_Repurchase_and_Mort
BORROWINGS (Repurchase and Mortgage Finance Facilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Value of Collateral Under Linked Transactions | $13,676,000 | [1] | $30,066,000 | [1] |
Weighted Average Interest Rate | 1.96% | 1.87% | ||
Long-term Debt, Gross | 1,592,846,000 | 1,336,026,000 | ||
Unamortized Issuance Costs and Discounts | 13,012,000 | 16,216,000 | ||
RCC Real Estate [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unamortized Issuance Costs and Discounts | 29,000 | 300,000 | ||
Repurchase Agreements [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 312,893,000 | ' | ||
Value of Collateral | 434,244,000 | ' | ||
Long-term Debt, Gross | ' | 91,931,000 | ||
CMBS bonds held as collateral, fair value | ' | 121,622,000 | ||
Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Linked Repurchase Agreement Borrowings, Included as Derivative Instruments | 0 | 17,020,000 | ||
Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 17,705,000 | 0 | ||
Value of Collateral | 20,813,000 | 0 | ||
Number of Positions as Collateral | 6 | 0 | ||
Weighted Average Interest Rate | 1.40% | 0.00% | ||
Repurchase Agreements [Member] | New Century Bank [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 14,772,000 | 11,916,000 | ||
Value of Collateral | 17,519,000 | 13,089,000 | ||
Number of Positions as Collateral | 78 | 74 | ||
Weighted Average Interest Rate | 3.91% | 4.17% | ||
Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 8,907,000 | 2,711,000 | ||
Value of Collateral | 14,880,000 | 3,398,000 | ||
Number of Positions as Collateral | 48 | 17 | ||
Weighted Average Interest Rate | 4.12% | 4.58% | ||
CMBS - Term Repurchase Facilities [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 30,833,000 | [2] | 47,601,000 | [2] |
Value of Collateral | 37,784,000 | [2] | 56,949,000 | [2] |
Number of Positions as Collateral | 47 | [2] | 44 | [2] |
Weighted Average Interest Rate | 1.37% | [2] | 1.38% | [2] |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 202,821,000 | [3] | 30,003,000 | [3] |
Value of Collateral | 293,496,000 | [3] | 48,186,000 | [3] |
Number of Positions as Collateral | 12 | [3] | 3 | [3] |
Weighted Average Interest Rate | 2.55% | [3] | 2.67% | [3] |
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 14,858,000 | [4] | -300,000 | [3] |
Value of Collateral | 22,083,000 | [4] | 0 | [3] |
Number of Positions as Collateral | 3 | [4] | 0 | [3] |
Weighted Average Interest Rate | 3.03% | [4] | 0.00% | [3] |
RMBS - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 22,997,000 | [5] | 0 | [5] |
Value of Collateral | 27,669,000 | [5] | 0 | [5] |
Number of Positions as Collateral | 6 | [5] | 0 | [5] |
Weighted Average Interest Rate | 1.15% | [5] | 0.00% | [5] |
Unamortized Issuance Costs and Discounts | 28,000 | ' | ||
Linked Transactions [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 28,726,000 | 64,094,000 | ||
Value of Collateral Under Linked Transactions | 42,270,000 | 93,823,000 | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Value of Collateral Under Linked Transactions | 0 | 24,814,000 | ||
Number of Positions as Collateral | 0 | 4 | ||
Weighted Average Interest Rate | 0.00% | 0.99% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 4,183,000 | 21,969,000 | ||
Value of Collateral Under Linked Transactions | 6,309,000 | 30,803,000 | ||
Number of Positions as Collateral | 7 | 9 | ||
Weighted Average Interest Rate | 1.37% | 1.19% | ||
Linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 18,584,000 | 18,599,000 | ||
Value of Collateral Under Linked Transactions | 28,211,000 | 29,861,000 | ||
Number of Positions as Collateral | 15 | 9 | ||
Weighted Average Interest Rate | 1.41% | 1.43% | ||
Linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Value of Collateral Under Linked Transactions | 7,750,000 | [2] | 8,345,000 | |
Number of Positions as Collateral | 7 | 7 | ||
Weighted Average Interest Rate | 1.63% | 1.65% | ||
Linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 0 | [3] | 0 | |
Value of Collateral Under Linked Transactions | $0 | [3] | $0 | |
Number of Positions as Collateral | 0 | 0 | ||
Weighted Average Interest Rate | 0.00% | 0.00% | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 | |||
[2] | The Wells Fargo CMBS term facility borrowing includes zero and $12,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||
[3] | The Wells Fargo CRE term repurchase facility borrowing includes $419,000 and $732,000 of deferred debt issuance costs as of June 30, 2014 and December 31, 2013, respectively. | |||
[4] | The Deutsche Bank term repurchase facility includes $29,000 and $300,000 of deferred debt issuance costs as of June 30, 2014 | |||
[5] | The Wells Fargo RMBS term repurchase facility includes $28,000 of deferred debt issuance costs as of June 30, 2014. |
BORROWINGS_Amount_at_Risk_Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Remaining Maturity | '9 years 10 months | '13 years 1 month | ||
Weighted Average Interest Rate | 1.96% | 1.87% | ||
CMBS - Term Repurchase Facilities [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Remaining Maturity | '18 days | [1] | ' | |
Weighted Average Interest Rate | 1.37% | [1] | ' | |
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Linked Repurchase Agreement Borrowings, Included as Derivative Instruments | 5,959 | 6,506 | ||
RMBS - Term Repurchase Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Remaining Maturity | '1 day | [2] | ' | |
Weighted Average Interest Rate | 1.15% | [2] | ' | |
CRE - Term Repurchase Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Remaining Maturity | '17 days | [3] | '21 days | [3] |
Weighted Average Interest Rate | 2.58% | [3] | 2.67% | [3] |
Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Linked Repurchase Agreement Borrowings, Included as Derivative Instruments | 0 | 17,020 | ||
Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 1.40% | 0.00% | ||
Repurchase Agreements [Member] | New Century Bank [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 3.91% | 4.17% | ||
Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 4.12% | 4.58% | ||
Linked and Non-linked Transactions [Member] | CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 7,549 | [4],[5] | 10,796 | [4],[5] |
Weighted Average Remaining Maturity | '18 days | [5] | '21 days | [5] |
Weighted Average Interest Rate | 1.37% | [5] | 1.38% | [5] |
Linked and Non-linked Transactions [Member] | RMBS - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 5,725 | [4] | ' | |
Weighted Average Remaining Maturity | '1 day | ' | ||
Weighted Average Interest Rate | 1.15% | ' | ||
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 128,915 | [4] | 20,718 | [4] |
Weighted Average Remaining Maturity | '18 days | '21 days | ||
Weighted Average Interest Rate | 2.55% | 2.67% | ||
Linked and Non-linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 15,435 | [4] | ' | |
Weighted Average Remaining Maturity | '18 days | ' | ||
Weighted Average Interest Rate | 3.03% | ' | ||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 2,115 | [4] | 8,925 | [4] |
Weighted Average Remaining Maturity | '30 days | '2 days | ||
Weighted Average Interest Rate | 1.37% | 1.19% | ||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 0 | [4],[6] | 7,882 | [4],[6] |
Weighted Average Remaining Maturity | '0 days | [6] | '11 days | [6] |
Weighted Average Interest Rate | 0.00% | [6] | 0.99% | [6] |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 9,778 | [4] | 11,418 | [4] |
Weighted Average Remaining Maturity | '26 days | '22 days | ||
Weighted Average Interest Rate | 1.40% | 1.43% | ||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | New Century Bank [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 15,227 | [4] | ' | |
Weighted Average Remaining Maturity | '62 days | ' | ||
Weighted Average Interest Rate | 3.91% | ' | ||
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Amount at Risk | 9,089 | [4] | ' | |
Weighted Average Remaining Maturity | '183 days | ' | ||
Weighted Average Interest Rate | 4.12% | ' | ||
[1] | Amounts also include accrued interest costs of $14,000 and $22,000 related to CMBS repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. Amounts do not reflect CMBS repurchase agreement borrowings that are components of linked transactions. | |||
[2] | Amount also includes accrued interest costs of $1,000 related to RMBS repurchase facilities as of June 30, 2014. | |||
[3] | Amounts also include accrued interest costs of $207,000 and $26,000 related to CRE repurchase facilities as of June 30, 2014 and December 31, 2013, respectively. | |||
[4] | 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. | |||
[5] | and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of June 30, 2014 and December 31, 2013, respectively, (see Note 20). | |||
[6] | of December 31, 2013 $17.0 million of linked repurchase agreement borrowings are being included as derivative instruments |
SHARE_ISSUANCE_AND_REPURCHASE_
SHARE ISSUANCE AND REPURCHASE (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 17, 2013 | Jun. 30, 2014 | Dec. 17, 2013 | Dec. 17, 2013 | Jun. 30, 2014 | Dec. 17, 2013 | Jun. 30, 2014 | Mar. 15, 2013 | Mar. 21, 2013 | |
Redeemable Preferred Stock Series C [Member] | Redeemable Preferred Stock Series C [Member] | Redeemable Preferred Stock Series C [Member] | Redeemable Preferred Stock Series C [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] | Common Stock [Member] | Common Stock [Member] | December 2013 At-the-Market Issuance Sales Agreement [Member] | December 2013 At-the-Market Issuance Sales Agreement [Member] | December 2013 At-the-Market Issuance Sales Agreement [Member] | December 2013 At-the-Market Issuance Sales Agreement [Member] | December 2013 At-the-Market Issuance Sales Agreement [Member] | December 2013 At-the-Market Issuance Sales Agreement [Member] | March 2013 At-the-Market Issuance Sales Agreement [Member] | March 2013 At-the-Market Issuance Sales Agreement [Member] | March 2013 Dividend Reinvestment Plan [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] | Common Stock [Member] | |||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, coupon authorized (in hundredths) | ' | ' | 8.63% | 8.63% | ' | ' | 8.50% | ' | ' | 8.25% | ' | ' | ' | ' | 8.50% | ' | ' | 8.25% | ' | ' | ' | ' | ' |
Preferred stock, liquidation preference (in dollars per share) | ' | ' | $25 | $25 | ' | ' | $25 | ' | ' | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share issuance plan, number of shares authorized to be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | 1,400,000 | ' | 1,500,000 | ' |
Preferred stock, par value (in dollars per share) | ' | ' | $0.00 | $0.00 | ' | $0.00 | $0.00 | ' | $0.00 | $0.00 | ' | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | $0.00 | ' | ' | ' |
Common stock issued (in shares) | ' | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139,704 | ' | ' | 622,317 | ' | ' | ' | ' |
Weighted average offering price (in dollars per share) | ' | ' | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23.82 | ' | ' | $22.82 | ' | ' | ' | ' |
Proceeds from Issuance of Redeemable Preferred Stock | ' | ' | $116,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Stock Issuance Costs | ' | ' | 3,800,000 | 4,186,000 | 0 | ' | 167,000 | 0 | ' | 525,000 | 707,000 | ' | 0 | 4,265,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued (in shares) | ' | ' | 4,800,000 | 4,800,000 | ' | 0 | 1,011,743 | ' | 680,952 | 4,611,294 | ' | 3,485,078 | ' | ' | ' | 330,791 | ' | ' | 1,111,294 | ' | 1,500,000 | ' | ' |
Preferred stock, shares issued, cumulative weighted average offering price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24.42 | ' | ' |
Shares authorized for dividend reinvestment plan (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 |
Shares issued from dividend reinvestment plan (in shares) | 2,600,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment plan | $14,400,000 | $14,554,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 30, 2014 | Dec. 31, 2011 | Mar. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | |
Restricted Stock [Member] | Restricted Stock [Member] | Stock Options [Member] | Loan Origination Performance Plan [Member] | Loan Origination Performance Plan [Member] | Loan Origination Performance Plan [Member] | Equity Compensation Expense [Member] | Equity Compensation Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Primary Capital Advisors LLC [Member] | Primary Capital Advisors LLC [Member] | |||||
Director | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||||||||||||
Restricted common stock and stock options [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non employee directors granted shares (directors) | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of shares granted | ' | ' | ' | ' | $3,700,000 | $997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 258,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued pursuant to the Management agreement (in shares) | 0 | 0 | ' | 110,639 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive compensation value | ' | ' | ' | 653,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cash purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000 | 7,613,000 |
Issuance of restricted stock | ' | ' | 646,000 | 151,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $68,000 | $136,000 | $27,000 | $0 | $53,000 | $0 | ' | ' |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Grant Date January 30, 2014 Number One [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 459,307 |
Vesting/Year | 33.30% |
Grant Date January 30, 2014 Number Two [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 22,318 |
Vesting/Year | 33.30% |
Grant Date February 3, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 5,972 |
Vesting/Year | 100.00% |
Grant Date March 11, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 25,770 |
Vesting/Year | 100.00% |
Grant Date March 12, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 6,044 |
Vesting/Year | 100.00% |
Grant Date March 30, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 112,000 |
Vesting/Year | 66.60% |
Grant Date March 31, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 8,976 |
Vesting/Year | 25.00% |
Grant Date June 6, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares | 5,932 |
Vesting/Year | 100.00% |
Non Employee Directors [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 38,704 |
Issued (shares) | 43,718 |
Vested (shares) | -33,219 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 49,203 |
Non-Employees [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 2,835,523 |
Issued (shares) | 580,283 |
Vested (shares) | -1,175,592 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 2,240,214 |
Employees [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 238,368 |
Issued (shares) | 22,318 |
Vested (shares) | 0 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 260,686 |
Manager and Non Employees [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Unvested shares, beginning of period (in shares) | 3,112,595 |
Issued (shares) | 646,319 |
Vested (shares) | -1,208,811 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 2,550,103 |
SHAREBASED_COMPENSATION_Status
SHARE-BASED COMPENSATION (Status of Unvested Stock Options) (Details) (Unvested [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Unvested [Member] | ' |
Stock options outstanding [Roll Forward] | ' |
Outstanding beginning of period (in shares) | 13,334 |
Granted (in shares) | 0 |
Vested (in shares) | -13,334 |
Forfeited (in shares) | 0 |
Outstanding end of period (in shares) | 0 |
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) | $0 |
SHAREBASED_COMPENSATION_Status1
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) (Vested [Member], USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
Vested [Member] | ' |
Stock options outstanding [Roll Forward] | ' |
Outstanding beginning of period (in shares) | 627,332 |
Vested (in shares) | 13,334 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Outstanding end of period (in shares) | 640,666 |
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) | $14.62 |
Vested (in dollars per share) | $6.40 |
Exercised (in dollars per share) | $0 |
Forfeited (usd per share) | $0 |
Outstanding end of period (in dollars per share) | $14.45 |
Weighted Average Remaining Contractual Term (in years) | '1 year |
Aggregate Intrinsic Value (in thousands) | $3 |
SHAREBASED_COMPENSATION_Compon
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | $2,032 | $2,155 | $3,699 | $5,746 |
Manager and Non Employees [Member] | Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 0 | -4 | -2 | 3 |
Manager and Non Employees [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 1,784 | 2,102 | 3,213 | 5,652 |
Employees [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 185 | 0 | 360 | 0 |
Non Employee Directors [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | $63 | $57 | $128 | $91 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 21, 2013 |
6% Convertible Senior Notes [Member] | |||||
Basic: [Abstract] | ' | ' | ' | ' | ' |
Net income allocable to common shares | $14,677 | $6,533 | $29,793 | $18,059 | ' |
Weighted average number of shares outstanding | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 | ' |
Basic net income per share (in dollars per share) | $0.12 | $0.05 | $0.24 | $0.16 | ' |
Diluted: [Abstract] | ' | ' | ' | ' | ' |
Net income allocable to common shares | $14,677 | $6,533 | $29,793 | $18,059 | ' |
Weighted average number of shares outstanding | 126,952,493 | 120,738,176 | 126,288,516 | 112,508,254 | ' |
Additional shares due to assumed conversion of dilutive instruments | 1,190,144 | 1,545,327 | 1,120,611 | 1,323,929 | ' |
Adjusted weighted-average number of common shares outstanding | 128,142,637 | 122,283,503 | 127,409,127 | 113,832,183 | ' |
Diluted net income per share (in dollars per share) | $0.11 | $0.05 | $0.23 | $0.16 | ' |
Dilutive shares excluded from calculation of diluted net income per share | 17,907,939 | 640,666 | 17,907,939 | 641,666 | ' |
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | 6.00% |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains on derivatives, net | $803 | $1,330 | $1,190 | $1,982 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
1-Jan-14 | ' | ' | -14,043 | ' |
Other comprehensive gain (loss) before reclassifications | ' | ' | -480 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | -72 | -138 | -142 | -193 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -2,722 | 4,498 | -4,187 | 5,125 |
Unrealized (losses) gains on available-for-sale securities, net | 264 | 4,699 | -1,490 | 9,922 |
Cumulative translation adjustment | 16 | 0 | -180 | 0 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 4,329 | ' |
Net current-period other comprehensive income | ' | ' | 3,849 | ' |
30-Jun-14 | -10,194 | ' | -10,194 | ' |
Net unrealized (loss) gain on derivatives [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
1-Jan-14 | ' | ' | -11,155 | ' |
Net current-period other comprehensive income | ' | ' | 1,332 | ' |
30-Jun-14 | -9,823 | ' | -9,823 | ' |
Net unrealized (loss) gain on securities, available-for-sale [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
1-Jan-14 | ' | ' | -3,084 | ' |
Net current-period other comprehensive income | ' | ' | 2,697 | ' |
30-Jun-14 | -387 | ' | -387 | ' |
Foreign Currency Translation [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
1-Jan-14 | ' | ' | 196 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | ' |
Net current-period other comprehensive income | ' | ' | -180 | ' |
30-Jun-14 | $16 | ' | $16 | ' |
RELATED_PARTY_TRANSACTIONS_Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 17, 2011 | Nov. 24, 2010 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Feb. 27, 2012 | Nov. 07, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Resource America [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] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | RCC Real Estate [Member] | Elevation Home Loans, LLC [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] | |||||||||
Resource America [Member] | Manager pursuant to the Management Agreement [Member] | Manager pursuant to the Management Agreement [Member] | Manager pursuant to the Management Agreement [Member] | Manager pursuant to the Management Agreement [Member] | Manager pursuant to the Management Agreement [Member] | Manager pursuant to the Management Agreement [Member] | Manager pursuant to the Management Agreement [Member] | Resource Capital Markets, Inc. [Member] | Resource Capital Markets, Inc. [Member] | Resource Capital Markets, Inc. [Member] | Resource Capital Markets, Inc. [Member] | Resource Capital Markets, Inc. [Member] | Resource Capital Markets, Inc. [Member] | ||||||||||||||||
Transaction | Transaction | Transaction | |||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of common shares of the Company owned by a related party (in shares) | ' | ' | ' | ' | ' | ' | 2,861,592 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage (percent) | ' | ' | ' | ' | ' | ' | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34.40% | ' | 34.40% | ' | |||
Restricted stock options to purchase restricted shares in Company owned by a related party (shares) | ' | ' | ' | ' | ' | ' | 2,166 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Base management fees paid by the Company | $3,314,000 | $2,915,000 | $6,394,000 | $5,893,000 | ' | ' | ' | $3,200,000 | $3,000,000 | $6,100,000 | $5,600,000 | ' | ' | ' | $0 | ' | $266,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Incentive management fees | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
General and administrative | 11,896,000 | 2,382,000 | 20,001,000 | 5,863,000 | ' | ' | ' | 1,400,000 | 955,000 | 2,400,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Maximum investment amount (up to $5 million) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Purchase of securities, trading | ' | ' | 0 | -10,044,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment securities, trading | 8,951,000 | [1] | ' | 8,951,000 | [1] | ' | 11,558,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | 9,000,000 | ' | 11,600,000 | ' | ' | ' | ' | ' | ' |
Share of net profits as per the Investment Management Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 0 | 35,000 | ' | ' | ' | ' | ' | ' | ' | |||
Expense reimbursements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,000 | 42,000 | ' | 126,000 | 131,000 | ' | ' | ' | ' | ' | ' | ' | |||
Total indebtedness | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | 1,800,000 | ' | 1,600,000 | ' | ' | 229,000 | ' | ' | 229,000 | ' | 289,000 | ' | ' | ' | ' | ' | ' | |||
Accrued base management fees | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | 1,200,000 | ' | 997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Expense reimbursement payable | ' | ' | ' | ' | ' | ' | ' | 650,000 | ' | 650,000 | ' | 572,000 | ' | ' | ' | ' | ' | ' | ' | 166,000 | ' | ' | ' | ' | ' | ' | |||
Accrued incentive management fees payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,000 | ' | ' | ' | ' | ' | ' | |||
Loan origination fee | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | ' | ' | ' | ' | ' | |||
Purchase of membership interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 830,000 | ' | ' | ' | ' | |||
Purchase of membership interests, number of shares of restricted Company common stock issued as consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,659 | ' | ' | ' | ' | |||
Number of executed CDO transactions (transactions) | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 7 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | $1,334,000 | ($443,000) | $2,843,000 | ($1,377,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,124,000 | $93,000 | $1,958,000 | $93,000 | |||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel1
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 05, 2010 | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Jun. 30, 2014 | Mar. 05, 2011 | Dec. 31, 2013 | Mar. 05, 2010 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 16, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | ||||
Lease Equity Appreciation Fund II [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] | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Investment in LCC Preferred Stock | Loans Receivable - Related Party [Member] | Loans Receivable - Related Party [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] | ||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Maximum amount of facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Repayments of lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 715,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Allowance for loan loss | ' | ' | -3,178,000 | ' | 3,020,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 0 | |||
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | ' | 5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income (Loss) and Interest Expense from Equity Method Investments | 1,334,000 | -443,000 | 2,843,000 | -1,377,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -278,000 | 304,000 | -872,000 | -32,000 | ' | ' | ' | ' | |||
Investments in unconsolidated entities | $60,480,000 | [1] | ' | $60,480,000 | [1] | ' | $69,069,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | $40,144,000 | ' | $40,144,000 | ' | $41,016,000 | $36,300,000 | ' | ' |
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel2
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||||||
Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2012 | Feb. 24, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 31-May-13 | Jun. 30, 2014 | Jul. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 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] | 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 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] | RCC Commercial II [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage (percent) | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | 100.00% | ' | ' | ' | ' | ' | 34.40% | ' | ' | 34.40% | ' | ' | ' | ' | |||
Purchase price of acquired entity paid by acquiring entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000 | 355,000 | 700,000 | 174,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred equity interest acquired | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interests in variable interest entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68.30% | ' | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition of membership interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | 15,000,000 | ' | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income (Loss) and Interest Expense from Equity Method Investments | ' | 1,334,000 | -443,000 | 2,843,000 | -1,377,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,124,000 | ' | 93,000 | 1,958,000 | 93,000 | ' | ' | ' | |||
Investments in unconsolidated entities | ' | $60,480,000 | [1] | ' | $60,480,000 | [1] | ' | $69,069,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,134,000 | ' | ' | $18,134,000 | ' | $16,177,000 | ' | $16,200,000 |
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 11 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Aug. 09, 2006 | Dec. 01, 2009 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | 23-May-12 | Jun. 21, 2011 | Jun. 30, 2014 | 23-May-12 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 19, 2012 | Aug. 09, 2006 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 15, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 15, 2010 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 01, 2011 | Jun. 30, 2014 | |||||
Resource Real Estate Funding CDO 2006-1 [Member] | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | SLH Partners [Member] | SLH Partners [Member] | SLH Partners [Member] | SLH Partners [Member] | SLH Partners [Member] | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | 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 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] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | Loan Origination Commitments [Member] | Commercial Real Estate Loans [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | |||||||||||
Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Property | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | RRE VIP Borrower, LLC | SLH Partners [Member] | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Varde Investment Partners, L.P | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource Capital Corp [Member] | Resource America [Member] | Resource Real Estate [Member] | Resource Real Estate [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] | RCC Real Estate [Member] | RCC Real Estate [Member] | ||||||||||||||||||||||||
Resource Capital Corp [Member] | extension | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | RCC Real Estate [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Due from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,100 | ' | ' | ' | ' | ' | ' | ' | ||||
Related Party Transaction, Due from (to) Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ||||
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% | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | 4.00% | ' | 4.00% | ' | 1.00% | ' | 1.00% | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 4.00% | ' | ' | ' | ||||
Base management fees paid by the Company | ' | 3,314,000 | 2,915,000 | 6,394,000 | 5,893,000 | ' | ' | ' | 1,000 | 8,000 | 6,000 | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | 34,000 | 69,000 | 69,000 | 1,000 | 8,000 | 6,000 | 16,000 | ' | 0 | 10,000 | 0 | 26,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 50,000 | 0 | 97,000 | ' | ' | ||||
Gain on sale of real estate | ' | 3,000,000 | ' | 3,042,000 | 0 | 16,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Acquisition of membership interests | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Income (Loss) and Interest Expense from Equity Method Investments | ' | 1,334,000 | -443,000 | 2,843,000 | -1,377,000 | ' | ' | ' | 869,000 | -101,000 | 1,736,000 | -214,000 | ' | ' | ' | ' | ' | ' | -19,000 | 19,000 | -20,000 | 43,000 | ' | ' | ' | ' | ' | ' | ' | -101,000 | ' | -214,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | 975,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gain on Sale of Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Ownership percentage (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 7.50% | ' | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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, principal payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loans receivable–related party net of allowances of $700,000 and $0 | 6,966,000 | [1] | 4,751,000 | [1] | ' | 4,751,000 | [1] | ' | 6,966,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 558,000 | 950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 price of acquired entity paid by acquiring entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | ' | ||||
Maximum management fee entitlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,600 | ||||
Number of condominium developments purchased by joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Closing transaction amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 307,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Special Servicing Fee Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Placement Agent Fee | $205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel4
RELATED PARTY TRANSACTIONS (Relationship with Law Firm) (Details) (Resource Capital Corp [Member], Ledgewood [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Resource Capital Corp [Member] | Ledgewood [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Legal fees | $120 | $40 | $158 | $86 |
DISTRIBUTIONS_Details
DISTRIBUTIONS (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Common Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total Dividend Paid | $26,179 | $25,663 |
Dividend Per Share | $0.20 | $0.20 |
Redeemable Preferred Stock Series A [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total Dividend Paid | 537 | 463 |
Dividend Per Share | $0.53 | $0.53 |
Redeemable Preferred Stock Series B [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total Dividend Paid | 2,378 | 2,057 |
Dividend Per Share | $0.52 | $0.52 |
Preferred Shares - Series C [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Total Dividend Paid | $1,437 | ' |
Dividend Per Share | $0.30 | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Transfers into Level 3 | ' | ' | ' | ' | $94,900,000 |
Net impairment losses recognized in earnings | ' | ' | 0 | 548,000 | ' |
Provision for loan losses | 782,000 | -1,242,000 | -3,178,000 | -200,000 | ' |
Level 3 [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Transfers into Level 3 | ' | ' | 0 | ' | ' |
Nonrecurring [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Provision for loan losses | 0 | 2,400,000 | 440,000 | 3,000,000 | ' |
CMBS [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Net impairment losses recognized in earnings | 0 | 535,000 | 0 | 21,000 | ' |
Loans [Member] | Net realized gain on sales of investment securities available-for-sale and loans | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Consolidation gain (loss) | 1,300,000 | ' | ' | ' | ' |
Notes [Member] | Net realized gain on sales of investment securities available-for-sale and loans | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Consolidation gain (loss) | ($430,000) | ' | ' | ' | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Investment securities, trading | $8,951 | [1] | $11,558 | [1] |
Investment securities available-for-sale | 264,503 | 215,206 | ||
CMBS - linked transactions | 13,676 | [1] | 30,066 | [1] |
Derivatives (net) | 755 | [1] | 0 | [1] |
Recurring Basis [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 8,951 | 11,558 | ||
Investment securities available-for-sale | 264,503 | 209,837 | ||
CMBS - linked transactions | 13,676 | 30,066 | ||
Derivatives (net) | 755 | ' | ||
Total assets at fair value | 287,885 | 251,461 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 9,855 | 10,586 | ||
Total liabilities at fair value | 9,855 | 10,586 | ||
Recurring Basis [Member] | Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 0 | 0 | ||
Investment securities available-for-sale | 1,886 | 2,370 | ||
CMBS - linked transactions | 0 | 0 | ||
Derivatives (net) | 0 | ' | ||
Total assets at fair value | 1,886 | 2,370 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Recurring Basis [Member] | Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 0 | 0 | ||
Investment securities available-for-sale | 1,581 | 92 | ||
CMBS - linked transactions | 0 | 0 | ||
Derivatives (net) | 755 | ' | ||
Total assets at fair value | 2,336 | 92 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 785 | 395 | ||
Total liabilities at fair value | 785 | 395 | ||
Recurring Basis [Member] | Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 8,951 | 11,558 | ||
Investment securities available-for-sale | 261,036 | 207,375 | ||
CMBS - linked transactions | 13,676 | 30,066 | ||
Derivatives (net) | 0 | ' | ||
Total assets at fair value | 283,663 | 248,999 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 9,070 | 10,191 | ||
Total liabilities at fair value | $9,070 | $10,191 | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) (USD $) | 12 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | ||
CMBS Including Linked Transactions [Member] | ABS [Member] | RMBS [Member] | Structured Finance [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | $248,999 | $210,785 | $26,656 | $451 | $11,107 |
Total gains or losses (realized or unrealized): | ' | ' | ' | ' | ' | ' |
Included in earnings | ' | 129 | -720 | 470 | 0 | 379 |
Purchases | ' | 161,746 | 93,291 | 37,397 | 31,058 | 0 |
Sales | ' | -102,403 | -99,151 | -2,494 | 0 | -758 |
Paydowns | ' | -30,856 | -25,435 | -5,403 | -18 | 0 |
Issuances | ' | 0 | 0 | 0 | 0 | 0 |
Settlements | ' | 0 | 0 | 0 | 0 | 0 |
Included in OCI | ' | 6,048 | 7,280 | 1,388 | -511 | -2,109 |
Transfers out of Level 2 | ' | 0 | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 94,900 | 0 | 0 | 0 | 0 | 0 |
Ending balance | ' | $283,663 | $186,050 | $58,014 | $30,980 | $8,619 |
FAIR_VALUE_OF_FINANCIAL_INSTRU5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Liabilities Measured on Recurring Basis) (Details) (Level 3 [Member], Derivative Financial Instruments, Liabilities [Member], USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Beginning balance | $10,191 |
Unrealized losses – included in accumulated other comprehensive income | -1,121 |
Ending balance | $9,070 |
FAIR_VALUE_OF_FINANCIAL_INSTRU6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) (Nonrecurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' |
Loans held for sale, fair value | $40,286 | $21,916 |
Impaired loans, fair value | 6,325 | 225 |
Total assets at fair value | 46,611 | 22,141 |
Level 1 [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' |
Loans held for sale, fair value | 0 | 0 |
Impaired loans, fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' |
Loans held for sale, fair value | 15,427 | 6,850 |
Impaired loans, fair value | 1,125 | 225 |
Total assets at fair value | 16,552 | 7,075 |
Level 3 [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' |
Loans held for sale, fair value | 24,859 | 15,066 |
Impaired loans, fair value | 5,200 | 0 |
Total assets at fair value | $30,059 | $15,066 |
FAIR_VALUE_OF_FINANCIAL_INSTRU7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Outputs) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Discounted Cash Flow Technique [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] |
Level 3 [Member] | Discounted Cash Flow Technique [Member] | ||
Derivative Financial Instruments, Liabilities [Member] | Level 3 [Member] | ||
Derivative Financial Instruments, Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets at fair value | $9,070 | ' | ' |
Average fixed interest rate (in hundredths) | ' | 5.03% | 5.12% |
FAIR_VALUE_OF_FINANCIAL_INSTRU8
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | $1,740,656,000 | [1],[2] | $1,369,526,000 | [1] |
Loans receivable-related party | 4,751,000 | [1] | 6,966,000 | [1] |
Repurchase agreements | 0 | 0 | ||
Loans, pledged as collateral, amount at fair value | 120,800,000 | 0 | ||
Borrowings, amount at fair value | 140,200,000 | 0 | ||
Carrying Amount [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
CDO notes | 1,108,287,000 | [3] | 1,070,339,000 | |
Junior subordinated notes | 51,104,000 | 51,005,000 | ||
Repurchase agreements | 312,893,000 | 77,304,000 | ||
Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 1,732,134,000 | [2] | 1,358,434,000 | |
Loans receivable-related party | 4,751,000 | 6,966,000 | ||
CDO notes | 1,020,334,000 | [3] | 653,617,000 | |
Junior subordinated notes | 17,598,000 | 17,499,000 | ||
Repurchase agreements | 312,893,000 | 77,304,000 | ||
Level 1 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 0 | [2] | 0 | |
Loans receivable-related party | 0 | 0 | ||
CDO notes | 0 | [3] | 0 | |
Junior subordinated notes | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Level 2 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 704,319,000 | [2] | 545,352,000 | |
Loans receivable-related party | 0 | 0 | ||
CDO notes | 1,020,334,000 | [3] | 653,617,000 | |
Junior subordinated notes | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Level 3 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 1,027,815,000 | [2] | 813,082,000 | |
Loans receivable-related party | 4,751,000 | 6,966,000 | ||
CDO notes | 0 | [3] | 0 | |
Junior subordinated notes | 17,598,000 | 17,499,000 | ||
Repurchase agreements | 312,893,000 | 77,304,000 | ||
Loans Receivable [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 124,900,000 | ' | ||
Loans, pledged as collateral, amount at fair value | 120,800,000 | ' | ||
Notes [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
CDO notes | 143,000,000 | ' | ||
Borrowings, amount at fair value | $140,200,000 | ' | ||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 | |||
[2] | Contains loans for which the fair value option was elected with an unpaid principal balance of $124.9 million and a fair value of $120.8 million at June 30, 2014. | |||
[3] | Contains CDO notes for which the fair value option was elected with an unpaid principal balance of $143 million and a fair value of $140.2 million at June 30, 2014. |
INTEREST_RATE_RISK_AND_DERIVAT2
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2007 | Aug. 31, 2006 | Sep. 30, 2008 | Sep. 30, 2008 | Jun. 30, 2014 | Dec. 31, 2013 | |||
Derivative | Derivative | |||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ||
Fair value | ' | ' | ' | ' | $9,396,000 | [1] | $10,586,000 | [1] |
Interest Rate Swap [Member] | ' | ' | ' | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ||
Number of derivative instruments held | ' | ' | ' | ' | 10 | 12 | ||
Average fixed interest rate (in hundredths) | ' | ' | ' | ' | ' | 5.03% | ||
Notional amount | ' | ' | 45,000,000 | 45,000,000 | 125,431,000 | 129,500,000 | ||
Fair value | ' | ' | ' | ' | 9,400,000 | 10,600,000 | ||
Unrealized losses on non-designated derivative instruments | ' | ' | ' | ' | 9,800,000 | 10,800,000 | ||
Gain (loss) on swap termination | 2,600,000 | -119,000 | -574,000 | -4,200,000 | ' | ' | ||
Notional amount of derivative instrument terminated | ' | ' | $12,700,000 | $53,600,000 | ' | ' | ||
Derivative Financial Instruments, Liabilities [Member] | Discounted Cash Flow Technique [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ' | ' | ' | ' | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ||
Average fixed interest rate (in hundredths) | ' | ' | ' | ' | 5.12% | ' | ||
[1] | The fair value of securities pledged against the Company's swaps was $2.7 million and $3.5 million at June 30, 2014 and December 31, 2013, respectively. |
INTEREST_RATE_RISK_AND_DERIVAT3
INTEREST RATE RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2008 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||
In Thousands, unless otherwise specified | Interest rate lock agreements [Member] | Interest rate lock agreements [Member] | Interest rate lock agreements [Member] | Forward sales commitments [Member] | Forward sales commitments [Member] | Forward sales commitments [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | |||||
Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Interest expense [Member] | Derivatives, at fair value [Member] | Accumulated other comprehensive loss [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset Derivatives, Notional Amount | ' | ' | $46,612 | ' | ' | $750 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset Derivatives, Fair Value | ' | ' | ' | ' | 990 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | |||
Liability Derivatives, Notional Amount | ' | ' | 0 | ' | ' | 57,429 | ' | ' | 125,431 | ' | ' | ' | ' | ' | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | ' | ' | ' | 990 | [1] | ' | ' | 458 | [1] | ' | ' | ' | ' | 3,267 | [1] | ' | ' |
Derivative, Notional Amount | ' | ' | 46,612 | ' | ' | 58,179 | ' | ' | 125,431 | 129,500 | 45,000 | ' | ' | ' | |||
Liability Derivatives, Fair Value | 9,396 | 10,586 | ' | ' | 0 | ' | ' | 459 | ' | ' | ' | ' | 9,396 | ' | |||
Liability Derivatives, Accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ($9,800) | ($10,800) | ' | ' | ' | $9,396 | |||
[1] | (1)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 | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | $13,676 | [1] | ' | $13,676 | [1] | ' | $30,066 | [1] |
Unrealized gains (losses) and net interest income on linked transactions, net | 5,012 | -5,245 | 7,317 | -5,504 | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
CMBS linked transactions, Amortized Cost | 265,338 | ' | 265,338 | ' | 218,470 | |||
Fair Value | ' | ' | ' | ' | ' | |||
Less than one year | 41,371 | [2] | ' | 41,371 | [2] | ' | 39,256 | [2] |
Greater than one year and less than five years | 139,526 | ' | 139,526 | ' | 139,700 | |||
Greater than five years and less than ten years | 28,304 | ' | 28,304 | ' | 26,526 | |||
Greater than ten years | 55,302 | ' | 55,302 | ' | 9,724 | |||
Amortized Cost | ' | ' | ' | ' | ' | |||
Less than one year | 50,628 | ' | 50,628 | ' | 40,931 | |||
Greater than one year and less than five years | 133,098 | ' | 133,098 | ' | 141,760 | |||
Greater than five years and less than ten years | 27,762 | ' | 27,762 | ' | 25,707 | |||
Greater than ten years | 53,850 | ' | 53,850 | ' | 10,072 | |||
CMBS linked transactions, Amortized Cost | 265,338 | ' | 265,338 | ' | 218,470 | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' | ' | ' | |||
Fair Value, less than 12 months | 40,848 | ' | 40,848 | ' | 53,020 | |||
Unrealized Losses, less than 12 months | -659 | ' | -659 | ' | -7,567 | |||
Fair value, more than 12 months | 26,661 | ' | 26,661 | ' | 20,851 | |||
Gross unrealized losses, more than 12 Months | -10,238 | ' | -10,238 | ' | -4,927 | |||
Fair value, total | 67,509 | ' | 67,509 | ' | 73,871 | |||
Unrealized losses, total | -10,897 | ' | -10,897 | ' | -12,494 | |||
Linked Transactions [Member] | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | 42,270 | ' | 42,270 | ' | 93,823 | |||
Components of Unrealized Net Gains and Net Interest Income from Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Interest income attributable to CMBS underlying linked transactions | 1,078 | 756 | 2,009 | 1,204 | ' | |||
Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions | -226 | -207 | -615 | -323 | ' | |||
Change in fair value of linked transactions included in earnings | 4,160 | -5,794 | 5,923 | -6,385 | ' | |||
Unrealized net (losses) gains and net interest income from linked transactions | 5,012 | -5,245 | 7,317 | -5,504 | ' | |||
Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
CMBS linked transactions, Amortized Cost | 41,495 | ' | 41,495 | ' | 99,493 | |||
CMBS linked transactions, Unrealized Gains | 815 | ' | 815 | ' | 446 | |||
CMBS linked transactions, Unrealized Losses | -40 | ' | -40 | ' | -6,116 | |||
Total | 42,270 | ' | 42,270 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Less than one year | 0 | ' | 0 | ' | 540 | |||
Greater than one year and less than five years | 34,235 | ' | 34,235 | ' | 26,120 | |||
Greater than five years and less than ten years | 8,035 | ' | 8,035 | ' | 53,688 | |||
Greater than ten years | 0 | ' | 0 | ' | 13,475 | |||
Total | 42,270 | ' | 42,270 | ' | ' | |||
Amortized Cost | ' | ' | ' | ' | ' | |||
Less than one year | 0 | ' | 0 | ' | 540 | |||
Greater than one year and less than five years | 33,864 | ' | 33,864 | ' | 26,516 | |||
Greater than five years and less than ten years | 7,631 | ' | 7,631 | ' | 57,282 | |||
Greater than ten years | 0 | ' | 0 | ' | 15,155 | |||
CMBS linked transactions, Amortized Cost | 41,495 | ' | 41,495 | ' | 99,493 | |||
Weighted Average Coupon | ' | ' | ' | ' | ' | |||
Less than one year | 0.00% | ' | 0.00% | ' | 5.58% | |||
Greater than one year and less than five years | 5.32% | ' | 5.32% | ' | 5.32% | |||
Greater than five years and less than ten years | 4.22% | ' | 4.22% | ' | 3.35% | |||
Greater than ten years | 0.00% | ' | 0.00% | ' | 3.34% | |||
Total | 5.12% | ' | 5.12% | ' | 3.84% | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' | ' | ' | |||
Fair Value, less than 12 months | 6,205 | ' | 6,205 | ' | 70,727 | |||
Unrealized Losses, less than 12 months | -8 | ' | -8 | ' | -5,198 | |||
Fair value, more than 12 months | 762 | ' | 762 | ' | 9,318 | |||
Gross unrealized losses, more than 12 Months | -32 | ' | -32 | ' | -918 | |||
Fair value, total | 6,967 | ' | 6,967 | ' | 80,045 | |||
Unrealized losses, total | -40 | ' | -40 | ' | -6,116 | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 93,823 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -54,940 | ' | ' | |||
Paydowns | ' | ' | -21 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 3,408 | ' | ' | |||
Fair Value at end of period | 42,270 | ' | 42,270 | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, Balance | 28,702 | ' | 28,702 | ' | 64,094 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.45% | ' | 1.45% | ' | 1.25% | |||
Linked Transactions [Member] | CMBS [Member] | Within 30 days [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, Balance | 28,702 | ' | 28,702 | ' | 64,094 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.45% | ' | 1.45% | ' | 1.25% | |||
Linked Transactions [Member] | CMBS [Member] | 30 days to 90 days [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, Balance | 0 | ' | 0 | ' | 0 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 0.00% | ' | 0.00% | ' | 0.00% | |||
Not Designated as Hedging Instrument [Member] | Unrealized Gain (Loss) and Net Interest Income on Linked Transactions, Net [Member] | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Unrealized gains (losses) and net interest income on linked transactions, net | ' | ' | 7,317 | -5,504 | ' | |||
Not Designated as Hedging Instrument [Member] | Linked Transactions, Net at Fair Value [Member] | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | 13,676 | ' | 13,676 | ' | 30,066 | |||
S&P Rating, AAA [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 7,750 | ' | 7,750 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 7,750 | ' | 7,750 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 17,642 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -9,773 | ' | ' | |||
Paydowns | ' | ' | -21 | ' | ' | |||
MTM Change Same Ratings | ' | ' | -98 | ' | ' | |||
Fair Value at end of period | 7,750 | ' | 7,750 | ' | ' | |||
S&P Rating, BBB Plus through BBB Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 10,159 | ' | 10,159 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 10,159 | ' | 10,159 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 9,953 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 0 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 206 | ' | ' | |||
Fair Value at end of period | 10,159 | ' | 10,159 | ' | ' | |||
S&P Rating, BB Plus through BB Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 3,227 | ' | 3,227 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 3,227 | ' | 3,227 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 2,865 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 127 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 235 | ' | ' | |||
Fair Value at end of period | 3,227 | ' | 3,227 | ' | ' | |||
S&P Rating, B Plus through B Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 17,596 | ' | 17,596 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 17,596 | ' | 17,596 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 19,619 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -2,745 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 722 | ' | ' | |||
Fair Value at end of period | 17,596 | ' | 17,596 | ' | ' | |||
Standard & Poor's, CCC Plus through CCC Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 2,776 | ' | 2,776 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 2,776 | ' | 2,776 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 0 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 2,776 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at end of period | 2,776 | ' | 2,776 | ' | ' | |||
S&P Rating, Non-Rated [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 762 | ' | 762 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 762 | ' | 762 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 43,744 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -45,325 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 2,343 | ' | ' | |||
Fair Value at end of period | 762 | ' | 762 | ' | ' | |||
Moody's Rating, Aaa [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 8,512 | ' | 8,512 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 8,512 | ' | 8,512 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 26,682 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -18,704 | ' | ' | |||
Paydowns | ' | ' | -21 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 555 | ' | ' | |||
Fair Value at end of period | 8,512 | ' | 8,512 | ' | ' | |||
Moody's, Aa1 through Aa3 [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 0 | ' | 0 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 0 | ' | 0 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 8,919 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -9,589 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 670 | ' | ' | |||
Fair Value at end of period | 0 | ' | 0 | ' | ' | |||
Moody's Rating, A1 through A3 [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 0 | ' | 0 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 0 | ' | 0 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 0 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 0 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at end of period | 0 | ' | 0 | ' | ' | |||
Moody's, Baa1 through Baa3 Rating [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 6,563 | ' | 6,563 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 6,563 | ' | 6,563 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 6,473 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 0 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 90 | ' | ' | |||
Fair Value at end of period | 6,563 | ' | 6,563 | ' | ' | |||
Moody's, Ba1 through Ba3 Rating [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 0 | ' | 0 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 0 | ' | 0 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 10,310 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -10,768 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 458 | ' | ' | |||
Fair Value at end of period | 0 | ' | 0 | ' | ' | |||
Moody's, B1 through B3 Rating [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 13,354 | ' | 13,354 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 13,354 | ' | 13,354 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 12,155 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 455 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 744 | ' | ' | |||
Fair Value at end of period | 13,354 | ' | 13,354 | ' | ' | |||
Moody's Rating, Non-Rated [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 13,841 | ' | 13,841 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 13,841 | ' | 13,841 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 29,284 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -16,334 | ' | ' | |||
MTM Change Same Ratings | ' | ' | 891 | ' | ' | |||
Fair Value at end of period | $13,841 | ' | $13,841 | ' | ' | |||
[1] | June 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$88,762 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value114,641 105,846 Loans held for sale1,808 2,376Loans, pledged as collateral and net of allowances of $4.9 million and $8.8 million ($120.8 million and $0 at fair value)1,234,382 1,219,569 Interest receivable6,955 5,627 Prepaid expenses154 247 Principal paydown receivable31,950 6,821 Total assets of consolidated VIEs$1,478,652 $1,401,858 | |||||||
[2] | The Company expects that the maturity date of these CMBS will either be extended or the CMBS will be paid in full. |
OFFSETTING_OF_FINANCIAL_ASSETS2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Gross Amounts of Recognized Liabilities, Derivative hedging instruments, at fair value | $9,396,000 | $10,586,000 | ||
Gross Amounts Offset in the Consolidated Balance Sheets, Derivative hedging instruments, at fair value | 0 | 0 | ||
Net Amounts of Liabilities Included in the Consolidated Balance Sheets, Derivative hedging instruments, at fair value | 9,396,000 | [1] | 10,586,000 | [1] |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments, Derivative hedging instruments, at fair value | 0 | 0 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged, Derivative hedging instruments, at fair value | 500,000 | 500,000 | ||
Net Amount, Derivative hedging instruments, at fair value | 8,896,000 | [1] | 10,086,000 | [1] |
Gross Amounts of Recognized Liabilities, Repurchase agreements | 312,890,000 | 91,931,000 | ||
Repurchase agreements | 0 | 0 | ||
Net Amounts of Liabilities Included in the Consolidated Balance Sheets, Repurchase agreements | 312,890,000 | [2] | 91,931,000 | [2] |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments, Repurchase agreements | 312,890,000 | 91,931,000 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged, Repurchase agreements | 0 | 0 | ||
Net Amount, repurchase agreements | 0 | [2] | 0 | [2] |
Gross Amounts of Recognized Liabilities, Total | 322,286,000 | 102,517,000 | ||
Gross Amounts Offset in the Consolidated Balance Sheets, Total | 0 | 0 | ||
Net Amounts of Liabilities Included in the Consolidated Balance Sheets, Total | 322,286,000 | 102,517,000 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments, Total | 312,890,000 | [3] | 91,931,000 | [3] |
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged, Total | 500,000 | [4] | 500,000 | [4] |
Net Amount, Total | 8,896,000 | 10,086,000 | ||
Fair value of securities pledged against swaps | 2,700,000 | 3,500,000 | ||
Fair value of securities pledged against repurchase agreements | $434,200,000 | $121,600,000 | ||
[1] | The fair value of securities pledged against the Company's swaps was $2.7 million and $3.5 million at June 30, 2014 and December 31, 2013, respectively. | |||
[2] | The fair value of securities pledged against the Company's repurchase agreements was $434.2 million and $121.6 million at June 30, 2014 and December 31, 2013, respectively. | |||
[3] | Amounts represent collateral pledged that is available to be offset against liability balances associated with repurchase agreement and derivative transactions. | |||
[4] | Amounts represent amounts pledged as collateral against derivative transactions. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2014 | Jul. 30, 2014 | Jul. 03, 2014 | Jul. 30, 2014 | Jul. 30, 2014 | Jul. 03, 2014 | Jul. 03, 2014 | Jul. 31, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Resource Capital Corp. 2014-CRE2, Ltd. [Member] | Wells Fargo [Member] | Wells Fargo [Member] | Deutsche Bank AG [Member] | Credit Facility, Committed [Member] | Credit Facility, Uncommitted [Member] | Common Stock [Member] | |||
Credit facility [Member] | CMBS - Term Repurchase Facilities [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo [Member] | Wells Fargo [Member] | |||||
Credit facility [Member] | Credit facility [Member] | ||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment plan | $14,400,000 | $14,554,000 | ' | ' | ' | ' | ' | ' | $3,100,000 |
Shares issued from dividend reinvestment plan (in shares) | 2,600,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | 549,788 |
Maximum amount of facility | ' | ' | ' | 75,000,000 | ' | ' | 25,000,000 | 50,000,000 | ' |
Closing transaction amount | ' | ' | 354,000,000 | ' | ' | ' | ' | ' | ' |
Repayments of lines of credit | ' | ' | ' | ' | $217,800,000 | $20,400,000 | ' | ' | ' |