Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 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-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 132,053,802 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $163,269 | [1] | $262,270 | [1] |
Restricted cash | 83,604 | [1] | 63,309 | [1] |
Investment securities, trading | 9,187 | [1] | 11,558 | [1] |
Investment securities available-for-sale, pledged as collateral, at fair value | 204,843 | [1] | 162,608 | [1] |
Investment securities available-for-sale, at fair value | 76,175 | [1] | 52,598 | [1] |
Linked transactions, net at fair value | 14,272 | [1] | 30,066 | [1] |
Loans held for sale | 91,382 | [1] | 21,916 | [1] |
Property held-for-sale | 29,581 | [1] | 25,346 | [1] |
Investment in real estate | 0 | [1] | 29,778 | [1] |
Loans, pledged as collateral and net of allowances of $4.5 million and $13.8 million (of which $83.0 million and $0 at fair value) | 1,744,899 | [1] | 1,369,526 | [1] |
Loans receivable–related party net of allowances of $936,000 and $0 | 4,172 | [1] | 6,966 | [1] |
Investments in unconsolidated entities | 60,540 | [1] | 69,069 | [1] |
Derivatives, at fair value | 21,618 | [1] | 0 | [1] |
Interest receivable | 14,831 | [1] | 8,965 | [1] |
Deferred tax asset | 4,853 | [1] | 5,212 | [1] |
Principal paydown receivable | 34,297 | [1] | 6,821 | [1] |
Intangible assets | 10,254 | [1] | 11,822 | [1] |
Prepaid expenses | 4,529 | [1] | 2,871 | [1] |
Other assets | 20,075 | [1] | 10,726 | [1] |
Total assets | 2,592,381 | [1] | 2,151,427 | [1] |
LIABILITIES | ' | ' | ||
Borrowings (of which $94.9 million and $0 at fair value) | 1,590,958 | [2] | 1,319,810 | [2] |
Distribution payable | 30,340 | [2] | 27,023 | [2] |
Accrued interest expense | 3,875 | [2] | 1,693 | [2] |
Derivatives, at fair value | 8,830 | [2] | 10,586 | [2] |
Accrued tax liability | 3,131 | [2] | 1,629 | [2] |
Deferred tax liability | 0 | [2] | 4,112 | [2] |
Accounts payable and other liabilities | 11,331 | [2] | 12,650 | [2] |
Total liabilities | 1,648,465 | [2] | 1,377,503 | [2] |
EQUITY | ' | ' | ||
Common stock, par value $0.001: 500,000,000 shares authorized; 133,406,123 and 127,918,927 shares issued and outstanding (including 2,742,476 and 3,112,595 unvested restricted shares) | 133 | 128 | ||
Additional paid-in capital | 1,224,533 | 1,042,480 | ||
Accumulated other comprehensive income (loss) | 3,990 | -14,043 | ||
Distributions in excess of earnings | -296,253 | -254,645 | ||
Total stockholders’ equity | 932,414 | 773,924 | ||
Non-Controlling interests | 11,502 | 0 | ||
Total equity | 943,916 | 773,924 | ||
TOTAL LIABILITIES AND EQUITY | 2,592,381 | 2,151,427 | ||
Redeemable Preferred Stock Series A [Member] | ' | ' | ||
EQUITY | ' | ' | ||
Preferred stock, par value $0.001 | 1 | 1 | ||
Redeemable Preferred Stock Series B [Member] | ' | ' | ||
EQUITY | ' | ' | ||
Preferred stock, par value $0.001 | 5 | 3 | ||
Redeemable Preferred Stock Series C [Member] | ' | ' | ||
EQUITY | ' | ' | ||
Preferred stock, par value $0.001 | $5 | $0 | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 | |||
[2] | September 30, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings (of which $94.9 million and $0 at fair value)$1,214,923 $1,070,339 Accrued interest expense1,280 918 Derivatives, at fair value7,958 10,191 Accounts payable and other liabilities(418) 1,604 Total liabilities of consolidated VIEs$1,223,743 $1,083,052 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
ASSETS | ' | ' |
Loans receivable, allowance | $4,500,000 | $13,800,000 |
Loans, pledged as collateral, amount at fair value | 83,000,000 | 0 |
Loans receivable, allowance, related party | 936,000 | 0 |
Borrowings, amount at fair value | 94,900,000 | 0 |
STOCKHOLDERS’ EQUITY | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 133,406,123 | 127,918,927 |
Common stock, shares outstanding (in shares) | 133,406,123 | 127,918,927 |
Common stock, shares issued, non-vested restricted shares (in shares) | 2,742,476 | 3,112,595 |
Assets of consolidated VIEs included in total assets: | ' | ' |
Restricted cash | 80,633,000 | 61,372,000 |
Investment securities available-for-sale, pledged as collateral, at fair value | 110,376,000 | 105,846,000 |
Loans held for sale | 36,674,000 | 2,376,000 |
Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value) | 1,405,788,000 | 1,219,569,000 |
Interest receivable | 8,066,000 | 5,627,000 |
Prepaid expenses | 217,000 | 247,000 |
Principal paydown receivable | 34,100,000 | 6,821,000 |
Other assets | -12,000 | 0 |
Total assets of consolidated VIEs | 1,675,842,000 | 1,401,858,000 |
Liabilities of consolidated VIEs included in total liabilities: | ' | ' |
Borrowings (of which $94.9 million and $0 at fair value) | 1,214,923,000 | 1,070,339,000 |
Accrued interest expense | 1,280,000 | 918,000 |
Derivatives, at fair value | 7,958,000 | 10,191,000 |
Accounts payable and other liabilities | -418,000 | 1,604,000 |
Total liabilities of consolidated VIEs | 1,223,743,000 | 1,083,052,000 |
Variable interest entity, loans, pledged as collateral, allowance | 4,000,000 | 8,800,000 |
Variable interest entity, loans pledged as collateral, at fair value | 83,000,000 | 0 |
Variable interest entity, borrowings, at fair value | $94,900,000 | $0 |
Redeemable Preferred Stock Series A [Member] | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 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 | 680,952 |
Preferred stock, shares outstanding (in shares) | 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 |
Preferred stock, shares authorized (in shares) | 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) | 4,734,495 | 3,485,078 |
Preferred stock, shares outstanding (in shares) | 4,734,495 | 3,485,078 |
Redeemable Preferred Stock Series C [Member] | ' | ' |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 |
Preferred stock, coupon authorized (in hundredths) | 8.63% | ' |
Preferred stock, shares issued (in shares) | 4,800,000 | 0 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Loans | $27,026 | $24,374 | $73,474 | $78,370 |
Securities | 5,168 | 3,411 | 12,563 | 10,949 |
Interest income − other | 1,647 | 679 | 5,481 | 3,180 |
Total interest income | 33,841 | 28,464 | 91,518 | 92,499 |
Interest expense | 11,589 | 11,762 | 31,836 | 34,061 |
Net interest income | 22,252 | 16,702 | 59,682 | 58,438 |
Rental income | 1,118 | 4,649 | 7,777 | 15,875 |
Dividend income | 16 | 223 | 169 | 256 |
Equity in net earnings (losses) of unconsolidated subsidiaries | 887 | -535 | 4,663 | -888 |
Fee income | 2,344 | 1,245 | 7,166 | 4,182 |
Net unrealized gains and gains on sales of investment securities available-for-sale and loans | 7,546 | 570 | 15,487 | 3,355 |
Net realized and unrealized gains (losses) on investment securities, trading | 376 | -229 | -1,834 | -864 |
Unrealized gains (losses) and net interest income on linked transactions, net | 177 | 1,161 | 7,494 | -4,343 |
Total revenues | 34,716 | 23,786 | 100,604 | 76,011 |
OPERATING EXPENSES | ' | ' | ' | ' |
Management fees − related party | 3,606 | 5,113 | 10,000 | 11,006 |
Equity compensation − related party | 798 | 2,120 | 4,497 | 7,866 |
Rental operating expense | 695 | 3,523 | 5,168 | 11,084 |
General and administrative | 11,586 | 2,898 | 30,936 | 8,761 |
Depreciation and amortization | 562 | 904 | 2,158 | 3,041 |
Income tax (benefit) expense | -237 | 722 | -667 | 4,221 |
Net impairment losses recognized in earnings | 0 | 255 | 0 | 811 |
Provision (recovery) for loan losses | 1,439 | 741 | -1,739 | 541 |
Total operating expenses | 18,449 | 16,276 | 50,353 | 47,331 |
Net interest and other revenues less operating expenses | 16,267 | 7,510 | 50,251 | 28,680 |
OTHER REVENUE (EXPENSE) | ' | ' | ' | ' |
Loss on the reissuance of debt | -1,867 | 0 | -2,469 | 0 |
Other expense | 0 | 0 | -1,262 | 0 |
(Loss) gain on sale of real estate | -69 | 16,607 | 2,973 | 16,607 |
Total other revenue | -1,936 | 16,607 | -758 | 16,607 |
NET INCOME | 14,331 | 24,117 | 49,493 | 45,287 |
Net income allocated to preferred shares | -5,545 | -1,996 | -11,303 | -5,107 |
Net income allocable to non-controlling interest, net of taxes | -1,458 | 0 | -1,069 | 0 |
NET INCOME ALLOCABLE TO COMMON SHARES | $7,328 | $22,121 | $37,121 | $40,180 |
NET INCOME PER SHARE - BASIC (in dollars per share) | $0.06 | $0.18 | $0.29 | $0.34 |
NET INCOME PER SHARE - DILUTED (in dollars per shares) | $0.06 | $0.18 | $0.29 | $0.34 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in shares) | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in shares) | 131,227,759 | 126,072,682 | 128,705,916 | 117,973,978 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $14,331 | $24,117 | $49,493 | $45,287 |
Other comprehensive income: | ' | ' | ' | ' |
Reclassification adjustment for gains (losses) included in net income | 3,974 | 396 | 8,161 | -4,728 |
Unrealized (losses) gains on available-for-sale securities, net | 8,956 | 1,723 | 7,466 | 11,644 |
Reclassification adjustments associated with unrealized losses from interest rate hedges included in net income | 71 | 129 | 212 | 322 |
Unrealized gains on derivatives, net | 1,160 | 498 | 2,351 | 2,480 |
Foreign currency translation | 23 | -23 | -157 | -23 |
Total other comprehensive income | 14,184 | 2,723 | 18,033 | 9,695 |
Comprehensive income before allocation to non-controlling interests and preferred shares | 28,515 | 26,840 | 67,526 | 54,982 |
Allocation to non-controlling interests | -1,458 | 0 | -1,069 | 0 |
Allocation to preferred shares | -5,545 | -1,996 | -11,303 | -5,107 |
Comprehensive income allocable to common shares | $21,512 | $24,844 | $55,154 | $49,875 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Parent [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Distributions in Excess of Earnings [Member] | Non-controlling Interest [Member] | Redeemable Preferred Stock Series A [Member] | Redeemable Preferred Stock Series B [Member] | Redeemable Preferred Stock Series C [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] |
In Thousands, except Share data, unless otherwise specified | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Parent [Member] | Additional Paid-In Capital [Member] | |||||||||
Balance at Dec. 31, 2013 | $773,924 | $773,924 | $128 | $1,042,480 | ($14,043) | $0 | ($254,645) | $0 | $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) | 4,600,000 | ' | 4,597,265 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dividend reinvestment and stock purchase plan | 25,416 | 25,416 | 4 | 25,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2 | 5 | 156,723 | 156,723 | 156,716 |
Offering costs | -4,571 | -4,571 | ' | -4,571 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation (in shares) | ' | ' | 889,931 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation | 1 | 1 | 1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of stock based compensation | 4,496 | 4,496 | ' | 4,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution from non-controlling interests | 10,433 | ' | ' | ' | ' | ' | ' | 10,433 | ' | ' | ' | ' | ' | ' |
Net Income | 48,424 | 49,493 | ' | ' | ' | 48,424 | ' | 1,069 | ' | ' | ' | ' | ' | ' |
Preferred dividends | -11,303 | -11,303 | ' | ' | ' | -11,303 | ' | ' | ' | ' | ' | ' | ' | ' |
Securities available-for-sale, fair value adjustment, net | 15,627 | 15,627 | ' | ' | 15,627 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Designated derivatives, fair value adjustment | 2,563 | 2,563 | ' | ' | 2,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | -157 | -157 | ' | ' | -157 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions on common stock | -78,729 | -78,729 | ' | ' | ' | -37,121 | -41,608 | ' | ' | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2014 | $932,414 | $943,916 | $133 | $1,224,533 | $3,990 | $0 | ($296,253) | $11,502 | $1 | $5 | $5 | ' | ' | ' |
Balance (in shares) at Sep. 30, 2014 | 133,406,123 | ' | 133,406,123 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net income | $49,493,000 | $45,287,000 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' | |
Provision (recovery) for loan losses | -1,739,000 | 541,000 | |
Depreciation of investments in real estate and other | 2,252,000 | 1,638,000 | |
Amortization of intangible assets | 1,541,000 | 1,463,000 | |
Amortization of term facilities | 0 | 876,000 | |
Accretion of net discounts on loans held for investment | -2,045,000 | -8,306,000 | |
Accretion of net discounts on securities available-for-sale | -2,847,000 | -1,925,000 | |
Amortization of discount on notes securitization | 70,000 | 3,937,000 | |
Amortization of debt issuance costs on notes of securitizations | 2,596,000 | 2,868,000 | |
Amortization of discounts on convertible notes | 896,000 | 0 | |
Amortization of stock-based compensation | 4,497,000 | 7,866,000 | |
Amortization of terminated derivative instruments | 212,000 | 322,000 | |
Distribution accrued to preferred stockholders | 0 | -5,107,000 | |
Accretion of interest-only available-for-sales securities | -573,000 | -714,000 | |
Non-cash incentive compensation to the Manager | 0 | 484,000 | |
Deferred income tax (benefit) expense | -689,000 | 502,000 | |
Change in mortgage loans held for sale, net | -42,178,000 | 0 | |
Purchase of securities, trading | -4,000,000 | -11,044,000 | |
Principal payments on securities, trading | 50,000 | 4,211,000 | |
Proceeds from sales of securities, trading | 379,000 | 18,713,000 | |
Net realized and unrealized loss on investment securities, trading | 1,834,000 | 864,000 | |
Net realized gain on sales of investment securities available-for-sale and loans | -15,487,000 | -3,355,000 | |
Loss on the reissuance of debt | 2,469,000 | 0 | |
Gain on the sale of real estate | -2,973,000 | -16,607,000 | |
Net impairment losses recognized in earnings | 0 | 802,000 | |
Linked transactions fair value adjustments | -5,713,000 | 5,224,000 | |
Equity in net (earnings) losses of unconsolidated subsidiaries | -4,663,000 | 888,000 | |
Changes in operating assets and liabilities, net of acquisitions | 6,756,000 | 17,404,000 | |
Net cash (used in) provided by operating activities | -9,862,000 | 66,832,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Decrease in restricted cash, net of acquisitions | 18,328,000 | 30,079,000 | |
Purchase of securities available-for-sale | -145,138,000 | -120,599,000 | |
Principal payments received on securities available-for-sale | 40,748,000 | 33,010,000 | |
Proceeds from sale of securities available-for-sale | 117,367,000 | 7,025,000 | |
Proceeds from (investment in) unconsolidated entity | 8,911,000 | -25,508,000 | |
Acquisition of Moselle CLO S.A. | -30,433,000 | 0 | |
Proceeds from real estate held-for-sale | 31,639,000 | 37,001,000 | |
Improvement of real estate held-for-sale | 0 | -404,000 | |
Purchase of loans | -667,774,000 | -555,051,000 | |
Principal payments received on loans | 315,778,000 | 487,606,000 | |
Proceeds from sale of loans | 76,314,000 | 314,112,000 | |
Distributions from investments in real estate | 0 | 522,000 | |
Improvements in investments in real estate | -225,000 | -365,000 | |
Purchase of furniture and fixtures | -69,000 | -128,000 | |
Acquisition of property and equipment | -362,000 | 0 | |
Investment in loans - related parties | -849,000 | 0 | |
Principal payments received on loans – related parties | 2,706,000 | 499,000 | |
Settlement of derivative instruments for investment | -19,245,000 | 0 | |
Net cash (used in) provided by investing activities | -252,304,000 | 207,799,000 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net proceeds from issuances of common stock (net of offering costs of $0 and $4,228) | 0 | 114,018,000 | |
Net proceeds from dividend reinvestment and stock purchase plan (net of offering costs of $0 and $0) | 25,416,000 | 19,092,000 | |
Minority interest equity | 12,676,000 | 2,200,000 | |
Proceeds from borrowings: | ' | ' | |
Repurchase agreements | 49,234,000 | 143,203,000 | |
Warehouse agreement | 43,000,000 | 0 | |
Collateralized debt obligations | 235,344,000 | 0 | |
Senior Secured Revolving Credit Facility | 35,500,000 | 0 | |
Reissuance of debt | 39,635,000 | 0 | |
Payments on borrowings: | ' | ' | |
Collateralized debt obligations | -301,040,000 | -450,437,000 | |
Mortgage Payable | 0 | -13,600,000 | |
Warehouse agreement | -33,719,000 | 0 | |
Payment of debt issuance costs | -7,284,000 | -1,740,000 | |
Settlement of derivative instruments | -23,000 | 0 | |
Payment of equity to third party sub-note holders | -2,183,000 | -6,952,000 | |
Distributions paid on preferred stock | -7,907,000 | -4,389,000 | |
Distributions paid on common stock | -77,636,000 | -68,010,000 | |
Net cash provided by (used in) financing activities | 163,165,000 | -215,446,000 | |
NET(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -99,001,000 | 59,185,000 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 262,270,000 | [1] | 85,278,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 163,269,000 | [1] | 144,463,000 |
SUPPLEMENTAL DISCLOSURE: | ' | ' | |
Interest expense paid in cash | 26,782,000 | 28,391,000 | |
Income taxes paid in cash | 3,293,000 | 8,997,000 | |
Redeemable Preferred Stock Series A [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares, net of offering costs | 8,397,000 | 112,000 | |
Redeemable Preferred Stock Series B [Member] | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from issuance of redeemable preferred shares, net of offering costs | 27,940,000 | 51,057,000 | |
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] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from dividend reinvestment and stock purchase plan, offering costs | $0 | $0 |
Common Stock [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 0 | 4,228 |
Redeemable Preferred Stock Series A [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 203 | 3 |
Preferred stock, coupon authorized (in hundredths) | 8.50% | ' |
Redeemable Preferred Stock Series B [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | 363 | 1,091 |
Preferred stock, coupon authorized (in hundredths) | 8.25% | ' |
Redeemable Preferred Stock Series C [Member] | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Offering costs on stock issuance | $4,005 | $0 |
Preferred stock, coupon authorized (in hundredths) | 8.63% | ' |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended | |
Sep. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
ORGANIZATION AND BASIS OF PRESENTATION | ' | |
NOTE 1 - 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, Ltd. (“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, Ltd. (“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. | |
◦ | Resource Capital Corp. 2014-CRE2, Ltd. ("RCC CRE 2014"), a Cayman Islands limited liability company and QRS. RCC CRE 2014 was established to complete a CRE securitization issuance secured by a portfolio of CRE loans. | |
• | RCC Commercial, Inc. (“RCC Commercial”) holds an investment in Northport TRS, LLC ("Northport LLC") and owns 100% of the equity of the following VIE: | |
◦ | Apidos CDO III, Ltd. (“Apidos CDO III”), a Cayman Islands limited liability company and taxable REIT subsidiary (“TRS”). Apidos CDO III was established to complete a CDO issuance secured by a portfolio of bank loans and asset-backed securities (“ABS”). | |
• | RCC Commercial II, Inc. (“Commercial II”) holds 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 equity in the following: | |
◦ | Resource TRS, LLC, a Delaware limited liability company, which holds an investment in Northport LLC. | |
◦ | Northport LLC, a Delaware limited liability company, which holds bank loan investments and the Company's self-originated middle market loans. | |
◦ | Pelium Capital Partners, L.P., ("Pelium Capital") a Delaware limited partnership, which holds investment securities, trading. Resource TRS owns 80.4% of the equity in Pelium Capital. | |
• | 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 in April 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. | |
• | RCC Residential, Inc. ("RCC Residential"), a TRS directly owned by the Company, is a Delaware corporation which owns 100% of the following entities: | |
◦ | Primary Capital Mortgage, LLC ("PCM"), (formerly known as Primary Capital Advisors LLC) , a limited liability company which originates and services residential mortgage loans. | |
◦ | RCM Global Manager, LLC ("RCM Global Manager"), a Delaware limited liability company, owns 63.8% of the following entity: | |
▪ | RCM Global, LLC ("RCM Global"), a Delaware limited liability company, holds a portfolio of investment securities, available-for-sale. | |
▪ | RCC Residential Portfolio, Inc. ("RCC Resi Portfolio"), a Delaware corporation directly owned by the Company, 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 | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 - 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. | |
Residential Mortgage Loans Held for Sale | |
The Company originates residential loans to be funded by permanent investors. The Company may sell or retain the right to service a loan. Mortgage loans held for sale are valued at the lower of cost or market, determined on an aggregate basis for each type of loan after the net effect of any hedging activities including interest rate lock commitments and freestanding loan-related derivatives. Market value is determined using sales commitments to permanent investors or on current market rates for loans of similar quality and type. To the extent the transfer of assets qualifies as a sale, the asset is derecognized and the gain or loss is recorded on the sale date. In the event the transfer of assets does not qualify as a sale, the transfer would be treated as a secured borrowing. | |
Recent Accounting Standards | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued guidance that clarifies the disclosures management must make in its interim and annual financial statement footnotes when management has determined that conditions exist that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued (or within one year after the date the financial statements are available to be issued when applicable). In accordance with this guidance, management’s assessment is required to be made each reporting period and should be based on relevant conditions and events that are known and reasonably knowable at the date the financial statements are issued. In all cases, to the extent that substantial doubt about the entity’s ability to continue as a going concern is determined to be probable, management must disclose the principal conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that either alleviated or are intended to mitigate the conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern. Additionally, to the extent substantial doubt about the entity’s ability to continue as a going concern is not alleviated by management’s plans, management must indicate in the footnotes that there is substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption will have a material impact on its consolidated financial statements. | |
In August 2014, the FASB issued guidance that provides for the election of a measurement alternative when a reporting entity determines that it is the primary beneficiary of a collateralized financing entity and, hence, is required to consolidate that collateralized financing entity. The measurement alternative allows a qualifying, consolidated collateralized financing entity to use the more observable of the fair value the financial assets or the fair value of financial liabilities adjusted by the carrying amount of non-financial assets, the fair value of any beneficial interests retained by the reporting entity (including those beneficial interest that represent compensation for services). Alternatively, if the measurement alternative is not elected for a qualifying, consolidated collateralized financing entity, this guidance requires that the financial assets and financial liabilities be measured in accordance with Topic 820, and any difference in the fair value of the financial assets and the fair value of the financial liabilities would be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). This guidance is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. 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 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 non-controlling 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 was effective for an entity’s interim and annual reporting periods in fiscal years that began after December 15, 2013. Earlier application was 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 | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | ' | |||||||||||||||||||||||||||||||||||||||||||
NOTE 3 - 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 the issuing entities 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 or deconsolidated. | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs (the Company is the primary beneficiary) | ||||||||||||||||||||||||||||||||||||||||||||
Based on management’s analysis, the Company is the primary beneficiary of 10 VIEs at September 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, RCC CRE Notes 2014, and Moselle CLO. In performing the primary beneficiary analysis for Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1, RCC CRE Notes 2013 and RCC CRE Notes 2014, 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. | ||||||||||||||||||||||||||||||||||||||||||||
Apidos CDO I, Apidos CDO III, Apidos Cinco CDO, Apidos CLO VIII, RREF CDO 2006-1, RREF CDO 2007-1, RCC CRE Notes 2013 and RCC CRE 2014 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. | ||||||||||||||||||||||||||||||||||||||||||||
On July 9, 2014, RCC Residential together with Resource America and certain Resource America employees acquired through RCM Global a portfolio of securities from JP Morgan for $23.5 million. The portfolio is managed by Resource America. RCC Residential contributed $15.0 million for a 63.8% membership interest. Each of the members of RCM Global will be allocated the revenue/expenses of RCM Global in accordance with its membership interest. RCM Global was determined not to be a VIE as there was sufficient equity at risk, it does not have disproportionate voting rights and its members have all of the following characteristics (1) the power to direct the activities (2) the obligation to absorb losses and (3) the right to receive residual returns. However, the Company consolidated RCM Global as a result of the Company's majority interest in it. | ||||||||||||||||||||||||||||||||||||||||||||
In September 2014, the Company contributed $17.5 million of capital to Pelium Capital for an 80.4% interest. Pelium Capital is a specialized credit opportunity fund managed by Resource America. The Company will receive 10% of the carried interest in the partnership for the first five years and can increase to 20% if the Company's capital contributions aggregate $40.0 million. Pelium Capital was determined not to be a VIE as there was sufficient equity at risk, it does not have disproportionate voting rights and its members have all of the following characteristics (1) the power to direct the activities (2) the obligation to absorb losses and (3) the right to receive residual returns. However, Pelium Capital was consolidated as a result of the Company's majority ownership and the Company's unilateral kick-out rights held. The non-controlling interest in this vehicle is owned by Resource America. | ||||||||||||||||||||||||||||||||||||||||||||
For a discussion of the Company’s securitizations (see Note 1) and for a discussion of the debt issued through the securitizations (see Note 13). | ||||||||||||||||||||||||||||||||||||||||||||
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 ten consolidated VIEs have no recourse to the general credit of the Company. However, the Company has in the past voluntarily supported two credits in one of its commercial real estate CDOs as the credits went through a restructuring in order to maximize their future cash flows. For the three and nine months ended September 30, 2014, the Company has provided financial support of $209,000 and $758,000, respectively. For the three and nine months ended September 30, 2013, the Company provided $69,000 and $1.9 million of financial support, 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. | ||||||||||||||||||||||||||||||||||||||||||||
The following table shows the classification and carrying value of assets and liabilities of the Company's consolidated VIEs as of September 30, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | RCC CRE Notes 2013 | RCC CRE 2014 | Moselle | Total | ||||||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006-1 | 2007-1 | ||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
Restricted cash (1) | $ | 15,366 | $ | 3,529 | $ | 24,663 | $ | 5 | $ | 80 | $ | 20 | $ | 250 | $ | 3,337 | $ | — | $ | 33,383 | $ | 80,633 | ||||||||||||||||||||||
Investment securities available-for-sale, pledged as collateral, at fair value | 3,452 | 3,947 | 11,313 | — | — | 11,359 | 67,784 | — | — | 12,521 | 110,376 | |||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 9,896 | 87,750 | 274,442 | — | — | 128,369 | 204,978 | 267,963 | 349,381 | 83,009 | 1,405,788 | |||||||||||||||||||||||||||||||||
Loans held for sale | 35,740 | 364 | 570 | — | — | — | — | — | — | — | 36,674 | |||||||||||||||||||||||||||||||||
Interest receivable | (268 | ) | 443 | 959 | — | — | 2,471 | 2,015 | 1,114 | 1,332 | — | 8,066 | ||||||||||||||||||||||||||||||||
Prepaid assets | 6 | 7 | 28 | — | — | 100 | 76 | — | — | — | 217 | |||||||||||||||||||||||||||||||||
Principal paydown receivable | — | — | — | — | — | 25,803 | 8,297 | — | — | — | 34,100 | |||||||||||||||||||||||||||||||||
Other Assets | — | — | — | — | — | — | — | — | (12 | ) | — | (12 | ) | |||||||||||||||||||||||||||||||
Total assets (2) | $ | 64,192 | $ | 96,040 | $ | 311,975 | $ | 5 | $ | 80 | $ | 168,122 | $ | 283,400 | $ | 272,414 | $ | 350,701 | $ | 128,913 | $ | 1,675,842 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 47,848 | $ | 83,621 | $ | 284,160 | $ | — | $ | — | $ | 105,841 | $ | 137,004 | $ | 223,897 | $ | 231,365 | $ | 101,187 | $ | 1,214,923 | ||||||||||||||||||||||
Accrued interest expense | 218 | 46 | 289 | — | — | 44 | 99 | 172 | 123 | 289 | 1,280 | |||||||||||||||||||||||||||||||||
Derivatives, at fair value | — | — | — | — | — | 1,044 | 6,914 | — | — | — | 7,958 | |||||||||||||||||||||||||||||||||
Accounts payable and other liabilities | 22 | 48 | 25 | 195 | — | 11 | 1 | — | 10 | (730 | ) | (418 | ) | |||||||||||||||||||||||||||||||
Total liabilities | $ | 48,088 | $ | 83,715 | $ | 284,474 | $ | 195 | $ | — | $ | 106,940 | $ | 144,018 | $ | 224,069 | $ | 231,498 | $ | 100,746 | $ | 1,223,743 | ||||||||||||||||||||||
(1) Includes $3.6 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 September 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 joint venture 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 $40.2 million and $41.0 million as of September 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 $9.9 million and $11.2 million at September 30, 2014 and December 31, 2013, respectively. The Company recognized fee income of $1.2 million and $4.0 million for the three and nine months ended September 30, 2014, respectively, and $1.2 million and $4.2 million for the three and nine months ended September 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, 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 September 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 | $ | 40,157 | $ | 1,548 | $ | — | $ | 41,705 | $ | 41,705 | ||||||||||||||||||||||||||||||||||
Intangible assets | — | — | 9,878 | 9,878 | $ | 9,878 | ||||||||||||||||||||||||||||||||||||||
Total assets | 40,157 | 1,548 | 9,878 | 51,583 | ||||||||||||||||||||||||||||||||||||||||
Borrowings | — | 51,154 | — | 51,154 | N/A | |||||||||||||||||||||||||||||||||||||||
Total liabilities | — | 51,154 | — | 51,154 | N/A | |||||||||||||||||||||||||||||||||||||||
Net asset (liability) | $ | 40,157 | $ | (49,606 | ) | $ | 9,878 | $ | 429 | 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 | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Supplemental disclosure of cash flow information is summarized for the periods indicated (in thousands): | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Non-cash financing activities include the following: | ||||||||
Distributions on common stock declared but not paid | $ | 26,629 | $ | 25,447 | ||||
Distributions on preferred stock declared but not paid | $ | 5,555 | $ | 2,023 | ||||
Issuance of restricted stock | $ | 890 | $ | 242 | ||||
INVESTMENT_SECURITIES_TRADING
INVESTMENT SECURITIES TRADING | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
INVESTMENT SECURITIES TRADING | ' | |||||||||||||||
NOTE 5 - 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 September 30, 2014 | ||||||||||||||||
Structured notes, trading | $ | 10,821 | $ | 317 | $ | (2,017 | ) | $ | 9,121 | |||||||
RMBS, trading | 1,897 | — | (1,831 | ) | 66 | |||||||||||
Total | $ | 12,718 | $ | 317 | $ | (3,848 | ) | $ | 9,187 | |||||||
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 two securities during the nine months ended September 30, 2014, for a realized gain of $2.5 million. The Company held 19 and eight investment securities, trading as of September 30, 2014 and December 31, 2013, respectively. |
INVESTMENT_SECURITIES_AVAILABL
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | ' | ||||||||||||||||||||||||||||||||
NOTE 6 - 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 are CLO debt securities collateralized by syndicated bank loans. 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 September 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 176,970 | $ | 5,856 | $ | (7,510 | ) | $ | 175,316 | ||||||||||||||||||||||||
RMBS | 30,697 | 848 | — | 31,545 | |||||||||||||||||||||||||||||
ABS | 60,980 | 12,211 | (1,435 | ) | 71,756 | ||||||||||||||||||||||||||||
Corporate bonds | 2,413 | 12 | (24 | ) | 2,401 | ||||||||||||||||||||||||||||
Total | $ | 271,060 | $ | 18,927 | $ | (8,969 | ) | $ | 281,018 | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS | $ | 185,178 | $ | 7,570 | $ | (12,030 | ) | $ | 180,718 | ||||||||||||||||||||||||
ABS | 30,775 | 1,644 | (394 | ) | 32,025 | ||||||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 50,160 | $ | 56,395 | 3.84% | ||||||||||||||||||||||||||||
Greater than one year and less than five years | 142,079 | 133,098 | 5.03% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 44,913 | 38,301 | 5.32% | ||||||||||||||||||||||||||||||
Greater than ten years | 43,866 | 43,266 | 5.40% | ||||||||||||||||||||||||||||||
Total | $ | 281,018 | $ | 271,060 | 4.97% | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 39,256 | $ | 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% | ||||||||||||||||||||||||||||
The contractual maturities of the CMBS investment securities available-for-sale range from October 2014 to December 2022. The contractual maturities of the ABS investment securities available-for-sale range from October 2014 to October 2050. | |||||||||||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 35,833 | $ | (580 | ) | 18 | $ | 27,065 | $ | (6,930 | ) | 14 | $ | 62,898 | $ | (7,510 | ) | 32 | |||||||||||||||
ABS | 13,792 | (1,248 | ) | 13 | 4,410 | (187 | ) | 7 | 18,202 | (1,435 | ) | 20 | |||||||||||||||||||||
Corporate bonds | 1,439 | (24 | ) | 1 | — | — | — | 1,439 | (24 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 51,064 | $ | (1,852 | ) | 32 | $ | 31,475 | $ | (7,117 | ) | 21 | $ | 82,539 | $ | (8,969 | ) | 53 | |||||||||||||||
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 had no losses included in earnings due to other-than-temporary impairment charges during the three and nine months ended September 30, 2014, respectively. The Company had $255,000 and $276,000 of losses included in earnings due to the other-than-temporary impairment charges during the three and nine months ended September 30, 2013, 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 September 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS position | 3 | $ | 15,970 | $ | 480 | ||||||||||||||||||||||||||||
ABS | 3 | $ | 6,947 | $ | 3,484 | ||||||||||||||||||||||||||||
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 nine months ended September 30, 2014, the Company redeemed one and two corporate bond positions with a total par value of $1.0 million and $1.6 million, respectively, and recognized a gain of $48,000 and $48,000, respectively. During the three and nine months ended September 30, 2013, the Company had two corporate bond positions redeemed with a total par value of $3.5 million, and recognized a gain of $11,000. During the three and nine months ended September 30, 2014, the Company had one ABS position redeemed with a total par value of $2.5 million, and recognized a gain of $25,500. During the three and nine months ended September 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: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
CMBS | $ | 3,609 | $ | 6,583 | |||||||||||||||||||||||||||||
RMBS | $ | 1,876 | $ | — | |||||||||||||||||||||||||||||
ABS | $ | 2,431 | $ | 2,394 | |||||||||||||||||||||||||||||
Corporate bond | $ | 42 | $ | 68 | |||||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE
INVESTMENTS IN REAL ESTATE | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Real Estate [Abstract] | ' | |||||
INVESTMENTS IN REAL ESTATE | ' | |||||
NOTE 7 - 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 nine months ended September 30, 2014, the Company made no acquisitions. The Company has two assets classified as property available-for-sale on the consolidated balance sheets at September 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 nine months ended September 30, 2014. These properties qualified for held for sale accounting treatment upon meeting all applicable criteria on or prior to September 30, 2014, at which time the Company ceased recording depreciation and amortization. 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 September 30, 2014. However, the anticipated sale of these properties did not qualify for treatment as 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 by the end of the year. Pre-tax earnings recorded on the office property for the three and nine months ended September 30, 2014 were gains of $48,000 and $23,000, respectively, and losses of $72,000 and $225,000 for the three and nine months ended September 30, 2013, respectively. Pre-tax earnings recorded on the multi-family property for the three and nine months ended September 30, 2014 was income of $119,000 and a loss of $4,000, respectively, and a loss of $93,000 and a gain of $13,000 for the three and nine months ended September 30, 2013, respectively. The Company's hotel property was sold in April 2014 for a gain of $3.0 million and is recorded in (loss) gain on sale of real estate on the Company's consolidated statements of income. | ||||||
During the three and nine months ended September 30, 2013, the Company made no acquisitions and sold one of its multi-family properties for a gain $16.6 million, which was recorded in (loss) gain on sale of real estate on the Company's consolidated statements of income. |
LOANS_HELD_FOR_INVESTMENT
LOANS HELD FOR INVESTMENT | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | ' | |||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT | ' | |||||||||||||||||||||||||||
NOTE 8 - 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 September 30, 2014 | ||||||||||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||||||||||
Whole loans | $ | 1,028,393 | $ | (5,422 | ) | $ | 1,022,971 | |||||||||||||||||||||
B notes | 16,164 | (57 | ) | 16,107 | ||||||||||||||||||||||||
Mezzanine loans | 67,400 | (95 | ) | 67,305 | ||||||||||||||||||||||||
Total commercial real estate loans | 1,111,957 | (5,574 | ) | 1,106,383 | ||||||||||||||||||||||||
Bank loans | 642,419 | (2,221 | ) | 640,198 | ||||||||||||||||||||||||
Residential mortgage loans, held for investment | 2,825 | — | 2,825 | |||||||||||||||||||||||||
Subtotal loans before allowances | 1,757,201 | (7,795 | ) | 1,749,406 | ||||||||||||||||||||||||
Allowance for loan loss | (4,507 | ) | — | (4,507 | ) | |||||||||||||||||||||||
Total loans held for investment | 1,752,694 | (7,795 | ) | 1,744,899 | ||||||||||||||||||||||||
Bank loans held for sale | 36,674 | — | 36,674 | |||||||||||||||||||||||||
Residential mortgage loans held for sale | 54,708 | — | 54,708 | |||||||||||||||||||||||||
Total loans held for sale | 91,382 | — | 91,382 | |||||||||||||||||||||||||
Total loans | $ | 1,844,076 | $ | (7,795 | ) | $ | 1,836,281 | |||||||||||||||||||||
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 | 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 $133,000 and $216,000 and deferred upfront fees of $97,000 and $141,000 being amortized over the life of the bank loans as of September 30, 2014 and December 31, 2013, respectively. Amounts include loan origination fees of $5.6 million and $3.3 million and loan extension fees of $0 and $73,000 being amortized over the life of the commercial real estate loans as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, approximately 33.1% and 39.0%, respectively, of the Company’s commercial real estate loan portfolio was concentrated in California; approximately 8.9% and 6.4%, respectively, in Arizona, and approximately 21.0% and 14.6%, respectively, in Texas. At September 30, 2014 and December 31, 2013, approximately 15.5% and 15.8%, respectively, of the Company’s bank loan portfolio was concentrated in the collective industry grouping of healthcare, education and childcare. At September 30, 2014, approximately 56.5% of the Company's residential mortgage loans were originated in Georgia, 6.1% in North Carolina, 8.7% in Utah, 5.5% in Alabama and 7.0% in Virginia. 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 September 30, 2014, the Company’s bank loan portfolio, including loans held for sale, consisted of $676.4 million (net of allowance of $464,000) 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 15.0% with maturity dates ranging from December 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 and loans held-for-sale, at the lower of cost or market (in thousands): | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Less than one year | $ | 46,779 | $ | 36,985 | ||||||||||||||||||||||||
Greater than one year and less than five years | 479,790 | 379,874 | ||||||||||||||||||||||||||
Five years or greater | 150,303 | 145,164 | ||||||||||||||||||||||||||
$ | 676,872 | $ | 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 September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans, floating rate (1) (4) (5) | 60 | $ | 1,022,971 | LIBOR plus 1.75% to | January 2015 to | |||||||||||||||||||||||
LIBOR plus 15.00% | Feb-19 | |||||||||||||||||||||||||||
B notes, fixed rate | 1 | 16,107 | 8.68% | Apr-16 | ||||||||||||||||||||||||
Mezzanine loans, floating rate | 1 | 12,544 | LIBOR plus 15.32% | Apr-16 | ||||||||||||||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 54,761 | 0.50% to 18.71% | September 2016 to | ||||||||||||||||||||||||
Sep-21 | ||||||||||||||||||||||||||||
Total (2) | 65 | $ | 1,106,383 | |||||||||||||||||||||||||
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 $68.3 million and $13.7 million in unfunded loan commitments as of September 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 $4.0 million and $10.4 million as of September 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 September 30, 2014, floating rate whole loans includes $4.0 million and $12.0 million mezzanine components of two whole loans, which have fixed rates 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 September 30, 2014. | |||||||||||||||||||||||||||
-6 | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.48%. 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 September 30, 2014 | ||||||||||||||||||||||||||||
B notes | $ | — | $ | — | $ | 16,107 | $ | 16,107 | ||||||||||||||||||||
Mezzanine loans | — | — | 67,305 | 67,305 | ||||||||||||||||||||||||
Whole loans | — | — | 1,022,971 | 1,022,971 | ||||||||||||||||||||||||
Total (1) | $ | — | $ | — | $ | 1,106,383 | $ | 1,106,383 | ||||||||||||||||||||
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 table provides information as to the lien position and status of the Company’s consolidated bank loans, (in thousands): | ||||||||||||||||||||||||||||
Amortized Cost | ||||||||||||||||||||||||||||
Apidos I | Apidos III | Apidos Cinco | Whitney CLO I | Northport LLC (1) | Moselle | Total | ||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
First lien loans | $ | 9,895 | $ | 87,107 | $ | 270,598 | $ | — | $ | 101,021 | $ | 80,721 | $ | 549,342 | ||||||||||||||
Second lien loans | — | — | 3,604 | — | 83,614 | 2,201 | 89,419 | |||||||||||||||||||||
Third lien loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Defaulted first lien loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Defaulted second lien loans | — | 972 | 379 | — | — | 86 | 1,437 | |||||||||||||||||||||
Total | 9,895 | 88,079 | 274,581 | — | 184,635 | 83,008 | 640,198 | |||||||||||||||||||||
First lien loans held for sale | 35,738 | 365 | 571 | — | — | — | 36,674 | |||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||
Total | $ | 45,633 | $ | 88,444 | $ | 275,152 | $ | — | $ | 184,635 | $ | 83,008 | $ | 676,872 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
First lien loans | $ | 79,483 | $ | 126,890 | $ | 296,368 | $ | 72 | $ | 31,974 | $ | — | $ | 534,787 | ||||||||||||||
Second lien loans | — | — | 1,139 | — | 7,805 | — | 8,944 | |||||||||||||||||||||
Third lien loans | 3,020 | 2,475 | 2,463 | — | — | — | 7,958 | |||||||||||||||||||||
Defaulted first lien loans | 1,206 | 1,124 | 486 | — | — | — | 2,816 | |||||||||||||||||||||
Defaulted second lien loans | 334 | 334 | — | — | — | — | 668 | |||||||||||||||||||||
Total | 84,043 | 130,823 | 300,456 | 72 | 39,779 | — | 555,173 | |||||||||||||||||||||
First lien loans held for sale | 537 | 651 | 1,189 | — | 4,473 | — | 6,850 | |||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||
Total | $ | 84,580 | $ | 131,474 | $ | 301,645 | $ | 72 | $ | 44,252 | $ | — | $ | 562,023 | ||||||||||||||
-1 | In September 2014 Resource TRS, LLC and RCC Commercial transferred all loans to Northport LLC. At December 31, 2013 Resource TRS, LLC and RCC Commercial held a total of $34.0 million and $10.3 million of loans, respectively, at amortized cost. | |||||||||||||||||||||||||||
The following is a summary of the allocation of the allowance for loan loss (in thousands, except percentages) by asset class: | ||||||||||||||||||||||||||||
Description | Allowance for | Percentage of Total Allowance | ||||||||||||||||||||||||||
Loan Loss | ||||||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||||
B notes | $ | 69 | 1.53% | |||||||||||||||||||||||||
Mezzanine loans | 289 | 6.41% | ||||||||||||||||||||||||||
Whole loans | 3,685 | 81.76% | ||||||||||||||||||||||||||
Bank loans | 464 | 10.30% | ||||||||||||||||||||||||||
Total | $ | 4,507 | ||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||
Total | $ | 13,807 | ||||||||||||||||||||||||||
As of September 30, 2014, the Company had recorded an allowance for loan losses on loans held for investment of $4.5 million consisting of a $464,000 allowance on the Company’s bank loan portfolio, a $4.0 million allowance on the Company’s commercial real estate portfolio, and a $0 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 | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | ' | |||||||||||||||||||||||||
NOTE 9 - INVESTMENTS IN UNCONSOLIDATED ENTITIES | ||||||||||||||||||||||||||
The following table shows the Company's investments in unconsolidated entities as of September 30, 2014 and December 31, 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||
Equity in Net Earnings (Losses) of Unconsolidated subsidiaries | ||||||||||||||||||||||||||
Balance as of | Balance as of | For the | For the | For the | For the | |||||||||||||||||||||
three months ended | three months | nine months | nine months | |||||||||||||||||||||||
ended | ended | ended | ||||||||||||||||||||||||
Ownership % | September 30, | December 31, | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Varde Investment Partners, L.P | 7.50% | $ | 654 | $ | 674 | $ | — | $ | 6 | $ | (19 | ) | $ | 49 | ||||||||||||
RRE VIP Borrower, LLC | 3% to 5% | — | — | 770 | (521 | ) | 2,506 | (735 | ) | |||||||||||||||||
Investment in LCC Preferred Stock | 28.30% | 40,157 | 41,016 | 13 | (346 | ) | (859 | ) | (378 | ) | ||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | 29.57% | 18,181 | 16,177 | 47 | 433 | 2,004 | 526 | |||||||||||||||||||
Investment in | 50.20% | — | 1,530 | — | (107 | ) | (75 | ) | (350 | ) | ||||||||||||||||
Life Care Funding (1) | ||||||||||||||||||||||||||
Investment in School Lane House (4) | — | 975 | 57 | — | 1,106 | — | ||||||||||||||||||||
Subtotal | 58,992 | 60,372 | 887 | (535 | ) | 4,663 | (888 | ) | ||||||||||||||||||
Investment in RCT I and II (2) | 3% | 1,548 | 1,548 | 601 | 604 | 1,785 | 1,800 | |||||||||||||||||||
Investment in Preferred Equity (3) | — | 7,149 | — | 332 | 410 | 821 | ||||||||||||||||||||
Total | $ | 60,540 | $ | 69,069 | $ | 1,488 | $ | 401 | $ | 6,858 | $ | 1,733 | ||||||||||||||
-1 | The Company began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation. | |||||||||||||||||||||||||
-2 | For the three and nine months ended September 30, 2014 and 2013, these amounts are recorded in interest expense on the Company's consolidated statements of income. | |||||||||||||||||||||||||
-3 | For the three and nine months ended September 30, 2014 and 2013, these amounts are recorded in interest income on loans on the Company's consolidated statements of income. | |||||||||||||||||||||||||
(4) Investment in School Lane House and preferred equity were sold as of September 30, 2014. | ||||||||||||||||||||||||||
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. |
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
FINANCING RECEIVABLES | ' | |||||||||||||||||||||||||||
NOTE 10 - 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 September 30, 2014 | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2014 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | 13,807 | ||||||||||||||||||
Provision (recovery) for loan losses | (3,708 | ) | 1,033 | — | 936 | (1,739 | ) | |||||||||||||||||||||
Loans charged-off | (2,665 | ) | (3,960 | ) | — | — | (6,625 | ) | ||||||||||||||||||||
Allowance for losses at September 30, 2014 | $ | 4,043 | $ | 464 | $ | — | $ | 936 | $ | 5,443 | ||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 464 | $ | — | $ | 936 | $ | 1,400 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 4,043 | $ | — | $ | — | $ | — | $ | 4,043 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 165,960 | $ | 2,340 | $ | — | $ | 5,108 | $ | 173,408 | ||||||||||||||||||
Collectively evaluated for impairment (1) | $ | 940,423 | $ | 637,772 | $ | 2,825 | $ | — | $ | 1,581,020 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 86 | $ | — | $ | — | $ | 86 | ||||||||||||||||||
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 losses | 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 $83.0 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 factors such as performance of the underlying company, liquidity, collectability of interest, enterprise valuation, default probability, ratings from rating agencies and industry dynamics in grading its bank loans. | ||||||||||||||||||||||||||||
Credit risk profiles of bank loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Rating 5 | Held for Sale | Total | ||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||||
Bank loans | $ | 632,588 | $ | — | $ | 6,173 | $ | — | $ | 1,437 | $ | 36,674 | $ | 676,872 | ||||||||||||||
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 two loans with an amortized cost of $1.4 million as of September 30, 2014. Due to the consolidation of Moselle CLO in February 2014, the Company acquired four loans with deteriorated credit quality with an amortized cost of $86,000 as of September 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 factors such as the strength of underlying sponsorship, payment history, collectability of interest, structural credit enhancements, market trends and loan terms in grading its commercial real estate loans. | ||||||||||||||||||||||||||||
Credit risk profiles of commercial real estate loans were as follows (in thousands): | ||||||||||||||||||||||||||||
Rating 1 | Rating 2 | Rating 3 | Rating 4 | Held for Sale | Total | |||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | 990,471 | $ | 32,500 | $ | — | $ | — | $ | — | $ | 1,022,971 | ||||||||||||||||
B notes | 16,107 | — | — | — | — | 16,107 | ||||||||||||||||||||||
Mezzanine loans | 45,447 | 21,858 | — | — | — | 67,305 | ||||||||||||||||||||||
$ | 1,052,025 | $ | 54,358 | $ | — | $ | — | $ | — | $ | 1,106,383 | |||||||||||||||||
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 September 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 $936,000 allowance for loan loss during the nine months ended September 30, 2014 on a related party loan due to defaults on two individually significant credits in the related party fund holding the loan 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 September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 1,022,971 | $ | 1,022,971 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,107 | 16,107 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 67,305 | 67,305 | — | |||||||||||||||||||||
Bank loans (1) (2) | 774 | — | 1,652 | 2,426 | 674,446 | 676,872 | — | |||||||||||||||||||||
Residential mortgage loans (3) | — | 251 | 117 | 368 | 57,165 | 57,533 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 5,108 | 5,108 | — | |||||||||||||||||||||
Total loans | $ | 774 | $ | 251 | $ | 1,769 | $ | 2,794 | $ | 1,843,102 | $ | 1,845,896 | $ | — | ||||||||||||||
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 $4.5 million with a fair value of $86,000 at September 30, 2014. | |||||||||||||||||||||||||||
-2 | Contains $36.7 million and $6.9 million of bank loans held for sale at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
-3 | Contains $54.7 million and $15.1 million of residential mortgage loans held for sale at September 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 September 30, 2014 | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,888 | $ | 127,888 | $ | — | $ | 126,591 | $ | 11,882 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 2,543 | ||||||||||||||||||
Bank loans | $ | 86 | $ | 86 | $ | — | $ | 86 | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 2,825 | $ | 2,825 | $ | — | $ | 2,825 | $ | 107 | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 2,340 | $ | 2,340 | $ | (464 | ) | $ | 287 | $ | — | |||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 3,929 | $ | 3,929 | $ | (936 | ) | $ | 4,831 | $ | 221 | |||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,888 | $ | 127,888 | $ | — | $ | 126,591 | $ | 11,882 | ||||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 2,543 | |||||||||||||||||||||||
Bank loans | 2,426 | 2,426 | (464 | ) | 373 | — | ||||||||||||||||||||||
Residential mortgage loans | 2,825 | 2,825 | — | 2,825 | 107 | |||||||||||||||||||||||
Loans receivable - related party | 3,929 | 3,929 | (936 | ) | 4,831 | 221 | ||||||||||||||||||||||
$ | 175,140 | $ | 175,140 | $ | (1,400 | ) | $ | 172,692 | $ | 14,753 | ||||||||||||||||||
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 following tables show troubled-debt restructurings in the Company's loan portfolio (in thousands): | ||||||||||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 16,039 | $ | 16,039 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 3 | $ | 54,111 | $ | 54,111 | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Lease receivables | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 16,039 | $ | 16,039 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 3 | $ | 54,111 | $ | 54,111 | |||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | 4 | $ | 104,702 | $ | 109,044 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Lease receivables | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 5 | $ | 111,294 | $ | 115,636 | |||||||||||||||||||||||
As of September 30, 2014 and 2013, there were no troubled-debt restructurings that subsequently defaulted. |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Business Combination | ' | |||
NOTE 11 - BUSINESS COMBINATIONS | ||||
On October 31, 2013, the Company through its TRS, RCC Residential, completed a business combination whereby it acquired the assets of 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. Any grant for employees of PCM are accounted for as compensation and are being amortized to equity compensation expense over 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 nine months ended September 30, 2014, $185,000 and $545,000 of amortization of the stock grants were recorded to equity compensation expense on the Company’s consolidated statement of income and $52,000 and $156,000 of expense related to dividends on unvested shares was recorded to general and administrative expenses on the Company’s consolidated statement of income for the three and nine months ended September 30, 2014, respectively. There was no such expense of the three and nine months ended September 30, 2013. | ||||
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 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 consolidated statements of income. | ||||
The following table sets forth the allocation of the purchase price (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 | ||
On February 27, 2014, the Company made an additional capital contribution to LCF which gave the Company majority ownership at 50.2%. As a result, the Company began consolidating the LCF joint venture. The joint venture was established for the purpose of originating and acquiring life settlement contracts through a financing facility. 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. | ||||
In February 2014, the Company purchased a $40.0 million interest in Moselle CLO, a European securitization, in the form of subordinate notes representing 100% of the Class 1 Subordinated Notes and 67.9% of the Class 2 subordinated Notes, which was accounted for as a business combination. The assets of Moselle CLO 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. 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. While neither the Company nor any of its affiliates 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. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
INTANGIBLE ASSETS | ' | |||||||||||
NOTE 12 - INTANGIBLE ASSETS | ||||||||||||
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 6.8 years and 7.7 years at September 30, 2014 and December 31, 2013, respectively and the accumulated amortization was $11.6 million and $12.5 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||
The following table summarizes intangible assets (in thousands): | ||||||||||||
Asset Balance | Accumulated Amortization | Net Asset | ||||||||||
As of September 30, 2014 | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (11,325 | ) | $ | 9,888 | |||||
Investment in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (234 | ) | 366 | ||||||||
Total intangible assets | $ | 21,813 | $ | (11,559 | ) | $ | 10,254 | |||||
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 nine months ended September 30, 2014, the Company recognized $1.2 million and $4.0 million, respectively, of fee income related to the investment in RCAM. For the three and nine months ended September 30, 2013, the Company recognized $1.2 million and $4.2 million, respectively, of fee income related to the investment in RCAM. |
BORROWINGS
BORROWINGS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
BORROWINGS | ' | |||||||||||||||||||||||
NOTE 13 - 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 | |||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | ||||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 105,841 | $ | 1 | $ | 105,842 | 1.93% | 31.9 years | $ | 139,267 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 137,004 | 242 | 137,246 | 1.06% | 32.0 years | 273,839 | ||||||||||||||||||
RCC CRE Notes 2013 | 223,897 | 2,943 | 226,840 | 2.10% | 14.2 years | 269,371 | ||||||||||||||||||
RCC CRE 2014 | 231,365 | 3,979 | 235,344 | 1.44% | 17.6 years | 347,511 | ||||||||||||||||||
Apidos CDO I Senior Notes | 47,848 | — | 47,848 | 2.54% | 2.8 years | 63,956 | ||||||||||||||||||
Apidos CDO III Senior Notes | 83,621 | — | 83,621 | 1.11% | 6.0 years | 94,516 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 284,160 | 358 | 284,518 | 0.74% | 5.6 years | 303,385 | ||||||||||||||||||
Moselle CLO S.A. Senior Notes, at fair value (6) | 94,904 | — | 94,904 | 1.19% | 5.3 years | 127,312 | ||||||||||||||||||
Moselle CLO S.A. Securitized Borrowings, at fair value (1) | 5,212 | — | 5,212 | 1.19% | N/A | — | ||||||||||||||||||
Unsecured Junior Subordinated Debentures (2) | 51,154 | 394 | 51,548 | 4.19% | 22.1 years | — | ||||||||||||||||||
6.0% Convertible Senior Notes | 107,979 | 7,021 | 115,000 | 6.00% | 4.2 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 55,280 | 654 | 55,934 | 2.32% | 20 days | 83,133 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 21,559 | — | 21,559 | 1.43% | 23 days | 26,540 | ||||||||||||||||||
RMBS - Term Repurchase Facility (5) | 22,705 | 55 | 22,760 | 1.15% | 1 day | 28,533 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 48,885 | — | 48,885 | 3.56% | 278 days | 68,417 | ||||||||||||||||||
CMBS - Short Term Repurchase Agreements | 36,633 | — | 36,633 | 1.53% | 23 days | 47,224 | ||||||||||||||||||
Senior Secured Revolving Credit Agreement (7) | 32,911 | 2,589 | 35,500 | 4.13% | 3 years | 184,167 | ||||||||||||||||||
Total | $ | 1,590,958 | $ | 18,236 | $ | 1,609,194 | 1.98% | 12.2 years | $ | 2,057,171 | ||||||||||||||
Outstanding Borrowings | Unamortized | Principal | Weighted Average | Weighted Average | Value of | |||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | ||||||||||||||||||||
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 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 177,837 | 719 | 178,556 | 0.84% | 32.8 years | 318,933 | ||||||||||||||||||
RCC CRE Notes 2013 | 256,571 | 4,269 | 260,840 | 2.03% | 15.0 years | 305,586 | ||||||||||||||||||
Apidos CDO I Senior Notes | 87,131 | — | 87,131 | 1.68% | 3.6 years | 103,736 | ||||||||||||||||||
Apidos CDO III Senior Notes | 133,209 | 117 | 133,326 | 0.88% | 6.7 years | 145,930 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 321,147 | 853 | 322,000 | 0.74% | 6.4 years | 342,796 | ||||||||||||||||||
Whitney CLO I Securitized Borrowings (1) | 440 | — | 440 | —% | N/A | 885 | ||||||||||||||||||
Unsecured Junior | 51,005 | 543 | 51,548 | 4.19% | 22.8 years | — | ||||||||||||||||||
Subordinated Debentures (2) | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | 106,535 | 8,465 | 115,000 | 6.00% | 4.9 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 29,703 | 1,033 | 30,736 | 2.67% | 21 days | 48,186 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 47,601 | 12 | 47,613 | 1.38% | 21 days | 56,949 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 14,627 | — | 14,627 | 4.24% | 56 days | 16,487 | ||||||||||||||||||
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 the Moselle CLO Securitized Borrowings, 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 $43,000 and $26,000 related to CRE repurchase facilities as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | Amounts also include accrued interest costs of $23,000 and $22,000 related to CMBS repurchase facilities as of September 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 $21,000 related to RMBS repurchase facilities as of September 30, 2014. | |||||||||||||||||||||||
-6 | The fair value option has been elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $95.0 million at September 30, 2014. | |||||||||||||||||||||||
-7 | Weighted average borrowing rate included $25.0 million borrowed at the JPMorgan Chase Bank prime rate to fund the closing on investments. These borrowings were subsequently converted to the lower contracted LIBOR rate and began accruing interest at 2.66% as of October 1, 2014. | |||||||||||||||||||||||
Securitizations | ||||||||||||||||||||||||
The following table sets forth certain information with respect to the Company's securitizations: | ||||||||||||||||||||||||
Securitization | Closing Date | Maturity Dates | Reinvestment Period End | Total Note Paydowns as of September 30, 2014 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | Aug-06 | Aug-46 | Sep-11 | $ | 117.1 | |||||||||||||||||||
RREF CDO 2007-1 Senior Notes | Jun-07 | Sep-46 | Jun-12 | $ | 129.8 | |||||||||||||||||||
RCC CRE Notes 2013 | Dec-13 | Dec-28 | N/A | $ | 34 | |||||||||||||||||||
RCC CRE 2014 | Jul-14 | Apr-32 | N/A | $ | — | |||||||||||||||||||
Apidos CDO I Senior Notes | Aug-05 | Jul-17 | Jul-11 | $ | 271.7 | |||||||||||||||||||
Apidos CDO III Senior Notes | May-06 | Sep-20 | Jun-12 | $ | 178.9 | |||||||||||||||||||
Apidos Cinco CDO Senior Notes | May-07 | May-20 | May-14 | $ | 36.3 | |||||||||||||||||||
Moselle CLO S.A. Senior Notes | Oct-05 | Jan-20 | Jan-12 | $ | 68.6 | |||||||||||||||||||
Moselle CLO S.A. Securitized Borrowings | Oct-05 | Jan-20 | Jan-12 | $ | — | |||||||||||||||||||
The investments held by the Company's securitizations have collateralized the debt issued by the securitizations and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes purchased and retained by the Company as of September 30, 2014 eliminate in consolidation. | ||||||||||||||||||||||||
RCC CRE 2014 | ||||||||||||||||||||||||
In July 2014, the Company closed RCC CRE 2014, a $353.9 million CRE securitization transaction that provided financing for transitional commercial real estate loans. The investments held by RCC CRE 2014 securitized the debt it issued and, as a result, the investments are not available to the Company, its creditors or stockholders. RCC CRE 2014 issued a total of $235.3 million of senior notes at par to unrelated investors. RCC Real Estate purchased 100% of the Class C senior notes (rated B2:Moody's) for $17.7 million. In addition, RREF 2014-CRE2 Investor, LLC a subsidiary of RCC Real Estate, purchased a $100.9 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 2014, 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 2014. There is no reinvestment period for RCC CRE 2014, which will result in the sequential paydown of notes as underlying collateral matures and paydown. | ||||||||||||||||||||||||
At closing, the senior notes issued to investors by RCC CRE 2014 consisted of the following classes: (i) $196.4 million of Class A notes bearing interest at one-month LIBOR plus 1.05%; (ii) $38.9 million of Class B notes bearing interest at one-month LIBOR plus 2.5%; and (iii) $17.7 million of Class C notes bearing interest at one-month LIBOR plus 4.25%. All of the notes issued mature in April 2032, although the Company has the right to call the notes anytime after July 2016 until maturity. The weighted average interest rate on all notes issued to outside investors was 1.44% at September 30, 2014. | ||||||||||||||||||||||||
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 1.19% at September 30, 2014. | ||||||||||||||||||||||||
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 September 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) | $ | 21,559 | $ | 26,540 | 30 | 1.43% | $ | 47,601 | $ | 56,949 | 44 | 1.38% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank (2) | 47,704 | 71,822 | 4 | 2.21% | 30,003 | 48,186 | 3 | 2.67% | ||||||||||||||||
Deutsche Bank AG (3) | 7,576 | 11,311 | 1 | 3.03% | (300 | ) | — | — | —% | |||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
Deutsche Bank Securities, LLC | 25,575 | 29,529 | 8 | 1.47% | — | — | — | —% | ||||||||||||||||
Wells Fargo Securities, LLC | 11,058 | 17,695 | 1 | 1.66% | — | — | — | —% | ||||||||||||||||
RMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (4) | 22,705 | 28,533 | 6 | 1.15% | — | — | — | —% | ||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||
New Century Bank | 16,526 | 17,831 | 94 | 3.45% | 11,916 | 13,089 | 74 | 4.17% | ||||||||||||||||
ViewPoint Bank, NA | 4,395 | 6,079 | 22 | 2.78% | 2,711 | 3,398 | 17 | 4.58% | ||||||||||||||||
Wells Fargo Bank | 27,963 | 44,508 | 65 | 3.75% | — | — | — | —% | ||||||||||||||||
Totals | $ | 185,061 | $ | 253,848 | $ | 91,931 | $ | 121,622 | ||||||||||||||||
-1 | The Wells Fargo CMBS term facility borrowing includes $0 and $12,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-2 | The Wells Fargo CRE term repurchase facility borrowing includes $260,000 and $732,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-3 | The Deutsche Bank term repurchase facility includes $395,000 and $300,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | The Wells Fargo RMBS term repurchase facility includes $55,000 of deferred debt issuance costs as of September 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 21). | ||||||||||||||||||||||||
As of September 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 | $ | 5,153 | $ | 6,736 | 7 | 1.66% | $ | 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 | 4,146 | 6,262 | 2 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 20,437 | 30,869 | 9 | 1.46% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 29,736 | $ | 43,867 | $ | 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 September 30, 2014 | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association (2) | $ | 7,353 | 20 | 1.43% | ||||||||||||||||||||
RMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 5,233 | 1 | 1.15% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 23,677 | 20 | 2.21% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 3,326 | 20 | 3.03% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC (3) | $ | — | 0 | —% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 2,118 | 8 | 1.66% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 10,571 | 29 | 1.47% | ||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
New Century Bank | $ | 17,016 | 334 | 3.45% | ||||||||||||||||||||
ViewPoint Bank, NA | $ | 4,485 | 91 | 2.78% | ||||||||||||||||||||
Wells Fargo Bank | $ | 32,494 | 275 | 3.75% | ||||||||||||||||||||
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 | $5.2 million and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2014 and December 31, 2013, respectively, (see Note 21). | |||||||||||||||||||||||
-3 | There are no linked repurchase agreement borrowings being included as derivative instruments as of September 30, 2014. As of December 31, 2013 $17.0 million of linked repurchase agreement borrowings were being included as derivative instruments. | |||||||||||||||||||||||
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 has 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. Sellers and the Company were in compliance with all financial debt covenants under the 2014 Facility and 2014 Guaranty as of September 30, 2014. | ||||||||||||||||||||||||
CRE – Term Repurchase Facilities | ||||||||||||||||||||||||
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, that ended on July 19, 2014. The Company paid an extension fee of 0.25% of the maximum facility amount to exercise the first of two, one-year extensions at the option of SPE 5. The facility's current termination date is July 19, 2015. The Company guaranteed SPE 5's performance of its obligations under the DB Facility. | ||||||||||||||||||||||||
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 August 30, 2015, which was amended from the original terms over the course of seven amendments. | ||||||||||||||||||||||||
At June 30, 2014, PCM received a waiver from ViewPoint Bank, NA on a covenant 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 September 30, 2014. | ||||||||||||||||||||||||
In July 2014, PCM entered into a master repurchase agreement with Wells Fargo Bank, NA ("Wells Fargo") to finance the acquisition of residential mortgage loans. The Wells Fargo facility contains provisions that provide Wells Fargo with certain rights if certain credit events have occurred with respect to one or more assets financed on the Wells Fargo 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 Wells Fargo facility, or may only be required to the extent of the availability of such payments. The facility has a maximum amount of $75.0 million and a termination date of July 2, 2015. | ||||||||||||||||||||||||
The Wells Fargo 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; breaches of covenants and/or certain representations and warranties; performance defaults by PCM; and a judgment in an amount greater than $250,000 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 Wells Fargo facility and the liquidation by Wells Fargo of assets then subject to the Wells Fargo facility. | ||||||||||||||||||||||||
At September 30, 2014, PCM received a waiver from Wells Fargo Bank, NA on covenants that require PCM to maintain a combined loan-to-value ratio of at least 75% and a minimum adjusted tangible net worth of $30 million. The waiver removed all existing defaults and waived the required covenants as of September 30, 2014. PCM is in compliance with all other covenants under the agreement as of September 30, 2014. | ||||||||||||||||||||||||
Senior Secured Revolving Credit Facility | ||||||||||||||||||||||||
Effective September 18, 2014, the Company, through Northport LLC, closed a $110.0 million syndicated senior secured revolving credit facility with JP Morgan as the agent bank. On September 30, 2014, the accordion feature of the facility was exercised to bring the facility capacity to $225.0 million and concurrently an additional $15.0 million was secured through the addition of Customer's Bank to the syndicate, bringing the effective commitment to $125.0 million. At September 30, 2014, $35.5 million was outstanding on the facility. The facility bears interest at optional rates as either the Prime Rate or LIBOR/the Federal Funds rate as base rates, plus a spread, plus an applicable margin (either 1.50% or 2.50%). The Company guaranteed Northport LLC's performance of its obligations under this credit facility. |
SHARE_ISSUANCE_AND_REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
SHARE ISSUANCE AND REPURCHASE | ' | ||||||||||||
NOTE 14 - SHARE ISSUANCE AND REPURCHASE | |||||||||||||
Three Months Ended September 30, 2014 | Total Outstanding | ||||||||||||
Number of Shares | Weighted Average Offering Price | Number of Shares | Weighted Average Offering Price | ||||||||||
8.50% Series A Preferred Stock | — | $ | — | 1,011,743 | 24.05 | ||||||||
8.25% Series B Preferred Stock | 123,201 | $ | 24.34 | 4,734,495 | 24.06 | ||||||||
8.625% Series C Preferred Stock | — | $ | — | 4,800,000 | 25 | ||||||||
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. | |||||||||||||
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 nine months ended September 30, 2014, the Company sold approximately 2.0 million and 4.6 million shares of common stock through this program, resulting in proceeds of $10.9 million and $25.4 million, respectively. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||
NOTE 15 - 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 | 823,895 | 22,318 | 889,931 | ||||||||||||
Vested | (33,219 | ) | (1,226,831 | ) | — | (1,260,050 | ) | |||||||||
Forfeited | — | — | — | — | ||||||||||||
Unvested shares as of September 30, 2014 | 49,203 | 2,432,587 | 260,686 | 2,742,476 | ||||||||||||
The Company is required to value any unvested shares of restricted common stock granted to non-employees at the current market price. The estimated fair value of the unvested shares of restricted stock granted during the nine months ended September 30, 2014 and 2013, including the grant date fair value of shares issued to the Company’s seven non-employee directors, was $5.0 million, and $1.6 million, respectively. | ||||||||||||||||
The following table summarizes the restricted common stock grants during the nine months ended September 30, 2014: | ||||||||||||||||
Date | Shares (2) | 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 | |||||||||||||
September 24, 2014 | 165,028 | 50% | 7/1/16, 7/1/17 | |||||||||||||
September 24, 2014 | 78,584 | 100% | 5/15/17 | |||||||||||||
-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 were achieved by personnel from the Company’s loan origination team. The performance criteria were measured at the end of three annual measurement periods beginning April 1, 2011. The agreement also provided 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 were paid at the end of each annual measurement period if the performance criteria were met. If the performance criteria were not met, the accrued dividends were forfeited. As a consequence, the Company did 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. | |||||||||||||||
In connection with a grant of restricted common stock made on September 24, 2014, the Company agreed to issue up to 70,728 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 two annual measurement periods beginning March 31, 2015. 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. At September 30, 2014, there was $28,000 of dividends payable upon achievement of performance criteria. If earned, the performance shares will vest over the subsequent 12 months at a rate of one-fourth per quarter. | ||||||||||||||||
The following table summarizes the status of the Company’s unvested stock options as of September 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 September 30, 2014 | — | $ | — | |||||||||||||
The following table summarizes the status of the Company’s vested stock options as of September 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 September 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options granted to Manager and non-employees | $ | — | $ | 4 | $ | (2 | ) | $ | 7 | |||||||
Restricted shares granted to non-employees (1) | 549 | 2,052 | 3,762 | 7,704 | ||||||||||||
Restricted shares granted to employees | 185 | — | 545 | — | ||||||||||||
Restricted shares granted to non-employee directors | 63 | 64 | 192 | 155 | ||||||||||||
Total equity compensation expense | $ | 797 | $ | 2,120 | $ | 4,497 | $ | 7,866 | ||||||||
(1) Non-employees are employees of REXI. | ||||||||||||||||
There was no incentive fee paid to the Manager for the three and nine months ended September 30, 2014. During the three and nine months ended September 30, 2013, the Manager was paid 80,189 and 190,828 shares of the Company's common stock as incentive compensation valued at $485,000 and $1.1 million, respectively, pursuant to the Management Agreement. The incentive management fee is paid one quarter in arrears. | ||||||||||||||||
Apart from incentive compensation payable under the Management Agreement, the Company has established no formal criteria for equity awards as of September 30, 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 | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||
NOTE 16 - EARNINGS PER SHARE | ||||||||||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the periods presented as follows (in thousands, except share and per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic: | ||||||||||||||||
Net income allocable to common shares | $ | 7,328 | $ | 22,121 | $ | 37,121 | $ | 40,180 | ||||||||
Weighted average number of shares outstanding | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 | ||||||||||||
Basic net income per share | $ | 0.06 | $ | 0.18 | $ | 0.29 | $ | 0.34 | ||||||||
Diluted: | ||||||||||||||||
Net income allocable to common shares | $ | 7,328 | $ | 22,121 | $ | 37,121 | $ | 40,180 | ||||||||
Weighted average number of shares outstanding | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 | ||||||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,573,394 | 1,860,650 | 1,271,538 | 1,502,836 | ||||||||||||
Adjusted weighted-average number of common shares outstanding | 131,227,759 | 126,072,682 | 128,705,916 | 117,973,978 | ||||||||||||
Diluted net income per share | $ | 0.06 | $ | 0.18 | $ | 0.29 | $ | 0.34 | ||||||||
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 nine months ended September 30, 2014 and 640,666 shares for the three and nine months ended September 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 (LOSS) INCOME | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||
NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||
The following table, which is presented gross of tax, presents the changes in each component of accumulated other comprehensive (loss) income for the nine months ended September 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 | 2,351 | 7,466 | (157 | ) | 9,660 | |||||||||||
Amounts reclassified from accumulated other | 212 | 8,161 | — | 8,373 | ||||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 2,563 | 15,627 | (157 | ) | 18,033 | |||||||||||
September 30, 2014 | $ | (8,592 | ) | $ | 12,543 | $ | 39 | $ | 3,990 | |||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 18 - RELATED PARTY TRANSACTIONS | |
Relationship with Resource America and Certain of its Subsidiaries | |
Relationship with Resource America. On September 19, 2013, the Audit Committee of the Board of Directors of Resource America concluded that Resource America should consolidate the financial statements of the Company, which was previously treated as an unconsolidated variable interest entity. The Audit Committee reached this conclusion after consultations with the Office of the Chief Accountant of the Securities and Exchange Commission (the “Commission”) following comments received from the staff of the Division of Corporation Finance of the Commission and the Audit Committee's discussion with the Company's management and its independent registered public accounting firm. Resource America's Audit Committee noted that consolidation of the Company was not expected to materially affect Resource America's previously reported net income attributable to common shareholders. At September 30, 2014, Resource America owned 2,861,592 shares, or 2.1%, 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 nine months ended September 30, 2014, the Manager earned base management fees of approximately $3.5 million and $9.6 million, respectively. For the three and nine months ended September 30, 2013, the Manager earned base management fees of approximately $3.0 million and $8.6 million, respectively, and $1.9 million of incentive management fees for both the three and nine months ended September 30, 2013. No incentive management fees were earned for the three and nine months ended September 30, 2014. 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 nine months ended September 30, 2014, the Company paid the Manager $1.1 million and $3.5 million, respectively, as expense reimbursements. For the three and nine months ended September 30, 2013, the Company paid the Manager $848,000 and $2.7 million, respectively, as expense reimbursements. | |
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 nine months ended September 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 holds $4.4 million in fair market value of trading securities as of September 30, 2014, a decrease of $7.2 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 nine months ended September 30, 2014, RCM earned $0 from its share of the net profits as defined in the Investment Management Agreement. During the three and nine months ended September 30, 2013, RCM earned $0 and $35,000, respectively, as its share of the net profits as defined in the Investment Management Agreement. 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 nine months ended September 30, 2014, the Company paid RCM $6,000 and $132,000, respectively, as expense reimbursements. For the three and nine months ended September 30, 2013, the Company paid RCM $67,000 and $198,000, respectively, as expense reimbursements. The portfolio began a partial liquidation during the year ended December 31, 2013. | |
At September 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 $667,000. 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 September 30, 2014, the Company was indebted to RCM under the Company’s Investment Management Agreement for $175,000 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 eight and seven securitizations as of September 30, 2014 and December 31, 2013, respectively, which were structured for the Company by the Manager. Under the Management Agreement, the Manager was not separately compensated by the Company for structuring these transactions and is not separately compensated for managing the securitization'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. 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 a further 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 $1.8 million were made during the nine months ended September 30, 2014. During the three and nine months ended September 30, 2014, the Company recorded an allowance for loan loss on this loan of $236,000 and $936,000, respectively. The loan amount outstanding at September 30, 2014 and December 31, 2013 was $3.9 million (net of allowance of $936,000) 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 nine months ended September 30, 2014 the Company recorded a gain of $13,000 and loss of $859,000, respectively. For the three and nine months ended September 30, 2013, the Company recorded earnings of $346,000 and a loss of $378,000, 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 $40.2 million and $41.0 million as of September 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 nine months ended September 30, 2014, CVC Credit Partners earned subordinated fees of $309,000 and $1.0 million, respectively. For three and nine months ended September 30, 2013, CVC Credit Partners earned subordinated fees of $160,000 and $515,000, 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 liquidated 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, L.P. which generally invests in assets through the Master Fund. 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 since the Company is a related party of CVC Credit Partners. For the three and nine months ended September 30, 2014, the Company recorded earnings of $47,000 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 nine months ended September 30, 2013, the Company recorded earnings of $433,000 and $526,000, respectively. The Company's investment balance of $18.2 million and $16.2 million as of September 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 no indebtedness to Resource Real Estate for loan origination costs in connection with the Company’s commercial real estate loan portfolio as of September 30, 2014 and December 31, 2013, respectively. | |
On August 9, 2006, the Company, through its subsidiary, RCC Real Estate, originated a loan to Lynnfield Place, a multi-family apartment property, in the amount of $22.4 million. The loan was then purchased by RREF CDO 2006-1. The loan, which matures on May 9, 2018, carries an interest rate of LIBOR plus a spread of 3.50% with a LIBOR floor of 2.50%. On June 14, 2011, RCC Real Estate converted this loan, collateralized by a multi-family building, to equity. The loan was kept outstanding and continues to be used as collateral in RREF CDO 2006-1. 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 nine months ended September 30, 2014 in the amounts of $36,000 and $105,000, respectively. The Company incurred fees payable to RREM for the three and nine months ended September 30, 2013 in the amounts of $34,000 and $103,000, respectively. The property was listed for sale in 2014 and is currently under contract with a buyer and expected to close and settle in the fourth quarter 2014. | |
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. RREM acts as asset manager of the venture and receives a monthly asset management fee equal to 1.0% of the combined investment calculated as of the last calendar day of the month. For the three and nine months ended September 30, 2014, the Company paid RREM management fees of $0 and $6,000, respectively. For the three and nine months ended September 30, 2013, the Company paid RREM management fees of $6,500 and $23,000, respectively. For the three and nine months ended September 30, 2014, the Company recorded income of $770,000 and $2.5 million, respectively. For the three and nine months ended September 30, 2013, the Company recorded losses of $521,000 and $735,000, respectively, which was recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. The investment balance was zero at both September 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. The last property was sold in July 2014. | |
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 nine months ended September 30, 2014. The loan balance was $558,000 and $950,000 at September 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 $1.1 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 $54,000 and $151,000 during the three and nine months ended September 30, 2013, respectively. No fees were paid during the three and nine months ended September 30, 2014 as the property was sold on September 30, 2013 for a gain of $16.6 million, which was recorded in (loss) 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 nine months ended September 30, 2014, as all condominiums were sold as of December 31, 2013. For the three and nine months ended September 30, 2013, the Company paid RREM management fees of $7,000 and $33,000, respectively. For the three and nine months ended September 30, 2014, the Company recorded losses of $0 and $19,000, respectively. For the three and nine months ended September 30, 2013, the Company recorded earnings of $6,000 and $49,000, respectively, which were recorded in equity in net earnings (losses) of unconsolidated subsidiaries on the consolidated statement of income. | |
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. | |
On July 30, 2014, the Company closed RCC CRE 2014, a $353.9 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 paid Resource Securities a $175,000 placement agent fee in connection with this transaction. | |
In July 2014, the Company formed RCM Global Manager to invest in RCM Global, an entity formed to hold a portfolio of structured product securities. The Company contributed $15.0 million for a 63.8% membership interest in RCM Global. A five member board manages RCM Global, and all actions including purchases and sales are approved by no less than three of the five members of the board. The portion of RCM Global that the Company does not own is presented as non-controlling interests as of the dates and for the periods presented in the Company's consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. | |
In September 2014, the Company contributed $17.5 million of capital to Pelium Capital for an 80.4% interest. Pelium Capital is a specialized credit opportunity fund managed by Resource America. The Company has committed to contributing an additional $2.5 million into the fund. The Company will receive 10% of the carried interest in the partnership for the first five years and can increase to 20% if the Company's capital contributions aggregate $40.0 million. Resource America contributed securities of $2.8 million to the formation of Pelium Capital. The portion of the fund that the Company does not own is presented as non-controlling interests as of the dates and for the periods presented in the Company's consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. | |
Relationship with Law Firm. Until 1996, Edward E. Cohen, a director who was the Company’s Chairman from its inception until November 2009, was of counsel to Ledgewood, P.C., a law firm. In addition, one of the Company’s executive officers, Jeffrey F. Brotman, was employed by Ledgewood until 2007. Mr. E. Cohen receives certain debt service payments from Ledgewood related to the termination of his affiliation with Ledgewood and its redemption of his interest in the firm. Mr. Brotman also receives certain debt service payments from Ledgewood related to the termination of his affiliation with the firm. For the three and nine months ended September 30, 2014, the Company paid Ledgewood $45,000 and $202,000, respectively, in connection with legal services rendered to the Company. For the three and nine months ended September 30, 2013, the Company paid Ledgewood $70,000 and $155,000, respectively, in connection with legal services rendered to the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
DISTRIBUTIONS [Abstract] | ' | ||||||||||||||||||||||||||||||||||
DISTRIBUTIONS | ' | ||||||||||||||||||||||||||||||||||
NOTE 19 - 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 nine months ended September 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 | ||||||||||||||||||||||||||||||
Sept. 30 | 28-Oct | $ | 26,629 | $ | 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 | ||||||||||||||||||
Sept. 30 | Oct. 30 | $ | 537 | $ | 0.53125 | Sept. 30 | Oct. 30 | $ | 2,430 | $ | 0.515625 | Sept. 30 | Oct. 30 | $ | 2,588 | $ | 0.5390625 | ||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
NOTE 20 - FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
The following table presents information about the Company’s assets and liabilities 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 September 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 9,187 | $ | 9,187 | |||||||||||||
Investment securities available-for-sale | 870 | 1,530 | 278,618 | 281,018 | |||||||||||||||||
CMBS - linked transactions | — | — | 14,272 | 14,272 | |||||||||||||||||
Derivatives (net) | — | 21,618 | — | 21,618 | |||||||||||||||||
Total assets at fair value | $ | 870 | $ | 23,148 | $ | 302,077 | $ | 326,095 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives (net) | $ | — | $ | 872 | $ | 7,958 | $ | 8,830 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 872 | $ | 7,958 | $ | 8,830 | |||||||||||||
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 | 142 | 5,118 | 31 | (2,454 | ) | 2,837 | |||||||||||||||
Purchases | 105,572 | 61,402 | 31,058 | 3,999 | 202,031 | ||||||||||||||||
Sales | (99,151 | ) | (20,100 | ) | — | (2,050 | ) | (121,301 | ) | ||||||||||||
Paydowns | (36,768 | ) | (10,412 | ) | (825 | ) | — | (48,005 | ) | ||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Settlements | — | — | — | — | — | ||||||||||||||||
Included in OCI | 9,009 | 9,091 | 897 | (1,481 | ) | 17,516 | |||||||||||||||
Transfers out of Level 2 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||
Balance, September 30, 2014 | $ | 189,589 | $ | 71,755 | $ | 31,612 | $ | 9,121 | $ | 302,077 | |||||||||||
In accordance with FASB ASC Topic 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 | (2,233 | ) | |||||||||||||||||||
Ending balance, September 30, 2014 | $ | 7,958 | |||||||||||||||||||
The Company had no losses included in earnings due to other-than-temporary impairment charges during the three and nine months ended September 30, 2014, respectively. The Company had $255,000 and $811,000 of losses included in earnings due to the other-than-temporary impairment charges during the three and nine months ended September 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 nine months ended September 30, 2014 was $807,000 and $1.2 million, respectively. For the three and nine months ended September 30, 2013, nonrecurring fair value losses for impaired loans was $69,000 and $3.1 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 September 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loans held for sale | $ | — | $ | 36,674 | $ | 54,708 | $ | 91,382 | |||||||||||||
Impaired loans | — | 893 | — | 893 | |||||||||||||||||
Total assets at fair value | $ | — | $ | 37,567 | $ | 54,708 | $ | 92,275 | |||||||||||||
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 September 30, 2014, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | |||||||||||||||||||||
Fair Value at September 30, 2014 | Valuation Technique | Significant Unobservable Inputs | Significant Unobservable Input Value | ||||||||||||||||||
Interest rate swap agreements | $ | 7,958 | 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 (see Note 5). The fair value of the Company’s investment securities available-for-sale (see Note 6). The fair value of the Company’s derivative instruments and linked transactions is reported (see Note 21). | |||||||||||||||||||||
Loans held-for-investment: The fair value of the Company’s Level 2 Loans held-for-investment are primarily measured using a third-party pricing service. The fair value of the Company’s Level 3 Loans held-for-investment are 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. Moselle CLO is valued using a third party pricing specialist. | |||||||||||||||||||||
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 $2.2 million and $3.5 million on the fair value of loans of Moselle CLO and a loss of $2.6 million and $3.0 million 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 and nine months ended September 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 September 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 September 30, 2014 | |||||||||||||||||||||
Loans held-for-investment (1) | $ | 1,744,899 | $ | 1,730,763 | $ | — | $ | 632,815 | $ | 1,097,948 | |||||||||||
Loans receivable-related party | $ | 4,172 | $ | 4,172 | $ | — | $ | — | $ | 4,172 | |||||||||||
CDO notes (2) | $ | 1,213,852 | $ | 1,131,145 | $ | — | $ | 1,131,145 | $ | — | |||||||||||
Junior subordinated notes | $ | 51,154 | $ | 17,648 | $ | — | $ | — | $ | 17,648 | |||||||||||
Repurchase agreements | $ | 185,062 | $ | 185,062 | $ | — | $ | — | $ | 185,062 | |||||||||||
Senior secured revolving credit agreement | $ | 32,911 | $ | 32,911 | $ | — | $ | — | $ | 32,911 | |||||||||||
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 $89.2 million and a fair value of $83.0 million at September 30, 2014. | ||||||||||||||||||||
-2 | Contains CDO notes for which the fair value option was elected with an unpaid principal balance of $95.0 million and a fair value of $92.5 million at September 30, 2014. |
MARKET_RISK_AND_DERIVATIVE_INS
MARKET RISK AND DERIVATIVE INSTRUMENTS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
MARKET RISK AND DERIVATIVE INSTRUMENTS | ' | |||||||||||||||||||||||
NOTE 21 - MARKET RISK AND DERIVATIVE INSTRUMENTS | ||||||||||||||||||||||||
The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." When deemed appropriate, the Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are interest rate risk and foreign currency exchange rate risk. | ||||||||||||||||||||||||
The Company may use various derivatives in the ordinary course of business such as interest rate swaps, forward contracts as well as interest rate lock commitments. Interest rate swap agreements are contracts between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. Forward contracts represent future commitments to either purchase or to deliver loans, securities or a quantity of a currency at a predetermined future date, at a predetermined rate or price and are used to manage interest rate risk on loan commitments and mortgage loans held for sale as well as currency risk with respect to the Company's long positions in foreign currency-denominated investment securities. 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 in the Company's residential mortgage loan portfolio. | ||||||||||||||||||||||||
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 September 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 $124.7 million at September 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 liability related to interest rate swaps was $8.2 million and $10.6 million as of September 30, 2014 and December 31, 2013, respectively. The Company had aggregate unrealized losses of $8.6 million and $10.8 million on the interest rate swap agreements as of September 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. | ||||||||||||||||||||||||
The Company is also exposed to currency exchange risk, a form of risk that arises from the change in price of one currency against another. Substantially all of the Company's revenues are transacted in U.S. dollars; however, a significant amount of the Company's capital is exposed to other currencies, primarily the euro and the pound sterling. To address this market risk, the Company generally hedges foreign currency-denominated exposures (typically investments in debt instruments, including forecasted principal and interest payments) with currency forward contracts. | ||||||||||||||||||||||||
Forward 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. 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. | ||||||||||||||||||||||||
During the warehousing phase of the Company’s investments in structured vehicles, the Company may enter into total return swaps to finance the Company’s exposure to assets that will ultimately be securitized. A total return swap is a swap agreement in which one party makes payments based on a set rate, while the other party makes payments based on the return of an underlying asset. Traditionally, the Company pays either an indexed or fixed interest payment to the warehousing lender and receives the net interest income and realized capital gains of the referenced portfolio of assets, generally loans, to be securitized that are owned and held by the warehousing lender. Upon the close of the warehousing period, the Company’s invested equity plus net interest and any capital gains realized during the warehousing period are returned to the Company. Additionally, upon the close of the securitization, the Company may purchase beneficial interests in the securitization at fair value. | ||||||||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | 49,594 | Derivatives, at fair value | $ | 1,136 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 31,000 | Derivatives, at fair value | $ | 17 | |||||||||||||||||||
Forward contracts - foreign currency | $ | 41,190 | Derivatives, at fair value | $ | 2,192 | |||||||||||||||||||
Total return swap | $ | 201,887 | Derivatives, at fair value | $ | 18,273 | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,739 | Derivatives, at fair value | $ | 8,235 | |||||||||||||||||||
Interest rate lock agreements | $ | 10,295 | Derivatives, at fair value | $ | 116 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 70,500 | Derivatives, at fair value | $ | 271 | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - TBA securities | $ | 190,000 | Derivatives, at fair value | $ | 208 | |||||||||||||||||||
Interest rate swap contracts | $ | 124,739 | Accumulated other comprehensive loss | $ | 8,235 | |||||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Total return swap | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 129,497 | Derivatives, at fair value | $ | 10,586 | |||||||||||||||||||
Interest rate lock agreements | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - TBA securities | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Interest rate swap contracts | $ | 129,497 | Accumulated other comprehensive loss | $ | 10,586 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Gains (Loss) (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,739 | Interest expense | $ | 4,917 | |||||||||||||||||||
Interest rate lock agreements | $ | 59,889 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 733 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 101,500 | Net realized gain on sales of investment securities available-for-sale and loans | $ | (254 | ) | ||||||||||||||||||
Forward contracts - foreign currency | $ | 41,190 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 2,192 | |||||||||||||||||||
Total return swap | $ | 201,887 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 960 | |||||||||||||||||||
Forward contracts - TBA securities | $ | 190,000 | Net realized and unrealized gain/(loss) on investment securities available-for-sale and loans | $ | (280 | ) | ||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Gains (Loss) (1) | ||||||||||||||||||||||
Interest rate swap contracts | 130,785 | Interest expense | $ | 5,118 | ||||||||||||||||||||
Interest rate lock agreements | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
Total return swap | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
(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 September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 14,272 | ||||||||||||||||||||
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 | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
(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 | $ | 7,494 | ||||||||||||||||||||
Linked transactions at fair value, 2013 | Non-Hedging | Unrealized (loss) gain and net interest income on linked transactions, net | $ | (4,343 | ) | |||||||||||||||||||
-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 | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 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 | $ | 495 | $ | 801 | $ | 2,295 | $ | 2,005 | ||||||||||||||||
Interest expense attributable to linked repurchase | (107 | ) | (201 | ) | (514 | ) | (524 | ) | ||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | (211 | ) | 561 | 5,713 | (5,824 | ) | ||||||||||||||||||
Unrealized net (losses) gains and net interest income from linked transactions | $ | 177 | $ | 1,161 | $ | 7,494 | $ | (4,343 | ) | |||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 43,303 | $ | 650 | $ | (86 | ) | $ | 43,867 | |||||||||||||||
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-Sep-14 | ||||||||||||||||||||||||
Less than one year | $ | 5,090 | $ | 5,012 | 5.33% | |||||||||||||||||||
Greater than one year and less than five years | 34,438 | 34,041 | 5.37% | |||||||||||||||||||||
Greater than five years and less than ten years | 4,339 | 4,250 | 4.25% | |||||||||||||||||||||
Greater than ten years | — | — | —% | |||||||||||||||||||||
Total | $ | 43,867 | $ | 43,303 | 5.25% | |||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 12,368 | $ | (55 | ) | $ | 762 | $ | (31 | ) | $ | 13,130 | $ | (86 | ) | |||||||||
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 | September 30, | |||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 26,682 | $ | (18,704 | ) | $ | — | $ | (498 | ) | $ | 18 | $ | 7,498 | ||||||||||
Aa1 through Aa3 | 8,919 | (9,589 | ) | — | 670 | — | ||||||||||||||||||
A1 through A3 | — | — | — | — | — | |||||||||||||||||||
Baa1 through Baa3 | 6,473 | — | — | 69 | 6,542 | |||||||||||||||||||
Ba1 through Ba3 | 10,310 | (10,768 | ) | — | 458 | — | ||||||||||||||||||
B1 through B3 | 12,155 | 3,122 | — | 744 | 16,021 | |||||||||||||||||||
Non-Rated | 29,284 | (16,361 | ) | — | 883 | 13,806 | ||||||||||||||||||
Total | $ | 93,823 | $ | (52,300 | ) | $ | — | $ | (498 | ) | $ | 2,842 | $ | 43,867 | ||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 17,642 | $ | (9,773 | ) | $ | — | $ | (498 | ) | $ | (635 | ) | $ | 6,736 | |||||||||
BBB+ through BBB- | 9,953 | — | 1,042 | — | 135 | 11,130 | ||||||||||||||||||
BB+ through BB- | 2,865 | 99 | 4,458 | — | 262 | 7,684 | ||||||||||||||||||
B+ through B- | 19,619 | (99 | ) | (5,500 | ) | — | 738 | 14,758 | ||||||||||||||||
CCC+ through CCC- | — | 2,797 | — | — | — | 2,797 | ||||||||||||||||||
Non-Rated | 43,744 | (45,324 | ) | — | — | 2,342 | 762 | |||||||||||||||||
Total | $ | 93,823 | $ | (52,300 | ) | $ | — | $ | (498 | ) | $ | 2,842 | $ | 43,867 | ||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Maturity or Repricing | Balance | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | ||||||||||||||||||||
Within 30 days | $ | 29,729 | 1.48 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 29,729 | 1.48 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
OFFSETTING_OF_FINANCIAL_ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | ' | ||||||||||||||||||||||||
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | ' | ||||||||||||||||||||||||
NOTE 22 - 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 assets and derivative assets 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 Assets Included in | Instruments (1) | Collateral | Net Amount | ||||||||||||||||||||
Recognized | Consolidated | the Consolidated | Pledged | ||||||||||||||||||||||
Assets | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 18,273 | $ | — | $ | 18,273 | $ | 18,273 | $ | — | $ | — | |||||||||||||
at fair value (1) | |||||||||||||||||||||||||
Total | $ | 18,273 | $ | — | $ | 18,273 | $ | 18,273 | $ | — | $ | — | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
at fair value | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
1 | Amounts represent value of assets invested in a warehouse agreement, amounts invested were in euro and pound sterling and the balance reflected is the currency conversion equivalent as of September 30, 2014. | ||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 8,235 | $ | — | $ | 8,235 | $ | — | $ | 500 | $ | 7,735 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 185,062 | — | 185,062 | 185,062 | — | — | |||||||||||||||||||
Total | $ | 193,297 | $ | — | $ | 193,297 | $ | 185,062 | $ | 500 | $ | 7,735 | |||||||||||||
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 $2.6 million and $3.5 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
-4 | The fair value of securities pledged against the Company's repurchase agreements was $253.8 million and $121.6 million at September 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 | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 23 - 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 September 30, 2014. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 24 - 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 $2.7 million in proceeds from the issuance of 118,351 shares of Series B preferred stock through the Company’s at-the-market program during October 2014. | |
In October 2014, the Company announced that its Board of Directors has authorized a stock repurchase plan under which the Company may buy up to $50.0 million of its outstanding shares of common stock. The Company has bought back 1,350,000 shares for $6.7 million through November 10, 2014. | |
On October 27, 2014, the Company liquidated Apidos CDO I. Proceeds from the liquidation were used to pay the notes down in full. | |
On October 31, 2014, the Company agreed to a modification of the terms of the Wells CRE repurchase facility agreement. The modification increases the facility maximum by $150.0 million from $250.0 million to $400.0 million and extends the facility's maturity date to August 27, 2016. The modification has also increased the facility's maximum single asset concentration limit and reduced the minimum portfolio debt yield tests requirement. The modification also reduced pricing spreads on select portfolio assets. The Company paid a structuring fee of $1.6 million upon the closing of the modification. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 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. | |
Recent Accounting Standards | ' |
Recent Accounting Standards | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued guidance that clarifies the disclosures management must make in its interim and annual financial statement footnotes when management has determined that conditions exist that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued (or within one year after the date the financial statements are available to be issued when applicable). In accordance with this guidance, management’s assessment is required to be made each reporting period and should be based on relevant conditions and events that are known and reasonably knowable at the date the financial statements are issued. In all cases, to the extent that substantial doubt about the entity’s ability to continue as a going concern is determined to be probable, management must disclose the principal conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that either alleviated or are intended to mitigate the conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern. Additionally, to the extent substantial doubt about the entity’s ability to continue as a going concern is not alleviated by management’s plans, management must indicate in the footnotes that there is substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect adoption will have a material impact on its consolidated financial statements. | |
In August 2014, the FASB issued guidance that provides for the election of a measurement alternative when a reporting entity determines that it is the primary beneficiary of a collateralized financing entity and, hence, is required to consolidate that collateralized financing entity. The measurement alternative allows a qualifying, consolidated collateralized financing entity to use the more observable of the fair value the financial assets or the fair value of financial liabilities adjusted by the carrying amount of non-financial assets, the fair value of any beneficial interests retained by the reporting entity (including those beneficial interest that represent compensation for services). Alternatively, if the measurement alternative is not elected for a qualifying, consolidated collateralized financing entity, this guidance requires that the financial assets and financial liabilities be measured in accordance with Topic 820, and any difference in the fair value of the financial assets and the fair value of the financial liabilities would be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). This guidance is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted as of the beginning of an annual period. 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 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 non-controlling 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 was effective for an entity’s interim and annual reporting periods in fiscal years that began after December 15, 2013. Earlier application was 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. |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Sep. 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 September 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 | $ | 40,157 | $ | 1,548 | $ | — | $ | 41,705 | $ | 41,705 | ||||||||||||||||||||||||||||||||||
Intangible assets | — | — | 9,878 | 9,878 | $ | 9,878 | ||||||||||||||||||||||||||||||||||||||
Total assets | 40,157 | 1,548 | 9,878 | 51,583 | ||||||||||||||||||||||||||||||||||||||||
Borrowings | — | 51,154 | — | 51,154 | N/A | |||||||||||||||||||||||||||||||||||||||
Total liabilities | — | 51,154 | — | 51,154 | N/A | |||||||||||||||||||||||||||||||||||||||
Net asset (liability) | $ | 40,157 | $ | (49,606 | ) | $ | 9,878 | $ | 429 | N/A | ||||||||||||||||||||||||||||||||||
The following table shows the classification and carrying value of assets and liabilities of the Company's consolidated VIEs as of September 30, 2014 (in thousands): | ||||||||||||||||||||||||||||||||||||||||||||
Apidos I | Apidos | Apidos | Apidos | Whitney CLO I | RREF | RREF | RCC CRE Notes 2013 | RCC CRE 2014 | Moselle | Total | ||||||||||||||||||||||||||||||||||
III | Cinco | VIII | 2006-1 | 2007-1 | ||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
Restricted cash (1) | $ | 15,366 | $ | 3,529 | $ | 24,663 | $ | 5 | $ | 80 | $ | 20 | $ | 250 | $ | 3,337 | $ | — | $ | 33,383 | $ | 80,633 | ||||||||||||||||||||||
Investment securities available-for-sale, pledged as collateral, at fair value | 3,452 | 3,947 | 11,313 | — | — | 11,359 | 67,784 | — | — | 12,521 | 110,376 | |||||||||||||||||||||||||||||||||
Loans, pledged as collateral | 9,896 | 87,750 | 274,442 | — | — | 128,369 | 204,978 | 267,963 | 349,381 | 83,009 | 1,405,788 | |||||||||||||||||||||||||||||||||
Loans held for sale | 35,740 | 364 | 570 | — | — | — | — | — | — | — | 36,674 | |||||||||||||||||||||||||||||||||
Interest receivable | (268 | ) | 443 | 959 | — | — | 2,471 | 2,015 | 1,114 | 1,332 | — | 8,066 | ||||||||||||||||||||||||||||||||
Prepaid assets | 6 | 7 | 28 | — | — | 100 | 76 | — | — | — | 217 | |||||||||||||||||||||||||||||||||
Principal paydown receivable | — | — | — | — | — | 25,803 | 8,297 | — | — | — | 34,100 | |||||||||||||||||||||||||||||||||
Other Assets | — | — | — | — | — | — | — | — | (12 | ) | — | (12 | ) | |||||||||||||||||||||||||||||||
Total assets (2) | $ | 64,192 | $ | 96,040 | $ | 311,975 | $ | 5 | $ | 80 | $ | 168,122 | $ | 283,400 | $ | 272,414 | $ | 350,701 | $ | 128,913 | $ | 1,675,842 | ||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||
Borrowings | $ | 47,848 | $ | 83,621 | $ | 284,160 | $ | — | $ | — | $ | 105,841 | $ | 137,004 | $ | 223,897 | $ | 231,365 | $ | 101,187 | $ | 1,214,923 | ||||||||||||||||||||||
Accrued interest expense | 218 | 46 | 289 | — | — | 44 | 99 | 172 | 123 | 289 | 1,280 | |||||||||||||||||||||||||||||||||
Derivatives, at fair value | — | — | — | — | — | 1,044 | 6,914 | — | — | — | 7,958 | |||||||||||||||||||||||||||||||||
Accounts payable and other liabilities | 22 | 48 | 25 | 195 | — | 11 | 1 | — | 10 | (730 | ) | (418 | ) | |||||||||||||||||||||||||||||||
Total liabilities | $ | 48,088 | $ | 83,715 | $ | 284,474 | $ | 195 | $ | — | $ | 106,940 | $ | 144,018 | $ | 224,069 | $ | 231,498 | $ | 100,746 | $ | 1,223,743 | ||||||||||||||||||||||
(1) Includes $3.6 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) | 9 Months Ended | |||||||
Sep. 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): | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2014 | 2013 | |||||||
Non-cash financing activities include the following: | ||||||||
Distributions on common stock declared but not paid | $ | 26,629 | $ | 25,447 | ||||
Distributions on preferred stock declared but not paid | $ | 5,555 | $ | 2,023 | ||||
Issuance of restricted stock | $ | 890 | $ | 242 | ||||
INVESTMENT_SECURITIES_TRADING_
INVESTMENT SECURITIES TRADING (Tables) | 9 Months Ended | |||||||||||||||
Sep. 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 September 30, 2014 | ||||||||||||||||
Structured notes, trading | $ | 10,821 | $ | 317 | $ | (2,017 | ) | $ | 9,121 | |||||||
RMBS, trading | 1,897 | — | (1,831 | ) | 66 | |||||||||||
Total | $ | 12,718 | $ | 317 | $ | (3,848 | ) | $ | 9,187 | |||||||
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) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 50,160 | $ | 56,395 | 3.84% | ||||||||||||||||||||||||||||
Greater than one year and less than five years | 142,079 | 133,098 | 5.03% | ||||||||||||||||||||||||||||||
Greater than five years and less than ten years | 44,913 | 38,301 | 5.32% | ||||||||||||||||||||||||||||||
Greater than ten years | 43,866 | 43,266 | 5.40% | ||||||||||||||||||||||||||||||
Total | $ | 281,018 | $ | 271,060 | 4.97% | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Less than one year | $ | 39,256 | $ | 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% | ||||||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 35,833 | $ | (580 | ) | 18 | $ | 27,065 | $ | (6,930 | ) | 14 | $ | 62,898 | $ | (7,510 | ) | 32 | |||||||||||||||
ABS | 13,792 | (1,248 | ) | 13 | 4,410 | (187 | ) | 7 | 18,202 | (1,435 | ) | 20 | |||||||||||||||||||||
Corporate bonds | 1,439 | (24 | ) | 1 | — | — | — | 1,439 | (24 | ) | 1 | ||||||||||||||||||||||
Total temporarily | $ | 51,064 | $ | (1,852 | ) | 32 | $ | 31,475 | $ | (7,117 | ) | 21 | $ | 82,539 | $ | (8,969 | ) | 53 | |||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS position | 3 | $ | 15,970 | $ | 480 | ||||||||||||||||||||||||||||
ABS | 3 | $ | 6,947 | $ | 3,484 | ||||||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||||||||||
CMBS | $ | 176,970 | $ | 5,856 | $ | (7,510 | ) | $ | 175,316 | ||||||||||||||||||||||||
RMBS | 30,697 | 848 | — | 31,545 | |||||||||||||||||||||||||||||
ABS | 60,980 | 12,211 | (1,435 | ) | 71,756 | ||||||||||||||||||||||||||||
Corporate bonds | 2,413 | 12 | (24 | ) | 2,401 | ||||||||||||||||||||||||||||
Total | $ | 271,060 | $ | 18,927 | $ | (8,969 | ) | $ | 281,018 | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
CMBS | $ | 185,178 | $ | 7,570 | $ | (12,030 | ) | $ | 180,718 | ||||||||||||||||||||||||
ABS | 30,775 | 1,644 | (394 | ) | 32,025 | ||||||||||||||||||||||||||||
Corporate bonds | 2,517 | 16 | (70 | ) | 2,463 | ||||||||||||||||||||||||||||
Total | $ | 218,470 | $ | 9,230 | $ | (12,494 | ) | $ | 215,206 | ||||||||||||||||||||||||
The aggregate discount (premium) recognized as of the periods indicated (in thousands) are: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
CMBS | $ | 3,609 | $ | 6,583 | |||||||||||||||||||||||||||||
RMBS | $ | 1,876 | $ | — | |||||||||||||||||||||||||||||
ABS | $ | 2,431 | $ | 2,394 | |||||||||||||||||||||||||||||
Corporate bond | $ | 42 | $ | 68 | |||||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE_Tab
INVESTMENTS IN REAL ESTATE (Tables) | 9 Months Ended | |||||
Sep. 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) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 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 September 30, 2014 | ||||||||||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||||||||||
Whole loans | $ | 1,028,393 | $ | (5,422 | ) | $ | 1,022,971 | |||||||||||||||||||||
B notes | 16,164 | (57 | ) | 16,107 | ||||||||||||||||||||||||
Mezzanine loans | 67,400 | (95 | ) | 67,305 | ||||||||||||||||||||||||
Total commercial real estate loans | 1,111,957 | (5,574 | ) | 1,106,383 | ||||||||||||||||||||||||
Bank loans | 642,419 | (2,221 | ) | 640,198 | ||||||||||||||||||||||||
Residential mortgage loans, held for investment | 2,825 | — | 2,825 | |||||||||||||||||||||||||
Subtotal loans before allowances | 1,757,201 | (7,795 | ) | 1,749,406 | ||||||||||||||||||||||||
Allowance for loan loss | (4,507 | ) | — | (4,507 | ) | |||||||||||||||||||||||
Total loans held for investment | 1,752,694 | (7,795 | ) | 1,744,899 | ||||||||||||||||||||||||
Bank loans held for sale | 36,674 | — | 36,674 | |||||||||||||||||||||||||
Residential mortgage loans held for sale | 54,708 | — | 54,708 | |||||||||||||||||||||||||
Total loans held for sale | 91,382 | — | 91,382 | |||||||||||||||||||||||||
Total loans | $ | 1,844,076 | $ | (7,795 | ) | $ | 1,836,281 | |||||||||||||||||||||
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 | 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 $133,000 and $216,000 and deferred upfront fees of $97,000 and $141,000 being amortized over the life of the bank loans as of September 30, 2014 and December 31, 2013, respectively. Amounts include loan origination fees of $5.6 million and $3.3 million and loan extension fees of $0 and $73,000 being amortized over the life of the commercial real estate loans as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
-2 | Substantially all loans are pledged as collateral under various borrowings at September 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 and loans held-for-sale, at the lower of cost or market (in thousands): | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Less than one year | $ | 46,779 | $ | 36,985 | ||||||||||||||||||||||||
Greater than one year and less than five years | 479,790 | 379,874 | ||||||||||||||||||||||||||
Five years or greater | 150,303 | 145,164 | ||||||||||||||||||||||||||
$ | 676,872 | $ | 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 September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans, floating rate (1) (4) (5) | 60 | $ | 1,022,971 | LIBOR plus 1.75% to | January 2015 to | |||||||||||||||||||||||
LIBOR plus 15.00% | Feb-19 | |||||||||||||||||||||||||||
B notes, fixed rate | 1 | 16,107 | 8.68% | Apr-16 | ||||||||||||||||||||||||
Mezzanine loans, floating rate | 1 | 12,544 | LIBOR plus 15.32% | Apr-16 | ||||||||||||||||||||||||
Mezzanine loans, fixed rate (6) | 3 | 54,761 | 0.50% to 18.71% | September 2016 to | ||||||||||||||||||||||||
Sep-21 | ||||||||||||||||||||||||||||
Total (2) | 65 | $ | 1,106,383 | |||||||||||||||||||||||||
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 $68.3 million and $13.7 million in unfunded loan commitments as of September 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 $4.0 million and $10.4 million as of September 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 September 30, 2014, floating rate whole loans includes $4.0 million and $12.0 million mezzanine components of two whole loans, which have fixed rates 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 September 30, 2014. | |||||||||||||||||||||||||||
-6 | Fixed rate mezzanine loans include a mezzanine loan that was modified into two tranches, which both currently pay interest at 0.48%. 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 September 30, 2014 | ||||||||||||||||||||||||||||
B notes | $ | — | $ | — | $ | 16,107 | $ | 16,107 | ||||||||||||||||||||
Mezzanine loans | — | — | 67,305 | 67,305 | ||||||||||||||||||||||||
Whole loans | — | — | 1,022,971 | 1,022,971 | ||||||||||||||||||||||||
Total (1) | $ | — | $ | — | $ | 1,106,383 | $ | 1,106,383 | ||||||||||||||||||||
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. | |||||||||||||||||||||||||||
Loans held For investment | ' | |||||||||||||||||||||||||||
The following table provides information as to the lien position and status of the Company’s consolidated bank loans, (in thousands): | ||||||||||||||||||||||||||||
Amortized Cost | ||||||||||||||||||||||||||||
Apidos I | Apidos III | Apidos Cinco | Whitney CLO I | Northport LLC (1) | Moselle | Total | ||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
First lien loans | $ | 9,895 | $ | 87,107 | $ | 270,598 | $ | — | $ | 101,021 | $ | 80,721 | $ | 549,342 | ||||||||||||||
Second lien loans | — | — | 3,604 | — | 83,614 | 2,201 | 89,419 | |||||||||||||||||||||
Third lien loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Defaulted first lien loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Defaulted second lien loans | — | 972 | 379 | — | — | 86 | 1,437 | |||||||||||||||||||||
Total | 9,895 | 88,079 | 274,581 | — | 184,635 | 83,008 | 640,198 | |||||||||||||||||||||
First lien loans held for sale | 35,738 | 365 | 571 | — | — | — | 36,674 | |||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||
Total | $ | 45,633 | $ | 88,444 | $ | 275,152 | $ | — | $ | 184,635 | $ | 83,008 | $ | 676,872 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||
First lien loans | $ | 79,483 | $ | 126,890 | $ | 296,368 | $ | 72 | $ | 31,974 | $ | — | $ | 534,787 | ||||||||||||||
Second lien loans | — | — | 1,139 | — | 7,805 | — | 8,944 | |||||||||||||||||||||
Third lien loans | 3,020 | 2,475 | 2,463 | — | — | — | 7,958 | |||||||||||||||||||||
Defaulted first lien loans | 1,206 | 1,124 | 486 | — | — | — | 2,816 | |||||||||||||||||||||
Defaulted second lien loans | 334 | 334 | — | — | — | — | 668 | |||||||||||||||||||||
Total | 84,043 | 130,823 | 300,456 | 72 | 39,779 | — | 555,173 | |||||||||||||||||||||
First lien loans held for sale | 537 | 651 | 1,189 | — | 4,473 | — | 6,850 | |||||||||||||||||||||
at fair value | ||||||||||||||||||||||||||||
Total | $ | 84,580 | $ | 131,474 | $ | 301,645 | $ | 72 | $ | 44,252 | $ | — | $ | 562,023 | ||||||||||||||
-1 | In September 2014 Resource TRS, LLC and RCC Commercial transferred all loans to Northport LLC. At December 31, 2013 Resource TRS, LLC and RCC Commercial held a total of $34.0 million and $10.3 million of loans, respectively, at amortized cost. | |||||||||||||||||||||||||||
Allocation of allowance for loan loss | ' | |||||||||||||||||||||||||||
The following is a summary of the allocation of the allowance for loan loss (in thousands, except percentages) by asset class: | ||||||||||||||||||||||||||||
Description | Allowance for | Percentage of Total Allowance | ||||||||||||||||||||||||||
Loan Loss | ||||||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||||
B notes | $ | 69 | 1.53% | |||||||||||||||||||||||||
Mezzanine loans | 289 | 6.41% | ||||||||||||||||||||||||||
Whole loans | 3,685 | 81.76% | ||||||||||||||||||||||||||
Bank loans | 464 | 10.30% | ||||||||||||||||||||||||||
Total | $ | 4,507 | ||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||
Total | $ | 13,807 | ||||||||||||||||||||||||||
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 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 September 30, 2014 and December 31, 2013 and equity in net earnings (losses) of unconsolidated subsidiaries for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||
Equity in Net Earnings (Losses) of Unconsolidated subsidiaries | ||||||||||||||||||||||||||
Balance as of | Balance as of | For the | For the | For the | For the | |||||||||||||||||||||
three months ended | three months | nine months | nine months | |||||||||||||||||||||||
ended | ended | ended | ||||||||||||||||||||||||
Ownership % | September 30, | December 31, | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Varde Investment Partners, L.P | 7.50% | $ | 654 | $ | 674 | $ | — | $ | 6 | $ | (19 | ) | $ | 49 | ||||||||||||
RRE VIP Borrower, LLC | 3% to 5% | — | — | 770 | (521 | ) | 2,506 | (735 | ) | |||||||||||||||||
Investment in LCC Preferred Stock | 28.30% | 40,157 | 41,016 | 13 | (346 | ) | (859 | ) | (378 | ) | ||||||||||||||||
Investment in CVC Global Credit Opportunities Fund | 29.57% | 18,181 | 16,177 | 47 | 433 | 2,004 | 526 | |||||||||||||||||||
Investment in | 50.20% | — | 1,530 | — | (107 | ) | (75 | ) | (350 | ) | ||||||||||||||||
Life Care Funding (1) | ||||||||||||||||||||||||||
Investment in School Lane House (4) | — | 975 | 57 | — | 1,106 | — | ||||||||||||||||||||
Subtotal | 58,992 | 60,372 | 887 | (535 | ) | 4,663 | (888 | ) | ||||||||||||||||||
Investment in RCT I and II (2) | 3% | 1,548 | 1,548 | 601 | 604 | 1,785 | 1,800 | |||||||||||||||||||
Investment in Preferred Equity (3) | — | 7,149 | — | 332 | 410 | 821 | ||||||||||||||||||||
Total | $ | 60,540 | $ | 69,069 | $ | 1,488 | $ | 401 | $ | 6,858 | $ | 1,733 | ||||||||||||||
-1 | The Company began consolidating this investment during the first quarter of 2014. Ownership % represents ownership after consolidation. | |||||||||||||||||||||||||
-2 | For the three and nine months ended September 30, 2014 and 2013, these amounts are recorded in interest expense on the Company's consolidated statements of income. | |||||||||||||||||||||||||
-3 | For the three and nine months ended September 30, 2014 and 2013, these amounts are recorded in interest income on loans on the Company's consolidated statements of income. | |||||||||||||||||||||||||
(4) Investment in School Lane House and preferred equity were sold as of September 30, 2014. |
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 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 September 30, 2014 | ||||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||||
Allowance for losses at January 1, 2014 | $ | 10,416 | $ | 3,391 | $ | — | $ | — | $ | 13,807 | ||||||||||||||||||
Provision (recovery) for loan losses | (3,708 | ) | 1,033 | — | 936 | (1,739 | ) | |||||||||||||||||||||
Loans charged-off | (2,665 | ) | (3,960 | ) | — | — | (6,625 | ) | ||||||||||||||||||||
Allowance for losses at September 30, 2014 | $ | 4,043 | $ | 464 | $ | — | $ | 936 | $ | 5,443 | ||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 464 | $ | — | $ | 936 | $ | 1,400 | ||||||||||||||||||
Collectively evaluated for impairment | $ | 4,043 | $ | — | $ | — | $ | — | $ | 4,043 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 165,960 | $ | 2,340 | $ | — | $ | 5,108 | $ | 173,408 | ||||||||||||||||||
Collectively evaluated for impairment (1) | $ | 940,423 | $ | 637,772 | $ | 2,825 | $ | — | $ | 1,581,020 | ||||||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | 86 | $ | — | $ | — | $ | 86 | ||||||||||||||||||
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 losses | 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 $83.0 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 September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | 990,471 | $ | 32,500 | $ | — | $ | — | $ | — | $ | 1,022,971 | ||||||||||||||||
B notes | 16,107 | — | — | — | — | 16,107 | ||||||||||||||||||||||
Mezzanine loans | 45,447 | 21,858 | — | — | — | 67,305 | ||||||||||||||||||||||
$ | 1,052,025 | $ | 54,358 | $ | — | $ | — | $ | — | $ | 1,106,383 | |||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||||||
Bank loans | $ | 632,588 | $ | — | $ | 6,173 | $ | — | $ | 1,437 | $ | 36,674 | $ | 676,872 | ||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | 1,022,971 | $ | 1,022,971 | $ | — | ||||||||||||||
B notes | — | — | — | — | 16,107 | 16,107 | — | |||||||||||||||||||||
Mezzanine loans | — | — | — | — | 67,305 | 67,305 | — | |||||||||||||||||||||
Bank loans (1) (2) | 774 | — | 1,652 | 2,426 | 674,446 | 676,872 | — | |||||||||||||||||||||
Residential mortgage loans (3) | — | 251 | 117 | 368 | 57,165 | 57,533 | — | |||||||||||||||||||||
Loans receivable- related party | — | — | — | — | 5,108 | 5,108 | — | |||||||||||||||||||||
Total loans | $ | 774 | $ | 251 | $ | 1,769 | $ | 2,794 | $ | 1,843,102 | $ | 1,845,896 | $ | — | ||||||||||||||
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 $4.5 million with a fair value of $86,000 at September 30, 2014. | |||||||||||||||||||||||||||
-2 | Contains $36.7 million and $6.9 million of bank loans held for sale at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
-3 | Contains $54.7 million and $15.1 million of residential mortgage loans held for sale at September 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 September 30, 2014 | ||||||||||||||||||||||||||||
Loans without a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,888 | $ | 127,888 | $ | — | $ | 126,591 | $ | 11,882 | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | 38,072 | $ | 38,072 | $ | — | $ | 38,072 | $ | 2,543 | ||||||||||||||||||
Bank loans | $ | 86 | $ | 86 | $ | — | $ | 86 | $ | — | ||||||||||||||||||
Residential mortgage loans | $ | 2,825 | $ | 2,825 | $ | — | $ | 2,825 | $ | 107 | ||||||||||||||||||
Loans receivable - related party | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans with a specific valuation allowance: | ||||||||||||||||||||||||||||
Whole loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
B notes | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Mezzanine loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Bank loans | $ | 2,340 | $ | 2,340 | $ | (464 | ) | $ | 287 | $ | — | |||||||||||||||||
Residential mortgage loans | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Loans receivable - related party | $ | 3,929 | $ | 3,929 | $ | (936 | ) | $ | 4,831 | $ | 221 | |||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Whole loans | $ | 127,888 | $ | 127,888 | $ | — | $ | 126,591 | $ | 11,882 | ||||||||||||||||||
B notes | — | — | — | — | — | |||||||||||||||||||||||
Mezzanine loans | 38,072 | 38,072 | — | 38,072 | 2,543 | |||||||||||||||||||||||
Bank loans | 2,426 | 2,426 | (464 | ) | 373 | — | ||||||||||||||||||||||
Residential mortgage loans | 2,825 | 2,825 | — | 2,825 | 107 | |||||||||||||||||||||||
Loans receivable - related party | 3,929 | 3,929 | (936 | ) | 4,831 | 221 | ||||||||||||||||||||||
$ | 175,140 | $ | 175,140 | $ | (1,400 | ) | $ | 172,692 | $ | 14,753 | ||||||||||||||||||
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 tables show troubled-debt restructurings in the Company's loan portfolio (in thousands): | ||||||||||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 16,039 | $ | 16,039 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 3 | $ | 54,111 | $ | 54,111 | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Lease receivables | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 2 | $ | 48,374 | $ | 52,716 | |||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
Whole loans | 2 | $ | 16,039 | $ | 16,039 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | 1 | 38,072 | 38,072 | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | — | — | — | |||||||||||||||||||||||||
Total loans | 3 | $ | 54,111 | $ | 54,111 | |||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Whole loans | 4 | $ | 104,702 | $ | 109,044 | |||||||||||||||||||||||
B notes | — | — | — | |||||||||||||||||||||||||
Mezzanine loans | — | — | — | |||||||||||||||||||||||||
Bank loans | — | — | — | |||||||||||||||||||||||||
Lease receivables | — | — | — | |||||||||||||||||||||||||
Loans receivable - related party | 1 | 6,592 | 6,592 | |||||||||||||||||||||||||
Total loans | 5 | $ | 111,294 | $ | 115,636 | |||||||||||||||||||||||
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||
The following table sets forth the allocation of the purchase price (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 | ||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||
Sep. 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 September 30, 2014 | ||||||||||||
Investment in RCAM | $ | 21,213 | $ | (11,325 | ) | $ | 9,888 | |||||
Investment in PCM: | ||||||||||||
Wholesale or correspondent relationships | 600 | (234 | ) | 366 | ||||||||
Total intangible assets | $ | 21,813 | $ | (11,559 | ) | $ | 10,254 | |||||
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 | |||||
BORROWINGS_Tables
BORROWINGS (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 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 | |||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | ||||||||||||||||||||
and Discounts | Maturity | |||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | $ | 105,841 | $ | 1 | $ | 105,842 | 1.93% | 31.9 years | $ | 139,267 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 137,004 | 242 | 137,246 | 1.06% | 32.0 years | 273,839 | ||||||||||||||||||
RCC CRE Notes 2013 | 223,897 | 2,943 | 226,840 | 2.10% | 14.2 years | 269,371 | ||||||||||||||||||
RCC CRE 2014 | 231,365 | 3,979 | 235,344 | 1.44% | 17.6 years | 347,511 | ||||||||||||||||||
Apidos CDO I Senior Notes | 47,848 | — | 47,848 | 2.54% | 2.8 years | 63,956 | ||||||||||||||||||
Apidos CDO III Senior Notes | 83,621 | — | 83,621 | 1.11% | 6.0 years | 94,516 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 284,160 | 358 | 284,518 | 0.74% | 5.6 years | 303,385 | ||||||||||||||||||
Moselle CLO S.A. Senior Notes, at fair value (6) | 94,904 | — | 94,904 | 1.19% | 5.3 years | 127,312 | ||||||||||||||||||
Moselle CLO S.A. Securitized Borrowings, at fair value (1) | 5,212 | — | 5,212 | 1.19% | N/A | — | ||||||||||||||||||
Unsecured Junior Subordinated Debentures (2) | 51,154 | 394 | 51,548 | 4.19% | 22.1 years | — | ||||||||||||||||||
6.0% Convertible Senior Notes | 107,979 | 7,021 | 115,000 | 6.00% | 4.2 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 55,280 | 654 | 55,934 | 2.32% | 20 days | 83,133 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 21,559 | — | 21,559 | 1.43% | 23 days | 26,540 | ||||||||||||||||||
RMBS - Term Repurchase Facility (5) | 22,705 | 55 | 22,760 | 1.15% | 1 day | 28,533 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 48,885 | — | 48,885 | 3.56% | 278 days | 68,417 | ||||||||||||||||||
CMBS - Short Term Repurchase Agreements | 36,633 | — | 36,633 | 1.53% | 23 days | 47,224 | ||||||||||||||||||
Senior Secured Revolving Credit Agreement (7) | 32,911 | 2,589 | 35,500 | 4.13% | 3 years | 184,167 | ||||||||||||||||||
Total | $ | 1,590,958 | $ | 18,236 | $ | 1,609,194 | 1.98% | 12.2 years | $ | 2,057,171 | ||||||||||||||
Outstanding Borrowings | Unamortized | Principal | Weighted Average | Weighted Average | Value of | |||||||||||||||||||
Issuance Costs | Outstanding | Borrowing Rate | Remaining | Collateral | ||||||||||||||||||||
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 | ||||||||||||||
RREF CDO 2007-1 Senior Notes | 177,837 | 719 | 178,556 | 0.84% | 32.8 years | 318,933 | ||||||||||||||||||
RCC CRE Notes 2013 | 256,571 | 4,269 | 260,840 | 2.03% | 15.0 years | 305,586 | ||||||||||||||||||
Apidos CDO I Senior Notes | 87,131 | — | 87,131 | 1.68% | 3.6 years | 103,736 | ||||||||||||||||||
Apidos CDO III Senior Notes | 133,209 | 117 | 133,326 | 0.88% | 6.7 years | 145,930 | ||||||||||||||||||
Apidos Cinco CDO Senior Notes | 321,147 | 853 | 322,000 | 0.74% | 6.4 years | 342,796 | ||||||||||||||||||
Whitney CLO I Securitized Borrowings (1) | 440 | — | 440 | —% | N/A | 885 | ||||||||||||||||||
Unsecured Junior | 51,005 | 543 | 51,548 | 4.19% | 22.8 years | — | ||||||||||||||||||
Subordinated Debentures (2) | ||||||||||||||||||||||||
6.0% Convertible Senior Notes | 106,535 | 8,465 | 115,000 | 6.00% | 4.9 years | — | ||||||||||||||||||
CRE - Term Repurchase Facilities (3) | 29,703 | 1,033 | 30,736 | 2.67% | 21 days | 48,186 | ||||||||||||||||||
CMBS - Term Repurchase Facility (4) | 47,601 | 12 | 47,613 | 1.38% | 21 days | 56,949 | ||||||||||||||||||
Residential Mortgage Financing Agreements | 14,627 | — | 14,627 | 4.24% | 56 days | 16,487 | ||||||||||||||||||
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 the Moselle CLO Securitized Borrowings, 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 $43,000 and $26,000 related to CRE repurchase facilities as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | Amounts also include accrued interest costs of $23,000 and $22,000 related to CMBS repurchase facilities as of September 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 $21,000 related to RMBS repurchase facilities as of September 30, 2014. | |||||||||||||||||||||||
-6 | The fair value option has been elected for the borrowings associated with Moselle CLO. As such, the outstanding borrowings and principal outstanding amounts are stated at fair value. The unpaid principal amounts of these borrowings were $95.0 million at September 30, 2014. | |||||||||||||||||||||||
-7 | Weighted average borrowing rate included $25.0 million borrowed at the JPMorgan Chase Bank prime rate to fund the closing on investments. These borrowings were subsequently converted to the lower contracted LIBOR rate and began accruing interest at 2.66% as of October 1, 2014. | |||||||||||||||||||||||
Schedule of Securitizations | ' | |||||||||||||||||||||||
The following table sets forth certain information with respect to the Company's securitizations: | ||||||||||||||||||||||||
Securitization | Closing Date | Maturity Dates | Reinvestment Period End | Total Note Paydowns as of September 30, 2014 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
RREF CDO 2006-1 Senior Notes | Aug-06 | Aug-46 | Sep-11 | $ | 117.1 | |||||||||||||||||||
RREF CDO 2007-1 Senior Notes | Jun-07 | Sep-46 | Jun-12 | $ | 129.8 | |||||||||||||||||||
RCC CRE Notes 2013 | Dec-13 | Dec-28 | N/A | $ | 34 | |||||||||||||||||||
RCC CRE 2014 | Jul-14 | Apr-32 | N/A | $ | — | |||||||||||||||||||
Apidos CDO I Senior Notes | Aug-05 | Jul-17 | Jul-11 | $ | 271.7 | |||||||||||||||||||
Apidos CDO III Senior Notes | May-06 | Sep-20 | Jun-12 | $ | 178.9 | |||||||||||||||||||
Apidos Cinco CDO Senior Notes | May-07 | May-20 | May-14 | $ | 36.3 | |||||||||||||||||||
Moselle CLO S.A. Senior Notes | Oct-05 | Jan-20 | Jan-12 | $ | 68.6 | |||||||||||||||||||
Moselle CLO S.A. Securitized Borrowings | Oct-05 | Jan-20 | Jan-12 | $ | — | |||||||||||||||||||
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 21). | ||||||||||||||||||||||||
As of September 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 | $ | 5,153 | $ | 6,736 | 7 | 1.66% | $ | 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 | 4,146 | 6,262 | 2 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 20,437 | 30,869 | 9 | 1.46% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 29,736 | $ | 43,867 | $ | 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 September 30, 2014 | ||||||||||||||||||||||||
CMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association (2) | $ | 7,353 | 20 | 1.43% | ||||||||||||||||||||
RMBS Term Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 5,233 | 1 | 1.15% | ||||||||||||||||||||
CRE Term Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank, National Association | $ | 23,677 | 20 | 2.21% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 3,326 | 20 | 3.03% | ||||||||||||||||||||
Short-Term Repurchase Agreements - CMBS | ||||||||||||||||||||||||
JP Morgan Securities, LLC (3) | $ | — | 0 | —% | ||||||||||||||||||||
Wells Fargo Securities, LLC | $ | 2,118 | 8 | 1.66% | ||||||||||||||||||||
Deutsche Bank Securities, LLC | $ | 10,571 | 29 | 1.47% | ||||||||||||||||||||
Residential Mortgage Financing Agreements | ||||||||||||||||||||||||
New Century Bank | $ | 17,016 | 334 | 3.45% | ||||||||||||||||||||
ViewPoint Bank, NA | $ | 4,485 | 91 | 2.78% | ||||||||||||||||||||
Wells Fargo Bank | $ | 32,494 | 275 | 3.75% | ||||||||||||||||||||
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 | $5.2 million and $6.5 million of linked repurchase agreement borrowings are being included as derivative instruments as of September 30, 2014 and December 31, 2013, respectively, (see Note 21). | |||||||||||||||||||||||
-3 | There are no linked repurchase agreement borrowings being included as derivative instruments as of September 30, 2014. As of December 31, 2013 $17.0 million of linked repurchase agreement borrowings were 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 September 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) | $ | 21,559 | $ | 26,540 | 30 | 1.43% | $ | 47,601 | $ | 56,949 | 44 | 1.38% | ||||||||||||
CRE Term | ||||||||||||||||||||||||
Repurchase Facilities | ||||||||||||||||||||||||
Wells Fargo Bank (2) | 47,704 | 71,822 | 4 | 2.21% | 30,003 | 48,186 | 3 | 2.67% | ||||||||||||||||
Deutsche Bank AG (3) | 7,576 | 11,311 | 1 | 3.03% | (300 | ) | — | — | —% | |||||||||||||||
Short-Term Repurchase | ||||||||||||||||||||||||
Agreements - CMBS | ||||||||||||||||||||||||
Deutsche Bank Securities, LLC | 25,575 | 29,529 | 8 | 1.47% | — | — | — | —% | ||||||||||||||||
Wells Fargo Securities, LLC | 11,058 | 17,695 | 1 | 1.66% | — | — | — | —% | ||||||||||||||||
RMBS Term | ||||||||||||||||||||||||
Repurchase Facility | ||||||||||||||||||||||||
Wells Fargo Bank (4) | 22,705 | 28,533 | 6 | 1.15% | — | — | — | —% | ||||||||||||||||
Residential Mortgage | ||||||||||||||||||||||||
Financing Agreements | ||||||||||||||||||||||||
New Century Bank | 16,526 | 17,831 | 94 | 3.45% | 11,916 | 13,089 | 74 | 4.17% | ||||||||||||||||
ViewPoint Bank, NA | 4,395 | 6,079 | 22 | 2.78% | 2,711 | 3,398 | 17 | 4.58% | ||||||||||||||||
Wells Fargo Bank | 27,963 | 44,508 | 65 | 3.75% | — | — | — | —% | ||||||||||||||||
Totals | $ | 185,061 | $ | 253,848 | $ | 91,931 | $ | 121,622 | ||||||||||||||||
-1 | The Wells Fargo CMBS term facility borrowing includes $0 and $12,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-2 | The Wells Fargo CRE term repurchase facility borrowing includes $260,000 and $732,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-3 | The Deutsche Bank term repurchase facility includes $395,000 and $300,000 of deferred debt issuance costs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
-4 | The Wells Fargo RMBS term repurchase facility includes $55,000 of deferred debt issuance costs as of September 30, 2014. |
SHARE_ISSUANCE_AND_REPURCHASE_
SHARE ISSUANCE AND REPURCHASE Tables (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Schedule of Stock by Class, Issues | ' | ||||||||||||
Three Months Ended September 30, 2014 | Total Outstanding | ||||||||||||
Number of Shares | Weighted Average Offering Price | Number of Shares | Weighted Average Offering Price | ||||||||||
8.50% Series A Preferred Stock | — | $ | — | 1,011,743 | 24.05 | ||||||||
8.25% Series B Preferred Stock | 123,201 | $ | 24.34 | 4,734,495 | 24.06 | ||||||||
8.625% Series C Preferred Stock | — | $ | — | 4,800,000 | 25 | ||||||||
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. |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 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 | 823,895 | 22,318 | 889,931 | ||||||||||||
Vested | (33,219 | ) | (1,226,831 | ) | — | (1,260,050 | ) | |||||||||
Forfeited | — | — | — | — | ||||||||||||
Unvested shares as of September 30, 2014 | 49,203 | 2,432,587 | 260,686 | 2,742,476 | ||||||||||||
Restricted common stock grants | ' | |||||||||||||||
The following table summarizes the restricted common stock grants during the nine months ended September 30, 2014: | ||||||||||||||||
Date | Shares (2) | 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 | |||||||||||||
September 24, 2014 | 165,028 | 50% | 7/1/16, 7/1/17 | |||||||||||||
September 24, 2014 | 78,584 | 100% | 5/15/17 | |||||||||||||
Schedule of restricted stock granted | ' | |||||||||||||||
The following table summarizes the restricted common stock grants during the nine months ended September 30, 2014: | ||||||||||||||||
Date | Shares (2) | 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 | |||||||||||||
September 24, 2014 | 165,028 | 50% | 7/1/16, 7/1/17 | |||||||||||||
September 24, 2014 | 78,584 | 100% | 5/15/17 | |||||||||||||
-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 were achieved by personnel from the Company’s loan origination team. The performance criteria were measured at the end of three annual measurement periods beginning April 1, 2011. The agreement also provided 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 were paid at the end of each annual measurement period if the performance criteria were met. If the performance criteria were not met, the accrued dividends were forfeited. As a consequence, the Company did 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 unvested stock options as of September 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 September 30, 2014 | — | $ | — | |||||||||||||
The following table summarizes the status of the Company’s vested stock options as of September 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 September 30, 2014 | 640,666 | $ | 14.45 | 1 | $ | 3 | ||||||||||
Summary of share based compensation expense | ' | |||||||||||||||
The components of equity compensation expense for the periods presented as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Options granted to Manager and non-employees | $ | — | $ | 4 | $ | (2 | ) | $ | 7 | |||||||
Restricted shares granted to non-employees (1) | 549 | 2,052 | 3,762 | 7,704 | ||||||||||||
Restricted shares granted to employees | 185 | — | 545 | — | ||||||||||||
Restricted shares granted to non-employee directors | 63 | 64 | 192 | 155 | ||||||||||||
Total equity compensation expense | $ | 797 | $ | 2,120 | $ | 4,497 | $ | 7,866 | ||||||||
(1) Non-employees are employees of REXI. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||||
Sep. 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic: | ||||||||||||||||
Net income allocable to common shares | $ | 7,328 | $ | 22,121 | $ | 37,121 | $ | 40,180 | ||||||||
Weighted average number of shares outstanding | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 | ||||||||||||
Basic net income per share | $ | 0.06 | $ | 0.18 | $ | 0.29 | $ | 0.34 | ||||||||
Diluted: | ||||||||||||||||
Net income allocable to common shares | $ | 7,328 | $ | 22,121 | $ | 37,121 | $ | 40,180 | ||||||||
Weighted average number of shares outstanding | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 | ||||||||||||
Additional shares due to assumed conversion of dilutive instruments | 1,573,394 | 1,860,650 | 1,271,538 | 1,502,836 | ||||||||||||
Adjusted weighted-average number of common shares outstanding | 131,227,759 | 126,072,682 | 128,705,916 | 117,973,978 | ||||||||||||
Diluted net income per share | $ | 0.06 | $ | 0.18 | $ | 0.29 | $ | 0.34 | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 9 Months Ended | |||||||||||||||
Sep. 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 (loss) income for the nine months ended September 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 | 2,351 | 7,466 | (157 | ) | 9,660 | |||||||||||
Amounts reclassified from accumulated other | 212 | 8,161 | — | 8,373 | ||||||||||||
comprehensive income | ||||||||||||||||
Net current-period other comprehensive income | 2,563 | 15,627 | (157 | ) | 18,033 | |||||||||||
September 30, 2014 | $ | (8,592 | ) | $ | 12,543 | $ | 39 | $ | 3,990 | |||||||
DISTRIBUTIONS_Tables
DISTRIBUTIONS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
DISTRIBUTIONS [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Dividends Declared | ' | ||||||||||||||||||||||||||||||||||
NOTE 19 - 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 nine months ended September 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 | ||||||||||||||||||||||||||||||
Sept. 30 | 28-Oct | $ | 26,629 | $ | 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 | ||||||||||||||||||
Sept. 30 | Oct. 30 | $ | 537 | $ | 0.53125 | Sept. 30 | Oct. 30 | $ | 2,430 | $ | 0.515625 | Sept. 30 | Oct. 30 | $ | 2,588 | $ | 0.5390625 | ||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 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 and liabilities 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 September 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, trading | $ | — | $ | — | $ | 9,187 | $ | 9,187 | |||||||||||||
Investment securities available-for-sale | 870 | 1,530 | 278,618 | 281,018 | |||||||||||||||||
CMBS - linked transactions | — | — | 14,272 | 14,272 | |||||||||||||||||
Derivatives (net) | — | 21,618 | — | 21,618 | |||||||||||||||||
Total assets at fair value | $ | 870 | $ | 23,148 | $ | 302,077 | $ | 326,095 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Derivatives (net) | $ | — | $ | 872 | $ | 7,958 | $ | 8,830 | |||||||||||||
Total liabilities at fair value | $ | — | $ | 872 | $ | 7,958 | $ | 8,830 | |||||||||||||
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 | 142 | 5,118 | 31 | (2,454 | ) | 2,837 | |||||||||||||||
Purchases | 105,572 | 61,402 | 31,058 | 3,999 | 202,031 | ||||||||||||||||
Sales | (99,151 | ) | (20,100 | ) | — | (2,050 | ) | (121,301 | ) | ||||||||||||
Paydowns | (36,768 | ) | (10,412 | ) | (825 | ) | — | (48,005 | ) | ||||||||||||
Issuances | — | — | — | — | — | ||||||||||||||||
Settlements | — | — | — | — | — | ||||||||||||||||
Included in OCI | 9,009 | 9,091 | 897 | (1,481 | ) | 17,516 | |||||||||||||||
Transfers out of Level 2 | — | — | — | — | — | ||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||
Balance, September 30, 2014 | $ | 189,589 | $ | 71,755 | $ | 31,612 | $ | 9,121 | $ | 302,077 | |||||||||||
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 | (2,233 | ) | |||||||||||||||||||
Ending balance, September 30, 2014 | $ | 7,958 | |||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Loans held for sale | $ | — | $ | 36,674 | $ | 54,708 | $ | 91,382 | |||||||||||||
Impaired loans | — | 893 | — | 893 | |||||||||||||||||
Total assets at fair value | $ | — | $ | 37,567 | $ | 54,708 | $ | 92,275 | |||||||||||||
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 September 30, 2014, the significant unobservable inputs used in the fair value measurements were as follows (in thousands): | |||||||||||||||||||||
Fair Value at September 30, 2014 | Valuation Technique | Significant Unobservable Inputs | Significant Unobservable Input Value | ||||||||||||||||||
Interest rate swap agreements | $ | 7,958 | 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 September 30, 2014 | |||||||||||||||||||||
Loans held-for-investment (1) | $ | 1,744,899 | $ | 1,730,763 | $ | — | $ | 632,815 | $ | 1,097,948 | |||||||||||
Loans receivable-related party | $ | 4,172 | $ | 4,172 | $ | — | $ | — | $ | 4,172 | |||||||||||
CDO notes (2) | $ | 1,213,852 | $ | 1,131,145 | $ | — | $ | 1,131,145 | $ | — | |||||||||||
Junior subordinated notes | $ | 51,154 | $ | 17,648 | $ | — | $ | — | $ | 17,648 | |||||||||||
Repurchase agreements | $ | 185,062 | $ | 185,062 | $ | — | $ | — | $ | 185,062 | |||||||||||
Senior secured revolving credit agreement | $ | 32,911 | $ | 32,911 | $ | — | $ | — | $ | 32,911 | |||||||||||
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 $89.2 million and a fair value of $83.0 million at September 30, 2014. | ||||||||||||||||||||
-2 | Contains CDO notes for which the fair value option was elected with an unpaid principal balance of $95.0 million and a fair value of $92.5 million at September 30, 2014. |
MARKET_RISK_AND_DERIVATIVE_INS1
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 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 21). | ||||||||||||||||||||||||
As of September 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 | $ | 5,153 | $ | 6,736 | 7 | 1.66% | $ | 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 | 4,146 | 6,262 | 2 | 1.37% | 21,969 | 30,803 | 9 | 1.19% | ||||||||||||||||
Deutsche Bank Securities, LLC | 20,437 | 30,869 | 9 | 1.46% | 18,599 | 29,861 | 9 | 1.43% | ||||||||||||||||
Totals | $ | 29,736 | $ | 43,867 | $ | 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 | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 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 | $ | 495 | $ | 801 | $ | 2,295 | $ | 2,005 | ||||||||||||||||
Interest expense attributable to linked repurchase | (107 | ) | (201 | ) | (514 | ) | (524 | ) | ||||||||||||||||
agreement borrowings underlying linked transactions | ||||||||||||||||||||||||
Change in fair value of linked transactions included in earnings | (211 | ) | 561 | 5,713 | (5,824 | ) | ||||||||||||||||||
Unrealized net (losses) gains and net interest income from linked transactions | $ | 177 | $ | 1,161 | $ | 7,494 | $ | (4,343 | ) | |||||||||||||||
Available-for-sale Securities | ' | |||||||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
CMBS position | 3 | $ | 15,970 | $ | 480 | |||||||||||||||||||
ABS | 3 | $ | 6,947 | $ | 3,484 | |||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
CMBS | $ | 176,970 | $ | 5,856 | $ | (7,510 | ) | $ | 175,316 | |||||||||||||||
RMBS | 30,697 | 848 | — | 31,545 | ||||||||||||||||||||
ABS | 60,980 | 12,211 | (1,435 | ) | 71,756 | |||||||||||||||||||
Corporate bonds | 2,413 | 12 | (24 | ) | 2,401 | |||||||||||||||||||
Total | $ | 271,060 | $ | 18,927 | $ | (8,969 | ) | $ | 281,018 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS | $ | 185,178 | $ | 7,570 | $ | (12,030 | ) | $ | 180,718 | |||||||||||||||
ABS | 30,775 | 1,644 | (394 | ) | 32,025 | |||||||||||||||||||
Corporate bonds | 2,517 | 16 | (70 | ) | 2,463 | |||||||||||||||||||
Total | $ | 218,470 | $ | 9,230 | $ | (12,494 | ) | $ | 215,206 | |||||||||||||||
The aggregate discount (premium) recognized as of the periods indicated (in thousands) are: | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
CMBS | $ | 3,609 | $ | 6,583 | ||||||||||||||||||||
RMBS | $ | 1,876 | $ | — | ||||||||||||||||||||
ABS | $ | 2,431 | $ | 2,394 | ||||||||||||||||||||
Corporate bond | $ | 42 | $ | 68 | ||||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | 49,594 | Derivatives, at fair value | $ | 1,136 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 31,000 | Derivatives, at fair value | $ | 17 | |||||||||||||||||||
Forward contracts - foreign currency | $ | 41,190 | Derivatives, at fair value | $ | 2,192 | |||||||||||||||||||
Total return swap | $ | 201,887 | Derivatives, at fair value | $ | 18,273 | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,739 | Derivatives, at fair value | $ | 8,235 | |||||||||||||||||||
Interest rate lock agreements | $ | 10,295 | Derivatives, at fair value | $ | 116 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 70,500 | Derivatives, at fair value | $ | 271 | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - TBA securities | $ | 190,000 | Derivatives, at fair value | $ | 208 | |||||||||||||||||||
Interest rate swap contracts | $ | 124,739 | Accumulated other comprehensive loss | $ | 8,235 | |||||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate lock agreements | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Total return swap | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||
Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Interest rate swap contracts | $ | 129,497 | Derivatives, at fair value | $ | 10,586 | |||||||||||||||||||
Interest rate lock agreements | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Forward contracts - TBA securities | $ | — | Derivatives, at fair value | $ | — | |||||||||||||||||||
Interest rate swap contracts | $ | 129,497 | Accumulated other comprehensive loss | $ | 10,586 | |||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Income | ' | |||||||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Gains (Loss) (1) | ||||||||||||||||||||||
Interest rate swap contracts | $ | 124,739 | Interest expense | $ | 4,917 | |||||||||||||||||||
Interest rate lock agreements | $ | 59,889 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 733 | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | 101,500 | Net realized gain on sales of investment securities available-for-sale and loans | $ | (254 | ) | ||||||||||||||||||
Forward contracts - foreign currency | $ | 41,190 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 2,192 | |||||||||||||||||||
Total return swap | $ | 201,887 | Net realized gain on sales of investment securities available-for-sale and loans | $ | 960 | |||||||||||||||||||
Forward contracts - TBA securities | $ | 190,000 | Net realized and unrealized gain/(loss) on investment securities available-for-sale and loans | $ | (280 | ) | ||||||||||||||||||
The Effect of Derivative Instruments on the Statements of Income for the | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||
Notional Amount | Statement of Income Location | Unrealized Gains (Loss) (1) | ||||||||||||||||||||||
Interest rate swap contracts | 130,785 | Interest expense | $ | 5,118 | ||||||||||||||||||||
Interest rate lock agreements | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
Forward contracts - residential mortgage lending | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
Forward contracts - foreign currency | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
Total return swap | $ | — | Net realized gain on sales of investment securities available-for-sale and loans | $ | — | |||||||||||||||||||
(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 | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
(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 | $ | 7,494 | ||||||||||||||||||||
Linked transactions at fair value, 2013 | Non-Hedging | Unrealized (loss) gain and net interest income on linked transactions, net | $ | (4,343 | ) | |||||||||||||||||||
-1 | Negative values indicate a decrease to the associated balance sheets or consolidated statements of income line items. | |||||||||||||||||||||||
Schedule of Linked Transactions | ' | |||||||||||||||||||||||
The following tables present certain information about the CMBS and repurchase agreements underlying the Company's linked transactions at September 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||
Designation | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
Linked transactions at fair value | Non-Hedging | Linked transactions, net at fair value | $ | 14,272 | ||||||||||||||||||||
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 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-Sep-14 | ||||||||||||||||||||||||
Less than one year | $ | 5,090 | $ | 5,012 | 5.33% | |||||||||||||||||||
Greater than one year and less than five years | 34,438 | 34,041 | 5.37% | |||||||||||||||||||||
Greater than five years and less than ten years | 4,339 | 4,250 | 4.25% | |||||||||||||||||||||
Greater than ten years | — | — | —% | |||||||||||||||||||||
Total | $ | 43,867 | $ | 43,303 | 5.25% | |||||||||||||||||||
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 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 September 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 43,303 | $ | 650 | $ | (86 | ) | $ | 43,867 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 99,493 | $ | 446 | $ | (6,116 | ) | $ | 93,823 | |||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
CMBS linked transactions | $ | 12,368 | $ | (55 | ) | $ | 762 | $ | (31 | ) | $ | 13,130 | $ | (86 | ) | |||||||||
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 | September 30, | |||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
Moody's Ratings Category: | ||||||||||||||||||||||||
Aaa | $ | 26,682 | $ | (18,704 | ) | $ | — | $ | (498 | ) | $ | 18 | $ | 7,498 | ||||||||||
Aa1 through Aa3 | 8,919 | (9,589 | ) | — | 670 | — | ||||||||||||||||||
A1 through A3 | — | — | — | — | — | |||||||||||||||||||
Baa1 through Baa3 | 6,473 | — | — | 69 | 6,542 | |||||||||||||||||||
Ba1 through Ba3 | 10,310 | (10,768 | ) | — | 458 | — | ||||||||||||||||||
B1 through B3 | 12,155 | 3,122 | — | 744 | 16,021 | |||||||||||||||||||
Non-Rated | 29,284 | (16,361 | ) | — | 883 | 13,806 | ||||||||||||||||||
Total | $ | 93,823 | $ | (52,300 | ) | $ | — | $ | (498 | ) | $ | 2,842 | $ | 43,867 | ||||||||||
S&P Ratings Category: | ||||||||||||||||||||||||
AAA | $ | 17,642 | $ | (9,773 | ) | $ | — | $ | (498 | ) | $ | (635 | ) | $ | 6,736 | |||||||||
BBB+ through BBB- | 9,953 | — | 1,042 | — | 135 | 11,130 | ||||||||||||||||||
BB+ through BB- | 2,865 | 99 | 4,458 | — | 262 | 7,684 | ||||||||||||||||||
B+ through B- | 19,619 | (99 | ) | (5,500 | ) | — | 738 | 14,758 | ||||||||||||||||
CCC+ through CCC- | — | 2,797 | — | — | — | 2,797 | ||||||||||||||||||
Non-Rated | 43,744 | (45,324 | ) | — | — | 2,342 | 762 | |||||||||||||||||
Total | $ | 93,823 | $ | (52,300 | ) | $ | — | $ | (498 | ) | $ | 2,842 | $ | 43,867 | ||||||||||
CMBS Linked Repurchase Agreements | ' | |||||||||||||||||||||||
The following table summarizes the Company's CMBS linked repurchase agreements (in thousands, except percentages): | ||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
Maturity or Repricing | Balance | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | ||||||||||||||||||||
Within 30 days | $ | 29,729 | 1.48 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
>30 days to 90 days | — | — | % | — | — | % | ||||||||||||||||||
Total | $ | 29,729 | 1.48 | % | $ | 64,094 | 1.25 | % | ||||||||||||||||
OFFSETTING_OF_FINANCIAL_ASSETS1
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | ' | ||||||||||||||||||||||||
Offsetting Financial Assets and Derivative Assets | ' | ||||||||||||||||||||||||
The following table presents a summary of the Company's offsetting of financial assets and derivative assets 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 Assets Included in | Instruments (1) | Collateral | Net Amount | ||||||||||||||||||||
Recognized | Consolidated | the Consolidated | Pledged | ||||||||||||||||||||||
Assets | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 18,273 | $ | — | $ | 18,273 | $ | 18,273 | $ | — | $ | — | |||||||||||||
at fair value (1) | |||||||||||||||||||||||||
Total | $ | 18,273 | $ | — | $ | 18,273 | $ | 18,273 | $ | — | $ | — | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
at fair value | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
1 | Amounts represent value of assets invested in a warehouse agreement, amounts invested were in euro and pound sterling and the balance reflected is the currency conversion equivalent as of September 30, 2014. | ||||||||||||||||||||||||
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 September 30, 2014 | |||||||||||||||||||||||||
Derivative hedging instruments, | $ | 8,235 | $ | — | $ | 8,235 | $ | — | $ | 500 | $ | 7,735 | |||||||||||||
at fair value (3) | |||||||||||||||||||||||||
Repurchase agreements (4) | 185,062 | — | 185,062 | 185,062 | — | — | |||||||||||||||||||
Total | $ | 193,297 | $ | — | $ | 193,297 | $ | 185,062 | $ | 500 | $ | 7,735 | |||||||||||||
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 $2.6 million and $3.5 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
-4 | The fair value of securities pledged against the Company's repurchase agreements was $253.8 million and $121.6 million at September 30, 2014 and December 31, 2013, respectively. |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 27, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Resource Real Estate Funding CDO 2006-1 [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | RCC CRE Notes 2013 [Member] | Resource Capital Corp. 2014-CRE2, Ltd. [Member] | Apidos CDO III Ltd. [Member] | Apidos Cinco CDO Ltd [Member] | Whitney CLO I, Ltd. [Member] | Whitney CLO I, Ltd. [Member] | Moselle CLO [Member] | Apidos CDO I Ltd. [Member] | Resource Capital Asset Management [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] | Life Care Funding, LLC [Member] | Long Term Care Conversion Funding [Member] | Primary Capital Advisors LLC [Member] | RCM Global Manager, LLC [Member] | |
RCC Real Estate [Member] | RCC Real Estate [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] | Pelium [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] | RCC Residential, Inc. [Member] | |||
Entity | ||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding notes purchased | ' | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in VIE | 100.00% | ' | ' | ' | 100.00% | 100.00% | 68.30% | 68.30% | 88.60% | 10.00% | 80.00% | 100.00% | 33.00% | 33.00% | 10.00% | 50.20% | 50.20% | 100.00% | 100.00% | 63.80% |
Number of CDO issuers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 16, 2011 | Jul. 09, 2014 | Jul. 09, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 31, 2012 | 31-May-13 | Nov. 16, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 16, 2011 | Nov. 16, 2011 | Nov. 16, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 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 | RCC Residential, Inc. [Member] | RCC Residential, Inc. [Member] | Pelium [Member] | 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] | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition of membership interests | ' | ' | ($12,676,000) | ($2,200,000) | ' | ' | ' | ' | $15,000,000 | ' | $17,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of outstanding notes purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 67.90% | |||
Payments to acquire businesses and interest in affiliates | ' | ' | -8,911,000 | 25,508,000 | ' | ' | ' | ' | 23,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage (percent) | ' | ' | ' | ' | ' | 28.30% | ' | ' | ' | 63.80% | 80.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage, duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership interest increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of credits supported in VIE | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Financial support provided to VIEs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 209,000 | 69,000 | 758,000 | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.70% | 28.30% | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | |||
Investments in unconsolidated entities | 60,540,000 | [1] | ' | 60,540,000 | [1] | ' | 69,069,000 | [1] | 40,157,000 | 41,016,000 | 36,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,200,000 | 41,000,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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 (of which $94.9 million and $0 at fair value) | 1,590,958,000 | [2] | ' | 1,590,958,000 | [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 | 10,254,000 | [1] | ' | 10,254,000 | [1] | ' | 11,822,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | 9,900,000 | ' | 9,900,000 | ' | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee income | $2,344,000 | $1,245,000 | $7,166,000 | $4,182,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200,000 | $1,200,000 | $4,000,000 | $4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of CLOs liquidated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | |||
Preferred equity interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 | ||||||||||||||||||||||||||||||||||||||||
[2] | September 30, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings (of which $94.9 million and $0 at fair value)$1,214,923 $1,070,339 Accrued interest expense1,280 918 Derivatives, at fair value7,958 10,191 Accounts payable and other liabilities(418) 1,604 Total liabilities of consolidated VIEs$1,223,743 $1,083,052 |
VARIABLE_INTEREST_ENTITIES_Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Restricted cash | $80,633,000 | $61,372,000 |
Investment securities available-for-sale, pledged as collateral, at fair value | 110,376,000 | 105,846,000 |
Loans, pledged as collateral | 1,405,788,000 | 1,219,569,000 |
Loans held for sale | 36,674,000 | 2,376,000 |
Interest receivable | 8,066,000 | 5,627,000 |
Prepaid assets | 217,000 | 247,000 |
Principal paydown receivable | 34,100,000 | 6,821,000 |
Other assets | -12,000 | 0 |
Total assets of consolidated VIEs | 1,675,842,000 | 1,401,858,000 |
LIABILITIES | ' | ' |
Borrowings | 1,214,923,000 | 1,070,339,000 |
Accrued interest expense | 1,280,000 | 918,000 |
Derivatives, at fair value | 7,958,000 | 10,191,000 |
Accounts payable and other liabilities | -418,000 | 1,604,000 |
Total liabilities of consolidated VIEs | 1,223,743,000 | 1,083,052,000 |
VIE, Primary Beneficiary [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 80,633,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 110,376,000 | ' |
Loans, pledged as collateral | 1,405,788,000 | ' |
Loans held for sale | 36,674,000 | ' |
Interest receivable | 8,066,000 | ' |
Prepaid assets | 217,000 | ' |
Principal paydown receivable | 34,100,000 | ' |
Other assets | -12,000 | ' |
Total assets of consolidated VIEs | 1,675,842,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 1,214,923,000 | ' |
Accrued interest expense | 1,280,000 | ' |
Derivatives, at fair value | 7,958,000 | ' |
Accounts payable and other liabilities | -418,000 | ' |
Total liabilities of consolidated VIEs | 1,223,743,000 | ' |
Restricted cash available for reinvestment in certain of the CDOs | 3,600,000 | ' |
VIE, Primary Beneficiary [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 15,366,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 3,452,000 | ' |
Loans, pledged as collateral | 9,896,000 | ' |
Loans held for sale | 35,740,000 | ' |
Interest receivable | -268,000 | ' |
Prepaid assets | 6,000 | ' |
Principal paydown receivable | 0 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 64,192,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 47,848,000 | ' |
Accrued interest expense | 218,000 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | 22,000 | ' |
Total liabilities of consolidated VIEs | 48,088,000 | ' |
VIE, Primary Beneficiary [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 3,529,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 3,947,000 | ' |
Loans, pledged as collateral | 87,750,000 | ' |
Loans held for sale | 364,000 | ' |
Interest receivable | 443,000 | ' |
Prepaid assets | 7,000 | ' |
Principal paydown receivable | 0 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 96,040,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 83,621,000 | ' |
Accrued interest expense | 46,000 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | 48,000 | ' |
Total liabilities of consolidated VIEs | 83,715,000 | ' |
VIE, Primary Beneficiary [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 24,663,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 11,313,000 | ' |
Loans, pledged as collateral | 274,442,000 | ' |
Loans held for sale | 570,000 | ' |
Interest receivable | 959,000 | ' |
Prepaid assets | 28,000 | ' |
Principal paydown receivable | 0 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 311,975,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 284,160,000 | ' |
Accrued interest expense | 289,000 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | 25,000 | ' |
Total liabilities of consolidated VIEs | 284,474,000 | ' |
VIE, Primary Beneficiary [Member] | Apidos CLO VIII Ltd. [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 5,000 | ' |
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 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 5,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 0 | ' |
Accrued interest expense | 0 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | 195,000 | ' |
Total liabilities of consolidated VIEs | 195,000 | ' |
VIE, Primary Beneficiary [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 80,000 | ' |
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 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 80,000 | ' |
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 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 11,359,000 | ' |
Loans, pledged as collateral | 128,369,000 | ' |
Loans held for sale | 0 | ' |
Interest receivable | 2,471,000 | ' |
Prepaid assets | 100,000 | ' |
Principal paydown receivable | 25,803,000 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 168,122,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 105,841,000 | ' |
Accrued interest expense | 44,000 | ' |
Derivatives, at fair value | 1,044,000 | ' |
Accounts payable and other liabilities | 11,000 | ' |
Total liabilities of consolidated VIEs | 106,940,000 | ' |
VIE, Primary Beneficiary [Member] | Resource Real Estate Funding CDO 2007-1 [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 250,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 67,784,000 | ' |
Loans, pledged as collateral | 204,978,000 | ' |
Loans held for sale | 0 | ' |
Interest receivable | 2,015,000 | ' |
Prepaid assets | 76,000 | ' |
Principal paydown receivable | 8,297,000 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 283,400,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 137,004,000 | ' |
Accrued interest expense | 99,000 | ' |
Derivatives, at fair value | 6,914,000 | ' |
Accounts payable and other liabilities | 1,000 | ' |
Total liabilities of consolidated VIEs | 144,018,000 | ' |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2013 [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 3,337,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | ' |
Loans, pledged as collateral | 267,963,000 | ' |
Loans held for sale | 0 | ' |
Interest receivable | 1,114,000 | ' |
Prepaid assets | 0 | ' |
Principal paydown receivable | 0 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 272,414,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 223,897,000 | ' |
Accrued interest expense | 172,000 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | 0 | ' |
Total liabilities of consolidated VIEs | 224,069,000 | ' |
VIE, Primary Beneficiary [Member] | RCC CRE Notes 2014 [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 0 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 0 | ' |
Loans, pledged as collateral | 349,381,000 | ' |
Loans held for sale | 0 | ' |
Interest receivable | 1,332,000 | ' |
Prepaid assets | 0 | ' |
Principal paydown receivable | 0 | ' |
Other assets | -12,000 | ' |
Total assets of consolidated VIEs | 350,701,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 231,365,000 | ' |
Accrued interest expense | 123,000 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | 10,000 | ' |
Total liabilities of consolidated VIEs | 231,498,000 | ' |
VIE, Primary Beneficiary [Member] | Moselle CLO [Member] | ' | ' |
ASSETS | ' | ' |
Restricted cash | 33,383,000 | ' |
Investment securities available-for-sale, pledged as collateral, at fair value | 12,521,000 | ' |
Loans, pledged as collateral | 83,009,000 | ' |
Loans held for sale | 0 | ' |
Interest receivable | 0 | ' |
Prepaid assets | 0 | ' |
Principal paydown receivable | 0 | ' |
Other assets | 0 | ' |
Total assets of consolidated VIEs | 128,913,000 | ' |
LIABILITIES | ' | ' |
Borrowings | 101,187,000 | ' |
Accrued interest expense | 289,000 | ' |
Derivatives, at fair value | 0 | ' |
Accounts payable and other liabilities | -730,000 | ' |
Total liabilities of consolidated VIEs | $100,746,000 | ' |
VARIABLE_INTEREST_ENTITIES_Sch1
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | $41,705 |
Intangible assets | 9,878 |
Total assets | 51,583 |
Borrowings | 51,154 |
Total liabilities | 51,154 |
Net asset (liability) | 429 |
Investments in Unconsolidated Entities | ' |
Variable Interest Entity [Line Items] | ' |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 41,705 |
Intangible Assets [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Unconsolidated Variable Interest Entities, Maximum Exposure to Loss | 9,878 |
LEAF Commercial Capital, Inc. [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 40,157 |
Intangible assets | 0 |
Total assets | 40,157 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | 40,157 |
Unsecured Junior Subordinated Debentures [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 1,548 |
Intangible assets | 0 |
Total assets | 1,548 |
Borrowings | 51,154 |
Total liabilities | 51,154 |
Net asset (liability) | -49,606 |
Resource Capital Asset Management [Member] | ' |
Variable Interest Entity [Line Items] | ' |
Investment in unconsolidated entities | 0 |
Intangible assets | 9,878 |
Total assets | 9,878 |
Borrowings | 0 |
Total liabilities | 0 |
Net asset (liability) | $9,878 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Non-cash financing activities include the following: | ' | ' |
Issuance of restricted stock | $890 | $242 |
Common Stock [Member] | ' | ' |
Non-cash financing activities include the following: | ' | ' |
Distributions on common and preferred stock declared but not paid | 26,629 | 25,447 |
Preferred Stock [Member] | ' | ' |
Non-cash financing activities include the following: | ' | ' |
Distributions on common and preferred stock declared but not paid | $5,555 | $2,023 |
INVESTMENT_SECURITIES_TRADING_1
INVESTMENT SECURITIES TRADING (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Security | Security | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Trading Securities, Number Sold | 2 | ' |
Trading Securities, Realized Gain | $2.50 | ' |
Number of trading securities held | 19 | 8 |
INVESTMENT_SECURITIES_TRADING_2
INVESTMENT SECURITIES TRADING (Schedule of Investment Trading Securities at Fair Value) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Amortized Cost | $12,718 | $9,976 | ||
Unrealized Gains | 317 | 4,050 | ||
Unrealized Losses | -3,848 | -2,468 | ||
Fair Value | 9,187 | [1] | 11,558 | [1] |
Structured Notes [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Amortized Cost | 10,821 | 8,057 | ||
Unrealized Gains | 317 | 4,050 | ||
Unrealized Losses | -2,017 | -1,000 | ||
Fair Value | 9,121 | 11,107 | ||
RMBS [Member] | ' | ' | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ||
Amortized Cost | 1,897 | 1,919 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | -1,831 | -1,468 | ||
Fair Value | $66 | $451 | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
INVESTMENT_SECURITIES_AVAILABL2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Security | Security | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Other-than-temporary impairment losses | $0 | ' | $0 | $802,000 | ' |
CMBS [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Other-than-temporary impairment losses | 0 | 255,000 | ' | 811,000 | ' |
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 | 1 | 2 | 2 | 2 | ' |
Par value of securities redeemed | 1,000,000 | 3,500,000 | 1,600,000 | 3,500,000 | ' |
Loss on available-for-sale securities redeemed | 48,000 | 6,900,000 | 48,000 | 0 | ' |
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 | ' | ' |
Number of positions sold | ' | ' | 3 | ' | ' |
Par value of securities sold | ' | ' | 6,947,000 | ' | ' |
Gain (loss) on sale, securities sold | ' | ' | $3,484,000 | ' | ' |
INVESTMENT_SECURITIES_AVAILABL3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $271,060 | $218,470 |
Unrealized Gains | 18,927 | 9,230 |
Unrealized Losses | -8,969 | -12,494 |
Fair Value | 281,018 | 215,206 |
CMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 176,970 | 185,178 |
Unrealized Gains | 5,856 | 7,570 |
Unrealized Losses | -7,510 | -12,030 |
Fair Value | 175,316 | 180,718 |
RMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 30,697 | ' |
Unrealized Gains | 848 | ' |
Unrealized Losses | 0 | ' |
Fair Value | 31,545 | ' |
ABS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 60,980 | 30,775 |
Unrealized Gains | 12,211 | 1,644 |
Unrealized Losses | -1,435 | -394 |
Fair Value | 71,756 | 32,025 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,413 | 2,517 |
Unrealized Gains | 12 | 16 |
Unrealized Losses | -24 | -70 |
Fair Value | $2,401 | $2,463 |
INVESTMENT_SECURITIES_AVAILABL4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Estimated Maturities of Available-For-Sale Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value | ' | ' |
Less than one year | $50,160 | $39,256 |
Greater than one year and less than five years | 142,079 | 139,700 |
Greater than five years and less than ten years | 44,913 | 26,526 |
Greater than ten years | 43,866 | 9,724 |
Total | 281,018 | 215,206 |
Amortized Cost | ' | ' |
Less than one year | 56,395 | 40,931 |
Greater than one year and less than five years | 133,098 | 141,760 |
Greater than five years and less than ten years | 38,301 | 25,707 |
Greater than ten years | 43,266 | 10,072 |
Total | $271,060 | $218,470 |
Weighted Average Coupon | ' | ' |
Less than one year | 3.84% | 5.25% |
Greater than one year and less than five years | 5.03% | 4.69% |
Greater than five years and less than ten years | 5.32% | 1.10% |
Greater than ten years | 5.40% | 7.90% |
Total | 4.97% | 4.49% |
INVESTMENT_SECURITIES_AVAILABL5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Gross Unrealized Loss and Fair Value of Securities) (Details) (USD $) | Sep. 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 | $51,064 | $53,020 |
Unrealized Losses, less than 12 months | -1,852 | -7,567 |
Number of Securities, less than 12 months | 32 | 36 |
Fair value, more than 12 months | 31,475 | 20,851 |
Unrealized losses, more than 12 Months | -7,117 | -4,927 |
Number of Securities, more than 12 Months | 21 | 19 |
Fair value, total | 82,539 | 73,871 |
Unrealized losses, total | -8,969 | -12,494 |
Number of Securities, total | 53 | 55 |
CMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | 35,833 | 52,012 |
Unrealized Losses, less than 12 months | -580 | -7,496 |
Number of Securities, less than 12 months | 18 | 34 |
Fair value, more than 12 months | 27,065 | 14,159 |
Unrealized losses, more than 12 Months | -6,930 | -4,534 |
Number of Securities, more than 12 Months | 14 | 10 |
Fair value, total | 62,898 | 66,171 |
Unrealized losses, total | -7,510 | -12,030 |
Number of Securities, total | 32 | 44 |
ABS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | 13,792 | 143 |
Unrealized Losses, less than 12 months | -1,248 | -1 |
Number of Securities, less than 12 months | 13 | 1 |
Fair value, more than 12 months | 4,410 | 6,692 |
Unrealized losses, more than 12 Months | -187 | -393 |
Number of Securities, more than 12 Months | 7 | 9 |
Fair value, total | 18,202 | 6,835 |
Unrealized losses, total | -1,435 | -394 |
Number of Securities, total | 20 | 10 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, less than 12 months | 1,439 | 865 |
Unrealized Losses, less than 12 months | -24 | -70 |
Number of Securities, less than 12 months | 1 | 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 | 1,439 | 865 |
Unrealized losses, total | ($24) | ($70) |
Number of Securities, total | 1 | 1 |
INVESTMENT_SECURITIES_AVAILABL6
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Summary of Sales of Investment Securities Available-for-Sale) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 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 |
ABS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Positions Sold | 3 | ' |
Par Amount Sold | 6,947 | ' |
Realized Gain (Loss) | 3,484 | ' |
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 $) | Sep. 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 | $3,609 | $6,583 |
RMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Excess of aggregate discount over aggregate premium | 1,876 | 0 |
ABS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Excess of aggregate discount over aggregate premium | 2,431 | 2,394 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Excess of aggregate discount over aggregate premium | $42 | $68 |
INVESTMENTS_IN_REAL_ESTATE_Det
INVESTMENTS IN REAL ESTATE (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
Property | Property | Property | Property | ||||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' | |||
Number of real estate properties acquired | ' | 0 | ' | ' | 0 | ' | |||
Number of real estate properties available-for-sale | ' | ' | ' | 2 | ' | ' | |||
Property held-for-sale | ' | $29,581 | [1] | ' | $29,581 | [1] | ' | $25,346 | [1] |
Loss from real estate held-for-sale | ' | 119 | -93 | -4 | 13 | ' | |||
Number of real estate properties sold | 1 | 1,000 | ' | ' | ' | ' | |||
Gain on the sale of real estate | -3,000 | -16,600 | ' | -2,973 | -16,607 | ' | |||
Office property [Member] | ' | ' | ' | ' | ' | ' | |||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' | |||
Property held-for-sale | ' | 9,600 | ' | 9,600 | ' | ' | |||
Loss from real estate held-for-sale | ' | 48 | -72 | -23 | -225 | ' | |||
Multi-family property [Member] | ' | ' | ' | ' | ' | ' | |||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' | |||
Property held-for-sale | ' | $19,800 | ' | $19,800 | ' | ' | |||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $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 $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | 91,382 | [1] | 21,916 | [1] |
Allowance for loan loss | 4,507 | 13,807 | ||
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans held for sale, net | 676,400 | 558,600 | ||
Allowance for loan loss | 464 | 3,391 | ||
Residential Mortgage Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans, allowances | 0 | ' | ||
Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 3,685 | 9,683 | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Allowance for loan loss | 464 | 3,400 | ||
Loans, allowances | 4,000 | 10,400 | ||
Commercial Real Estate Loans [Member] | California [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 33.10% | 39.00% | ||
Commercial Real Estate Loans [Member] | Arizona [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 8.90% | 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) | 15.50% | 15.80% | ||
Residential Mortgage Loans [Member] | Georgia [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 56.50% | 66.00% | ||
Residential Mortgage Loans [Member] | Virginia [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 6.10% | ' | ||
Residential Mortgage Loans [Member] | North Carolina [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 8.70% | 9.00% | ||
Residential Mortgage Loans [Member] | Alabama [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 5.50% | 6.00% | ||
Residential Mortgage Loans [Member] | Tennessee and Virginia [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Concentration of loan portfolio risk (in hundredths) | 7.00% | 7.00% | ||
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Loans, allowances | 464 | 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 | 15.00% | 10.50% | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
LOANS_HELD_FOR_INVESTMENT_Summ
LOANS HELD FOR INVESTMENT (Summary of Loans) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | $1,757,201,000 | $1,390,843,000 | ||
Unamortized (discount) premium, gross | -7,795,000 | -7,510,000 | ||
Gross carrying value of loans held for investment | 1,749,406,000 | 1,383,333,000 | ||
Allowance for loan loss | -4,507,000 | -13,807,000 | ||
Unamortized (discount) premium, gross, allowance for loan loss | 0 | 0 | ||
Carrying value, allowance for loan loss | -4,507,000 | -13,807,000 | ||
Principal, Net | 1,752,694,000 | 1,377,036,000 | ||
Unamortized (discount) premium, net | -7,795,000 | -7,510,000 | ||
Net carrying value of loans held for investment | 1,744,899,000 | 1,369,526,000 | ||
Loans held for sale | 91,382,000 | 21,916,000 | ||
Loans held for investment and held for sale | 1,844,076,000 | 1,398,952,000 | ||
Loans held for investment and held for sale, net carrying value | 1,836,281,000 | 1,391,442,000 | ||
Deferred amendment fees | 133,000 | 216,000 | ||
Loans held for sale, net | 91,382,000 | [1] | 21,916,000 | [1] |
Bank Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 642,419,000 | 559,206,000 | ||
Unamortized (discount) premium, gross | -2,221,000 | -4,033,000 | ||
Gross carrying value of loans held for investment | 640,198,000 | 555,173,000 | ||
Loans held for sale | 36,674,000 | 6,850,000 | ||
Deferred upfront fee | 97,000 | 141,000 | ||
Loans held for sale, net | 676,400,000 | 558,600,000 | ||
Residential mortgage loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 2,825,000 | 1,849,000 | ||
Unamortized (discount) premium, gross | 0 | 0 | ||
Gross carrying value of loans held for investment | 2,825,000 | 1,849,000 | ||
Loans held for sale | 54,708,000 | 15,066,000 | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 1,111,957,000 | 829,788,000 | ||
Unamortized (discount) premium, gross | -5,574,000 | -3,477,000 | ||
Gross carrying value of loans held for investment | 1,106,383,000 | 826,311,000 | ||
Loan origination fees | 5,600,000 | 3,300,000 | ||
Extension and exit fees | 0 | 73,000 | ||
Commercial Real Estate Loans [Member] | Whole Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 1,028,393,000 | 749,083,000 | ||
Unamortized (discount) premium, gross | -5,422,000 | -3,294,000 | ||
Gross carrying value of loans held for investment | 1,022,971,000 | 745,789,000 | ||
Commercial Real Estate Loans [Member] | B Notes [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 16,164,000 | 16,288,000 | ||
Unamortized (discount) premium, gross | -57,000 | -83,000 | ||
Gross carrying value of loans held for investment | 16,107,000 | 16,205,000 | ||
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | ' | ' | ||
Receivables with Imputed Interest [Line Items] | ' | ' | ||
Principal, Gross | 67,400,000 | 64,417,000 | ||
Unamortized (discount) premium, gross | -95,000 | -100,000 | ||
Gross carrying value of loans held for investment | $67,305,000 | $64,317,000 | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
LOANS_HELD_FOR_INVESTMENT_Weig
LOANS HELD FOR INVESTMENT (Weighted Average Life of Bank Loans, at Amortized Cost) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total | $676,872 | $562,023 |
Bank Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Less than one year | 46,779 | 36,985 |
Greater than one year and less than five years | 479,790 | 379,874 |
Five years or greater | 150,303 | 145,164 |
Total | $676,872 | $562,023 |
LOANS_HELD_FOR_INVESTMENT_Comm
LOANS HELD FOR INVESTMENT (Commercial Real Estate Loans Held for Investment) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Receivables with Imputed Interest [Line Items] | ' | ' |
Amortized Cost | 676,872,000 | 562,023,000 |
Allowance for loan loss | 4,507,000 | 13,807,000 |
Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Quantity | 65 | 56 |
Amortized Cost | 1,106,383,000 | 826,311,000 |
Allowance for loan loss | 464,000 | 3,400,000 |
Whole Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for loan loss | 3,685,000 | 9,683,000 |
Whole Loans [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Amortized Cost | 1,022,971,000 | 745,789,000 |
Whole Loans, Floating Rate [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Loans held for investment, unfunded loan commitments | 68,300,000 | 13,700,000 |
Whole Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Quantity | 60 | 51 |
Amortized Cost | 1,022,971,000 | 745,789,000 |
Whole Loans, Floating Rate [Member] | Minimum [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Variable rate basis | 'LIBOR | 'LIBOR |
Basis spread on variable rate | 1.75% | 2.68% |
Maturity Dates | 'January 2015 | 'March 2014 |
Whole Loans, Floating Rate [Member] | Maximum [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Variable rate basis | 'LIBOR | 'LIBOR |
Basis spread on variable rate | 15.00% | 12.14% |
Maturity Dates | 'February 2019 | 'February 2019 |
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 | 69,000 | 174,000 |
B Notes [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Amortized Cost | 16,107,000 | 16,205,000 |
B Notes, Fixed Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Quantity | 1 | 1 |
Amortized Cost | 16,107,000 | 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 | 'April 2016 |
Mezzanine Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for loan loss | 289,000 | 559,000 |
Mezzanine Loans [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Amortized Cost | 67,305,000 | 64,317,000 |
Mezzanine Loans, Floating Rate [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Quantity | 1 | 1 |
Amortized Cost | 12,544,000 | 12,455,000 |
Variable rate basis | ' | 'LIBOR |
Basis spread on variable rate | 15.32% | 15.32% |
Maturity Dates | 'April 2016 | 'April 2016 |
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 | 3 |
Amortized Cost | 54,761,000 | 51,862,000 |
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 2016 | 'September 2014 |
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 | 'September 2019 |
Mezzanine Loans, Fixed Rate, Tranche One [Member] | Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Stated interest rate | 0.48% | ' |
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 | 4,000,000 | 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. | 4,000,000 | ' |
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% | ' |
LOANS_HELD_FOR_INVESTMENT_Weig1
LOANS HELD FOR INVESTMENT (Weighted Average Life of Commercial Real Estate Loans, at Amortized Cost) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables with Imputed Interest [Line Items] | ' | ' |
Total | $676,872 | $562,023 |
Commercial Real Estate Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
2014 | 0 | 5,711 |
2015 | 0 | 17,949 |
2016 and thereafter | 1,106,383 | 802,651 |
Total | 1,106,383 | 826,311 |
Commercial Real Estate Loans [Member] | B Notes [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
2014 | 0 | 0 |
2015 | 0 | 0 |
2016 and thereafter | 16,107 | 16,205 |
Total | 16,107 | 16,205 |
Commercial Real Estate Loans [Member] | Mezzanine Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
2014 | 0 | 5,711 |
2015 | 0 | 0 |
2016 and thereafter | 67,305 | 58,606 |
Total | 67,305 | 64,317 |
Commercial Real Estate Loans [Member] | Whole Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
2014 | 0 | 0 |
2015 | 0 | 17,949 |
2016 and thereafter | 1,022,971 | 727,840 |
Total | $1,022,971 | $745,789 |
LOANS_HELD_FOR_INVESTMENT_Allo
LOANS HELD FOR INVESTMENT (Allocation of Allowance for Loan Loss for Commercial and Bank Loans) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | $4,507 | $13,807 |
B Notes [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 69 | 174 |
Percentage of Total Allowance | 1.53% | 1.26% |
Mezzanine Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 289 | 559 |
Percentage of Total Allowance | 6.41% | 4.05% |
Whole Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 3,685 | 9,683 |
Percentage of Total Allowance | 81.76% | 70.13% |
Bank Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Allowance for Loan Loss | 464 | 3,391 |
Percentage of Total Allowance | 10.30% | 24.56% |
Residential Mortgage Loans [Member] | ' | ' |
Receivables with Imputed Interest [Line Items] | ' | ' |
Loans Receivable Allowance | $0 | ' |
LOANS_HELD_FOR_INVESTMENT_Loan
LOANS HELD FOR INVESTMENT Loan Held for Investment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | $676,872 | $562,023 |
Resource TRS, LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | ' | 34,000 |
Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 45,633 | 84,580 |
Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 88,444 | 131,474 |
Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 275,152 | 301,645 |
Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 72 |
Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 184,635 | 44,252 |
Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 83,008 | 0 |
RCC Commercial [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | ' | 10,300 |
First Mortgage [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 549,342 | 534,787 |
First Mortgage [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 9,895 | 79,483 |
First Mortgage [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 87,107 | 126,890 |
First Mortgage [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 270,598 | 296,368 |
First Mortgage [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 72 |
First Mortgage [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 101,021 | 31,974 |
First Mortgage [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 80,721 | 0 |
Second Mortgage [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 89,419 | 8,944 |
Second Mortgage [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Second Mortgage [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Second Mortgage [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 3,604 | 1,139 |
Second Mortgage [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Second Mortgage [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 83,614 | 7,805 |
Second Mortgage [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 2,201 | 0 |
Third Mortgage [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 7,958 |
Third Mortgage [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 3,020 |
Third Mortgage [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 2,475 |
Third Mortgage [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 2,463 |
Third Mortgage [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Third Mortgage [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Third Mortgage [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Defaulted First Lien Loans [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 2,816 |
Defaulted First Lien Loans [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 1,206 |
Defaulted First Lien Loans [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 1,124 |
Defaulted First Lien Loans [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 486 |
Defaulted First Lien Loans [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Defaulted First Lien Loans [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Defaulted First Lien Loans [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Defaulted Second Lien Loans [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 1,437 | 668 |
Defaulted Second Lien Loans [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 334 |
Defaulted Second Lien Loans [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 972 | 334 |
Defaulted Second Lien Loans [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 379 | 0 |
Defaulted Second Lien Loans [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Defaulted Second Lien Loans [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
Defaulted Second Lien Loans [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 86 | 0 |
Loan Held For Investment Subtotal [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 640,198 | 555,173 |
Loan Held For Investment Subtotal [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 9,895 | 84,043 |
Loan Held For Investment Subtotal [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 88,079 | 130,823 |
Loan Held For Investment Subtotal [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 274,581 | 300,456 |
Loan Held For Investment Subtotal [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 72 |
Loan Held For Investment Subtotal [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 184,635 | 39,779 |
Loan Held For Investment Subtotal [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 83,008 | 0 |
First Lien Loans Held For Sale At Fair Value [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 36,674 | 6,850 |
First Lien Loans Held For Sale At Fair Value [Member] | Apidos CDO I Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 35,738 | 537 |
First Lien Loans Held For Sale At Fair Value [Member] | Apidos CDO III Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 365 | 651 |
First Lien Loans Held For Sale At Fair Value [Member] | Apidos Cinco CDO Ltd [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 571 | 1,189 |
First Lien Loans Held For Sale At Fair Value [Member] | Whitney CLO I, Ltd. [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 0 |
First Lien Loans Held For Sale At Fair Value [Member] | Northport LLC [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | 0 | 4,473 |
First Lien Loans Held For Sale At Fair Value [Member] | Moselle CLO [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Amortized Cost | $0 | $0 |
INVESTMENTS_IN_UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Schedule of Unconsolidated Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 16, 2011 | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | $60,540 | [1] | ' | $60,540 | [1] | ' | $69,069 | [1] | ' |
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 1,488 | 401 | 6,858 | 1,733 | ' | ' | |||
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 | 0 | 6 | -19 | 49 | ' | ' | |||
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 | 770 | -521 | 2,506 | -735 | ' | ' | |||
Investment in LCC Preferred Stock | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 28.30% | ' | 28.30% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 40,157 | ' | 40,157 | ' | 41,016 | 36,300 | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 13 | -346 | -859 | -378 | ' | ' | |||
Investment in CVC Global Credit Opportunities Fund | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Ownership % | 29.57% | ' | 29.57% | ' | ' | ' | |||
Investments in Unconsolidated Entities | 18,181 | ' | 18,181 | ' | 16,177 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 47 | 433 | 2,004 | 526 | ' | ' | |||
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 | -107 | -75 | -350 | ' | ' | |||
Investment in School Lane House | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | 0 | ' | 0 | ' | 975 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 57 | 0 | 1,106 | 0 | ' | ' | |||
Investments in Unconsolidated Entities | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | 58,992 | ' | 58,992 | ' | 60,372 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 887 | -535 | 4,663 | -888 | ' | ' | |||
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 | 601 | 604 | 1,785 | 1,800 | ' | ' | |||
Investment in Preferred Equity | ' | ' | ' | ' | ' | ' | |||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ' | ' | ' | ' | ' | ' | |||
Investments in Unconsolidated Entities | 0 | ' | 0 | ' | 7,149 | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | $0 | $332 | $410 | $821 | ' | ' | |||
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] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
INVESTMENTS_IN_UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 9 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 | Jan. 31, 2013 |
Investment in Life Care Funding | Investment in Life Care Funding | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Acquisition of membership interests | ($12,676) | ($2,200) | $1,400 | $2,000 |
FINANCING_RECEIVABLES_Details
FINANCING RECEIVABLES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
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] | Loans Receivable - Related Party [Member] | |||
Loan | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Loan | ||||||||||
Loan | Loan | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loans receivable | $1,439 | $741 | ($1,739) | $541 | ' | ' | ' | ' | ' | ' | ' | ' | $236 | $936 | ' |
Number of defaulted loans | 2 | ' | 2 | ' | 3 | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | 2 |
Loans and receivables | $1,752,694 | ' | $1,752,694 | ' | $1,377,036 | $86 | $676,872 | $562,023 | $1,400 | $3,600 | ' | ' | ' | ' | ' |
Number of loans with deteriorated credit quality | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FINANCING_RECEIVABLES_Allowanc
FINANCING RECEIVABLES (Allowance for Loan Losses and Recorded Investments in Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 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 (recovery) for loan losses | -1,739,000 | 3,020,000 |
Loans charged-off | -6,625,000 | -6,904,000 |
Allowance for losses at end of period | 5,443,000 | 13,807,000 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 1,400,000 | 7,193,000 |
Collectively evaluated for impairment | 4,043,000 | 6,614,000 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 173,408,000 | 204,923,000 |
Collectively evaluated for impairment | 1,581,020,000 | 1,207,292,000 |
Loans acquired with deteriorated credit quality | 86,000 | 0 |
Loans, pledged as collateral, amount at fair value | 83,000,000 | 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 (recovery) for loan losses | -3,708,000 | 2,686,000 |
Loans charged-off | -2,665,000 | -256,000 |
Allowance for losses at end of period | 4,043,000 | 10,416,000 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 0 | 4,572,000 |
Collectively evaluated for impairment | 4,043,000 | 5,844,000 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 165,960,000 | 194,403,000 |
Collectively evaluated for impairment | 940,423,000 | 631,908,000 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Bank Loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | 3,391,000 | 9,705,000 |
Provision (recovery) for loan losses | 1,033,000 | 334,000 |
Loans charged-off | -3,960,000 | -6,648,000 |
Allowance for losses at end of period | 464,000 | 3,391,000 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 464,000 | 2,621,000 |
Collectively evaluated for impairment | 0 | 770,000 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 2,340,000 | 3,554,000 |
Collectively evaluated for impairment | 637,772,000 | 558,469,000 |
Loans acquired with deteriorated credit quality | 86,000 | 0 |
Residential Mortgage Loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan losses | 0 | 0 |
Loans charged-off | 0 | 0 |
Allowance for losses at end of period | 0 | 0 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,825,000 | 16,915,000 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans Receivable - Related Party [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Allowance for losses at beginning of period | 0 | 0 |
Provision (recovery) for loan losses | 936,000 | 0 |
Loans charged-off | 0 | 0 |
Allowance for losses at end of period | 936,000 | 0 |
Allowance for losses, ending balance: | ' | ' |
Individually evaluated for impairment | 936,000 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans, ending balance: | ' | ' |
Individually evaluated for impairment | 5,108,000 | 6,966,000 |
Collectively evaluated for impairment | 0 | 0 |
Loans acquired with deteriorated credit quality | 0 | 0 |
Loans Receivable [Member] | ' | ' |
Loans, ending balance: | ' | ' |
Loans, pledged as collateral, amount at fair value | $83,000,000 | ' |
FINANCING_RECEIVABLES_Credit_R
FINANCING RECEIVABLES (Credit Risk Profiles of Bank Loans) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | $1,752,694 | $1,377,036 |
Loans held for sale | 91,382 | 21,916 |
Bank Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | 676,872 | 562,023 |
Loans held for sale | 36,674 | 6,850 |
Bank Loans [Member] | Rating 1 [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | 632,588 | 488,004 |
Bank Loans [Member] | Rating 2 [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | 0 | 42,476 |
Bank Loans [Member] | Rating 3 [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | 6,173 | 18,806 |
Bank Loans [Member] | Rating 4 [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | 0 | 2,333 |
Bank Loans [Member] | Rating 5 [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans and receivables | $1,437 | $3,554 |
FINANCING_RECEIVABLES_Credit_R1
FINANCING RECEIVABLES (Credit Risk Profiles of Commercial Real Estate Loans) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | $1,752,694 | $1,377,036 |
Whole Loans [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 1,022,971 | 745,789 |
Whole Loans [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 990,471 | 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 | 0 | 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 | 16,107 | 16,205 |
B Notes [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 16,107 | 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 | 67,305 | 64,317 |
Mezzanine Loans [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 45,447 | 51,862 |
Mezzanine Loans [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 21,858 | 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 | 1,106,383 | 826,311 |
Commercial Portfolio Segment [Member] | Rating 1 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 1,052,025 | 748,785 |
Commercial Portfolio Segment [Member] | Rating 2 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 54,358 | 44,955 |
Commercial Portfolio Segment [Member] | Rating 3 [Member] | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Loans and receivables | 0 | 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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | $774 | $234 |
60-89 Days | 251 | 91 |
Greater than 90 Days | 1,769 | 3,822 |
Total Past Due | 2,794 | 4,147 |
Current | 1,843,102 | 1,408,068 |
Total Loans Receivable | 1,845,896 | 1,412,215 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 175,140 | 203,958 |
Loans held for sale | 91,382 | 21,916 |
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 | 1,022,971 | 745,789 |
Total Loans Receivable | 1,022,971 | 745,789 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 127,888 | 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 | 16,107 | 16,205 |
Total Loans Receivable | 16,107 | 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 | 67,305 | 64,317 |
Total Loans Receivable | 67,305 | 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 | 774 | 0 |
60-89 Days | 0 | 0 |
Greater than 90 Days | 1,652 | 3,554 |
Total Past Due | 2,426 | 3,554 |
Current | 674,446 | 558,469 |
Total Loans Receivable | 676,872 | 562,023 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 2,426 | 3,554 |
Loans held for sale | 36,674 | 6,850 |
Residential Mortgage Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days | 0 | 234 |
60-89 Days | 251 | 91 |
Greater than 90 Days | 117 | 268 |
Total Past Due | 368 | 593 |
Current | 57,165 | 16,322 |
Total Loans Receivable | 57,533 | 16,915 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 2,825 | 268 |
Loans held for sale | 54,708 | 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 | 5,108 | 6,966 |
Total Loans Receivable | 5,108 | 6,966 |
Total Loans Greater Than 90 days and accruing | 0 | 0 |
Loans, fair value method elected, unpaid principal balance | 3,929 | 5,733 |
Loans Receivable [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, fair value method elected, unpaid principal balance | 4,500 | ' |
Loans, fair value method elected, fair value | $86 | ' |
FINANCING_RECEIVABLES_Impaired
FINANCING RECEIVABLES (Impaired Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Balance | $175,140 | $204,005 |
Unpaid Principal Balance | 175,140 | 203,958 |
Specific Allowance | -1,400 | -7,193 |
Average Investment in Impaired Loans | 172,692 | 186,315 |
Interest Income Recognized | 14,753 | 11,676 |
Whole Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 127,888 | 130,759 |
Loans with a specific valuation allowance, Recorded balance | 0 | 25,572 |
Recorded Balance | 127,888 | 156,331 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 127,888 | 130,759 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 25,572 |
Unpaid Principal Balance | 127,888 | 156,331 |
Specific Allowance | 0 | -4,572 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 126,591 | 123,495 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 24,748 |
Average Investment in Impaired Loans | 126,591 | 148,243 |
Loans without a specific valuation allowance, Interest Income Recognized | 11,882 | 8,439 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 1,622 |
Interest Income Recognized | 11,882 | 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 | 2,543 | 1,615 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 2,543 | 1,615 |
Bank Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans without a specific valuation allowance, Recorded balance | 86 | 0 |
Loans with a specific valuation allowance, Recorded balance | 2,340 | 3,554 |
Recorded Balance | 2,426 | 3,554 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 86 | 0 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 2,340 | 3,554 |
Unpaid Principal Balance | 2,426 | 3,554 |
Specific Allowance | -464 | -2,621 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 86 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 287 | 0 |
Average Investment in Impaired Loans | 373 | 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 | 2,825 | 315 |
Loans with a specific valuation allowance, Recorded balance | 0 | 0 |
Recorded Balance | 2,825 | 315 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 2,825 | 268 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 0 | 0 |
Unpaid Principal Balance | 2,825 | 268 |
Specific Allowance | 0 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 2,825 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Average Investment in Impaired Loans | 2,825 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 107 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Interest Income Recognized | 107 | 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 | 3,929 | 0 |
Recorded Balance | 3,929 | 5,733 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 0 | 5,733 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 3,929 | 0 |
Unpaid Principal Balance | 3,929 | 5,733 |
Specific Allowance | -936 | 0 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 0 | 0 |
Loans with specific valuation allowance, Average Investment in Impaired Loans | 4,831 | 0 |
Average Investment in Impaired Loans | 4,831 | 0 |
Loans without a specific valuation allowance, Interest Income Recognized | 0 | 0 |
Loans with a specific valuation allowance, Interest Income Recognized | 221 | 0 |
Interest Income Recognized | $221 | $0 |
FINANCING_RECEIVABLES_Loan_Por1
FINANCING RECEIVABLES (Loan Portfolio Troubled-debt Restructurings) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Loan | Loan | Loan | Loan | |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 3 | 2 | 3 | 5 |
Pre-Modification Outstanding Recorded Balance | $54,111 | $48,374 | $54,111 | $111,294 |
Post-Modification Outstanding Recorded Balance | 54,111 | 52,716 | 54,111 | 115,636 |
Whole Loans [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 2 | 2 | 2 | 4 |
Pre-Modification Outstanding Recorded Balance | 16,039 | 48,374 | 16,039 | 104,702 |
Post-Modification Outstanding Recorded Balance | 16,039 | 52,716 | 16,039 | 109,044 |
B Notes [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Mezzanine Loans [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Balance | 38,072 | 0 | 38,072 | 0 |
Post-Modification Outstanding Recorded Balance | 38,072 | 0 | 38,072 | 0 |
Bank Loans [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 0 |
Lease Receivables [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | ' | 0 | ' | 0 |
Pre-Modification Outstanding Recorded Balance | ' | 0 | ' | 0 |
Post-Modification Outstanding Recorded Balance | ' | 0 | ' | 0 |
Loans Receivable - Related Party [Member] | ' | ' | ' | ' |
Troubled debt restructuring [Abstract] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Balance | 0 | 0 | 0 | 6,592 |
Post-Modification Outstanding Recorded Balance | $0 | $0 | $0 | $6,592 |
BUSINESS_COMBINATIONS_Details
BUSINESS COMBINATIONS (Details) (USD $) | 9 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 27, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | |
Primary Capital Advisors LLC [Member] | Primary Capital Advisors LLC [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] | Wholesale or Correspondent Relationships [Member] | Wholesale or Correspondent Relationships [Member] | Life Care Funding, LLC [Member] | Moselle CLO [Member] | Moselle CLO [Member] | Class 1 Subordinated Notes [Member] | Class 2 Subordinated Notes [Member] | ||||
Investment in PCA [Member] | Investment in PCA [Member] | VIE, Primary Beneficiary [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.20% | 88.60% | ' | ' | ' |
Total cash purchase price | ' | ' | ' | $7,600,000 | $7,613,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted stock | 890,000 | 242,000 | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | 185,000 | 545,000 | 52,000 | 0 | 156,000 | 0 | ' | ' | ' | ' | ' | ' | ' |
Asset Balance | 21,813,000 | ' | 24,303,000 | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 600,000 | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Acquisition of membership interests | ($12,676,000) | ($2,200,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' |
Percentage of outstanding notes purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 67.90% |
BUSINESS_COMBINATIONS_Allocati
BUSINESS COMBINATIONS (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 | ' | 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 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Asset Balance | $21,813,000 | ' | $21,813,000 | ' | $24,303,000 |
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) | ' | ' | '6 years 9 months 18 days | ' | '7 years 8 months 12 days |
Accumulated amortization | 11,559,000 | ' | 11,559,000 | ' | 12,481,000 |
Fee income | 2,344,000 | 1,245,000 | 7,166,000 | 4,182,000 | ' |
Investment in RCAM [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Asset Balance | 21,213,000 | ' | 21,213,000 | ' | 21,213,000 |
Accumulated amortization | 11,325,000 | ' | 11,325,000 | ' | 9,980,000 |
Wholesale or Correspondent Relationships [Member] | Investment in PCA [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Asset Balance | 600,000 | ' | 600,000 | ' | 600,000 |
Accumulated amortization | 234,000 | ' | 234,000 | ' | 42,000 |
Investment in RCAM [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Fee income | $1,200,000 | $1,200,000 | $4,000,000 | $4,200,000 | ' |
INTANGIBLE_ASSETS_Summary_of_I
INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | $21,813,000 | $24,303,000 | ||
Accumulated Amortization | -11,559,000 | -12,481,000 | ||
Net Asset | 10,254,000 | [1] | 11,822,000 | [1] |
Investment in RCAM [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | 21,213,000 | 21,213,000 | ||
Accumulated Amortization | -11,325,000 | -9,980,000 | ||
Net Asset | 9,888,000 | 11,233,000 | ||
Investment in PCA [Member] | Wholesale or Correspondent Relationships [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | 600,000 | 600,000 | ||
Accumulated Amortization | -234,000 | -42,000 | ||
Net Asset | 366,000 | 558,000 | ||
Investments in Real Estate [Member] | In Place Leases [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | ' | 2,461,000 | ||
Accumulated Amortization | ' | -2,430,000 | ||
Net Asset | ' | 31,000 | ||
Investments in Real Estate [Member] | Above (Below) Market Leases [Member] | ' | ' | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Asset Balance | ' | 29,000 | ||
Accumulated Amortization | ' | -29,000 | ||
Net Asset | ' | $0 | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
BORROWINGS_Schedule_of_Debt_De
BORROWINGS (Schedule of Debt) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 01, 2014 | Sep. 30, 2014 | |||
RREF CDO 2006-1 Senior Notes [Member] | RREF CDO 2006-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RREF CDO 2007-1 Senior Notes [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2013 [Member] | RCC CRE Notes 2014 [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO I Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos CDO III Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Apidos Cinco CDO Senior Notes [Member] | Whitney CLO I Securitized Borrowings [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Securitized Borrowings [Member] | Unsecured Junior Subordinated Debentures [Member] | Unsecured Junior Subordinated Debentures [Member] | 6% Convertible Senior Notes [Member] | Short-Term Repurchase Agreements [Member] | Mortgages [Member] | Convertible Senior Notes [Member] | CRE - Term Repurchase Facility [Member] | CRE - Term Repurchase Facility [Member] | CMBS - Term Repurchase Facilities [Member] | CMBS - Term Repurchase Facilities [Member] | RMBS - Term Repurchase Facility [Member] | Residential Mortgage Financing Agreements [Member] | CMBS - Short Term Repurchase Agreements [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||
Revolving Credit Facility [Member] | JPMorgan Chase [Member] | |||||||||||||||||||||||||||||||||||
Line of Credit [Member] | ||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding Borrowings | $1,590,958,000 | $1,319,810,000 | $105,841,000 | $94,004,000 | $137,004,000 | $177,837,000 | $223,897,000 | $256,571,000 | $231,365,000 | $47,848,000 | $87,131,000 | $83,621,000 | $133,209,000 | $284,160,000 | $321,147,000 | $440,000 | $94,904,000 | $5,212,000 | $51,154,000 | $51,005,000 | $106,535,000 | $47,601,000 | $14,627,000 | $107,979,000 | $55,280,000 | $29,703,000 | $21,559,000 | ' | $22,705,000 | $48,885,000 | $36,633,000 | $32,911,000 | ' | $25,000,000 | ||
Unamortized Issuance Costs and Discounts | 18,236,000 | 16,216,000 | 1,000 | 205,000 | 242,000 | 719,000 | 2,943,000 | 4,269,000 | 3,979,000 | 0 | 0 | 0 | 117,000 | 358,000 | 853,000 | 0 | 0 | 0 | 394,000 | 543,000 | 8,465,000 | 12,000 | 0 | 7,021,000 | 654,000 | 1,033,000 | 0 | ' | 55,000 | 0 | 0 | 2,589,000 | ' | ' | ||
Principal Outstanding | 1,609,194,000 | 1,336,026,000 | 105,842,000 | 94,209,000 | 137,246,000 | 178,556,000 | 226,840,000 | 260,840,000 | 235,344,000 | 47,848,000 | 87,131,000 | 83,621,000 | 133,326,000 | 284,518,000 | 322,000,000 | 440,000 | 94,904,000 | 5,212,000 | 51,548,000 | 51,548,000 | 115,000,000 | 47,613,000 | 14,627,000 | 115,000,000 | 55,934,000 | 30,736,000 | 21,559,000 | ' | 22,760,000 | 48,885,000 | 36,633,000 | 35,500,000 | ' | ' | ||
Weighted Average Borrowing Rate | 1.98% | 1.87% | 1.93% | 1.87% | 1.06% | 0.84% | 2.10% | 2.03% | 1.44% | 2.54% | 1.68% | 1.11% | 0.88% | 0.74% | 0.74% | 0.00% | 1.19% | 1.19% | 4.19% | 4.19% | 6.00% | 1.38% | 4.24% | 6.00% | 2.32% | 2.67% | 1.43% | ' | 1.15% | 3.56% | 1.53% | 4.13% | 2.66% | ' | ||
Weighted Average Remaining Maturity | '12 years 2 months | '13 years 1 month | '31 years 11 months | '32 years 7 months | '32 years 0 months | '32 years 9 months | '14 years 2 months | '15 years 0 months | '17 years 7 months | '2 years 10 months | '3 years 7 months | '6 years 0 months | '6 years 8 months | '5 years 7 months | '6 years 5 months | ' | '5 years 4 months | ' | '22 years 1 month | '22 years 9 months | '4 years 11 months | '21 days | '56 days | '4 years 2 months | '20 days | '21 days | '23 days | ' | '1 day | '278 days | '23 days | '3 years 0 months | ' | ' | ||
Value of Collateral | 2,057,171,000 | 1,508,603,000 | 139,267,000 | 169,115,000 | 273,839,000 | 318,933,000 | 269,371,000 | 305,586,000 | 347,511,000 | 63,956,000 | 103,736,000 | 94,516,000 | 145,930,000 | 303,385,000 | 342,796,000 | 885,000 | 127,312,000 | 0 | 0 | 0 | 0 | 56,949,000 | 16,487,000 | 0 | 83,133,000 | 48,186,000 | 26,540,000 | ' | 28,533,000 | 68,417,000 | 47,224,000 | 184,167,000 | ' | ' | ||
Accrued interest costs | 3,875,000 | [1] | 1,693,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,000 | 26,000 | 23,000 | 22,000 | 21,000 | ' | ' | ' | ' | ' |
Line of Credit Facility, Fair Value of Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | September 30, 2014 December 31, 2013Liabilities of consolidated VIEs included in the total liabilities above: Borrowings (of which $94.9 million and $0 at fair value)$1,214,923 $1,070,339 Accrued interest expense1,280 918 Derivatives, at fair value7,958 10,191 Accounts payable and other liabilities(418) 1,604 Total liabilities of consolidated VIEs$1,223,743 $1,083,052 |
BORROWINGS_Securitization_Deta
BORROWINGS (Securitization) (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
RREF CDO 2006-1 Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | $117.10 |
RREF CDO 2007-1 Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 129.8 |
RCC CRE Notes 2013 [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 34 |
RCC CRE Notes 2014 [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 0 |
Apidos CDO I Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 271.7 |
Apidos CDO III Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 178.9 |
Apidos Cinco CDO Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 36.3 |
Moselle CLO S.A. Senior Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | 68.6 |
Moselle CLO S.A. Securitized Borrowings [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Cumulative Amount Repaid | $0 |
BORROWINGS_NarrativeRCC_2014CR
BORROWINGS (Narrative)-RCC 2014-CRE2 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 31, 2014 | Sep. 30, 2014 | Jul. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 |
RCC CRE Notes 2014 [Member] | RCC CRE Notes 2014 [Member] | RCC CRE Notes 2014 [Member] | RCC Commercial [Member] | Senior Notes Class C [Member] | Senior Notes Class C [Member] | Senior Notes Class A [Member] | Senior Notes Class B [Member] | |||
RCC CRE Notes 2014 [Member] | RCC CRE Notes 2014 [Member] | RCC Commercial [Member] | RCC CRE Notes 2014 [Member] | RCC CRE Notes 2014 [Member] | ||||||
RCC CRE Notes 2014 [Member] | ||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | $353,900,000 | ' | $353,900,000 | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | 235,300,000 | ' | ' | ' | 17,700,000 | ' | 196,400,000 | 38,900,000 |
Payments by parent to acquire notes issued by VIE | ' | ' | ' | ' | ' | $100,900,000 | ' | $17,700,000 | ' | ' |
Percentage of senior notes acquired by the parent | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | 4.25% | ' | 1.05% | 2.50% |
Weighted average interest rate | 1.98% | 1.87% | ' | 1.44% | ' | ' | ' | ' | ' | ' |
BORROWINGS_NarrativeMoselle_CL
BORROWINGS (Narrative)-Moselle CLO S.A. (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Sep. 30, 2014 |
Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | Moselle CLO S.A. Senior Notes [Member] | |||
Class 1 Subordinated Notes [Member] | Class 2 Subordinated Notes [Member] | Senior Notes Class A-1E [Member] | Senior Notes Class A-1L [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-1LE [Member] | Senior Notes Class A-2E [Member] | Senior Notes Class A-2L [Member] | Senior Notes Class A-3E [Member] | Senior Notes Class A-3L [Member] | Senior Notes Class B-1E [Member] | Senior Notes Class B-1L [Member] | Senior Notes Class B-1L [Member] | |||||
EUR (€) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | ||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding notes purchased | ' | ' | 100.00% | 67.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in VIE | ' | ' | ' | ' | 88.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | € 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 | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | 0.25% | 0.25% | 0.31% | 0.31% | 0.40% | 0.40% | 0.70% | 0.75% | 1.80% | 1.85% | ' |
Weighted average interest rate | 1.98% | 1.87% | ' | ' | ' | 1.19% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.19% |
BORROWINGS_Repurchase_and_Mort
BORROWINGS (Repurchase and Mortgage Finance Facilities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Value of Collateral Under Linked Transactions | $14,272,000 | [1] | $30,066,000 | [1] |
Weighted Average Interest Rate | 1.98% | 1.87% | ||
Long-term debt, gross | 1,609,194,000 | 1,336,026,000 | ||
Unamortized Issuance Costs and Discounts | 18,236,000 | 16,216,000 | ||
RCC Real Estate [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unamortized Issuance Costs and Discounts | 395,000 | 300,000 | ||
Repurchase Agreements [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 185,061,000 | ' | ||
Value of Collateral | 253,848,000 | ' | ||
Long-term debt, gross | ' | 91,931,000 | ||
CMBS bonds held as collateral, fair value | ' | 121,622,000 | ||
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 27,963,000 | 0 | ||
Value of Collateral | 44,508,000 | 0 | ||
Number of Positions as Collateral | 65 | 0 | ||
Weighted Average Interest Rate | 3.75% | 0.00% | ||
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] | Wells Fargo Securities, LLC [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 11,058,000 | 0 | ||
Value of Collateral | 17,695,000 | 0 | ||
Number of Positions as Collateral | 1 | 0 | ||
Weighted Average Interest Rate | 1.66% | 0.00% | ||
Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 25,575,000 | 0 | ||
Value of Collateral | 29,529,000 | 0 | ||
Number of Positions as Collateral | 8 | 0 | ||
Weighted Average Interest Rate | 1.47% | 0.00% | ||
Repurchase Agreements [Member] | New Century Bank [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 16,526,000 | 11,916,000 | ||
Value of Collateral | 17,831,000 | 13,089,000 | ||
Number of Positions as Collateral | 94 | 74 | ||
Weighted Average Interest Rate | 3.45% | 4.17% | ||
Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 4,395,000 | 2,711,000 | ||
Value of Collateral | 6,079,000 | 3,398,000 | ||
Number of Positions as Collateral | 22 | 17 | ||
Weighted Average Interest Rate | 2.78% | 4.58% | ||
CMBS - Term Repurchase Facilities [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 21,559,000 | 47,601,000 | ||
Value of Collateral | 26,540,000 | 56,949,000 | ||
Number of Positions as Collateral | 30 | 44 | ||
Weighted Average Interest Rate | 1.43% | 1.38% | ||
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 47,704,000 | 30,003,000 | ||
Value of Collateral | 71,822,000 | 48,186,000 | ||
Number of Positions as Collateral | 4 | 3 | ||
Weighted Average Interest Rate | 2.21% | 2.67% | ||
CRE - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 7,576,000 | -300,000 | ||
Value of Collateral | 11,311,000 | 0 | ||
Number of Positions as Collateral | 1 | 0 | ||
Weighted Average Interest Rate | 3.03% | 0.00% | ||
RMBS - Term Repurchase Facility [Member] | Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 22,705,000 | 0 | ||
Value of Collateral | 28,533,000 | 0 | ||
Number of Positions as Collateral | 6 | 0 | ||
Weighted Average Interest Rate | 1.15% | 0.00% | ||
Unamortized Issuance Costs and Discounts | 55,000 | ' | ||
Linked Transactions [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 29,736,000 | 64,094,000 | ||
Value of Collateral Under Linked Transactions | 43,867,000 | 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 | 4,146,000 | 21,969,000 | ||
Value of Collateral Under Linked Transactions | 6,262,000 | 30,803,000 | ||
Number of Positions as Collateral | 2 | 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 | 20,437,000 | 18,599,000 | ||
Value of Collateral Under Linked Transactions | 30,869,000 | 29,861,000 | ||
Number of Positions as Collateral | 9 | 9 | ||
Weighted Average Interest Rate | 1.46% | 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 | 6,736,000 | 8,345,000 | ||
Number of Positions as Collateral | 7 | 7 | ||
Weighted Average Interest Rate | 1.66% | 1.65% | ||
Linked Transactions [Member] | CRE - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Outstanding Borrowings | 0 | 0 | ||
Value of Collateral Under Linked Transactions | 0 | 0 | ||
Number of Positions as Collateral | 0 | 0 | ||
Weighted Average Interest Rate | 0.00% | 0.00% | ||
CMBS - Term Repurchase Facilities [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 1.43% | ' | ||
Long-term debt, gross | 21,559,000 | ' | ||
Unamortized Issuance Costs and Discounts | 0 | ' | ||
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Linked Repurchase Agreement Borrowings, Included as Derivative Instruments | 5,153,000 | 6,506,000 | ||
CMBS - Term Repurchase Facilities [Member] | RCC Real Estate [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unamortized Issuance Costs and Discounts | 0 | 12,000 | ||
CRE - Term Repurchase Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 2.32% | 2.67% | ||
Long-term debt, gross | 55,934,000 | 30,736,000 | ||
Unamortized Issuance Costs and Discounts | 654,000 | 1,033,000 | ||
CRE - Term Repurchase Facility [Member] | RCC Real Estate [Member] | Wells Fargo Bank, National Association [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Unamortized Issuance Costs and Discounts | $260,000 | $732,000 | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
BORROWINGS_Amount_at_Risk_Unde
BORROWINGS (Amount at Risk Under Repurchase Facilities) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Remaining Maturity | '12 years 2 months | '13 years 1 month |
Weighted Average Interest Rate | 1.98% | 1.87% |
CMBS - Term Repurchase Facilities [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Remaining Maturity | '23 days | ' |
Weighted Average Interest Rate | 1.43% | ' |
CMBS - Term Repurchase Facilities [Member] | Wells Fargo Bank, National Association [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Linked Repurchase Agreement Borrowings, Included as Derivative Instruments | 5,153 | 6,506 |
RMBS - Term Repurchase Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Remaining Maturity | '1 day | ' |
Weighted Average Interest Rate | 1.15% | ' |
CRE - Term Repurchase Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Remaining Maturity | '20 days | '21 days |
Weighted Average Interest Rate | 2.32% | 2.67% |
Repurchase Agreements [Member] | Wells Fargo Bank, National Association [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 3.75% | 0.00% |
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] | Wells Fargo Securities, LLC [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 1.66% | 0.00% |
Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 1.47% | 0.00% |
Repurchase Agreements [Member] | New Century Bank [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 3.45% | 4.17% |
Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 2.78% | 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 | 7,353 | 10,796 |
Weighted Average Remaining Maturity | '20 days | '21 days |
Weighted Average Interest Rate | 1.43% | 1.38% |
Linked and Non-linked Transactions [Member] | RMBS - Term Repurchase Facility [Member] | Wells Fargo Bank, National Association [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amount at Risk | 5,233 | ' |
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 | 23,677 | 20,718 |
Weighted Average Remaining Maturity | '20 days | '21 days |
Weighted Average Interest Rate | 2.21% | 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 | 3,326 | ' |
Weighted Average Remaining Maturity | '20 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 | 32,494 | ' |
Weighted Average Remaining Maturity | '275 days | ' |
Weighted Average Interest Rate | 3.75% | ' |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | JP Morgan Securities, LLC [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amount at Risk | 0 | 7,882 |
Weighted Average Remaining Maturity | '0 days | '11 days |
Weighted Average Interest Rate | 0.00% | 0.99% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Wells Fargo Securities, LLC [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amount at Risk | 2,118 | 8,925 |
Weighted Average Remaining Maturity | '8 days | '2 days |
Weighted Average Interest Rate | 1.66% | 1.19% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | Deutsche Bank Securities, Inc [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amount at Risk | 10,571 | 11,418 |
Weighted Average Remaining Maturity | '29 days | '22 days |
Weighted Average Interest Rate | 1.47% | 1.43% |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | New Century Bank [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amount at Risk | 17,016 | ' |
Weighted Average Remaining Maturity | '334 days | ' |
Weighted Average Interest Rate | 3.45% | ' |
Linked and Non-linked Transactions [Member] | Repurchase Agreements [Member] | ViewPoint Bank, NA [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amount at Risk | 4,485 | ' |
Weighted Average Remaining Maturity | '91 days | ' |
Weighted Average Interest Rate | 2.78% | ' |
BORROWINGS_NarrativeRMBS_Term_
BORROWINGS (Narrative)-RMBS – Term Repurchase Facility (Details) (RCC Residential Portfolio Inc. and RCC Residential Portfolio TRS Inc. [Member], Wells Fargo Bank, National Association [Member], RMBS - Term Repurchase Facility [Member], Linked and Non-linked Transactions [Member], USD $) | 1 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2014 | |
RCC Residential Portfolio Inc. and RCC Residential Portfolio TRS Inc. [Member] | Wells Fargo Bank, National Association [Member] | RMBS - Term Repurchase Facility [Member] | Linked and Non-linked Transactions [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | ' | $285,000,000 |
Debt instrument, term | '1 year | ' |
Debt instrument term, option to extend | '1 year | ' |
Debt instrument, interest rate, stated percentage rate range, maximum | 1.45% | ' |
Basis spread on variable rate | 4.00% | ' |
BORROWINGS_NarrativeCRE_Term_R
BORROWINGS (Narrative)-CRE – Term Repurchase Facilities (Details) (RCC Real Estate SPE 5 [Member], Deutsche Bank AG [Member], USD $) | 0 Months Ended |
Jul. 19, 2013 | |
option | |
RCC Real Estate SPE 5 [Member] | Deutsche Bank AG [Member] | ' |
Debt Instrument [Line Items] | ' |
Maximum amount of facility | $200,000,000 |
Debt instrument, term | '12 months |
Structuring fee, percent | 0.25% |
Debt instrument term, number of options to extend | 2 |
Debt instrument term, option to extend | '1 year |
BORROWINGS_NarrativeResidentia
BORROWINGS (Narrative)-Residential Mortgage Financing Agreements (Details) (USD $) | Sep. 30, 2014 |
Debt Instrument [Line Items] | ' |
Judgment allowed against subsidiary or guarantor | $250,000 |
Loan to value ratio required for compliance | 75.00% |
Minimum net worth required for compliance | 30,000,000 |
New Century Bank [Member] | Primary Capital Advisors LLC [Member] | ' |
Debt Instrument [Line Items] | ' |
Maximum amount of facility | 30,000,000 |
Number of amendments to facility | 7 |
Wells Fargo Bank, National Association [Member] | Primary Capital Advisors LLC [Member] | ' |
Debt Instrument [Line Items] | ' |
Maximum amount of facility | $75,000,000 |
BORROWINGS_NarrativeSenior_Sec
BORROWINGS (Narrative)-Senior Secured Revolving Credit Facility (Details) (Northport LLC [Member], Revolving Credit Facility [Member], USD $) | Sep. 30, 2014 | Sep. 18, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Minimum [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Maximum amount of facility | $225,000,000 | $110,000,000 | ' | ' |
Line of credit facility, increase borrowing capacity | 15,000,000 | ' | ' | ' |
Line of credit facility, maximum borrowing capacity, effective commitment | 125,000,000 | ' | ' | ' |
Line of credit facility, amount outstanding | $35,500,000 | ' | ' | ' |
Basis spread on variable rate | ' | ' | 1.50% | 2.50% |
SHARE_ISSUANCE_AND_REPURCHASE_1
SHARE ISSUANCE AND REPURCHASE (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Redeemable Preferred Stock Series A [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock issued during period, shares, new issues | ' | 0 | ' | ' |
Stock issued during period, weighted average offering price per share, new issues | $24.05 | $0 | ' | ' |
Preferred stock, shares outstanding (in shares) | ' | 1,011,743 | 1,011,743 | 680,952 |
Preferred stock, coupon authorized (in hundredths) | ' | ' | 8.50% | ' |
Redeemable Preferred Stock Series B [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock issued during period, shares, new issues | ' | 123,201 | ' | ' |
Stock issued during period, weighted average offering price per share, new issues | $24.06 | $24.34 | ' | ' |
Preferred stock, shares outstanding (in shares) | ' | 4,734,495 | 4,734,495 | 3,485,078 |
Preferred stock, coupon authorized (in hundredths) | ' | ' | 8.25% | ' |
Redeemable Preferred Stock Series C [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Stock issued during period, shares, new issues | ' | 0 | ' | ' |
Stock issued during period, weighted average offering price per share, new issues | $25 | $0 | ' | ' |
Preferred stock, shares outstanding (in shares) | ' | 4,800,000 | 4,800,000 | 0 |
Preferred stock, coupon authorized (in hundredths) | ' | ' | 8.63% | ' |
SHARE_ISSUANCE_AND_REPURCHASE_2
SHARE ISSUANCE AND REPURCHASE (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 21, 2013 |
Redeemable Preferred Stock Series C [Member] | Redeemable Preferred Stock Series C [Member] | Dividend Reinvestment Plan March 21 2013 [Member] | |||
Common Stock [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Preferred stock, liquidation preference (in dollars per share) | ' | ' | $25 | $25 | ' |
Shares authorized for dividend reinvestment plan (in shares) | ' | ' | ' | ' | 20,000,000 |
Shares issued from dividend reinvestment plan (in shares) | 2,000,000 | 4,600,000 | ' | ' | ' |
Proceeds from dividend reinvestment plan | $10.90 | $25.40 | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Mar. 30, 2014 | Sep. 30, 2014 | Mar. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 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] | Loan Origination Performance Plan [Member] | Loan Origination Performance Plan [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | ||||
Director | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Restricted Stock [Member] | Restricted 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 | ' | ' | ' | $5,000,000 | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized upon meeting performance thresholds (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,728 | 336,000 | ' | ' | ' | ' |
Share grants on achievement of performance threshold (in shares) | ' | ' | ' | ' | ' | ' | 112,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable on performance shares granted and earned | ' | ' | ' | ' | ' | ' | ' | 28,000 | 258,000 | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued pursuant to the Management agreement (in shares) | 0 | 80,189 | 190,828 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive compensation value | 485,000 | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $52,000 | $0 | $156,000 | $0 |
SHAREBASED_COMPENSATION_Restri
SHARE-BASED COMPENSATION (Restricted Stock Activity) (Details) | 9 Months Ended |
Sep. 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 (2) | 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 (2) | 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 (2) | 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 (2) | 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 (2) | 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 (2) | 112,000 |
Grant Date March 31, 2014 [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares (2) | 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 (2) | 5,932 |
Vesting/Year | 100.00% |
Grant Date September 24, 2014 Number One [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares (2) | 165,028 |
Vesting/Year | 50.00% |
Grant Date September 24, 2014 Number Two [Member] | 2007 Omnibus Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Restricted common stock transactions [Roll Forward] | ' |
Shares (2) | 78,584 |
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) | 823,895 |
Vested (shares) | -1,226,831 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 2,432,587 |
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) | 889,931 |
Vested (shares) | -1,260,050 |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 2,742,476 |
SHAREBASED_COMPENSATION_Status
SHARE-BASED COMPENSATION (Status of Unvested Stock Options) (Details) (Unvested [Member], USD $) | 9 Months Ended |
Sep. 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 $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | $797 | $2,120 | $4,497 | $7,866 |
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 | 7 |
Manager and Non Employees [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 549 | 2,052 | 3,762 | 7,704 |
Employees [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | 185 | 0 | 545 | 0 |
Non Employee Directors [Member] | Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total equity compensation expense | $63 | $64 | $192 | $155 |
SHAREBASED_COMPENSATION_Parent
SHARE-BASED COMPENSATION Parenthetical (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Performance shares will vest over the subsequent period, duration | ' | ' | '1 year | ' |
Rate of Award Vesting Rights | ' | ' | 25.00% | ' |
Shares issued pursuant to the Management agreement (in shares) | 0 | 80,189 | ' | 190,828 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic: [Abstract] | ' | ' | ' | ' |
Net income allocable to common shares | $7,328 | $22,121 | $37,121 | $40,180 |
Weighted average number of shares outstanding | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 |
Basic net income per share (in dollars per share) | $0.06 | $0.18 | $0.29 | $0.34 |
Diluted: [Abstract] | ' | ' | ' | ' |
Net income allocable to common shares | $7,328 | $22,121 | $37,121 | $40,180 |
Weighted average number of shares outstanding | 129,654,365 | 124,212,032 | 127,434,378 | 116,471,142 |
Additional shares due to assumed conversion of dilutive instruments | 1,573,394 | 1,860,650 | 1,271,538 | 1,502,836 |
Adjusted weighted-average number of common shares outstanding | 131,227,759 | 126,072,682 | 128,705,916 | 117,973,978 |
Diluted net income per share (in dollars per share) | $0.06 | $0.18 | $0.29 | $0.34 |
Dilutive shares excluded from calculation of diluted net income per share | 17,907,939 | 640,666 | 17,907,939 | 640,666 |
6% Convertible Senior Notes [Member] | ' | ' | ' | ' |
Diluted: [Abstract] | ' | ' | ' | ' |
Debt instrument, interest rate, stated percentage | 6.00% | ' | 6.00% | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
1-Jan-14 | ' | ' | ($14,043) | ' |
Unrealized gains on derivatives, net | 1,160 | 498 | 2,351 | 2,480 |
Unrealized (losses) gains on available-for-sale securities, net | 8,956 | 1,723 | 7,466 | 11,644 |
Foreign currency translation adjustment | 23 | -23 | -157 | -23 |
Other comprehensive gain (loss) before reclassifications | ' | ' | 9,660 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | -71 | -129 | -212 | -322 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | -3,974 | -396 | -8,161 | 4,728 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 8,373 | ' |
Net current-period other comprehensive income | ' | ' | 18,033 | ' |
30-Sep-14 | 3,990 | ' | 3,990 | ' |
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 | ' | ' | 2,563 | ' |
30-Sep-14 | -8,592 | ' | -8,592 | ' |
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 | ' | ' | 15,627 | ' |
30-Sep-14 | 12,543 | ' | 12,543 | ' |
Foreign Currency Translation [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
1-Jan-14 | ' | ' | 196 | ' |
Net current-period other comprehensive income | ' | ' | -157 | ' |
30-Sep-14 | $39 | ' | $39 | ' |
RELATED_PARTY_TRANSACTIONS_Rel
RELATED PARTY TRANSACTIONS (Relationship with Resource America) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 17, 2011 | Nov. 24, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 07, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 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] | Elevation Home Loans, LLC [Member] | Pelium [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] | RCM Global Manager, LLC [Member] | Commercial Real Estate Loans [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] | RCC Residential, Inc. [Member] | Resource Real Estate [Member] | ||||||||||||||||
Transaction | Transaction | Transaction | |||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63.80% | ' | |||
Number of common shares of the Company owned by a related party (in shares) | ' | ' | ' | ' | ' | ' | 2,861,592 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage (percent) | ' | ' | ' | ' | ' | ' | 2.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.40% | 29.57% | ' | 29.57% | ' | ' | ' | |||
Restricted stock options to purchase restricted shares in Company owned by a related party (shares) | ' | ' | ' | ' | ' | ' | 2,166 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Base management fees paid by the Company | $3,606,000 | $5,113,000 | $10,000,000 | $11,006,000 | ' | ' | ' | $3,500,000 | $3,000,000 | $9,600,000 | $8,600,000 | ' | ' | ' | $0 | ' | $266,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Incentive management fees | ' | ' | ' | ' | ' | ' | ' | 0 | 1,900,000 | 0 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
General and administrative | 11,586,000 | 2,898,000 | 30,936,000 | 8,761,000 | ' | ' | ' | 1,100,000 | 848,000 | 3,500,000 | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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 | ' | ' | -4,000,000 | -11,044,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share of net profits as per the Investment Management Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 0 | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment securities, trading | 9,187,000 | [1] | ' | 9,187,000 | [1] | ' | 11,558,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | 4,400,000 | ' | 11,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Expense reimbursements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | 67,000 | ' | 132,000 | 198,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total indebtedness | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | 1,800,000 | ' | 1,600,000 | ' | ' | 175,000 | ' | ' | 175,000 | ' | 289,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Accrued base management fees | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | 1,200,000 | ' | 997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Expense reimbursement payable | ' | ' | ' | ' | ' | ' | ' | 667,000 | ' | 667,000 | ' | 572,000 | ' | ' | ' | ' | ' | ' | ' | 166,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Accrued incentive management fees payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Loan origination fee | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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) | ' | ' | ' | ' | ' | ' | ' | 8 | ' | 8 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition of membership interests | ' | ' | -12,676,000 | -2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,500,000 | ' | ' | ' | ' | ' | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 1,488,000 | 401,000 | 6,858,000 | 1,733,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000 | 433,000 | 2,004,000 | 526,000 | ' | ' | |||
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | |||
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | |||
Ownership interest increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | |||
Related party transaction, due from (to) related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | |||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel1
RELATED PARTY TRANSACTIONS (Relationship with LEAF Financial) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 05, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 11, 2013 | Feb. 15, 2012 | Sep. 03, 2011 | Sep. 30, 2014 | Mar. 05, 2011 | Dec. 31, 2013 | Mar. 05, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 16, 2011 | ||||
Lease Equity Appreciation Fund II [Member] | Loans Receivable - Related Party [Member] | Loans Receivable - Related Party [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 | |||||||||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Provision (recovery) for loan losses | 1,439,000 | 741,000 | -1,739,000 | 541,000 | ' | ' | 236,000 | 936,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | 5,700,000 | ' | ' | ' | ' | ' | ' | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | 1,488,000 | 401,000 | 6,858,000 | 1,733,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000 | -346,000 | -859,000 | -378,000 | ' | ' | |||
Investments in unconsolidated entities | $60,540,000 | [1] | ' | $60,540,000 | [1] | ' | $69,069,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,157,000 | ' | $40,157,000 | ' | $41,016,000 | $36,300,000 |
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel2
RELATED PARTY TRANSACTIONS (Relationship with CVC Credit Partners, LLC) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2012 | Feb. 24, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 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] | 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 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% | ' | ' | ' | ' | ' | ' | 29.57% | ' | 29.57% | ' | ' | ' | ' | |||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 309,000 | 515,000 | 1,000,000 | 160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred equity interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68.30% | 68.30% | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition of membership interests | ' | ' | -12,676,000 | -2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income (Loss) and Interest Expense from Equity Method Investments | 1,488,000 | 401,000 | 6,858,000 | 1,733,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000 | 433,000 | 2,004,000 | 526,000 | ' | ' | ' | |||
Investments in unconsolidated entities | $60,540,000 | [1] | ' | $60,540,000 | [1] | ' | $69,069,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,181,000 | ' | $18,181,000 | ' | $16,177,000 | ' | $16,200,000 |
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
RELATED_PARTY_TRANSACTIONS_Rel3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 11 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||
Apr. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Aug. 09, 2006 | Sep. 30, 2014 | Dec. 01, 2009 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | 23-May-12 | Jun. 21, 2011 | Sep. 30, 2014 | 23-May-12 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 19, 2012 | Jul. 09, 2014 | Jul. 09, 2014 | Aug. 09, 2006 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 15, 2010 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 15, 2010 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 30, 2014 | Jul. 31, 2014 | Jul. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 01, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | ||||
Resource America [Member] | Resource Real Estate Funding CDO 2006-1 [Member] | Pelium [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 | RCC Residential, Inc. [Member] | RCC Residential, Inc. [Member] | Lynnfield Place [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource Real Estate Management, LLC [Member] | Resource 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] | RCC CRE Notes 2014 [Member] | RCC CRE Notes 2014 [Member] | RCC CRE Notes 2014 [Member] | Commercial Real Estate Loans [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | Whispertree Apartments [Member] | RCM Global Manager, LLC [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 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] | RCC Residential, Inc. [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] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Variable rate basis, floor | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management fees percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | ' | ' | 4.00% | ' | 4.00% | ' | 1.00% | ' | 1.00% | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 4.00% | ' | ' | ' | ' | |||
Base management fees paid by the Company | ' | ' | 3,606,000 | 5,113,000 | 10,000,000 | 11,006,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000 | 34,000 | 105,000 | 103,000 | 0 | 6,500,000 | 6,000 | 23,000 | ' | 0 | 7,000 | 0 | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 54,000 | 0 | 151,000 | ' | ' | ' | |||
Gain on sale of real estate | 3,000,000 | ' | 16,600,000 | ' | 2,973,000 | 16,607,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity in net earnings (losses) and interest expense from unconsolidated subsidiaries | ' | ' | 1,488,000 | 401,000 | 6,858,000 | 1,733,000 | ' | ' | ' | ' | 770,000 | -521,000 | 2,506,000 | -735,000 | ' | ' | ' | ' | ' | ' | 0 | 6,000 | -19,000 | 49,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -521,000 | ' | -735,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | 975,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gain on Sale of Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage (percent) | ' | ' | ' | ' | ' | ' | ' | ' | 80.40% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 7.50% | ' | 7.50% | ' | ' | ' | 63.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Payments to acquire additional interest in subsidiaries | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
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 $936,000 and $0 | ' | 6,966,000 | [1] | 4,172,000 | [1] | ' | 4,172,000 | [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 | ' | 353,900,000 | 353,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Special servicing fee rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Placement agent fee | ' | 205,000 | ' | ' | 175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Acquisition of membership interests | ' | ' | ' | ' | -12,676,000 | -2,200,000 | ' | ' | 17,500,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Ownership percentage in VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63.80% | |||
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Resource Capital Corp [Member] | Ledgewood [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Legal fees | $45 | $70 | $202 | $155 |
DISTRIBUTIONS_Dividends_Declar
DISTRIBUTIONS Dividends Declared (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Common Stock [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Total Dividend Paid | $26,629 | $26,179 | $25,663 |
Dividend Per Share | $0.20 | $0.20 | $0.20 |
Redeemable Preferred Stock Series A [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Total Dividend Paid | 537 | 537 | 463 |
Dividend Per Share | $0.53 | $0.53 | $0.53 |
Redeemable Preferred Stock Series B [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Total Dividend Paid | 2,430 | 2,378 | 2,057 |
Dividend Per Share | $0.52 | $0.52 | $0.52 |
Preferred Shares - Series C [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Total Dividend Paid | $2,588 | $1,437 | ' |
Dividend Per Share | $0.54 | $0.30 | ' |
DISTRIBUTIONS_Narrative_Detail
DISTRIBUTIONS Narrative (Details) | 9 Months Ended |
Sep. 30, 2014 | |
DISTRIBUTIONS [Abstract] | ' |
REIT required taxable income distribution, percentage | 90.00% |
REIT taxable income distribution for exempt federal income taxes, Percentage | 100.00% |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 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 | ' | 0 | 802,000 | ' |
Provision (recovery) for loan losses | 1,439,000 | 741,000 | -1,739,000 | 541,000 | ' |
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 (recovery) for loan losses | 807,000 | 69,000 | 1,200,000 | 3,100,000 | ' |
CMBS [Member] | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Net impairment losses recognized in earnings | 0 | 255,000 | ' | 811,000 | ' |
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) | 2,200,000 | ' | 3,500,000 | ' | ' |
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) | ($2,600,000) | ' | ($3,000,000) | ' | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Investment securities, trading | $9,187 | [1] | $11,558 | [1] |
Investment securities available-for-sale | 281,018 | 215,206 | ||
CMBS - linked transactions | 14,272 | [1] | 30,066 | [1] |
Derivatives (net) | 21,618 | [1] | 0 | [1] |
Recurring Basis [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 9,187 | 11,558 | ||
Investment securities available-for-sale | 281,018 | 209,837 | ||
CMBS - linked transactions | 14,272 | 30,066 | ||
Derivatives (net) | 21,618 | ' | ||
Total assets at fair value | 326,095 | 251,461 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 8,830 | 10,586 | ||
Total liabilities at fair value | 8,830 | 10,586 | ||
Recurring Basis [Member] | Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 0 | 0 | ||
Investment securities available-for-sale | 870 | 2,370 | ||
CMBS - linked transactions | 0 | 0 | ||
Derivatives (net) | 0 | ' | ||
Total assets at fair value | 870 | 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 | 1,530 | 92 | ||
CMBS - linked transactions | 0 | 0 | ||
Derivatives (net) | 21,618 | ' | ||
Total assets at fair value | 23,148 | 92 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 872 | 395 | ||
Total liabilities at fair value | 872 | 395 | ||
Recurring Basis [Member] | Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Investment securities, trading | 9,187 | 11,558 | ||
Investment securities available-for-sale | 278,618 | 207,375 | ||
CMBS - linked transactions | 14,272 | 30,066 | ||
Derivatives (net) | 0 | ' | ||
Total assets at fair value | 302,077 | 248,999 | ||
Liabilities: | ' | ' | ||
Derivatives (net) | 7,958 | 10,191 | ||
Total liabilities at fair value | $7,958 | $10,191 | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) (USD $) | 12 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 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 | ' | 2,837 | 142 | 5,118 | 31 | -2,454 |
Purchases | ' | 202,031 | 105,572 | 61,402 | 31,058 | 3,999 |
Sales | ' | -121,301 | -99,151 | -20,100 | 0 | -2,050 |
Paydowns | ' | -48,005 | -36,768 | -10,412 | -825 | 0 |
Issuances | ' | 0 | 0 | 0 | 0 | 0 |
Settlements | ' | 0 | 0 | 0 | 0 | 0 |
Included in OCI | ' | 17,516 | 9,009 | 9,091 | 897 | -1,481 |
Transfers out of Level 2 | ' | 0 | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 94,900 | 0 | 0 | 0 | 0 | 0 |
Ending balance | ' | $302,077 | $189,589 | $71,755 | $31,612 | $9,121 |
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 $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 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 | -2,233 |
Ending balance | $7,958 |
FAIR_VALUE_OF_FINANCIAL_INSTRU6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) (Nonrecurring [Member], USD $) | Sep. 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 | $91,382 | $21,916 |
Impaired loans, fair value | 893 | 225 |
Total assets at fair value | 92,275 | 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 | 36,674 | 6,850 |
Impaired loans, fair value | 893 | 225 |
Total assets at fair value | 37,567 | 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 | 54,708 | 15,066 |
Impaired loans, fair value | 0 | 0 |
Total assets at fair value | $54,708 | $15,066 |
FAIR_VALUE_OF_FINANCIAL_INSTRU7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Outputs) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 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 | $7,958 | ' | ' |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | $1,744,899,000 | [1] | $1,369,526,000 | [1] |
Loans receivable-related party | 4,172,000 | [1] | 6,966,000 | [1] |
Senior secured revolving credit agreement | 1,590,958,000 | 1,319,810,000 | ||
Loans, pledged as collateral, amount at fair value | 83,000,000 | 0 | ||
Borrowings, amount at fair value | 94,900,000 | 0 | ||
Carrying Amount [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
CDO notes | 1,213,852,000 | 1,070,339,000 | ||
Junior subordinated notes | 51,154,000 | 51,005,000 | ||
Repurchase agreements | 185,062,000 | 77,304,000 | ||
Senior secured revolving credit agreement | 32,911,000 | ' | ||
Estimate of Fair Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 1,730,763,000 | 1,358,434,000 | ||
Loans receivable-related party | 4,172,000 | 6,966,000 | ||
CDO notes | 1,131,145,000 | 653,617,000 | ||
Junior subordinated notes | 17,648,000 | 17,499,000 | ||
Repurchase agreements | 185,062,000 | 77,304,000 | ||
Senior secured revolving credit agreement | 32,911,000 | ' | ||
Level 1 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 0 | 0 | ||
Loans receivable-related party | 0 | 0 | ||
CDO notes | 0 | 0 | ||
Junior subordinated notes | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Senior secured revolving credit agreement | 0 | ' | ||
Level 2 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 632,815,000 | 545,352,000 | ||
Loans receivable-related party | 0 | 0 | ||
CDO notes | 1,131,145,000 | 653,617,000 | ||
Junior subordinated notes | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Senior secured revolving credit agreement | 0 | ' | ||
Level 3 [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 1,097,948,000 | 813,082,000 | ||
Loans receivable-related party | 4,172,000 | 6,966,000 | ||
CDO notes | 0 | 0 | ||
Junior subordinated notes | 17,648,000 | 17,499,000 | ||
Repurchase agreements | 185,062,000 | 77,304,000 | ||
Senior secured revolving credit agreement | 32,911,000 | ' | ||
Loans Receivable [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans held-for-investment | 89,200,000 | ' | ||
Loans, pledged as collateral, amount at fair value | 83,000,000 | ' | ||
Notes [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
CDO notes | 95,000,000 | ' | ||
Borrowings, amount at fair value | $92,500,000 | ' | ||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
MARKET_RISK_AND_DERIVATIVE_INS2
MARKET 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 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Derivative | Derivative | ||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | $201,887,000 | ' | $0 |
Fair value | ' | ' | ' | ' | 8,235,000 | 10,586,000 | ' |
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 | 124,739,000 | 129,500,000 | 130,785,000 |
Fair value | ' | ' | ' | ' | 8,200,000 | 10,600,000 | ' |
Unrealized losses on non-designated derivative instruments | ' | ' | ' | ' | 8,600,000 | 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% | ' | ' |
MARKET_RISK_AND_DERIVATIVE_INS3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2008 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Net realized gain on sales of investment securities available-for-sale and loans | Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Derivatives, at fair value [Member] | Interest rate lock agreements [Member] | Interest rate lock agreements [Member] | Interest rate lock agreements [Member] | Interest rate lock agreements [Member] | 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] | Forward sales commitments [Member] | Forward sales commitments [Member] | Forward sales commitments [Member] | Forward sales commitments [Member] | Forward contracts-foreign currency [Member] | Forward contracts-foreign currency [Member] | Forward contracts-foreign currency [Member] | Forward contracts-foreign currency [Member] | Forward contracts-foreign currency [Member] | Forward contracts-foreign currency [Member] | Forward contracts-foreign currency [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] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Interest rate swap contracts [Member] | Forward contracts-TBA securities [Member] | Forward contracts-TBA securities [Member] | Forward contracts-TBA securities [Member] | Forward contracts-TBA securities [Member] | Forward contracts-TBA securities [Member] | |||
Net realized gain on sales of investment securities available-for-sale and loans | Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Derivatives, at fair value [Member] | Net realized gain on sales of investment securities available-for-sale and loans | Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Derivatives, at fair value [Member] | Net realized gain on sales of investment securities available-for-sale and loans | Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Derivatives, at fair value [Member] | Interest expense [Member] | Interest expense [Member] | Derivatives, at fair value [Member] | Derivatives, at fair value [Member] | Accumulated other comprehensive loss [Member] | Accumulated other comprehensive loss [Member] | Net realized gain on sales of investment securities available-for-sale and loans | Derivatives, at fair value [Member] | Derivatives, at fair value [Member] | |||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Derivatives, Notional Amount | $201,887 | $0 | ' | ' | ' | ' | ' | $49,594 | $0 | ' | ' | ' | ' | ' | $31,000 | $0 | ' | ' | ' | ' | ' | $41,190 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | 18,273 | 0 | ' | ' | ' | 18,273 | 0 | ' | ' | ' | ' | ' | 1,136 | 0 | ' | ' | ' | ' | ' | 17 | 0 | ' | ' | ' | ' | ' | 2,192 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability Derivatives, Notional Amount | ' | ' | ' | ' | ' | ' | ' | 10,295 | 0 | ' | ' | ' | ' | ' | 70,500 | 0 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | 124,739 | 129,497 | ' | ' | ' | ' | ' | ' | ' | ' | 190,000 | 0 | ' | ' | ' |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | ' | ' | ' | 960 | 0 | ' | ' | ' | ' | ' | 733 | 0 | ' | ' | ' | ' | ' | -254 | 0 | ' | ' | ' | ' | ' | 2,192 | 0 | ' | ' | ' | ' | ' | ' | 4,917 | 5,118 | ' | ' | ' | ' | ' | ' | -280 | ' | ' |
Derivative, Notional Amount | 201,887 | ' | 0 | ' | ' | ' | ' | 59,889 | ' | 0 | ' | ' | ' | ' | 101,500 | ' | 0 | ' | ' | ' | ' | 41,190 | ' | 0 | ' | ' | ' | ' | 124,739 | 129,500 | 130,785 | 45,000 | ' | ' | ' | ' | ' | ' | 190,000 | ' | ' | ' | ' |
Liability Derivatives, Fair Value | 8,235 | 10,586 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116 | 0 | ' | ' | ' | ' | ' | 271 | 0 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | 8,235 | 10,586 | ' | ' | ' | ' | ' | 208 | 0 |
Liability Derivatives, Accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($8,600) | ($10,800) | ' | ' | ' | ' | ' | ' | $8,235 | $10,586 | ' | ' | ' | ' | ' |
MARKET_RISK_AND_DERIVATIVE_INS4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Summary of Linked Transactions) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | $14,272 | [1] | ' | $14,272 | [1] | ' | $30,066 | [1] |
Unrealized gains (losses) and net interest income on linked transactions, net | 177 | 1,161 | 7,494 | -4,343 | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 271,060 | ' | 271,060 | ' | 218,470 | |||
Fair Value | ' | ' | ' | ' | ' | |||
Less than one year | 50,160 | ' | 50,160 | ' | 39,256 | |||
Greater than one year and less than five years | 142,079 | ' | 142,079 | ' | 139,700 | |||
Greater than five years and less than ten years | 44,913 | ' | 44,913 | ' | 26,526 | |||
Greater than ten years | 43,866 | ' | 43,866 | ' | 9,724 | |||
Amortized Cost | ' | ' | ' | ' | ' | |||
Less than one year | 56,395 | ' | 56,395 | ' | 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 | 38,301 | ' | 38,301 | ' | 25,707 | |||
Greater than ten years | 43,266 | ' | 43,266 | ' | 10,072 | |||
Total | 271,060 | ' | 271,060 | ' | 218,470 | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' | ' | ' | |||
Fair Value, less than 12 months | 51,064 | ' | 51,064 | ' | 53,020 | |||
Unrealized Losses, less than 12 months | -1,852 | ' | -1,852 | ' | -7,567 | |||
Fair value, more than 12 months | 31,475 | ' | 31,475 | ' | 20,851 | |||
Gross unrealized losses, more than 12 Months | -7,117 | ' | -7,117 | ' | -4,927 | |||
Fair value, total | 82,539 | ' | 82,539 | ' | 73,871 | |||
Unrealized losses, total | -8,969 | ' | -8,969 | ' | -12,494 | |||
Linked Transactions [Member] | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | 43,867 | ' | 43,867 | ' | 93,823 | |||
Components of Unrealized Net Gains and Net Interest Income from Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Interest income attributable to CMBS underlying linked transactions | 495 | 801 | 2,295 | 2,005 | ' | |||
Interest expense attributable to linked repurchase agreement borrowings underlying linked transactions | -107 | -201 | -514 | -524 | ' | |||
Change in fair value of linked transactions included in earnings | -211 | 561 | 5,713 | -5,824 | ' | |||
Unrealized net (losses) gains and net interest income from linked transactions | 177 | 1,161 | 7,494 | -4,343 | ' | |||
Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 43,303 | ' | 43,303 | ' | 99,493 | |||
CMBS linked transactions, Unrealized Gains | 650 | ' | 650 | ' | 446 | |||
CMBS linked transactions, Unrealized Losses | -86 | ' | -86 | ' | -6,116 | |||
Total | 43,867 | ' | 43,867 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Less than one year | 5,090 | ' | 5,090 | ' | 540 | |||
Greater than one year and less than five years | 34,438 | ' | 34,438 | ' | 26,120 | |||
Greater than five years and less than ten years | 4,339 | ' | 4,339 | ' | 53,688 | |||
Greater than ten years | 0 | ' | 0 | ' | 13,475 | |||
Total | 43,867 | ' | 43,867 | ' | ' | |||
Amortized Cost | ' | ' | ' | ' | ' | |||
Less than one year | 5,012 | ' | 5,012 | ' | 540 | |||
Greater than one year and less than five years | 34,041 | ' | 34,041 | ' | 26,516 | |||
Greater than five years and less than ten years | 4,250 | ' | 4,250 | ' | 57,282 | |||
Greater than ten years | 0 | ' | 0 | ' | 15,155 | |||
Total | 43,303 | ' | 43,303 | ' | 99,493 | |||
Weighted Average Coupon | ' | ' | ' | ' | ' | |||
Less than one year | 5.33% | ' | 5.33% | ' | 5.58% | |||
Greater than one year and less than five years | 5.37% | ' | 5.37% | ' | 5.32% | |||
Greater than five years and less than ten years | 4.25% | ' | 4.25% | ' | 3.35% | |||
Greater than ten years | 0.00% | ' | 0.00% | ' | 3.34% | |||
Total | 5.25% | ' | 5.25% | ' | 3.84% | |||
Linked Transactions, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' | ' | ' | |||
Fair Value, less than 12 months | 12,368 | ' | 12,368 | ' | 70,727 | |||
Unrealized Losses, less than 12 months | -55 | ' | -55 | ' | -5,198 | |||
Fair value, more than 12 months | 762 | ' | 762 | ' | 9,318 | |||
Gross unrealized losses, more than 12 Months | -31 | ' | -31 | ' | -918 | |||
Fair value, total | 13,130 | ' | 13,130 | ' | 80,045 | |||
Unrealized losses, total | -86 | ' | -86 | ' | -6,116 | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 93,823 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -52,300 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
Paydowns | ' | ' | -498 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 2,842 | ' | ' | |||
Fair Value at end of period | 43,867 | ' | 43,867 | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, Balance | 29,729 | ' | 29,729 | ' | 64,094 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.48% | ' | 1.48% | ' | 1.25% | |||
Linked Transactions [Member] | CMBS [Member] | Within 30 days [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Repurchase Agreements [Abstract] | ' | ' | ' | ' | ' | |||
CMBS Linked repurchase agreement, Balance | 29,729 | ' | 29,729 | ' | 64,094 | |||
CMBS Linked repurchase agreement, Weighted Average Interest Rate | 1.48% | ' | 1.48% | ' | 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 | ' | ' | 7,494 | -4,343 | ' | |||
Not Designated as Hedging Instrument [Member] | Linked Transactions, Net at Fair Value [Member] | ' | ' | ' | ' | ' | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | |||
Linked transactions, net at fair value | 14,272 | ' | 14,272 | ' | 30,066 | |||
S&P Rating, AAA [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 6,736 | ' | 6,736 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 6,736 | ' | 6,736 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 17,642 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -9,773 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
Paydowns | ' | ' | -498 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | -635 | ' | ' | |||
Fair Value at end of period | 6,736 | ' | 6,736 | ' | ' | |||
S&P Rating, BBB Plus through BBB Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 11,130 | ' | 11,130 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 11,130 | ' | 11,130 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 9,953 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 0 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 1,042 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 135 | ' | ' | |||
Fair Value at end of period | 11,130 | ' | 11,130 | ' | ' | |||
S&P Rating, BB Plus through BB Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 7,684 | ' | 7,684 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 7,684 | ' | 7,684 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 2,865 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 99 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 4,458 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 262 | ' | ' | |||
Fair Value at end of period | 7,684 | ' | 7,684 | ' | ' | |||
S&P Rating, B Plus through B Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 14,758 | ' | 14,758 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 14,758 | ' | 14,758 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 19,619 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -99 | ' | ' | |||
Upgrades/Downgrades | ' | ' | -5,500 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 738 | ' | ' | |||
Fair Value at end of period | 14,758 | ' | 14,758 | ' | ' | |||
Standard & Poor's, CCC Plus through CCC Minus [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 2,797 | ' | 2,797 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 2,797 | ' | 2,797 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 0 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 2,797 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 0 | ' | ' | |||
Fair Value at end of period | 2,797 | ' | 2,797 | ' | ' | |||
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) | ' | ' | -45,324 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 2,342 | ' | ' | |||
Fair Value at end of period | 762 | ' | 762 | ' | ' | |||
Moody's Rating, Aaa [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 7,498 | ' | 7,498 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 7,498 | ' | 7,498 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 26,682 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -18,704 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
Paydowns | ' | ' | -498 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 18 | ' | ' | |||
Fair Value at end of period | 7,498 | ' | 7,498 | ' | ' | |||
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 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on 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 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on 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 | 6,542 | ' | 6,542 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 6,542 | ' | 6,542 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 6,473 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 0 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 69 | ' | ' | |||
Fair Value at end of period | 6,542 | ' | 6,542 | ' | ' | |||
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 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on 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 | 16,021 | ' | 16,021 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 16,021 | ' | 16,021 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 12,155 | ' | ' | |||
Net Purchase (Sales) | ' | ' | 3,122 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 744 | ' | ' | |||
Fair Value at end of period | 16,021 | ' | 16,021 | ' | ' | |||
Moody's Rating, Non-Rated [Member] | Linked Transactions [Member] | CMBS [Member] | ' | ' | ' | ' | ' | |||
CMBS Linked Transactions [Abstract] | ' | ' | ' | ' | ' | |||
Total | 13,806 | ' | 13,806 | ' | ' | |||
Fair Value | ' | ' | ' | ' | ' | |||
Total | 13,806 | ' | 13,806 | ' | ' | |||
CMBS Linked Transactions [Roll Forward] | ' | ' | ' | ' | ' | |||
Fair Value at beginning of period | ' | ' | 29,284 | ' | ' | |||
Net Purchase (Sales) | ' | ' | -16,361 | ' | ' | |||
Upgrades/Downgrades | ' | ' | 0 | ' | ' | |||
MTM Change on Same Ratings | ' | ' | 883 | ' | ' | |||
Fair Value at end of period | $13,806 | ' | $13,806 | ' | ' | |||
[1] | September 30, 2014December 31, 2013Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: Restricted cash$80,633 $61,372 Investment securities available-for-sale, pledged as collateral, at fair value110,376 105,846 Loans held for sale36,674 2,376Loans, pledged as collateral and net of allowances of $4.0 million and $8.8 million (of which $83.0 million and $0 at fair value)1,405,788 1,219,569 Interest receivable8,066 5,627 Prepaid expenses217 247 Principal paydown receivable34,100 6,821 Other assets(12) — Total assets of consolidated VIEs$1,675,842 $1,401,858 |
OFFSETTING_OF_FINANCIAL_ASSETS2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Offsetting Derivative Assets [Abstract] | ' | ' |
Gross Amounts of Recognized Assets | $18,273,000 | $0 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets | 18,273,000 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 18,273,000 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Assets | ' | ' |
Gross Amounts of Recognized Assets | 18,273,000 | 0 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Included in the Consolidated Balance Sheets-Total | 18,273,000 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 18,273,000 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Offsetting Derivative Liabilities [Abstract] | ' | ' |
Gross Amounts of Recognized Liabilities | 8,235,000 | 10,586,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 8,235,000 | 10,586,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 500,000 | 500,000 |
Net Amount | 7,735,000 | 10,086,000 |
Repurchase agreements | ' | ' |
Gross Amounts of Recognized Liabilities | 185,062,000 | 91,931,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 185,062,000 | 91,931,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 185,062,000 | 91,931,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Total-Liabilities | ' | ' |
Gross Amounts Offset in the Consolidated Balance Sheets | 193,297,000 | 102,517,000 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included in the Consolidated Balance Sheets | 193,297,000 | 102,517,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Financial Instruments | 185,062,000 | 91,931,000 |
Gross Amounts Not Offset in the Consolidated Balance Sheets- Cash Collateral Pledged | 500,000 | 500,000 |
Net Amount | 7,735,000 | 10,086,000 |
Fair value of securities pledged against repurchase agreements | 253,800,000 | 121,600,000 |
Fair value of securities pledged against swaps | $2,600,000 | $3,500,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Oct. 30, 2014 | Nov. 10, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Oct. 30, 2014 |
Line of Credit [Member] | Preferred Stock [Member] | Redeemable Preferred Stock Series B [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Preferred Stock [Member] | Preferred Stock [Member] | |
Line of Credit [Member] | Redeemable Preferred Stock Series B [Member] | Common Stock [Member] | Common Stock [Member] | Redeemable Preferred Stock Series B [Member] | Subsequent Event [Member] | ||||
Redeemable Preferred Stock Series B [Member] | |||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of preferred stock | ' | $156,723,000 | ' | ' | $2,700,000 | ' | ' | $2,000 | ' |
Stock issued during period, shares, new issues | ' | ' | 123,201 | ' | ' | ' | ' | ' | 118,351 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | 1,350,000 | ' | ' | ' |
Payments for Repurchase of Common Stock | ' | ' | ' | ' | ' | 6,700,000 | ' | ' | ' |
Line of credit facility, increase borrowing capacity | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 250,000,000 | ' | ' | 400,000,000 | ' | ' | ' | ' | ' |
Closing transaction amount | ' | ' | ' | $1,600,000 | ' | ' | ' | ' | ' |